Home > Processor Research > Paysafe

Investigating Paysafe: Key Considerations For Business Payment Processing

Author:
Updated:
Maintained Since: December 7, 2018

We take our role in providing guidance and education regarding the card payment industry very seriously. At our own expense, we have vigorously defended our right to continue expose unethical and predatory practices in the industry, successfully defeating every attempt to silence us. However, fending off frivolous lawsuits is costly. To sustain these efforts, one of the ways we generate revenue is through affiliate partnerships with ethical providers. This means that some of our outgoing links connect business owners to trustworthy, low-cost payment processors, which is what most of our readers seek. We see this revenue channel as a win-win-win for everyone involved. Business owners find good processors, processors get good clients, and we are able to continue to provide a valuable service to the small business community. We also recommend and link to many services that do not compensate us. Our priority is to guide you to the best solutions for your needs, regardless of potential revenue. If you have questions, please feel free to contact us.

All mentions of rate and fee costs are estimations based on publicly available information and client feedback. Actual costs may vary based on a variety of factors unique to your business.

Paysafe
Rating
F
1/5
full starempty starempty starempty starempty star
Leave User ReviewCompare Ratings

Pros

Wide range of payment solutions.
Global reach, multiple currencies supported.
Strong security and fraud prevention.
Integrates with various business systems.
Mobile and online payment options.
Detailed reporting and analytics tools.

Cons

Potential for variable contract terms.
Complaints about customer service quality.
Fees may be higher than average.
Complex structure due to acquisitions.
Different experiences across subsidiaries.
Occasional fund-holding issues reported.

Overview

In this review of Paysafe, we'll provide a detailed look at the company's operations and customer experiences. We'll cover the range of payment processing services offered by Paysafe, highlighting its role as a large multinational organization with a vast network of subsidiaries and partners worldwide. We'll address the company's track record of customer complaints, mainly about held funds, and the complexities arising from its numerous subsidiaries, each with different contract terms.

We'll examine Paysafe's payment processing capabilities from a small business perspective, detailing its offerings in credit and debit card processing, digital wallet services, and specific industry focuses like gaming and investing. We'll also discuss the company's regulatory compliance and global reach, facilitated through partnerships with several banks.

A key part of our review will be an analysis of customer reviews and legal challenges, looking at the nature of customer complaints and the legal actions faced by the company to provide a nuanced view of the customer experience.

Finally, we'll cover Paysafe's fee structure, contract terms, and sales tactics, offering insights into the company's pricing and marketing strategies. This comprehensive review aims to give a well-rounded perspective on Paysafe's services for small businesses looking to accept credit card payments from their customers.

About Paysafe

PaySafe Merchant Services Homepage
Screen Capture of PaySafe's Home Page

Also known as Paysafe Group, Paysafe is a UK-based merchant account provider that has acquired multiple large payment processing subsidiaries during the past five years. The company was formed in 2015 as a rebranding of Optimal Payments, and it was subsequently acquired in August 2017 by two private equity firms called The Blackstone Group and CVC Capital Partners. Its major acquisitions under both the Optimal Payments and Paysafe brands include Skrill, Meritus Payment Solutions, MeritCard Solutions, Merchants' Choice Payment Solutions, and, most recently, iPayment. In 2020, Paysafe announced a partnership with US-based sports-betting platform FOX Bet as well as one with the Microsoft Store. In 2021 Paysafe expanded into cryptocurrency with a partnership with transcoin.me, and in 2022 they acquired SafetyPay. Further partnerships in 2023 included Greyhound and HotelKey.

Related Companies

About Paysafe

Founded in 1996 and headquartered in London, Paysafe Limited is a global payments platform offering services such as payment processing, digital wallets, and online cash solutions. The company operates under various brands, including Skrill, Neteller, and Paysafecard, catering to both merchants and consumers worldwide. Paysafe supports over 260 payment types in 48 currencies and reported an annualized transactional volume of $152 billion in 2024. The company is publicly traded on the New York Stock Exchange under the ticker symbol PSFE. Paysafe is regulated by financial authorities including the UK’s Financial Conduct Authority and the Central Bank of Ireland. Its services are utilized across multiple sectors, notably in gaming, travel, and financial services.

Products & Merchant Services

Payment Processing

Paysafe offers a range of payment processing services catering to various industries, designed to facilitate electronic transactions.

Merchant Accounts

Paysafe provides businesses with merchant accounts, which are essential for accepting and processing credit and debit card payments. These accounts serve as intermediaries between the customer’s card issuer and the business’s bank.

