Merchant Industry Review

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Merchant Industry LLC Logo

Merchant Industry

Last Updated: February 11, 2014
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Merchant Industry Overview

Merchant Industry LLC Logo

Merchant Industry LLC Logo

Merchant Industry, LLC (, is a merchant account provider founded in 2007 that specializes in providing credit card processing and debit card processing services to small businesses within the United States. The company also appears to do business under the name “National E-Payment, Inc.” and possibly resells the merchant services of First Data. Aside from providing merchant accounts, Merchant Industry also offers other financial services including merchant cash advances, gift card programs, check services, e-commerce solutions, ATMs, and equipment leasing. Additionally, Merchant Industry also promotes that it offers web design and high-risk credit card processing. Merchant Industry LLC is a registered ISO/MSP of First National Bank of Omaha of Omaha, NE and Wells Fargo Bank, N.A. of Walnut Creek, California, with corporate offices located at 36-36 33rd St., Suite 306, Long Island City, New York, 11106.

Merchant Industry Sales & Marketing Tactics | C-

Merchant Industry appears to rely on numerous sub-ISOs and independent sales agents to market its services. There is evidence that the company operates under multiple business names and allows its resellers to use the Merchant Industry name at their various locations, which appears to cause some merchant confusion. We are currently able to locate numerous Merchant Industry negative reviews that describe nondisclosure and misrepresentation by the company’s sales agents, higher fees than were agreed to upon signup, and failure by the company’s sales team to deliver on promises made upon signing. One major issue appears to be multiple agents claiming to pay a merchant’s early termination fees and cancel their account with their existing processor if they switch over to Merchant Industry. In many cases, these agents do not follow through on either guarantee, leaving their clients subject to continuing monthly payments and the full early termination fee upon cancellation.

At the time of our previous review, the Merchant Industry website included multiple tables and charts advertising various rates and fees. In all cases, the only discount rate advertised by the company was its “Qualified” rate, while the higher “Mid-Qualified” and “Non-Qualified” rates were nowhere to be found. We consider this type of rate quoting to be deceptive, as it may lead merchants to have unrealistic expectations of the rates they will pay. In addition, Merchant Industry used to list many types of fees common to the industry and claim that while it’s average for merchant services providers to charge all of these fees, Merchant Industry does not charge them (or charges them at a reduced price).

Since that update, it seems that Merchant Industry has removed all of this information from its website, and the pages where it used to reside no longer exist (although they are still linked to). Merchants should be aware that while there is no current evidence of misquoted rates on the company’s website, it’s possible that these tables and images may reappear in time. Overall, Merchant Industry’s sales structure and official advertising materials appear to lend themselves to deceptive practices and should be regarded with skepticism in most cases.

[Related: Get quotes from a provider with “A” rated sales practices]

Merchant Industry Costs & Contract Terms | D

According to multiple merchant complaints, the standard Merchant Industry contract is a three-year agreement through First Data with early termination fees usually around $495-$595 but sometimes in excess of $700, PCI Compliance fees of $79 per year, PCI non-compliance fees of $19.95 per month, an annual fee of up to $99.95, statement fees of $9.95, and expensive tiered pricing. The company also provides equipment leases that may carry their own terms and fees. As of this update, there are numerous merchant complaints filed against Merchant Industry and its subsidiaries that express frustration with the company’s undisclosed costs, specifically its early termination fees and PCI Compliance fees. The company appears to enforce these charges even when they may have been deceptively presented by sales agents. Although these expenses are higher than industry averages, the company might not score so poorly in this section if these costs were more consistently disclosed to merchants upon signup.

Merchant Industry Complaints & Service | C-

We are currently able to locate over 25 Merchant Industry negative reviews, many of which accuse the company of being a scam or a ripoff. Common complaints include deceptive sales practices, excessive billing, no follow-through on verbal agreements, difficulty cancelling service, poor customer support, and expensive, hidden fees. Merchant Industry has responded to some of these complaints with different solutions, sometimes offering a partial or full refund and other times insisting that the merchant is bound by his or her contract terms. Since the company appears to have a serious issue with misrepresentation by its sales agents, it does not seem helpful or especially fair to hold merchants to these contract terms.

Merchant Industry does appear to respond effectively to publicly posted complaints about excessive or repeat billing, which is probably only a small consolation to merchants who have had to go public with these issues in the first place. Additionally, we have located some positive testimonials about Merchant Industry’s service, but these posts are of unconfirmed legitimacy.

Merchant Industry BBB Report | D (CPO Adjusted)

As of this review, Merchant Industry holds a “C” rating with the Better Business Bureau (BBB) and has had 61 complaints filed within the last 36 months. The company’s alternate business name of National e-Payment also has a BBB page, which currently shows a “C-” rating as a result of 23 complaints in the last three years. We will combine these reports for the sake of simplicity. Of the total complaints, 35 are due to problems with products and services, 38 with billing and collection disputes, nine with advertising or sales issues, and two with delivery issues. Merchant Industry has resolved 68 of the complaints, but 16 merchants reported that they were not satisfied with the company’s response.

