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Merchant Industry 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 (Fiserv) and TSYS according to the company’s inclusion of those merchant account providers on its website. In May 2017, Merchant Industry launched a DBA called “Swipe4Free” that exclusively promotes a cash discount pricing program. The company also provides Apple Pay integration services to businesses.
Merchant Industry Payment Processing
Merchant Industry processes most major debit and credit cards for most business types. Their services include a wide variety of credit card terminals, mobile solutions, POS systems, QuickBooks processing, AMEX processing, gift and loyalty programs, Apple Pay, TransArmor security, data insights from Insightics, next-day funding, e-commerce solutions, cash advances, telecheck, and PCI compliance.
Point of Sale (POS) Systems
Merchant Industry provides POS systems that enable businesses to manage their sales, inventory, and payment processing. The POS systems come with features such as inventory management, employee management, and customer management. Additionally, the platform offers POS systems that can be customized to meet the specific needs of a business.
Mobile Payment Solutions
Merchant Industry offers mobile payment solutions that enable businesses to accept payments through smartphones and tablets. The platform supports both iOS and Android devices, and it provides users with a mobile app that allows them to manage their transactions on the go.
Merchant Industry provides businesses with a virtual terminal that allows them to accept payments from anywhere. The virtual terminal can be accessed through any web-enabled device, making it easy for businesses to process payments on the go. The virtual terminal also comes with features such as recurring payments and electronic invoicing.
Merchant Industry provides e-commerce solutions that enable businesses to sell products and services online. The platform supports various e-commerce platforms, including Shopify, WooCommerce, and Magento. Additionally, it provides users with a virtual terminal that allows them to accept payments over the phone or through email.
Location & Ownership
Merchant Industry LLC is a registered ISO/MSP of Esquire Bank N.A., Jericho, NY; and Wells Fargo Bank, N.A. of Walnut Creek, California, with corporate offices at 36-36 33rd St., Suite 306, Queens, New York, 11106. Leo Vartanov is the founder and CEO of Merchant Industry.
Table of Contents
- Costs & Contract: Offers a three-year contract through First Data (Fiserv) that…
- Complaints & Service: Complaints number more than 40 on…
- BBB Rating: Has an “A+” rating and has received 29 complaints and 4 reviews across 2 profiles in…
- Sales & Marketing: Appears to hire independently contracted agents and…
Merchant Industry Customer Complaints & Reviews
Here's What Users Think
Total Online Complaints
Live Customer Support
Most Common Complaint
Moderate Complaint Total
We are currently able to locate over 40 negative Merchant Industry reviews, many of which accuse the company of being a scam or a ripoff. Common Merchant Industry complaints include deceptive sales practices, excessive billing, no follow-through on verbal agreements, difficulty canceling 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 client is bound by their 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 businesses to these contract terms. If you have your own Merchant Industry review to make, please do so below.
Merchant Industry Lawsuits and Fines
Merchant Industry was sued in 2019 for alleged violation of the TCPA, but the case was dismissed. Dissatisfied clients who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
Merchant Industry Customer Support Options
Merchant Industry does appear to respond effectively to publicly posted complaints about excessive or repeat billing, which is probably only a small consolation to businesses that 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 offers live phone support to all clients, but it’s clear that this channel falls short of the service offered by top-rated merchant accounts for great customer support.
Merchant Industry Customer Service Numbers
- (866) 811-1005 – Toll-Free General Customer Service
- (877) 841-4818 – Tech Support
Other Support Options
- Customer support form on its website
- Live chat
Merchant Industry BBB Rating and Report
Our Better Business Bureau Profile Assessment
Note: We have adjusted this company’s BBB rating according to our own standards. To better understand why we adjust BBB ratings, please see our Rating Criteria.
2 Relevant BBB Profiles
As of this review, Merchant Industry holds an “A+” rating with the Better Business Bureau and has had 29 complaints filed within the last 36 months. The company has been accredited since May 2015. Merchant Industry’s alternate business name of National e-Payment also has a BBB page, which currently has no rating and no reviews or complaints, though at the time of a previous review, it held an “A+”.
