National Merchant Center Review

National Merchant Center is a merchant account provider headquartered in Irvine, California. National Merchant Center was formerly operated by the CEO of the now-defunct Lucrazon, Alex Pitt, and there is evidence that the company has also done business under the name Global Processing. According to multiple merchant complaints, National Merchant Center has had multiple DBAs including the Latino Coalition, National Payment Provider, and PayPro. However, these entities are more accurately described as affiliated businesses rather than DBAs. The Latino Coalition selected National Merchant Center as its preferred payment processing partner in 2007, and one National Merchant Center complaint states that the head of the Latino Coalition served on the board of National Merchant Center. Like National Merchant Center, another company named National Payment Provider was founded by Alex Pitt, and at least one merchant complaint states that “employees of National Payment Provider made calls on behalf of the Latino Coalition.” PayPro is another name mentioned in complaints as an affiliated business of National Merchant Center, and the PayPro homepage previously redirected visitors to the homepage for Lucrazon — another Alex Pitt venture.

Ponzi Scheme Allegations

In February 2016, the designated receiver for the victim class in a North Carolina-based Ponzi scheme called “Zeek Rewards” alleged that “Payment World“, another company owned by National Merchant Center’s CEO Roman Balanko, facilitated the transfer of more than $13.1 million earned in the Ponzi scheme to a bank in Moldova through a partnership with Payza. The receiver further alleged that it is “an open question” whether those funds are still in the account or have been transferred elsewhere. The receiver’s efforts to investigate the whereabouts of these funds are currently unresolved. Although National Merchant Center is not directly implicated in any of the designated receiver’s claims, the allegations are worth noting for a few reasons. First, the claim that the CEO of National Merchant Center may have funneled profits from a criminal Ponzi scheme into an international account raises ethical questions about National Merchant Center’s executive team. Second, Lucrazon, a company that shares a founding member with National Merchant Center, is the subject of numerous merchant complaints that accuse it of being a Ponzi scheme. Third, Payza is currently the subject of a federal investigation and an alleged partner with Payment World, who is also part of the investigation. Merchants should be aware of the allegations that have been made, and more can be read about the cases here and here

Payment Processing

National Merchant Center provides payment processing for a wide range of debit and credit cards. Additionally, they offer services such as gift and loyalty card solutions, a virtual terminal for phone and online payments, check processing, QuickBooks integration, POS systems from Clover, wireless terminals, ATM processing, online reporting, e-commerce solutions, PCI compliance, chargeback protection, data breach protection, and claim to offer 24/7 customer service.

POS System Integration

National Merchant Center supports integration with various Point of Sale (POS) systems. This integration helps streamline the transaction process, combining payment acceptance, inventory management, and sales tracking into a single system.

High-Risk Merchant Services

National Merchant Center provides services tailored to businesses deemed high-risk, which often face challenges in obtaining payment processing services due to their industry or high chargeback rates. They offer secure and reliable payment solutions for these businesses.

Fraud Prevention and Data Security

National Merchant Center implements robust data security measures and fraud prevention tools to protect businesses and their customers. These measures include encryption and tokenization technologies to secure sensitive data, as well as tools for monitoring and combating fraudulent activities.

Merchant Cash Advance

For businesses in need of quick access to funds, National Merchant Center offers merchant cash advance services. This service allows businesses to receive a lump sum payment in exchange for a portion of their future credit card sales, which can be useful for large purchases or unexpected expenses.

Gift and Loyalty Programs

National Merchant Center provides gift and loyalty program solutions designed to help businesses attract and retain customers. These programs can be customized to meet specific business needs and may include features such as custom branding, mobile compatibility, and analytics reporting.

Assessing Complaint Levels at National Merchant Center

A thorough review reveals a collection of around 15 customer reviews for National Merchant Center, with several alleging experiences that led them to describe the company as engaging in scam or ripoff practices. Additionally, a significant number of complaints have been lodged concerning the company’s dealings, particularly those related to its supposed DBAs. Key concerns raised by customers include misleading or forceful sales strategies, substandard customer service, overcharging, and hidden fees. National Merchant Center has taken steps to address and resolve many of these issues, often meeting the demands of their clients. Despite a complaint volume that is considered low-to-moderate for its industry size, the serious nature of these grievances has influenced a lower rating for the company in this aspect. We welcome and encourage sharing of personal National Merchant Center reviews in the comments section below for a broader perspective.

Customer Support Insights for National Merchant Center

National Merchant Center promotes basic contact avenues through its website, including phone and email support. However, these offerings seem inadequate when juxtaposed with the industry benchmarks set by the best payment processors customer service.

PaymentPop Rating for National Merchant Center

Positive Feedback

There are no positive reviews published about National Merchant Center on the PaymentPop website.

National Merchant Center BBB Rating

National Merchant Center has an A+ rating from the Better Business Bureau (BBB). There are no customer reviews on the BBB website for this business, but there is one customer complaint closed in the last 3 years. The complaint details issues with product/service and mentions ongoing charges despite service cancellation.

On a previous update the BBB profile had the following user review but it has since been removed.

Positive Feedback

There are no positive reviews published about National Merchant Center on the BBB website.

Google Maps Rating for National Merchant Center

National Merchant Center has a 1 out of 5 star rating based on 1 user review on Google Maps.