In light of these figures, including the total complaint rate and resolution ratio, we have adjusted the BBB’s overall rating for Merchant Industry to a “D.”

Bottom Line

Merchant Industry rates as a substandard merchant services provider according to all available information. Merchants are reporting a consistent pattern of deceptive practices from the company’s sales agents, and the contract terms cited by complainants are more expensive than industry averages. These issues have resulted in the company receiving a moderate-to-high complaint rate for its size and time in business, and the company’s responses to these complaints have not demonstrated any serious commitment to customer service.

Leave your review of Merchant Industry in the comment section below:

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Disclaimer: While the information in the above article is believed to be accurate as of its publish date, the author and publisher make no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents. The author and publisher shall in no event be held liable to any party for any direct, indirect, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this material, which is provided “as is,” and without warranties. Any and all use of trade names and/or marks are for identification purposes only and shall not be construed as a claim of affiliation, or otherwise, with, Inc. ("CPO") in any form. The sole purpose of the material presented herein is to alert, educate, and inform readers. It is not intended as legal or financial advice.


  1. JessicaDon

    I was promised a one year contract with this new service, Terence Gumbs was my account manager and did a very poor job at that. I would leave several messages for him and never would get a response. Would finally have to call someone else to get my issues taken care of. Because of his lack of duty with this company they lost our credit card processing services and then have decided that they will charge me the 300 early termination, even after he assured me multiple times that we only had a 1 year contract with them. Once i was digging around tryin to find out when my one year contract was up, the date they gave me was a month later than when I actually signed the paperwork. I was just fed up with them and ready to do business with someone I know i can trust and will take care of me. so very disguisted with this company really from day 1. They hit me with an early termination fee yet they still dont show that i have cancelled my acct. REALLY???

  2. Jessie M. Cass

    Merchant Industry really came through for me when I needed them the most. I am a start up business owner and I needed to get all of my accounting in order as well as be able to process credit cards. I called and they provided a free credit card terminal and have the best service including cash advance if we need it. I was blown away; it just doesn’t get any better than this. It has been a great help.

    1. User Phillip Parker Post author

      Jessie (or Justin Clark according to you email address),

      Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!

  3. Al

    Merchant Industry as well as ” Statewide Merchant” “Bank card” is the one takes your money from your bank account. they get you confused there. They gave me a contract of $39.00 dollars a month plus .3 visa and other card charges. I did around $780.00 on a credit card transaction and got a $195.00 fee!!!!
    then They never paid the first company which charged me early termination fee and e maid me they can only pay $25.00 per a month . I canceled them and so far they took $250 and another $200.00 dollars out of my bank.
    I kept all the e-mails and looking to find the way give them back the stress and get my hard working money back.
    they are just a big scam even 100 dollars from one person think 20,000,000 people fall in to their trap. that is a lot of money which they earn with dishonesty. Some one will sue them big in future.

  4. ThomasFisher

    I needed to accept credit cards for my business and I wasn’t sure which equipment would be best for me. I called Merchant Industry in New York and they couldn’t have been more helpful. We discussed my business and what would save me the most amount of money. After comparing rates and fees with other providers, it was a no brainer. These guys are hands down the best that I found and I still use them today. HIGHLY RECOMMENDED!

    1. User Phillip Parker Post author

      Hi Thomas,

      In order to verify this testimonial, please add a reply to this comment with you business name and location.

  5. JamieR

    Absolute worst merchant card processing company I have had the unfortunate misfortune to deal with. Promised a lot of really great deals. Guaranteed a savings of $150 a month over my then current company. In actuality it cost me $150-$200 more per month. Promised free debit machine tape. Yes, after calling three different people I finally got the paper 4 weeks later and a whole 5 rolls of paper. I would have to call every 2 days in order to keep us in free paper. It was impossible to reach my rep. I left several messages regarding what I thought were overcharges. I never got a call back from my rep. I finally spoke with a different rep who did indeed acknowledge I had been overcharged. Promised to look at my account in more detail and call be back the next day. She never called me back and I have yet to see the credit. I was guaranteed next day batch deposits. However all deposits hit my account 2 to 3 days after I closed the batch. They then started charging extra fees. I had enough and began the process of severing the contract. I gave them their 10 day notice in writing. I closed my account in October and received an automatic deduction out of my account for $780 in early November as a one time cancellation fee. I again received another automatic deduction for $58.49 in December. I have since refused that ACH charge and am taking steps ensure they can not continue to take money from the account. I have read from others in my same position the only way to stop this from happening is to close my checking account. These guys are the worst and I HIGHLY RECOMMEND anyone looking to do business with these guys to think twice and say NO.

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