What Merchants Say
Merchant Industry has also received 4 informal reviews to its BBB profile, 1 of which was positive and 3 of which were negative. The most recent negative review mentions being charged unexpected fees even when not using the service:
So when I signed a lease with ******(bad mistake) in 2015 they signed me up with this company. I used the machine one a week at the farmers market. We had months were we didn’t use the machine because of it being winter. They never once said anything about inactivity fees. They would never do anything about it. Our contract ended in March with ******(kept giving us the run around about the equipment) Finally in august I was able to close clover down. I assumed that since I signed with both companies at one time they would cancel both at one time. MY BAD! I haven’t used this machine for several months but yet get billed $125.00 (inactivity fees )each month. I found out that I had to cancel with this company too. I called and was told someone would call me back. I have yet to here from them. This has cost me around $900.00 so far. I guess the next thing to do is cancel my bank account. I will never work with this company,,,,
Businesses may benefit from taking the steps to understand how to negotiate rates and fees to avoid situations like this.
A “C” Performance
In light of the company’s complaint total and resolution ratio, we have adjusted the BBB’s rating to a “C.”
Merchant Industry Fees and Rates
A Closer Look at the Contract
Monthly & Annual Fees
1.00% - 4.99%
The standard Merchant Industry merchant agreement is a 3-year agreement through First Data (Fiserv). Though the agreement provides no specific fee structure, First Data (Fiserv) typical terms include a swiped rate of 2.69% plus $0.19 and a keyed-in rate of 3.69% plus $0.19. The Merchant Industry terms and conditions also include an early termination fee of $395 or liquidated damages (whichever is greater), a PCI Compliance fee of $79.99 per year, PCI non-compliance fees of $19.95 per month, an annual fee of $99.95, a $9.95 statement fee, and a monthly minimum fee of $25.
The company also provides equipment leases that may carry their own terms and fees. On its website, Merchant Industry dedicated a whole section to equipment leasing terms. It goes as far as to provide an interactive table of different credit card terminals and their costs. Though its website doesn’t stipulate any specific terms for leases, its prices for monthly lease charges are as high as $160 per month. This means that a business could end up paying over $1200 for an equipment lease in only a year when a capable alternative could be purchased for under $500.
Virtual Terminal and Payment Gateway Pricing
In addition to its storefront payment processing services, Merchant Industry also dedicates a portion of its website to advertising its virtual terminal and payment gateway services. However, pricing is not disclosed on either of those services. Additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates typically apply to these e-commerce services.
Contract and Pricing Complaints
As of this update, there are numerous client 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 budget-friendly merchant accounts, the company might not score so poorly in this section if these costs were more consistently disclosed to businesses upon signup. We also encourage business owners to check out our list of the providers of the best merchant accounts.
Merchant Industry Jobs and Employment
Hiring Standards and Ethical Marketing Assessment
Uses Independent Resellers
Discloses All Important Terms
Outside Sales Team
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 causes some client confusion. We are currently able to locate numerous Merchant Industry reviews that describe nondisclosure and misrepresentation by the company’s sales agents, higher Merchant Industry fees than were agreed to upon signup, and failure by the company’s sales team to deliver on promises made at the point of signing. This does not compare favorably to our list of best credit card processors.
ETF Payment Promises
One major issue appears to be multiple agents claiming to pay a business’ 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.
Incomplete Rate Quotes
The company’s website includes multiple tables and charts advertising various Merchant Industry rates and fees. In all cases, the company’s “Qualified” rate is prominently shown, while its “Non-Qualified” surcharge is accompanied by the claim that “most clients do not experience these fees.” This is not true, and we consider this type of rate quoting to be deceptive because it may lead clients to have unrealistic expectations of the rates they will pay. In addition, Merchant Industry rates 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). The company does not mention several other large, common fees that it does charge, such as PCI compliance fees and early termination fees.
A “D” Rating
Overall, it is our opinion that the company’s rate and fee quotes are deceptively presented, and there are multiple client complaints supporting this interpretation. If you believe that Merchant Industry is overcharging you, we recommend seeking a third-party statement audit to eliminate hidden fees.