Merchant Services USA Review

Low Complaint Total

We are currently able to locate approximately ten negative Merchant Services USA reviews, some of which describe the company as a ripoff and a scam. Common complaints include misrepresentation of the company’s contract terms, nondisclosure of fees, and poor customer service. Multiple merchants claim that the company’s sales agents provide only part of the contract at the point of signing, while the remainder of the contract (which includes information about contract length and cancellation) is physically shipped to them at a later date. The company appears to offer refunds in some of these cases.

Merchant Services USA Lawsuits

Another company by the name of JST Merchant Services also operates out of the building at 5727 N. 7th Street in Phoenix, Arizona, but it utilizes suite #401 rather than #201. In 2013, JST Merchant Services was the subject of a lawsuit filed by the Arizona Attorney General alleging that the company “targeted mainly elderly consumers in a ‘work from home’ business opportunity scam.” The suit specifically states that JST and its affiliated companies “worked together to defraud consumers of millions of dollars while selling them programs that the defendants claimed would result in consumers earning lucrative commissions, advertising the defendants’ credit card processing services and cash advances to businesses. Consumers spent thousands of dollars on the defendants’ ‘business opportunity’, including expensive marketing campaigns, after being promised substantial commissions that never materialized.”

Larry Malinish and Joseph Montella were not named as defendants in this lawsuit, nor is Merchant Services USA included in the list of involved businesses. However, we have found this complaint that explicitly names Larry Malinish as the owner of JST Merchant Services and lists Joe Montella as another person directly connected to the company. In addition, this page identifies Larry Malinish as the owner of JST Merchant Services and Joe Montella as the general manager of JST Merchant Services. The CorporationWiki profiles for Larry Malinish and Joe Montella also show that they work at JST Merchant Services. Considering the fact that the two companies operate out of the same building, these sources suggest that there may be some connection between Merchant Services USA and JST Merchant Services. Larry Malinish and Joe Montella also seem to be partners in a mailing list brokers venture called Strictly Business Data.

Merchant Services USA Customer Support Options

Merchant Services USA lists a phone number on its website, but it’s unclear whether this is a full-service support line or simply a sales line. It does not appear to meet our standard for the top-rated credit card processors for customer support.

Clean Complaint Record

Merchant Services USA has been accredited with the Better Business Bureau since September 2017 and currently has an “A+” rating with the BBB. The company has received 0 complaints in the past 36 months.

An Improved Record

At the time of a previous review, Merchant Services USA had 1 complaint filed on its BBB profile. In accordance with BBB policy, the complaint was cleared after 36 months and no new complaints have been filed since. Given the company’s overall complaint total and resolution ratio, we agree with the BBB’s rating at this time. Furthermore, it is our website’s policy to award companies with a clean complaint record an “A” rating.

Three-Year Contract

According to merchant complaints, the standard Merchant Services USA contract is a three-year agreement through Paysafe with a one-year automatic renewal, an early termination fee of $495, a $79 annual fee, a $9 monthly service fee, and tiered pricing. Merchants also cite a number of other, lesser fees that may not apply to all accounts. It is unclear whether Merchant Services USA leases or sells credit card processing equipment to its merchants, but several credit card terminals are advertised on the company’s website. However, a typical contract with Paysafe includes a long term non-cancellable equipment lease.

Virtual Terminal and Payment Gateway Pricing

Though Paysafe certainly provides virtual terminal and payment gateway services to merchants, no mention of any e-commerce platforms is apparent on the Merchant Services USA website. It is unclear what the company offers with respect to a payment gateway.

Industry-Average Pricing

The complaints about Merchant Services USA’s pricing are consistent with those filed beneath our review of Merchants’ Choice Payment Solutions, and they describe a standard pricing structure that is slightly more expensive than industry averages. We do not consider Merchant Services USA to be competitive with the cheapest merchant accounts, and we have accordingly assigned Merchant Services USA a “C” rating in this category. If you have any specific knowledge of the standard Merchant Services USA contract (including any PCI compliance fees or monthly minimum fees), please share that information in the comment section below this review.

An Average Processor for Most Merchants

Merchant Services USA rates as an average merchant services provider according to our rating criteria. The company is showing a low-to-moderate number of complaints for its size, and it appears to offer fairly standard contract terms. It does not qualify as a top-rated merchant account at this time. Our rating may be subject to change once we have a better understanding the exact links between Merchant Services USA and JST Merchant Services.