National Processing Company (npc.net), a subsidiary of Vantiv, is one of the larger merchant account providers in the United States with over 240,000 merchants. The company is based in Louisville, Kentucky, and was originally formed in 1979 as a separate subsidiary of First National Bank. Due to a merger in 1988, the company then became a wholly owned subsidiary of National City Corporation. In 1996, National Processing Company spent a brief stint as a publicly traded company before being acquired by Bank of America for $1.4 billion. Only two years later Bank of America sold National Processing Company to Iron Triangle Payment Systems, a company which also at the same time bought Retriever Payment Systems. Iron Triangle Payment Systems then re-branded all of its merchant processing companies under both National Processing Company and Retriever Payment Systems, both of which were subsequently acquired by Vantiv (formerly known as Fifth Third Processing Solutions). Chris Williams is listed as the senior vice president of NPC.
Sales & Marketing
Key Points - Sales & Marketing
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||No|
National Processing Company markets its services with three main strategies: telemarketing, outside sales agents, and partnerships with independent sales organizations. The most solid indication of deceptive sales tactics by National Processing Company comes from a large number of merchants reporting nondisclosure of important contract provisions and fees prior to account setup. Many of these complaints can be found in the comment section below. Aside from these reports, the company does not appear to engage in other common types of misleading marketing or advertising.
Costs & Contract
Key Points - Costs & Contract
|Early Termination Fee||$250+|
|PCI Compliance Fee||$20 Per Month|
|Equipment Lease Terms||Variable|
Processing fees with National Processing Company appear to vary from one merchant to the next based on business type, processing volume, and the agent setting up the account. The company’s standard merchant account contract (available in part below) includes a three-year service agreement that automatically renews for successive two-year terms and can only be cancelled within a small window of opportunity. Merchants who cancel service while under contract are subject to a variable cancellation fee (commonly $250 but potentially Liquidated Damages) that is automatically withdrawn from attached checking accounts. National Processing Company also appears to assess a monthly PCI Compliance fee of around $20, which may vary by merchant, and other additional fees including monthly minimum fees, statement fees, and “on file” fees. Overall, the company’s costs and contract terms do not appear to be especially competitive. See the NPC Merchant Agreement.
Complaints & Service
Key Points - Complaints & Service
|Total Online Complaints||120+|
|Live Customer Support||Yes|
|Most Common Complaint||Hidden Fees|
We are currently able to locate at least 120 National Processing Company negative reviews, many of which accuse the company of being a scam or a ripoff. This is a moderate-to-high amount of public complaints for the company’s size and time in business. The overwhelming themes among complainants include unexpected and hidden fees, nondisclosure of the service’s auto-renewal clause, and surprise over the cancellation fee, especially from merchants reporting several years of service beyond the three-year basic agreement. There are also several complaints of poor customer service and difficulty cancelling accounts.
Key Points - BBB
|Product & Service Complaints||78|
|Billing & Collection Complaints||72|
|Advertising & Sales Complaints||20|
|Guarantee & Warranty 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.
As of this review, National Processing Company is accredited with the Better Business Bureau and has been so since May of 2009. The company currently holds an “A+” rating with the BBB despite 170 complaints in the last 36 months, which is down from 179 as of our last update. The BBB’s justification for the high rating is National Processing Company’s large size versus its complaint ratio and that the BBB has sufficient information about the company. Of the total complaints, 78 are attributed to problems with the service, 78 to billing and collection disputes, and 20 to advertising and sales issues. Forty-six complaints have been resolved to the satisfaction of the merchant, while the remaining 124 either were resolved to the dissatisfaction of the merchant or did not receive a final response from the merchant. In light of these figures, we have adjusted the BBB’s rating to a “B-.”
Related: EMV Terminal Recommendations
About Phillip Parker
Hi, I’m Phillip and I’m disgusted by the state of credit card processing in the U.S. and abroad. I believe that the industry has been overrun by people who engage in fraud and deception in order to steal money from hard working business owners. I’ve made it my mission to expose the companies and individuals who engage in predatory marketing, pricing, and contracts, or just provide terrible service. Along with uncovering the bad guys, I’ve also discovered the good guys who do stand out from the status quo. CPO is a website where you will find ratings and reviews of these companies along with advice on how to save money and which service providers consider. Together we can move the industry in a positive direction. If you would like to help support my work, please checkout “Fee Sweep” my eGuide to getting the lowest possible fees when accepting card payments. If you haven’t heard of “interchange” this advice will save you hundreds, even thousands, in processing fees.Schedule a Consultation with Phillip
Related: Phillip’s Top All-Purpose Merchant Account Picks
Copyright & Disclaimer
Copyright © CardPaymentOptions.com, Inc. (Digital Fingerprint: 0d38c6720f0d78a701b74d58653af608). Getting paid to re-write this page? Click here to earn a reward.
Any unauthorized copying and reproduction of the content of this page, including all meta data and computer code, is strictly prohibited. While the information in the above article is believed to be accurate as of its publish date, the author and publisher make no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents. The author and publisher shall in no event be held liable to any party for any direct, indirect, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this material, which is provided “as is,” and without warranties. Any and all use of trade names and/or marks are for identification purposes only and shall not be construed as a claim of affiliation, or otherwise, with CardPaymentOptions.com, Inc. ("CPO") in any form. The sole purpose of the material presented herein is to alert, educate, and inform readers. It is not intended as legal or financial advice.