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In this review of Merchant Lynx Services, also known as Groundhog Enterprises, we provide a balanced overview of their offerings and the controversies surrounding them. Operating in the credit card processing industry since the mid-1990s, Merchant Lynx provides credit and debit card processing, POS systems, e-commerce solutions, cash advances, and wireless payment processing. Our analysis examines customer complaints and legal issues, including concerns over hidden fees, unclear contract terms, and aggressive sales tactics, while also evaluating the effectiveness of their customer support. We review their pricing, fees, and contract structures in the context of partnerships with iPayment and First Data (now Fiserv) to give readers a clear picture of the pros and cons of working with Merchant Lynx Services.
About Merchant Lynx
Merchant Lynx Homepage
Merchant Lynx is a merchant account provider based in Palm Beach Gardens, Florida, with offices in Massachusetts and New York. Merchant Lynx also goes by the name Groundhog Enterprises and claims to have entered the credit card processing industry in 1994, but the company’s Better Business Bureau profile reports a founding year of 2006, and we have located no complaints filed before 2005. Merchant Lynx uses iPayment for its payment processing network and First Data (now Fiserv) for its equipment leases.
Products & Merchant Services
Payment Processing
Merchant Lynx offers payment processing services for major credit and debit cards across various industries, including B2B, e-commerce, education, healthcare, government, financial services, automotive, retail, and hospitality.
Point of Sale (POS) Systems
Merchant Lynx supplies businesses with POS systems designed to manage sales transactions, inventory, and customer information. They appear to offer Clover solutions among other options.
E-commerce Solutions
Merchant Lynx provides tools and systems to facilitate secure online payments for businesses operating primarily online. This includes payment gateways, shopping cart integrations, and secure hosted payment pages. Additionally, they offer mobile payment solutions for businesses needing to process payments via mobile devices.
Gift and Loyalty Card Programs
Merchant Lynx offers programs aimed at improving customer loyalty and encouraging repeat sales. Their gift card programs allow businesses to sell prepaid cards for future purchases, while loyalty programs track customer purchases and offer rewards based on spending.
Cash Advances
Merchant Lynx provides merchant cash advances, giving businesses an upfront lump sum that is repaid through a percentage of future sales. This funding option can help manage cash flow or finance business growth, with varying terms and rates.
Additional Services
Merchant Lynx also offers services like check processing, wireless payment processing, fraud prevention tools, and PCI compliance guidance.
Customer Reviews & Sentiment
In-Depth Analysis of Merchant Lynx Services Reviews
Our extensive research has identified over 100 Merchant Lynx Services reviews, with a significant number of them categorizing the company as a scam or ripoff. The predominant issues raised by customers include nondisclosure of contract terms, misrepresented rates, costly contracts and equipment leases, aggressive sales tactics, and unsatisfactory customer service. While some complaints have been met with unprofessional responses from company representatives, a large portion remains unaddressed. We encourage those with personal experiences with Merchant Lynx to share their insights in the comments section below.
Merchant Lynx Customer Support Assessment
Feedback suggests that Merchant Lynx Services falls short in providing effective customer support, with numerous reports of inability to reach any support representatives. The provided contact information’s directness to actual customer support personnel remains uncertain.
Industry Scores & User Ratings
Online Ratings Summary
PaymentPop
1
BBB Rating
4.05
Google
4.3
PissedConsumer Rating
1.4
ComplaintsBoard Rating
N/A
Average Rating
3.25
PaymentPop Rating for Merchant Lynx
Negative Feedback
Used this company for about a year. Multiple times they took money from our account without any notice or reasoning. The most recent Merchant Lynx took $1,395 without notice. They said it was for unreturned equipment which had already been returned. 5 weeks later we received our money back. Their fees are outrageous and stay as far away as you can. We switched to a new processor and paid the $495 cancellation fee and shipped their machine back. 3 months went by and we got contacted by a collection agency saying we owed $228 for a past due annual fee. We stopped using their services a month before out 1st year was up. Today we are still fighting with a collection agency over a petty dollar amount that is most certainly not owed. STAY AS FAR AWAY FROM THIS COMPANY AS POSSIBLE.
Positive Feedback
There are no positive reviews published about Merchant Lynx on the PaymentPop website.
