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Leaders Merchant Services: Concerning Reviews Raise Alarms

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Maintained Since: April 2, 2012

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Leaders Merchant Services
Rating
F
1/5
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Pros

Numerous payment options
Modern tech

Cons

Reported hidden fees
Unexpected fees possible
Difficult cancellation process
Cancellation fees possible
Sales and marketing complaints

Overview

Leaders Merchant Services, a California-based credit card processor, is under growing scrutiny amid mounting customer complaints, legal disputes, and a sharp decline in public trust. This report investigates the company’s business practices, internal culture, and industry standing as it navigates a deepening reputational crisis.

Drawing on firsthand accounts from clients and employees, we examine recurring grievances, including unexpected fees, aggressive sales tactics, and contract disputes that paint a picture of operational friction and dissatisfaction. We also explore how the company presents itself online, comparing its marketing narratives to the ratings and feedback posted across consumer review platforms.

Central to Leaders’ product lineup is its resale of the Clover point-of-sale system. We assess the company’s hardware and mobile payment solutions, and how they stack up against competitors in an increasingly crowded market.

Finally, we place Leaders Merchant Services within the broader landscape of payment processing. By evaluating its positioning, business practices, and ethical red flags, this report aims to help business owners determine whether Leaders is a processor worth trusting, or one to approach with caution.

Listen to this episode about Leaders Merchant Services

About Leaders Merchant Services

Screen Capture of Leaders Merchant Services Homepage
Leaders Merchant Services Homepage

Established in 2000, Leaders Merchant Services is a merchant account provider that serves businesses of most sizes. The company specializes in retail credit card processing and e-commerce merchant accounts. Leaders was acquired by iPayment (now Paysafe Group) in November 2017. The company is primarily a reseller of Fiserv card processing services and hardware.

As a subsidiary under the umbrella of Paysafe Group, Leaders is among several brands operated by PaySafe, most of which have poor reputations. These brands include:

  • Flagship Merchant Services
  • Openbucks Corp.
  • Paysafe Merchant Services Corp.
  • Paysafe Direct LLC
  • Paysafecard.com USA Inc.
  • Paysafe Payment Processing Solutions LLC
  • Paysafe Capital, LLC
  • Skrill USA

Possible Fabricated Reputation Management

There are numerous “merchant account review” websites that list Leaders Merchant Services and other Paysafe subsidiaries as industry-leading credit card processors and “best” picks. These websites appear to be owned by, or heavily influenced by, Paysafe or possibly under the control of Paysafe’s Canadian subsidiary IA Digital Marketing Inc.

It appears that Paysafe may also be buying “top ratings” for Leaders Merchant Services on other “pay-to-play review” websites wherein top rankings are sold to the highest bidders, often without disclosure of such activities. Most of these websites appear to saturate the “sponsored” results at the top and bottom of search results pages when researching Paysafe subsidiaries and competitors. The following websites appear to be owned or heavily influenced by Leaders Merchant Services or Paysafe, or offer pay-to-play rankings:

Possible Fake Review Marketing Channels:

  • thetop10sites.com
  • idealcomparison.com
  • top10.com
  • best10creditcardprocessing.com
  • compareguroo.com
  • toppaymentprocessing.com
  • best-ccp.com
  • comparisun.com
  • websiteplanet.com
  • topcreditcardprocessors.com
  • sonary.com

YouTube Spamming Alleged

Leaders Merchant Services seems to be flooding YouTube with positive reviews through a channel called “Consumer Research Studios” as well as others. While the channel is likely not directly owned by Leaders, it only posts favorable reviews for companies that pay compensation. It is also possible that the channel accepts payments to specifically create positive reviews, though we have not confirmed this as of this update.

Products & Merchant Services

Leaders Merchant Services markets a broad range of payment solutions, with a strong emphasis on Clover POS as its flagship POS system. The Clover lineup includes mobile readers, countertop terminals, and full retail systems, designed to cover most retail processing needs. However, buyers should be aware that all Clover hardware is restricted to use with Fiserv merchant accounts.

Beyond traditional POS setups, Leaders supports a variety of payment acceptance methods. This includes major credit and debit cards, eChecks, and mobile wallet options like Apple Pay and Google Wallet. The company also provides mobile card readers and app-based solutions aimed at businesses operating outside of fixed retail environments.

For e-commerce merchants, Leaders offers virtual terminals, payment gateway integration, and recurring billing functionality.

Customer Reviews & Sentiment

Concerning Complaint Volume

Since its initial publication in April 2012, this review has drawn more than 200 user comments which are now archived on our partner site, PaymentPop.com, which specializes in collecting payment service user reviews. The overwhelming majority of user reviews reflect negative experiences with Leaders Merchant Services.

In addition, over 100 complaints have been recorded across multiple consumer protection platforms. Common themes include allegations of business owners discovering hidden fees, misleading rate structures, difficulty reaching customer support, unauthorized withdrawals, and withheld funds without notice. In our experience, the volume of complaints is significant, even for a large processor, and warrant careful consideration if considering the company for services.

