Merchant Services, Inc. Review

Merchant Services, Inc. is an Irvine, California-based merchant account provider that claims to have been founded in 1995. According to multiple sources, the company is a DBA or subsidiary of National Payment Processing and is one of many DBAs utilized by its owner and his management team. Other alleged DBAs of Merchant Services include “Universal Card Inc.” and “Universal Merchant Services,” and it appears that the company is now doing business under the name “Small Business Growth Alliance.” Jason Moore has been named as the controller of several different business entities, including JWM Holdings, LLC; La Quinta Holdings LLC; 9012 Research Drive LLC; Dean Martin Drive LLC; Big Sky Court Holdings LLC; Camel Point Enterprises LLC; E Coast Highway Holdings LLC; Harbor Cove Holdings LLC; Calvados Holdings LLC; Camden Holdings LLC and Ladcom Group Inc.

Payment Processing

Merchant Services, Inc. (MSI) processes all major debit and credit cards for various business types. Their services include POS solutions, wireless processing, check and EBT processing, virtual terminals, e-commerce solutions, merchant clubs, gift and loyalty programs, online reporting, recurring billing, debit card networks, and health savings accounts.

Payment Gateway Services

MSI’s payment gateway services allow businesses to securely accept credit and debit card payments through their websites. The gateway is customizable and integrates with major e-commerce platforms such as Shopify, WooCommerce, and Magento.

Online Credit Card Processing

Merchant Services Inc. provides an internet payment gateway for businesses operating online. This service securely and efficiently processes online transactions and integrates seamlessly with various shopping cart systems.

Mobile Payment Processing

MSI offers mobile payment solutions for businesses needing to accept payments via smartphones or tablets. This service provides flexibility for businesses operating outside traditional storefronts.

Fraud Prevention Measures

MSI employs various fraud prevention measures to protect businesses from fraudulent transactions and potential chargebacks.

Software Integration

MSI services can integrate with other business software, consolidating sales data and streamlining the management of business finances.

Gift Card and Loyalty Programs

MSI offers customizable gift card and loyalty programs designed to increase customer loyalty and drive sales. These programs can be integrated with POS systems and e-commerce platforms.

Moderate Complaint Volume

We are currently able to locate over 40 negative Merchant Services, Inc. reviews, many of which accuse the company of being a ripoff or a scam. Common themes among complainants include nondisclosure of contract terms, improper billing, unexpected fees, persistent sales calls, poor customer service, and insufficient agent support. We are factoring the allegations made in the class-action lawsuit against the company into this section because they constitute valid merchant issues that were unsuccessfully resolved by Merchant Services. It is sometimes difficult to determine which complaints have been filed against Merchant Services and which complaints have simply been filed against general merchant services providers, but the known complaints are enough to form a clear assessment of the company’s service. If you have your own Merchant Services, Inc. review to make, please do so in the comments below.

Merchant Services, Inc. Customer Support Options

We have assigned Merchant Services, Inc. a “D” rating in this section. The company offers 24/7 phone support to all clients, but this channel is not sufficient to qualify the company as a top-rated payment processor for customer service at this time.

PaymentPop Rating for Merchant Services Inc.

Positive Feedback

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

Merchant Services BBB Rating

Merchant Services has an average customer rating of 1/5 stars and an “A+” on Better Business Bureau, based on 13 customer reviews. There are also 2 customer complaints closed in the last 3 years.

Positive Feedback

There are no positive reviews published about Merchant Services on the Better Business Bureau website.

Merchant Services, Inc. Pricing

Based on client complaints, the typical Merchant Services, Inc. contract features a three-year term with several fees: a $495 early termination fee, a $134 “data protection” fee, a monthly minimum fee up to $75, a $19.95 monthly PCI non-compliance fee, and a $7.50 monthly statement fee. Recent reviews have highlighted discrepancies between the quoted per-transaction rates and those charged after contract signing. Additionally, a $48 “Clover Business Management” fee was reportedly introduced without prior notification last year.

Virtual Terminal and Payment Gateway Pricing

Merchant Services, Inc. also offers virtual terminal and payment gateway solutions as part of its e-commerce service portfolio. Despite this, specific pricing details for these services remain undisclosed. Commonly, additional fees include gateway charges, technical support costs, batch fees, and other transaction-related expenses typically associated with e-commerce services.