Credit and Debit Card Processing

Paysafe handles the technical aspects of processing credit and debit card transactions, ensuring smooth and secure payments.

Point of Sale (POS) Systems

The company offers POS systems and integration options for businesses to manage in-store transactions effectively.

Online Payment Gateways

For e-commerce businesses, Paysafe provides payment gateway services that securely transmit card data from the website to the payment network for processing and authorization.

Mobile Payment Solutions

Paysafe offers mobile payment solutions, enabling businesses to accept payments via mobile devices through mobile-optimized gateways or dedicated apps.

Multi-Currency and Cross-Border Payments

Paysafe supports more than 40 currencies and offers over 250 types of payments, facilitating international transactions.

Regulatory Compliance

Paysafe is regulated by the Financial Conduct Authority under the Electronic Money Regulations 2011, ensuring compliance for issuing electronic money and payment instruments.

Customer Reviews & Sentiment

Moderate Complaint Total

We have found fewer than 10 negative Paysafe reviews, but we are currently able to locate hundreds of complaints filed against Paysafe subsidiaries and Paysafe-owned brands. Complaints related to Paysafe’s payment processing products describe misleading sales tactics, undisclosed fees, fund-holds, high cancellation penalties, undesirable equipment leases, and poor customer service. There does not appear to be any change in the frequency or the content of these complaints as a result of Paysafe’s acquisition of smaller brands, which suggests that Paysafe has not imposed new corporate policies on its acquisitions.

PaysafeCard Complaints

The overwhelming majority of Paysafe reviews are related to the company’s consumer-oriented PaysafeCard product. PaysafeCard is an online platform for making prepaid e-commerce purchases, and it is commonly used by consumers in high-risk sectors such as online gaming, online gambling, and the adult industry. PaysafeCard complaints generally describe account termination, invasive demands for personal information, and poor customer support from Paysafe following violations of the company’s terms of use. While these complaints indicate inadequate complaint resolution efforts by Paysafe, they are unlikely to impact merchants.

Paysafe Customer Support Options

Paysafe lists some general support options on its site, but each of its subsidiary services will offer its own support options. Most Paysafe subsidiaries offer phone support with the notable exception of Skrill, which has racked up hundreds of public complaints. In general, Paysafe appears to perform at an average level in this category—well below the top-rated processors for great customer support.

Paysafe Customer Service Numbers

  • (888) 709-8753 – Toll-Free Support
  • (888) 299-3324 – Small Business Support
  • (866) 826-8003 – Sales

Other Support Options

  • Chatbot
  • Support form
  • Customer service emails
    • customersupport@paysafe.com
    • technicalsupport@paysafe.com

Industry Scores & User Ratings

Online Ratings Summary
PaymentPop1
BBB Rating1.02
Trustpilot Rating1.2
Sitejabber Rating1.2
Our Rating2.5
Average Rating1.48

PaymentPop Rating for Paysafe

Negative Feedback

This is the worst company on the face of the earth. They lied to me from the start about what the fees would be. Their Customer Service is the most abysmal I’ve ever seen in my life. They made mistakes every step of the way, with no accountability. They never did what they would say they were going to. Nobody speaks english. They overcharge at every turn. The list is endless. Stay away from this company. You have been warned.

Positive Feedback

There are no positive reviews published about Paysafe on the PaymentPop website.

Paysafe BBB Rating

Paysafe (as Paysafe Group) is accredited by the BBB since 12/30/2011 and holds an “A+” rating. The company has an average customer review rating of 1.02/5 stars based on 41 customer reviews. Additionally, there are 123 complaints closed in the last 3 years, with 46 closed in the last 12 months. Common themes in the reviews and complaints include problems with product/service and dissatisfaction with customer support. Customers frequently express frustration over unexpected fees, poor communication, and challenges in resolving disputes or canceling services.

Negative Feedback

Worst Company to deal with. Worst customer service, not wiling to help. DO NOT USE this company, use any other company to handle transactions. This company will figure out a way to cost you money.

Absolute worst experience – stay away. We tried setting up merchant processing with them, gave them everything they asked for and then they denied us without any reason whatsoever. Save your time – go elsewhere!!!

Positive Feedback

There are no positive reviews published about Paysafe Group on the BBB website.

