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.
Merchants' Choice Payment Solutions Overview
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.
Lawsuit Settlement
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.
Customer Reviews & Sentiment
Several Public Complaints
We are currently able to locate over 60 Merchants’ Choice Payment Solutions complaints on this site and elsewhere, and many of these accuse the company of being a ripoff or a scam. Common complaints among merchants include deceptive sales practices, confusing and expensive cancellation processes, and unexpected or unauthorized fees. The company does not appear to have issued rebuttals to many of these complaints, and some of its responses indicate that it will hold merchants accountable for contract terms even when merchants claim to have been totally deceived by sales representatives.
Merchants’ Choice Payment Solutions Support Options
This is a moderate-to-high complaint volume for a company of this size and time in business, and the consistent reports of deceptive marketing tactics and poor customer service have lowered the company’s grade to a “D” in this category. Merchants’ Choice Payment Solutions lists a dedicated customer support number on its website, but does not qualify as a top-rated processor for customer service at this time.
Client Satisfaction Ratings
| Product & Service Complaints | 37 |
|---|---|
| Billing & Collection Complaints | 20 |
| Advertising & Sales Complaints | 6 |
| Guarantee & Warranty Complaints | 0 |
| Delivery Complaints | 0 |
Note: We have adjusted this company’s BBB rating according to our own standards. To better understand why we adjust BBB ratings, please see our Rating Criteria.
Over 50 BBB Complaints
Merchants’ Choice Payment Solutions is not an accredited business with the Better Business Bureau. As of this review, the company holds a “B+” rating with the BBB and has had 63 complaintsfiled against it in the last 36 months. The majority of those complaints (37) were filed in regards to problems with products or services, while 20 stemmed from billing or collection disputes and 6 from advertising and sales issues. Merchants’ Choice Payment Solutions has successfully resolved 26 of the complaints, while 37 were either resolved to the dissatisfaction of the merchant or did not receive a final response from the merchant.
What Merchants Say
This informal merchant review echoes the “slamming” concerns expressed in several other Merchants’ Choice complaints:
This company called me and vaguely inferred that they were a part of the company I already worked with for my credit cards. The agent tried to scare me into giving him information from my current statements by saying if I hadn’t done certain things I would be subject to fees or fines. When I asked the agent specific questions he did not lie, but gave very vague answers. I HATE companies that acquire new customers through deception. Don’t trust anything about them.
Merchants finding themselves in this situation are encouraged to learn how to shut down sales calls.
A “D” Performance Overall
The BBB has also posted a notice warning merchants against slamming and contract alteration by Merchants’ Choice Payment Solutions. The company has responded to the BBB by denying these allegations and defending its sales practices. Given the full scope of information provided by the BBB, we have adjusted the BBB’s rating to a “D.”
Card Processing Rates & Fees
Three-Year Contract
The standard Merchants’ Choice Payment Solutions contract (available below) is a three-year agreement with automatic three-year renewal and an early termination fee of $495 or Liquidated Damages, whichever is greater. We have not found any specific mentions of a PCI Compliance fee, but the company does charge a non-compliance fee of $16.95 per month. The contract also mentions something called a “divert fee,” which is described as follows: “A divert fee of $25.00 per month will be charged for a special account maintained at BANK to house diverted funds for (the) merchant.” Whether and how this fee is enforced is unclear.
Beware Equipment Leases
The primary complaint about the company’s standard contract is that it usually includes a 48-month equipment lease through First Data Global Leasing, which is often not disclosed by the company’s sales representatives. These equipment leases can be very expensive over the duration of the contract, especially considering that the equipment itself rarely costs more than a few hundred dollars. Multiple merchants report that this equipment is presented at the point of sale as a “free terminal,” which appears to be an out-and-out falsehood. Due to this standard equipment lease, the company’s long service term renewal, and the high early termination fee, we have given the company a “F” in this category and must exclude Merchants’ Choice from our list of the cheapest merchant accounts. See the MCPS Terms and Conditions.
Bottom Line
Not a Competitive Option for Businesses
Merchants’ Choice Payment Solutions rates as a substandard merchant services provider according to our rating criteria. Multiple complaints about the company suggest that it is engaging in deceptive telemarketing strategies, and its reported contract terms are not especially competitive. Considering that Merchants’ Choice rates as one of the worst merchant account providers in the industry, merchants are advised to select a top-rated merchant account, instead.
Merchants' Choice Payment Solutions Rating
