Update 3/7/2019: Merchants’ Choice Payment Solutions appears to have been fully absorbed into the Paysafe brand, and it appears that the company no longer boards new merchants under the name “Merchants’ Choice Payment Solutions.” As a result, we will no longer update this review. See our Paysafe review for up-to-date information about this company.
Acquired by Paysafe Group
Merchants’ Choice Payment Solutions (mcpscorp.com) is a merchant account provider headquartered in The Woodlands, Texas. Founded in 1989, the company partnered with Elite Merchant Solutions, an ISO of Chase Paymentech, in January 2013. In August 2017, the company was acquired by the Paysafe Group, a new venture from the people behind Optimal Payments. It is unclear at this time whether the MCPS brand will be absorbed into Paysafe once the acquisition is finalized.
Class Action Lawsuit
In December 2017, a class action lawsuit was filed against Merchants’ Choice Payment Solutions and its processing bank, Woodforest National Bank. The lawsuit, Al’s Pals Pet Care, LLC, et al. v. Woodforest National Bank, N.A., et al., argues that Merchants’ Choice Payment Solutions defrauded merchants by training sales agents to cold call business owners claiming to be affiliated with the businesses’ current payment processor. Merchants’ Choice agents would tell business owners they needed to either update their equipment to maintain compliance or must reapply in order to avoid fee increases. The paperwork then sent to merchants was actually a new contract with Merchants’ Choice Payment Solutions, leading business owners to pay monthly fees to both their actual processor and to Merchant’s Choice.
At the time of this review, a settlement has been proposed to end the class action lawsuit, requiring that the Merchants’ Choice Payment Solutions pay $15 million into a fund for customers who contracted with the credit card processor between December 22, 2013 and September 18, 2018. The period during which affected merchants may file a claim extends through March 2019, although the settlement is still subject to final approval by the court.
Headquartered in Texas
Merchants’ Choice Payment Solutions is a registered ISO/MSP of Woodforest National Bank in Houston, Texas, and of Wells Fargo Bank, N.A., in Walnut Creek, California. The company is located at 25231 Grogans Mill Rd Suite 600, The Woodlands, Texas 77380. Todd Linden is listed as the president and CEO of Merchants’ Choice Payment Solutions.
Merchants’ Choice Payment Solutions Review Table of Contents
- Sales & Marketing: Merchants’ Choice Payment Solutions hires independent sales agents and has received a moderate number of complaints about its sales practices.
- Costs & Contract: Merchants’ Choice Payment Solutions offers a three-year contract with an early termination fee of $495 or liquidated damages, whichever is greater.
- Complaints & Service: Merchants’ Choice Payment Solutions has received more than 70 public complaints.
- BBB Rating: Merchants’ Choice Payment Solutions has a “B+” rating with the Better Business Bureau and has received 63 complaints in the past three years.
- Rates & Fees: How Merchants Got The Best Rates With Merchants’ Choice Payment Solutions