Trustpilot Rating for Paysafe

Paysafe is rated “Bad” on Trustpilot with a 1.2/5 score, based on 855 customer reviews. The majority of reviews, 80%, are 1-star, indicating significant customer dissatisfaction. Common themes in the reviews include issues with customer service, problems with account management, and dissatisfaction with the handling of financial transactions. Customers frequently express frustration over blocked accounts, difficulty in getting refunds, and poor responsiveness from the company.

Negative Feedback

Scammers avoid at all cost! you have been warned.
BTW it’s the same company as Paysafecard they go by many names… But the results are the same, you will be left without your money and blocked.

Stole my money. They never email you back about your inquiries

Positive Feedback

Easy card processing without breaking the bank!
Fantastic wireless credit card machine. So easy to use & simple to keep track of sales online without all the paper clutter of my old processing company.

Smooth rollout, easy virtual terminal, actually helpful customer service – it just works – oh and saved us a lot of money changing over + James

Sitejabber Rating Analysis for Paysafecard

Paysafecard has a 1.2-star rating on Sitejabber, based on 55 customer reviews. The majority of the reviews are negative, with customers generally expressing dissatisfaction with their experiences. Common themes among the reviews include issues with account management, customer service problems, and concerns about hidden fees. Reviewers frequently mention difficulties in accessing funds, poor communication from the company, and unexpected charges.

Negative Feedback

Shady company: got a paysafecard as a gift. I didn’t know about a monthly maintenance fee until I tried to deposit and I was 3€ short of the minimum deposit amount. Now I can only deposit 20€ instead of the original 25€ which leads to me losing 2€ more. They should really write about that maintenance fee somewhere on the card/receipt, it’s only visible on their website. – Review from Lukas S., July 13, 2023

They told me rates in the beginning but charged higher processing fees at the end of the month. They don’t take out fees per transaction but a lump sum at the beginning of the next month. Dropped them after 1 month but still got changed for 2 months. Returned all equipment on 6/7/2023 and I have proof from UPS that it was delivered on 6/12/2023 at 9:24 am. 10/24/2023, Paysafe did an ACH from my bank account for $599 for a $49 device. Said they have an addendum that allows that to do that. Gave me a run around about this whole situation. Spent 2 1/2 hours changing bank accounts, changing deposits and withdraw accounts. Claiming that they are sending me a full refund. – Review from Chris R., October 23, 2023

Positive Feedback

There are no positive reviews published about Paysafecard on the Sitejabber website.

Source: Sitejabber

Processing Rates & Fees

Variable Contract Terms

Paysafe operates various sub-brands, each with distinct products and pricing structures. Therefore, pricing may fluctuate depending on the Paysafe subsidiary and the sales representative involved. While a 2016 Paysafe merchant agreement outlines a one-year contract, other sources suggest that Paysafe’s standard merchant account contract spans three years with an early termination fee starting at $495, a monthly minimum fee of $14.99, and a non-cancellable equipment lease, consistent with reported iPayment pricing.

Virtual Terminal and Payment Gateway Pricing

Besides its in-store payment processing, Paysafe advertises virtual terminal and payment gateway services on its website, yet specific pricing remains undisclosed. Additional charges such as gateway fees, technical support fees, batch fees, and extra transaction rates are common with these e-commerce services.

Industry-Standard Pricing

While Paysafe doesn’t openly list pricing or contract terms, most indications suggest clients adhere to standard merchant account rates. Presently, there’s no indication that Paysafe’s pricing competes with the industry’s most economical merchant accounts. It’s advisable for business owners to collaborate with trusted sales representatives and thoroughly review all relevant documentation. For comprehensive options, businesses are encouraged to explore our list of the best merchant services.

Lawsuits & Legal History

Paysafe has face several instances of governmental regulatory actions and lawsuits regarding its business practices.