Merchant Lynx BBB Rating
Merchant Lynx Services has an average customer review rating of 4.05/5 stars on Better Business Bureau based on 129 customer reviews. The company has closed 45 complaints in the last 3 years, with 11 complaints closed in the last 12 months. Common themes in the reviews include issues with unauthorized charges, contract disputes, and dissatisfaction with customer service.
Negative Feedback
This company is a scam ! They gave me 3 months to try for free ! I canceled after 2 1/2 or at least tried to no one would return my calls or emails and the sales person had quit ! They still charge me $199 every couple of months I have to close out my bank account and reopen at a different bank to make this stop !
Do not use this company for your businesses merchant services. I closed my account in September of 2023 because of very bad customers service, and they continue to charge me $199.00 every few months. I have spent hours trying to fix this. They acknowledge the mistake, reverse the charges, but then charge my account again, in a never-ending loop.
Positive Feedback
There are no positive reviews published about Merchant Lynx Services on the Better Business Bureau website.
Google Rating for Merchant Lynx
Merchant Lynx has a 4.3 out of 5 star rating based on 390 user reviews on Google.
Positive Feedback
This company is the best. They are easy to use, understand, and their customer service actually answers the phone with competent personnel. I recommend this company to all businesses for your credit card operations.
Negative Feedback
This business is horrible, absolutely terrible. They don’t value your business and nickel and dime you out of your money. One of the worse decisions I have made as a small business. They hide the fine print and only send emails. Will never call unless they want to keep your business. If it’s important to you it’s never important to them. They upped my rates unknowingly ridiculous. They also pass your bank information on to other companies without your consent. They say after the fact on its in your contract but never tell you this on the front end. I repeat don’t do business with this company.
PissedConsumer Rating Analysis
Merchant Lynx Services has a 1.4-star rating on PissedConsumer, based on 12 customer reviews. The company ranks 79th out of 199 in the Cards category. The majority of reviews are unfavorable, with common complaints focusing on customer service issues, misleading promises, and communication problems. Customers express dissatisfaction with the company’s reliability and the additional fees charged.
Negative Feedback
2009 and it is almost April 2010 and they continue to take money from my account when I canceled my contract because of their continued rate increases. They hit my account for $350 for early termination fee even though my contract had a no early cancellation fee clearly stated. Merchant Lynx had me fax the contract to them showing there was no cancellation fee, which I did. Didn’t they have a copy of my contract? It was just a tactic to stall for time to keep my money. On my contract, I noticed a phone number for Wells Fargo, and I made a contact with them. They got my money back in my account today. My account was charged $65.68 for PCI compliance fee. I have not used Merchant Lynx since Sep 2009, so here we go again. I have written them letters to stay out of my bank account. Shouldn’t this be illegal? I have notified my bank, Bank of America, in person with Merchant Lynx account numbers to stop any transactions from them. Bank of America tells me they can only stop transactions if they have the dollar amount to be debited. This is nonsense. With the technology the banks have, surely something can be done. Also, on a business account, you only have 2 business days to report a transaction in question. Wow! I monitor my account daily, but what about people who don’t utilize the internet for banking? How would they know? There is no protection for small businesses. What’s to stop Merchant Lynx from taking a few thousand dollars out of my account? These credit card processing companies need more regulation. – Review from
Merchant Lynx should be put out of business. They are preying on unsuspecting legitimate businesses by lying and very unethical practices. Their representatives are trained to omit all of the details. After receiving very poor service and forced to look elsewhere, we are still having our bank violated by them. They use every underhanded tactic to take your money. What they do to sell their machines/service and outrageous charges is next to criminal. They are very difficult to reach on the phone, and you cannot get a return call. This is our worst business experience ever. We would like them to stop taking our money and return our money. – Review from Feb 09, 2010
Positive Feedback
There are no positive reviews published about Merchant Lynx Services on the PissedConsumer website.
Merchant Lynx Services has a range of customer reviews on ComplaintsBoard, with common themes including dissatisfaction with customer service, issues with sales representatives, and complaints about the terms of service and equipment.
Negative Feedback
I signed a contract with Merchant Lynx Services for credit card processing. The sales rep was very convincing, but after signing, I realized the rates were much higher than promised. The customer service is terrible, and I’ve had numerous issues with the equipment. I feel misled and trapped in this contract. – Complaint from January 15, 2021
I was approached by a sales rep from Merchant Lynx Services who promised lower rates and better service than my current provider. Unfortunately, the reality was completely different. The rates are higher, and the customer service is non-existent. I’ve tried to resolve these issues but to no avail. This has been a frustrating experience. – Review from March 10, 2021
Positive Feedback
There are no positive reviews published about Merchant Lynx Services on the ComplaintsBoard website.