Avoid Equipment Leases

A class-action lawsuit against Merchant Services highlighted issues with equipment leases, primarily through Northern Leasing Systems and its subsidiaries. It appears that Merchant Services continues to offer such leases, which typically lock businesses into a 48-month, non-cancellable agreement costing significantly more than the outright purchase of the equipment. Purchasing equipment outright is strongly recommended. Business owners are also encouraged to consider our list of the best merchant services for more competitive options.

Not Competitively Priced

The available data on Merchant Services, Inc.’s contract terms and pricing strategies contributes to a “D” rating for the company. Their rates are considerably higher than those of more affordable merchant account providers. Anyone with direct experience or documentation related to Merchant Services, Inc.’s rates or contracts is encouraged to share this information in the comments section below.

Merchant Services, Inc. Lawsuits and Fines

Merchant Services was the subject of a class-action lawsuit filed in 2010 that contained the following allegations:

Plaintiffs allege that Settling Defendants misrepresented and omitted the costs, term, early termination penalties, and other provisions of the processing agreements and leases and unlawfully collected commissions, cancellation fees and other amounts via automatic withdrawals from merchant bank accounts. Plaintiffs also allege that Settling Defendants forged signatures and modified contracts and authorization forms for electronic debits after those contracts and forms had been signed. Plaintiffs additionally contend that Settling Defendants’ sales practices violated rules of MasterCard. Plaintiffs further assert that if customers defaulted on payment, Settling Defendants engaged in improper collection efforts by making unlawful credit inquiries on the personal credit reports of the personal guarantors who signed the agreements.

The claims against Merchant Services, Inc. were settled in 2013 with each member of the settling class receiving up to $350. Merchant Services, Inc. remains an active business, but the company agreed per the terms of the settlement to make the following changes:

By December 20, 2013, the Settling Defendants have agreed to make a variety of changes to their marketing materials to ensure future customers have additional disclosures. They agreed to register any fictitious business names that they intend to use, such as “Merchant Services.” In addition, if they continue to use cost comparison forms, such as the rate estimation comparison sheet, they agreed that document shall contain preprinted information listing or designated areas in which the following information shall be written: the name of the registered independent sales organization involved in the transaction; the entity through which bankcard processing services would be provided; the entity through which leasing services (if any) would be provided; the fact that processing rates are estimated and that higher rates may apply depending on the type of card, including mileage and rewards cards; the fact that equipment leasing is optional; and the fact that a cancellation fee will apply for early termination. Finally, the Settling Defendants agreed to have sales representatives leave with the prospective customer a copy of the above document and a current business card containing his or her current business address, phone number, and email address.

Several Negative Reports

Merchant Services appears to utilize a large number of independent sales agents and telemarketers to sell its services. This practice has generated a high number of negative Merchant Services reviews, with the accusations made in the 2010 class-action suit being a prime example. Business owners that leave a Merchant Services complaint describe nondisclosure of the company’s contract length, hidden fees, and rude or aggressive telemarketing tactics, while employee complainants cite late or inadequate compensation. Another occasional Merchant Services complaint (and a central factor in the lawsuit) claims that the company’s representatives simply state that they are from “Merchant Services,” which leads unsuspecting clients to believe that they are being contacted by their current processors. This practice is called “slamming” and is considered highly unethical. A number of new reviews detailing the same practice have popped up, meaning the company is continuing this behavior. This does not compare favorably to our list of best credit card processors.

Poor Sales Practices

To the company’s credit, there are no deceptive Merchant Services, Inc. rate quotes or unrealistic guarantees on its website. However, the known details of its hiring tactics and the available body of Merchant Services, Inc. complaints have lowered its score to a “C” at this time. If you suspect that you have had undisclosed fees added to your Merchant Services contract, we recommend seeking a third-party statement audit to eliminate hidden charges.

Merchant Services, Inc. rates as a substandard credit card processing provider. Over the past five years, the company has been consistently criticized for its practices and was even involved in a class-action lawsuit that made serious allegations. These issues have contributed to a reduction in the company’s rating, particularly due to numerous reports of “slamming.” This predatory marketing tactic involves processors posing as the client’s existing provider to deceive them into switching their merchant services.

Although Merchant Services, Inc. could potentially be confused with MSI Merchant Services Incorporated, a subsidiary of Harbortouch, the two companies appear to be unrelated. Businesses seeking reliable credit card processing services will find better options by considering top-rated providers known for transparent practices and ethical behavior.