Industry Scores & User Ratings

Online Ratings Summary
PaymentPop1
BBB Rating1
TrustPilot Rating1.5
Google Maps2.6
ConsumerAffairs Rating1
Yelp1.2
Average Rating1.46

PaymentPop Rating for Leaders Merchant Services

Negative Feedback

I was in retail for 20yrs. Years later I started a service business. Wasn’t going to use leader but had inquired. Salesman called made some good promises. After using leaders I find out they are worst cc company I have ever used. After two weeks of my first charge I still haven’t seen my money. Had to jump through hoops to say they will pay. Never use Merchant leaders or any company associated with pay safe

Positive Feedback

There are no positive reviews published about Leaders Merchant Services on the PaymentPop website.

Leaders Merchant Services BBB Rating

Leaders Merchant Services is accredited by the Better Business Bureau (BBB) and holds an A+ rating. However, as of our previous update to this article, customer reviews on the BBB website gave an average rating of 1 out of 5 stars, based on 21 reviews. There were 51 complaints closed in the previous three years. A common theme in the reviews and complaints included issues with billing and collection, as well as dissatisfaction with customer service. The BBB appears to have removed this information between our previous update and this writing.

Readers should be aware that the BBB is not a government agency and has been allegedly caught several times inflating ratings and removing negative content about companies that pay to join its “accreditation” program.

Negative Feedback

Immediate issues logging into my account on the 1st day. Immediate issues contacting customer service, on the 1st day. Immediate past due invoices, on the 1st day. I am the owner of my business but I have no permissions to access an account that I JUST created. 0 stars for this company.

Positive Feedback

There are no positive reviews published about Leaders Merchant Services on the BBB website.

Trustpilot Rating for Leaders Merchant Services

Leaders Merchant Services has an average customer review rating of 1.4 out of 5 stars on Trustpilot, based on 24 customer reviews. The reviews indicate a general dissatisfaction among customers, with common complaints about funds being held, poor customer service, and issues with account management.

Negative Feedback

Horrible company, avoid at all cost. They fail to complete PCI compliance when setting up the account and then don’t tell you about it so that you end up with extra fees and costs, customer service is a laughable joke at best if you can get a hold of them. Fees are a complete lie and you won’t be able to get a full breakdown of what they’re trying to charge you. When I first signed up they were super helpful sweet talking you in to good prices and good percents and then 30 to 60 days later you can’t get any service the monthly fee goes from $25 to over $100 with no explanation and no breakdown.

Positive Feedback

Great customer service. highly recommend.

Google Maps Rating for Leaders Merchants Services

Leaders Merchants Services has a 2.6 out of 5 star rating based on 515 user reviews on Google Maps.

Positive Feedback

Great customer support from day one. I switched from Square because they stated keeping my money. They owe me about 13,000 dollars.After a Google search, which rated Leaders as number one in the industry, I dropped Square and enrolled with Leaders. A very positive experience.

Negative Feedback

Worst credit card company they have all these hidden fees and high cancellation fees told me they would match or beat any other offer I had or could cancel for free nope they want to charge me over 1000.00 to cancel

ConsumerAffairs Rating for Leaders Merchant Services

Leaders Merchant Services has a 1 out of 5 star rating based on 179 user reviews on ConsumerAffairs.

Negative Feedback

This is without a doubt the worst company I have ever dealt with. From the start, their practices are filled with deception and lies. The salesman gave me false information about the pricing for the way I was going to use the system as a merchant, neglecting to give me all the facts and downright lying about the fees. After making some sales I was then docked more than what I was told, and then they flat out refused to do anything about it. Their customer service is the worst in existence, it takes 30-45 minutes to get through and they never return calls. All they are interested in doing is stealing your money. And no one speaks english. You have been warned.

Positive Feedback

If you are looking for a merchant service provider and you want to save your money I would recommend Leaders. Very affordable option for a startup business! Of course I did my research beforehand and I am happy I did. I no longer have to struggle through each transaction for my customers. The POS system provided has saved me so much time and headache! Great work guys!

Yelp Rating for Leaders Merchant Services

Leaders Merchant Services has a 1.2 out of 5 star rating based on 157 user reviews on Yelp.

Positive Feedback

Not much of a leave a review type of person but, Leaders Merchant Services has been amazing! They’ve must have wiped out all the bad sales people (called about a year ago) because my sales guy was so nice this time. Told him, I’ve been having the hardest time trying to find a good merchant service company and that they all lie and I can’t afford to get ripped off. He explained how they work (which no other company I’ve called has done), the process of signing up, and what device would work best for me. It felt like a friendly conversation. After sleeping on it, I signed up with Leaders Merchant Services that very next morning

Negative Feedback

watch out. they will not agree that you cancelled and charge you fees indefinitely whether you ever use the merchant account or not. this is an offshore company.

