National Merchant Services Review: Fees, Complaints & Lawsuits

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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

Customer Reviews Summary
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
Delivery Complaints 0

No Complaints

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

Cost & Fees Summary
Swiped Rate 2.69%+$0.19
Keyed-in Rate 3.69%+$0.19
Virtual Terminal Fee 1.00% - 4.99%
Payment Gateway Fee Undisclosed
Annual Fee $99
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)

Long-Term Contract

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.

Average Pricing

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?

Jobs & Marketing Summary
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.

Our National Merchant Services Review Summary

Our Final Thoughts

An Average Option for Most Business Types

National Merchant Services rates as an average merchant services provider according to all available information. The company appears to utilize telemarketing and independent sales agents to market its services, and it frequently stands by its contracts even when these agents are accused of deceptive sales tactics. Its contract terms are also not especially competitive for the industry. As always, merchants are encouraged to compare NMS’s pricing to that offered by top-rated merchant account providers in order to obtain the best possible deal.

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Which is Most Important for You?

If you had to pick one, which quality would you say will be the most important with your next credit card processor? Tap or click your selection to register your vote:

  1. Low Transaction Fees
  2. No Monthly Fees
  3. No Contract
  4. Reliable Customer Support
  5. Quick Signup

Testimonials & Complaints

How Did National Merchant Services Treat You?

12 User Reviews

  • Jon Stairs

    Just got off the phone with James who horrible on the phone. After I told them I had a 2 year contract with them that was over in September I was told well that does not matter since you stopped using us in Feb 2017. I explained the reason I stopped was because they raised my rates for a fixed account and when I called in he said oh well you signed a 2 year contract. Then he threatened to call and have my merchant services revoked from visa. Do not do business with them!!!

    From The Editor
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  • Karen Hill

    This company has the worst customer service in America and have unethical policies! Do no use them. They would not help us with an issue on a chargeback and then, after we sent a letter canceling our services with them, they call saying they were going to refund the disputed amount of fees. I asked them why they didn’t just credit our statement when I initially called several months prior. They said they wanted to call in person and had tried to reach us. We are in the office every day so we cannot explain how they couldn’t reach us. Run, don’t walk from doing business with National Merchant Services.


    What a nightmare this company is. About 11 month ago, a business manager Charles Cycholl, came to our Coffee shop and offer Clover/National Merchant services integrated POS/cc processing offering all kind of great rates. I ended up paying 2% + more. But my nightmare was just starting. I returned the equipment, it took me about 4 months to get back my $2000 deposit, because they charge me twice, after call back and forth finally I got my deposit back. What a surprise they keep charging me a monthly fee about $400. Atter I thought I straight everything out. Just got a collection call this morning. Try to contact this company …and of course no answer phone or emails.
    Stay away from this company
    I will be more than happy to answer any questions

    Sara Roberts

  • Richard J. Delray

    In an attempt to get our credit card business there telemarketing people have telephoned my business 27 times in the last few days under the caller ID of “Montpelier”. Most of the time no one is there and when we attempt to call them back their telephone doesn’t exist. When we do speak with someone they are aggressive and rude. We have requested to be removed from their calling list but that hasn’t happened as I received another call this morning. They are very unprofessional and I would never do business with them!

  • Rex E Sanders

    Horrible company, they will send you on wild goose chases for ‘leads’ which is just their telemarketing team cold calling. Speaking of, their telemarketers are terrible, often asking potential clients to repeat their name and losing you the deal because of their lackluster talents. I would never recommend this company, they will waste your time and money.

  • TC

    I was just called by National Merchant Services, or some marketing firm they’ve hired. I was told Visa and MC lowered their rates by 40%, and they could pass it on. Assuming it’s same firm, as I asked her 3 times the name of the company through the conversation,, they should be put out of business for their sales tactics.

  • Adrian Swagger

    Good company. Agent very nice didnt cold call me. Explained to me my statement in detail n then explained there rates straight off of contract which were considerably lower than than mine.1.59 /credit and .89 / debit . Qualified .n only .05 cents per transaction and batch fees. Only $5 statement fee a month $0 pci fee and even With the $59 dollar lease was able to save me almost 50 percent a month on my fees… satisfied

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