CAPCO Program Controversy
Newtek Merchant Solutions is the merchant services division of Newtek Business Services, a New York City-based financial solutions company. Established in 1998, Newtek is often named as a central figure in a controversy surrounding CAPCO investments in multiple states over the past 10 years. According to multiple reports (2 of which can be found here and here), the company accepted tax credits from state governments as part of an agreement to create jobs and spur business growth within these states. The company has been criticized, though, for investing primarily in its own business ventures rather than non-Newtek-affiliated small businesses.
Newtek Merchant Solutions Location and Ownership
Newtek is a registered ISO/MSP of Westamerica Bank, Santa Rosa, California, and Merrick Bank, South Jordan, Uah. The company’s headquarters can be found at 1981 Marcus Ave, Suite 130, Lake Success, New York 11042. Newtek Business Services, Inc. is a publicly-traded company (NASDAQ:NEWT) and should not be confused with NewTek, Inc., a San Antonio-based hardware and software company. Barry Sloane is listed as the president and CEO of Newtek.
Newtek Merchant Solutions Review Table of Contents
- Costs & Contract: Newtek offers a two-year contract through Redwood Merchant Services with a $295 early termination fee.
- Complaints & Service: Newtek has received more than 10 public complaints.
- BBB Rating: Newtek has 3 profiles with the Better Business Bureau and has received 10 complaints and 16 reviews across them all in the past 3 years.
- Sales & Marketing: Newtek appears to hire independent sales representatives and has received a few complaints about its sales practices.
- Rates & Fees: How Merchants Got The Best Rates With Newtek