Processing Rates & Fees

Contract Terms and Pricing Discrepancies

A merchant account agreement we obtained reveals that Leaders Merchant Services typically locks clients into a three-year contract, with early termination fees ranging from $350 if canceled within the first year to $250 thereafter. However, these fees are just one part of a broader pattern of inconsistent and sometimes opaque pricing.

Former clients frequently report a variety of additional charges, including $25 monthly minimums, statement fees, PCI compliance costs, and other vaguely labeled service fees. More troubling are the discrepancies between quoted and actual transaction rates. While the company advertises competitive pricing, many customers say the final costs are significantly higher than expected.

One key reason for this variation is the company’s reliance on a network of independent sales agents. These agents are typically paid commissions and are incentivized to secure the highest possible rates. As a result, pricing can vary widely from one business to another, with contract terms often negotiated on the fly. This decentralized model opens the door to inconsistent disclosures, a point that has contributed to the company receiving a low rating in this review

Equipment Leasing and Legal Disputes

Leaders Merchant Services markets a range of processing solutions, including Clover POS systems. However, the company’s website remains vague about whether these devices are available for purchase or lease. This ambiguity became a flashpoint in a 2021 lawsuit over equipment leasing practices, an issue that has dogged the industry more broadly and resulting in heavy crackdowns by several states. Given that credit card terminals can often be purchased outright for under $500, business owners are frequently advised to avoid leasing arrangements that may include hidden fees or long-term obligations.

Can You Negotiate a Better Deal?

Despite the risks, not all terms are set in stone. Because sales agents control much of the pricing, business owners may be able to negotiate more favorable rates. Still, many complain of unclear communication and difficulty getting firm answers before signing. For entrepreneurs seeking transparent pricing and reliable service, it’s worth comparing providers. Our analysis of the best merchant account providers offers a data-driven look at how Leaders stacks up against the competition.

Lawsuits & Legal History

Leaders Merchant Services has faced several lawsuits which have raised questions about the company’s business practices within the payment processing industry.

  1. Sean Jeffrey Wolfe vs. Brandon Wolfe et al.
    • Filed: October 6, 2021
    • Court: Los Angeles County Superior Court
    • Details: Sean Jeffrey Wolfe, a former CEO and founder of LMS, filed a lawsuit against his brother Brandon Wolfe and their father Michael Wolfe, alleging unlawful ousting and misappropriation of assets. The case centers on claims that they dissipated millions from his ownership interest in LMS following its sale to iPayment. The lawsuit includes several allegations of interference and seeks to resolve disputes over the management and financial dealings of the company.
  2. United Reporting, Inc. v. Leaders Merchant Services, LLC et al.
    • Filed: October 10, 2023
    • Court: U.S. District Court for the Southern District of Florida
    • Details: This case involves United Reporting, Inc. suing LMS along with several other entities for breach of contract under diversity jurisdiction. The specifics of the contract dispute have not been released and the case was dismissed without prejudice in December of 2023.
  3. California District Attorney’s Office Settlement
    • Date Announced: July 9, 2021
    • Details: LMS settled a civil action with the Ventura County District Attorney’s Office for over $2 million due to allegations of unfair competition and misleading advertising practices. The settlement included a permanent injunction against future violations and required LMS to pay significant penalties and restitution to affected customers without admitting guilt.

Employee Reviews & Sales Practices

Scrutiny Drawn Over Sales Practices

Leaders Merchant Services appears to rely heavily on a combination of telemarketing and independent sales agents to drive new business, a model that has drawn increasing scrutiny from experts and business owners. While the company likely supplements these efforts with in-house sales teams and traditional advertising, the majority of complaints, both on this site and across consumer forums, point to poor experiences with third-party agents and telemarketers.

Dozens of merchants have alleged aggressive tactics and a lack of fee transparency during the onboarding process. The most persistent concern, however, centers on the company’s use of misleading rate quotes; both in verbal sales pitches and in official marketing materials. These practices have sparked allegations of bait-and-switch pricing and contract terms that differ significantly from initial promises.

Compared to industry leaders known for straightforward pricing and transparent agreements, Leaders Merchant Services falls short.

Leaders Merchant Services Competitors

Compare Leaders Merchant Services to competitors that earned top marks.

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Bottom Line

Though Leaders Merchant Services markets itself as a low-cost, high-performance payment processing provider, customer reviews paint a more complicated picture. Business owners have reported an array of issues, including undisclosed fees, lengthy contract terms, steep early termination penalties, and inconsistent customer support.

At the core of many grievances are allegations of misleading pricing structures and fine print that diverges from initial sales representations. These concerns have become frequent enough to warrant caution among prospective clients.

While the company may still serve the needs of some merchants, its track record suggests that a thorough review of contract terms, and comparison with more transparent competitors, is not only prudent, but necessary.

Read Actual User Reviews

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All user reviews have been moved to our partner, PaymentPop.com

Contact Leaders Merchant Services

Contact & Customer Support
Director of Sales OperationsWilliam Teleau
Address30721 Russell Ranch Rd Ste 200, Westlake Village, CA 91362
Toll-Free General Customer Service(866) 436-5589
Websiteleadersmerchantservices.com