  1. Consumer Protection Lawsuit (2019)
    • Details: Paysafe was sued by the New York Attorney General for allegedly engaging in deceptive practices related to its payment processing services. The lawsuit claimed that the company misled consumers about fees and service terms, leading to financial harm for many small businesses.
    • Outcome: The case was settled with Paysafe agreeing to pay restitution to affected businesses and implement changes in its business practices to enhance transparency.
  2. Bitmouni v. Paysafe Limited
    • Allegations: The lawsuit alleged that Paysafe failed to prevent a long-term data breach, resulting in the compromise of Social Security numbers, bank account data, and other sensitive information.
    • Settlement: Paysafe agreed to a $2 million settlement to resolve the claims, with class members eligible for compensation for out-of-pocket expenses related to the breach.
    • Claim Deadline: Class members must submit a valid claim form by November 27, 2023.
    • Final Approval Hearing: Scheduled for February 2, 2024.
  3. Regulatory Scrutiny in Multiple Jurisdictions
    • Details: Paysafe has faced scrutiny from various regulatory bodies in the U.S., U.K., and Canada regarding compliance with anti-money laundering (AML) regulations and consumer protection laws. This scrutiny often arises from the nature of its business in electronic money and payment processing.
    • Outcome: Paysafe has had to enhance its compliance measures, including implementing stricter AML protocols and improving customer service transparency.
  4. Fines from Regulatory Authorities
    • Details: In 2021, Paysafe was fined by the Financial Conduct Authority (FCA) in the U.K. for failing to maintain adequate systems and controls to prevent financial crime. The FCA highlighted lapses in Paysafe’s compliance framework that could expose customers to risks.
    • Outcome: Paysafe paid a significant fine and committed to improving its compliance infrastructure.
  5. Data Breach Incidents
    • Details: Paysafe has reported data breaches that resulted in unauthorized access to customer information. These incidents raised concerns about its data protection practices.
    • Outcome: The company faced potential regulatory actions and had to enhance its cybersecurity measures to prevent future breaches.

Dissatisfied clients who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.

Employee Reviews & Sales Practices

A Different Approach From Each Subsidiary

As the parent organization of many different payment processing companies, Paysafe appears to adjust its sales approach from market to market. The company’s high-level advertising is very generalized, and there does not appear to be a unique “Paysafe” sales team so much as a distribution of ISOs, sub-ISOs, and resellers. Paysafe’s traditional merchant account sales operation functions like most of its competitors, with independent sales agents initiating telephone and in-person contact with potential clients. By contrast, the company’s e-commerce and online platform products appear to rely more on internet marketing and strategic partnerships to target niche and high-risk industries.

Paysafe Sales Complaints

Despite the company’s aggressive growth strategy, we have found only a few sales-related Paysafe reviews from businesses. The available complaints cite misleading rate quotes, undisclosed cancellation fees, and promised savings that did not materialize. Paysafe’s acquisition of iPayment (a “D” rated provider on CPO) could generate more sales complaints in the future, as iPayment has a reputation for providing negative sales experiences. For now, though, the company is outperforming expectations on this front. If you suspect that Paysafe is overcharging you, we recommend a third-party statement audit to find and eliminate hidden fees. This does not compare favorably to our list of best credit card processors.

Paysafe Competitors

Compare Paysafe to competitors that earned top marks.

Host Merchant Services logo
Pricing
Helcim logo
Pricing
CDG logo
Pricing

Bottom Line

Paysafe, evolving from Optimal Payments in 2015, has undergone significant growth through acquisitions, including notable additions like Skrill and iPayment. This strategic expansion has allowed Paysafe to venture into diverse areas such as sports betting and cryptocurrency, expanding its range of services. The company’s suite of payment solutions encompasses credit and debit card transactions, digital wallets, and online cash options, tailored to industries like gaming and investing. Its extensive network of banks, resellers, and subsidiaries enhances its global presence, offering merchants various channels to access its services.

However, Paysafe has drawn criticism for inconsistent customer service quality, fund holds, and legal challenges related to financial disclosures and securities. These issues reveal a complex landscape where customer experiences often vary across its multiple subsidiaries. Business owners must remain vigilant regarding Paysafe’s fee structures, contractual terms, and sales tactics, which can differ greatly and sometimes result in confusion or dissatisfaction. While Paysafe provides a comprehensive suite of processing services and boasts a strong international footprint, businesses should weigh the potential risks against their specific requirements to determine if its offerings align with their needs.

Location & Ownership

Paysafe is a registered ISO/MSP of Deutsche Bank AG, New York, NY; Citizens Bank, N.A., Providence, RI; PNC Bank, N.A., Pittsburgh, PA; Wells Fargo Bank, N.A., Concord, CA; Woodforest National Bank, Houston, TX; BMO Harris Bank, N.A, Chicago, IL; and Merrick Bank, South Jordan, UT. Paysafe Merchant Services Corp. is a registered ISO of Fifth Third Bank, N.A., Cincinnati, OH, USA. The company is headquartered at 1st floor, 2 Gresham Street, London, EC2V 7AD, United Kingdom. Bruce Lowthers is the CEO of Paysafe. Joel Leonoff, who has also served as the CEO of Skrill, founded the company in 1997.

Read Actual User Reviews

See User ReviewsWrite a Review
All user reviews have been moved to our partner, PaymentPop.com