Positive Feedback

There are no positive reviews published about National Merchant Center on Google.

National Merchant Center Pricing

The standard National Merchant Center contract is typically a three-year agreement through First Data (now Fiserv), with automatic renewal for one year. First Data (Fiserv) rates are 2.69% plus $0.19 for swiped transactions and 3.69% plus $0.19 for keyed-in transactions. Additionally, the contract includes an early termination fee known as Liquidated Damages, a monthly minimum fee of $20, a service fee of $10, an annual fee of $75, a chargeback fee of $30 per incident (with an additional $50 chargeback research fee in some cases), a PCI Compliance fee of $19.95 per month, a monthly regulatory fee of $4.95, and a tiered pricing structure. Equipment leases for up to 60 months are provided through First Data Global Leasing.

Virtual Terminal and Payment Gateway Pricing

National Merchant Center also offers virtual terminal and payment gateway services, with pricing not disclosed on its website. Additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates, typically apply to these e-commerce services.

Costly Termination Fees

The company is marked poorly in this section mainly due to its early termination fee structure. If a client terminates service before the initial three years, they owe the greater of either the average net monthly fees for the previous 12 months multiplied by the remaining months in the contract, or $375. This termination fee can be costly for business owners. We recommend opting for a low-cost merchant account provider to secure better rates and avoiding contracts with such terms. Additionally, we suggest referring to our list of the best merchant accounts for suitable alternatives.

In-depth research uncovers that National Merchant Services has faced several legal actions historically, predominantly for alleged deceptive business practices. A notable case initiated by the Federal Trade Commission against NMC can be found here, alongside a Ripoff Report entry detailing an unsuccessful lawsuit attempt in 2010 due to NMC’s bankruptcy filing. For those seeking remedies outside of court, it is advised to report grievances to appropriate regulatory bodies, as outlined here.

In January 2021, NMS was implicated in a bankruptcy court proceeding, which concluded with an out-of-court settlement in August 2021, though specific details remain confidential.

Telemarketing and Outside Sales

According to merchant complaints, National Merchant Center appears to primarily market itself through telemarketing and independent sales agents. There are numerous negative National Merchant Center reviews from business owners and former employees that mention unethical conduct by National Merchant Center sales reps. This does not compare favorably to our list of best credit card processors.

“Slamming” Allegations

One National Merchant Center complaint includes documents faxed to clients by a company called “Global Processing.” These documents inform the business that “by removing the broker from your current account, any type of monthly commissions being generated and third-party hidden fees you were getting charged would get removed and that money would go back to your business instead,” and they’re signed by a Brett Winegardner with the Rate Review Department at Global Processing. Previously, we were able to identify a Brett Winegardner as an employee of the Rate Review Department at National Merchant Center, and Global Processing is cited as a DBA of National Merchant Center in numerous other client complaints. Based on this evidence, it seems likely that the documents included in the National Merchant Center complaint were in fact sent from someone at National Merchant Center.

Deceitful Sales Practices

The documents in question (available here) state in vague terms that the client can receive better pricing by removing “the broker” from his or her processing agreement. The business owner is supposed to do this by completing and returning the attached “Rate Reduction Form” (available here), which lists the new National Merchant Center rates and fees that the merchant will experience once the broker is removed from the picture. The complainant who supplied these documents stated on Ripoff Report that the forms were accompanied by calls and emails trying to get the complainant to switch his or her current payment processor to Global Processing. The complainant also felt that these documents and the other forms of communication received from National Merchant Center were intentionally constructed to convince the complainant that Global Processing was the complainant’s current processor and that completing the form was necessary for the complainant to continue processing payments.

Serious Red Flags

We agree with the complainant’s assessment, as the language of these documents does not seem to clearly outline that the submission of these forms will sign the merchant up for a new processor. If the client’s complaint is to be believed, it appears that National Merchant Center is engaging in a practice called “slamming,” which is generally considered to be an unethical business practice within the industry.

Previously Listed Rate Quotes

At the time of a previous update, National Merchant Center’s “Apply Online” page included a fee schedule that quoted a swiped rate of “1.7500%” and a keyed-in rate of “1.0000%.” A disclaimer at the bottom of the page explained that these rates are just the company’s “Qualified” rates, but its “Mid-Qualified” and “Non-Qualified” rates were not mentioned on the page at all. We consider this type of rate quoting to be deceptive because it may give clients an unrealistic expectation of the rates they will pay. Overall, the available information about NMC’s marketing tactics has compelled us to assign the company an “F” rating at this time. If you suspect that the company is charging you undisclosed fees, we recommend seeking a third-party statement audit to find and eliminate hidden charges.

National Merchant Center currently rates as a substandard credit card processing provider. Multiple complaints point to deceptive sales practices, while the company’s numerous DBAs (doing business as) distribute negative feedback across various business names. This obfuscation, combined with relatively uncompetitive contract terms, leaves the company with a less-than-stellar reputation. There’s also no clear evidence to suggest that its policies have improved recently.

Although National Merchant Center’s rating could evolve with updates to its BBB profile, businesses are advised to sign up with a highly-rated provider to ensure better pricing, transparency, and service quality. Evaluating competitive offers and understanding contract terms will enable merchants to choose a processing solution that best aligns with their specific needs.