National Merchant Services Review: Fees, Complaints & Lawsuits

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.

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.

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 thebest merchant accounts.

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 ofbest 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.

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.