National Merchant Services Review: Fees, Complaints & Lawsuits
Note: As of September 2021, the National Merchant Services website is down. We have been unable to find any indication that the company is still in business since and believe they have closed. We will no longer be updating this review. If you have any information that the company is still in business, please let us know in the comments below.
A First Data Reseller
National Merchant Services is a merchant account provider headquartered in Brooklyn, New York. The company is a reseller of First Data (Fiserv) and First Data Global Leasing and also appears to operate under the name Tribeca Merchants. National Merchant Services was founded in 2011 and should not be confused with National Merchant Center or National Bureau of Merchant Services, both of which are unrelated entities.
National Merchant Services Location and Ownership
National Merchant Services is a registered ISO/MSP of Wells Fargo Bank, N.A., Concord, California, and is headquartered at 132 W 36th St, New York, New York 10018. Semyon Vays is the CEO of National Merchant Services, while its managing director is Max Katsap.
National Merchant Services Review Table of Contents
- Costs & Contract: National Merchant Services appears to offer a multi-year contract through First Data (Fiserv) with an early termination fee of up to $595.
- Complaints & Service: National Merchant Services has received more than 10 public complaints.
- BBB Rating: National Merchant Services has no rating with the Better Business Bureau and has received 0 complaints in the past 3 years.
- Sales & Marketing: National Merchant Services hires independent sales agents and has received a low number of complaints about its sales practices.
National Merchant Services Customer Reviews
Here's What Their Clients Say
|Total Online Complaints||10+|
|Live Customer Support||Yes|
|Most Common Complaint||Poor Work Environment|
Low-to-Moderate Complaint Total
We have located more than 30 negative National Merchant Services reviews outside of the Better Business Bureau, and many of these complaints have been filed by former employees rather than merchants. Common complaints include a lack of training or sales support, poor service rendered to customers, unqualified leads, and the need to sign up merchants for equipment leases in order to collect commissions. The company averages fewer than three stars on Glassdoor and fewer than four stars on Indeed. Google’s review section has over 20 1-star reviews, many of which mention repeated calling from sales agents. There are also merchant reports of hard-to-reach or unhelpful customer service representatives, expensive contract terms, and aggressive telemarketing tactics.
National Merchant Services Lawsuits and Fines
In 2015, a small class-action suit was brought against NMS, and they were ordered to pay $60k to the complainants. Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
National Merchant Services Customer Service Options
National Merchant Services does advertise 24/7 phone and email support for its merchants. However, its complaint record makes it clear that this phone line falls short of performing as well as a top-rated payment processor for great customer service. We have therefore assigned it a “B” in this category for the time being.
National Merchant Services Online Ratings
Here's How They Rate Online
Online Ratings Summary
|Product & Service Complaints||0|
|Billing & Collection Complaints||0|
|Advertising & Sales Complaints||0|
|Guarantee & Warranty Complaints||0|
National Merchant Services currently has no rating with the Better Business Bureau and is not accredited at this time. The company has received no complaints in the last 36 months.
Not Taken into Account
In light of the company’s lack of any information on their profile, we have not included the BBB profile in our accounting.
National Merchant Services Fees, Rates & Costs
A Closer Look at The Contract
|Virtual Terminal Fee||1.00% - 4.99%|
|Payment Gateway Fee||Undisclosed|
|Statement Fee||$20 Per Month|
|PCI Non-Compliance Fee||$115 Per Year|
|Early Termination Fee||Up To $595|
|PCI Compliance Fee||$115 Per Year|
|Equipment Lease Terms||48 Month (locked)|
National Merchant Services does not provide its full contract terms on its website, but we have found consistent reports of certain rates and fees in various merchant reviews.
As a reseller, the company reserves the right to alter the terms and conditions of a typical First Data (Fiserv) contract. Under those contracts, merchants who process up to $50,000 each month will receive a swiped rate of 2.69% plus $0.19 and a keyed-in rate of 3.69% plus $0.19. Merchants whose monthly charges exceed $50,000 will receive a swiped rate of 2.29% plus $0.19 and a keyed-in rate of 3.29% plus $0.19.
According to multiple complainants, the company’s standard contract is an agreement lasting a year or more with an early termination fee of $495 or $595, an annual PCI noncompliance fee of $115, an annual fee of $99, a $20 monthly statement fee, and a tiered pricing plan. The company also leases terminals through First Data Global Leasing for a term of 48 months and a cost of up to $60 per month.
Virtual Terminal and Payment Gateway Pricing
In addition to its storefront payment processing services, National Merchant Services also dedicates a portion of its website to advertising its virtual terminal and payment gateway services. However, pricing is not disclosed on either of those services. Additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates typically apply to these e-commerce services.
Overall, these terms are average to slightly below-average for the industry, but the specific rates and fees for each agreement may vary depending on the agent setting up the account. The use of FDGL lease agreements precludes NMS from competing with the cheapest merchant accounts in our opinion. If you have any specific knowledge of the standard National Merchant Services contract, please share that information in the comment section below this review. We also encourage merchants to check out our list of the providers of the best merchant accounts.
National Merchant Services Employee Reviews & Sales Tacitcs
Should You Work For Them?
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||No|
Outside Sales Team
National Merchant Services utilizes telemarketing, inbound sales reps, and independent sales agents to market its services. The combination of phone appointment setters and independent sales agents is commonly linked to elevated complaint rates within the payment processing industry, and National Merchant Services appears to be no exception. There have been multiple National Merchant Services complaints filed with the Better Business Bureau (previously) and with employee review websites that describe inadequate training for agents, nondisclosure of contract terms, higher-than-expected fees, and aggressive telemarketing tactics. This does not compare favorably to our list of best credit card processors.
Sales Complaint Contents
Merchants consistently report nondisclosure of mid-qualified and non-qualified rates, PCI compliance fees, annual fees, and equipment lease terms. The company enforced the terms of its contract in most of these cases, even when merchants claimed to supply documentation proving that they had been deceived.
No Deceptive Quotes
To its credit, NMS does not appear to list deceptive “teaser” rates on its website or in its official advertising materials. In light of its hiring practices, complaint rate, and advertising tactics, we have given it a “C” in this category. If you suspect that a National Merchant Services sales agent has added hidden fees to your contract, you can double-check your pricing with a third-party statement audit.
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