The standard terms and conditions of Merchant Lynx describe a three-year agreement through iPayment with automatic renewal for one-year terms and an early termination fee of $495. Additionally, many businesses report a PCI Compliance fee of $159. Other fees, such as a monthly minimum fee, statement fee, or rate schedule, seem to vary and can be found in a separate document known as the merchant application. We recommend potential clients to review our list of the best merchant accounts.
Virtual Terminal and Payment Gateway Pricing
Apart from its in-store payment processing services, Merchant Lynx also offers virtual terminal and payment gateway services. However, pricing details for these services are not provided on the website. Additional rates and fees, including gateway fees, technical support fees, batch fees, and extra transaction rates, may apply to these e-commerce services.
Contract Complaints
There is currently a notable number of client complaints regarding various contract terms offered by Merchant Lynx, ranging from the high early termination fee to non-cancellable 48-month equipment leases through First Data Global Leasing. Responses to client reviews from the company confirm a $99 application fee, which is refunded upon application approval, although some businesses have faced challenges in securing this refund. Client reviews also outline a monthly lease payment of up to $85 over the 48-month term. Additionally, some business owners report undisclosed fees and higher-than-expected rates, deviating from the initial quotes. Overall, online feedback regarding Merchant Lynx’s pricing and fee structure is consistently negative, indicating that businesses may find more savings with a top budget merchant account provider. For further details, refer to the Merchant Lynx program guide.
Merchant Lynx offers e-commerce solutions, including access to a payment gateway
Lawsuits & Legal History
Merchant Lynx has faced several legal challenges:
A lawsuit from Liberty Salad, Inc. alleges unauthorized charges due to undisclosed company program guides, currently in settlement discussions.
A 2014 investigation by the Florida Attorney General cited potential violations of the state’s Deceptive and Unfair Trade Practices Act, resulting in Merchant Lynx paying over $40,000 in fees.
A lawsuit initiated by Paysafe Payment Processing Solutions, LLC in January 2020 accuses Merchant Lynx of exploiting a partnership to appropriate high-value merchant accounts.
A 2023 class-action lawsuit by a fur cleaning company claims that Merchant Lynx presents clients with a simplified contract at signing, only to bind them to a contract with higher fees later.
Employee Reviews & Sales Practices
Outside Sales Agents
Merchant Lynx Services appears to utilize telemarketing and independently contracted sales agents to market its services. These practices usually result in a high complaint rate, as they are structured to motivate sales agents to sign clients up for the most expensive contracts possible. Merchant Lynx appears to be no exception, as we are currently able to locate numerous Merchant Lynx reviews that describe deceptive sales practices by the company’s agents. This does not compare favorably to our list of best credit card processors.
High Volume of Sales Complaints
A number of business owners report nondisclosure of contract terms, misrepresentation of rates, and high-pressure or aggressive sales calls and practices. We have also located multiple reports of unprofessional behavior by sales agents, including leaving a sales meeting suddenly to avoid providing specific information and engaging in fake phone calls with their employer to reassure a client. These types of negative Merchant Lynx reviews have remained consistent and have possibly even intensified over time.
Definite Red Flags
Taking into account the high total of Merchant Lynx complaints that echo similar frustrations with the payment processor’s aggressive sales tactics, we have assigned the company a “D” in this section. If you suspect that Merchant Lynx is charging you undisclosed fees, we recommend seeking a third-party statement audit to find and eliminate hidden costs.
Merchant Lynx Competitors
Compare Merchant Lynx to competitors that earned top marks.
Merchant Lynx Services currently rates as a substandard merchant services and credit card processing provider. The company presents clients with expensive contract terms via iPayment and often ties them into costly, long-term leases through First Data (Fiserv). Additionally, many businesses have cited issues with the behavior of Merchant Lynx’s sales agents, describing them as ranging from unethical to outright rude.
The high volume of complaints filed against the company indicates a consistent pattern of dissatisfaction among clients, securing Merchant Lynx’s unfortunate position as one of the worst-rated merchant account providers. Business owners considering its services should exercise extreme caution, thoroughly reading all contract terms and comparing them to those of top-rated processors before making any commitments. This diligence will ensure they avoid excessive fees and onerous contract clauses that could impact their bottom line.
