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IRN Payment Systems Review
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Updated 1/30/2019: The IRN Payment Systems website appears to have been inactive since May 2016, and it seems likely that the IRN Payment Systems brand is no longer active. There is some evidence that the company’s owners have founded a new credit card processing company named ePayment Services, but we are unable to locate any information about ePayment Services at this time. If you have any knowledge of the current status of IRN Payment Systems (including any DBAs or rebrandings), please share that information in the comment section below this review.
IRN Payment Systems (irnpayment.com) is a small merchant account provider located in Westbury, New York, that claims to have been in business since 1988. Merchant reports commonly link “IRN Payment Systems” or “IRN Payments” with a company called “National Bureau of Merchant Services” (NBMS). On April 9, 2014, we were contacted by Jennifer Portillo, a representative of a company called Internal Resource Network. She stated that Internal Resource Network and the National Bureau of Merchant Services are two separate companies, that Internal Resource Network is not owned by Michael or Suzanne Salman (the owners of NBMS), and that Internal Resource Network is based in New York. It is possible that the IRN Payment Systems described in this review is a different company than the Internal Resource Network represented by Jennifer Portillo, but both companies are based in New York and have been linked to NBMS in merchant complaints.
In any case, numerous online complaints and other consumer protection websites posit some kind of link between NBMS and Internal Resource Network, so the exact relationship between the two companies remains unclear at this time. It is also unclear whether and to what extent Internal Resource Network and IRN Payment Systems are related. A representative of NBMS has posted in the comment section of this review stating that NBMS formerly had a business relationship with “IRN Payments,” but since there are no payment processing companies by the name of IRN Payments, it’s hard to know which company this representative was referring to. In general, it has been exceedingly difficult to obtain any clear explanation of the relationships that may or may not exist between these entities. This review has therefore been written under the assumption that IRN Payment Systems is not the same company as Internal Resource Network, but that both IRN Payment Systems and Internal Resource Network are presently or formerly affiliated with NBMS.
In June 2014, IRN Payment Systems settled with the Federal Trade Commission for more than $1 million following charges that the company knowingly assisted a credit card interest rate reduction scam that ripped off consumers for more than $10 million.
IRN Payment Systems appears to be an ISO/MSP of either First California Bank of Westlake Village, California, or Bancorp Bank of Wilmington, Delaware. Amedeo Sgueglia is listed as the president of IRN Payment Systems.
IRN Payment Systems Customer Reviews
Here's What Their Clients Say
|Total Online Complaints||40 Plus|
|Live Customer Support||Yes|
|Most Common Complaint||Hidden Fees|
There are currently over 40 IRN Payment Systems complaints online, and another 30 name both IRN and NBMS. IRN Payment Systems earns a low grade in this section not because of the number of complaints but because of the content of the complaints, most of which can be found in the comment section below. Nearly all of the complaints we located were posted in 2011 or later. There are almost no complaints filed publicly before 2011. Several of the complaints report cancellation fees that cost $1,000 or more. One merchant reported that he was told that if he retracted his complaint and announced that IRN is refunding his cancellation fee that they would refund it. The merchant then retracted the complaint and a few months later reported that IRN still had not refunded the fee.
The company’s executive vice president of operations claims that these are isolated incidents and that IRN rarely enforces such high cancellation fees. It should be noted IRN’s contract gives its agents the ability to enforce a Liquidated Damages claim if they choose to do so, which is a large factor lowering the company’s score in the contract section of this review. We consider a Liquidated Damages cancellation clause to be a deceptive “fine print” marketing tactic because it is easily missed by both seasoned and inexperienced merchants, and allows providers to charge exorbitant cancellation fees.
Several merchants also reported that an IRN representative quoted much lower fees to get them to switch, only to find that their fees were much higher than their original provider once they began processing. Additionally, others claimed to be charged high monthly fees for equipment. In nearly all reviews, merchants reported poor customer support that was difficult to reach.
We will continue to monitor IRN’s complaints and policy changes and update this review accordingly.
IRN Payment Systems Online Ratings
Here's How They Rate Online
|Product & Service Complaints||8|
|Billing & Collection Complaints||12|
|Advertising & Sales Complaints||2|
|Guarantee & Warranty Complaints||0|
IRN Payments Systems is not accredited with the Better Business Bureau. As of this review, the BBB is reporting an “F” rating with 22 complaints filed in the last 36 months. Of these complaints, all but two are regarding service or billing issues, and only four were satisfactorily resolved. Four complaints received no response whatsoever from IRN. The company also has one negative review posted to its BBB profile, although it should be noted that these reviews are not subject to verification by the BBB.
The BBB has also included a notice regarding a June 2014 FTC settlement in which IRN Payment Systems forfeited $1.1 million for “knowingly assist[ing] and facilitat[ing] a credit card interest rate reduction scam that bilked tens of thousands of consumers out of a total of nearly $10 million.” IRN did not conduct the telemarketing scam in this settlement, but it did process payments for the scammers. Based on IRN’s complaint count, resolution ratio, and FTC proceedings, we agree with the BBB’s rating.
IRN Payment Systems Fees, Rates & Costs
A Closer Look at The Contract
|Early Termination Fee||$295 Plus|
|PCI Compliance Fee||Variable|
|Equipment Lease Terms||Variable|
A few dissatisfied merchants have reported that IRN Payment Systems has a 4-year auto-renewing contract with a cancellation fee of around $1000; however, we were contacted by James Marchese (IRN’s Executive Vice President) who stated that the agreement is a one year auto-renewing term with a Liquidated Damages cancellation fee. Marchese also claimed that the company rarely enforces the full cancellation fee and that terms are negotiable prior to account setup. Other merchant reviews have reported early termination fees ranging from $400 to over $2,000 that are automatically deducted from a merchant’s attached checking account. If you have experienced a cancellation fee with IRN, please leave a review in the comment section below letting us know how much you were charged.
Aside from the cancellation fee, a few merchants reported receiving higher-than-quoted processing rates and monthly fees, as well as broken promises that another provider’s cancellation fee would be reimbursed if the merchant switched to IRN. It is undetermined whether the company charges an annual or monthly PCI Compliance Fee. Please let us know if you have experienced such a fee.
IRN Payment Systems Employee Reviews & Sales Tacitcs
Should You Work For Them?
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||No|
The IRN Payment Systems website does not appear to use any misleading advertising; however, the National Bureau of Merchant Services is currently operating one of the most deceptive websites in the industry. NBMS, which also refers to itself as the Merchant Services Bureau, is an organization that appears to present itself as some kind of consumer protection agency, going so far as to offer a seal of approval to “qualified” merchant services providers and use a “.org” domain. Interestingly, the only website we have located with the NBMS seal of approval is the Internal Resource Network website (internalresourcenetwork.com). NBMS’s claim that it is not a merchant services provider is directly contradicted by merchant complaints, and IRN Payment System’s apparent association with the company is greatly responsible for its low grade in this category.
Setting aside the NBMS connection, however, there are dozens of negative reviews in the comment section below that cite deceptive sales tactics by IRN Payment Systems sales agents. It appears that the company hires independently contracted agents, a strategy that often leads to merchant grievances. Merchants specifically cite nondisclosure of the company’s cancellation fee and deceptively quoted rates.
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