Newtek Merchant Solutions 2023: Reviews & Complaints

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Newtek Merchant Solutions
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Newtek Merchant Solutions

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Company Overview

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.

In 2023, Newtek acquired the National Bank of New York City. This appears to be a major acquisition, and we will update as it affects Newtek’s model.

Newtek Merchant Solutions Payment Gateway

Newtek offers its own payment gateway for merchants, called Newtek Gateway. The Newtek payment gateway is Level 1 PCI-compliant, utilizes a fully modular stack-designed anti-fraud system called Fraud Stopper, and features real-time reporting. It also boasts a virtual terminal, retail swiping, recurring payments, pre-certified shopping carts, integration with POS systems and terminals, live dev support, developer emulators, user management tools, unlimited users, customizable receipts, and a built-in customer database.

Tailor-Made Payment Processing Services

Newtek Merchant Solutions is a credit card processing company specializing in customized payment processing solutions for small and medium-sized businesses. They focus on understanding the unique needs of each client to deliver tailored services that enhance the overall customer experience and streamline business operations.

Multi-Channel Payment Acceptance

Newtek Merchant Solutions offers a variety of payment processing options, including in-store, online, and mobile payments. This enables businesses to cater to their customers’ preferences, providing a seamless payment experience across multiple channels.

Compatibility with Various POS Systems

Newtek Merchant Solutions is compatible with a wide range of point-of-sale (POS) systems, allowing businesses to integrate their existing hardware and software with Newtek’s payment processing services. This integration helps merchants create a unified user experience and streamline their day-to-day operations.

High-Risk Merchant Support

Newtek Merchant Solutions provides support for high-risk merchants by offering specialized payment processing services tailored to their specific requirements. This ensures that businesses operating in high-risk industries can maintain reliable payment processing while minimizing chargebacks and fraud.

Advanced Security Measures

Security is a top priority for Newtek Merchant Solutions. They employ state-of-the-art encryption and tokenization technologies to protect sensitive customer data during transactions. Additionally, their fraud prevention tools help businesses detect and prevent fraudulent activities, ensuring a secure payment environment for both merchants and customers.

Dedicated Account Management

Newtek Merchant Solutions assigns a dedicated account manager to each merchant, providing personalized support throughout the entire partnership. This hands-on approach ensures that businesses have a reliable point of contact for any questions or issues that may arise while using the payment processing services.

In-Depth Reporting and Analytics

Newtek Merchant Solutions offers merchants access to comprehensive reporting and analytics tools. These tools enable businesses to monitor sales performance, track customer behavior, and optimize their payment processing operations. By leveraging this data, merchants can make informed decisions that contribute to their business growth.

Location & Ownership

Newtek is a registered ISO of Westamerica Bank, Santa Rosa, California, and Wells Fargo Bank, N.A., Concord, CA, and a registered ISO/MSP of Merrick Bank, South Jordan, Utah. The company’s headquarters can be found at 1981 Marcus Ave, Suite 130, New Hyde Park, 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.

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Table of Contents

  • Costs & Contract: Offers a two-year contract through Redwood Merchant Services with a $295 early termination fee and …
  • Complaints & Service: Has received more than 10 public complaints regarding…
  • BBB Rating: Has 2 profiles with the Better Business Bureau and has an “A-” rating on its primary profile. It has received…
  • Sales & Marketing: Appears to hire independent sales representatives and has received a few complaints about its…

Newtek Merchant Solutions Customer Complaints & Reviews

Here's What Users Think

Complaint Summary

Total Online Complaints
Live Customer Support
Most Common Complaint
Poor Service
Recent Lawsuits

Low Complaint Total

We have located over 10 negative Newtek Merchant Solutions reviews, some of which express concern that the company is a scam or a ripoff. Most of the available complaints appear to be the result of Newtek’s aforementioned affiliation with the TYS telemarketing scam. The remainder is split between complaints of undisclosed fees and claims of poor customer service, with difficulty canceling the merchant account as a recurring theme. Although Newtek’s complaint volume is low for its size and time in business, the company’s recent FTC settlement and consistent complaint themes have negatively impacted its score in this section. If you have your own Newtek review to make, please do so in the comments below.

Newtek Lawsuits

Newtek was also the subject of a 2013 complaint filed by the FTC (Federal Trade Commission) which alleges that Newtek processed payments for a telemarketing credit card scam called TYS, or Treasure Your Success. According to the complaint, Newtek provided payment processing for TYS “without performing customary reviews (such as obtaining telemarketing scripts, as required by their own procedures) and despite clear warning signs of fraud.” Further details can be found here. The portion of the case related to Newtek’s former president, Derek Depuydt, was settled in November 2014. Details can be seen here. In May 2015,  a Florida district court ruled against Newtek in the case and ordered it to pay $1.7 million to the FTC. As a condition of the ruling, Newtek “agreed to a settlement permanently barring the company from processing payments for clients whom it knows or should have known: 1) fall into certain categories that have received close industry attention, such as debt relief services; 2) make misrepresentations to consumers; 3) charge consumers without their authorization; and 4) otherwise violate the FTC Act or the TSR.” It also requires Newtek to “put screening and monitoring provisions in place for use when accepting future clients.”

Newtek Merchant Solutions Customer Support Options

Newtek offers phone and email support to its merchants. We have assigned the company a “B” in this section, but we do not consider it to be a top-performing credit card processor for customer service at this time.

Newtek Merchant Solutions Customer Service Numbers

  • (855) 763-9835 – General Sales and Support
  • (800) 277-6980 – Payments Processing
  • (212) 356-9500 – Corporate Office
  • (800) 749-8707 – Small Business Financing

Other Support Options

Newtek Merchant Solutions BBB Rating and Report

Our Better Business Bureau Profile Assessment

BBB Summary

BBB Reports

Multiple BBB Profiles

The Better Business Bureau maintains 2 separate profiles that both appear to be related to Newtek’s services. The profile for “Newtek Merchant Solutions, LLC” currently has an “A-” rating and is prefaced by a warning regarding the FTC action against the company, while the headquarters profile for “Newtek Business Services Corp.” has an “A+” rating. For the sake of simplicity, we will combine the data from both of these profiles.

BBB Warning

The company’s BBB profile under Newtek Merchant Solutions, LLC is prefaced with the following warning:

Government Action
Payment Processing Company Named for Assisting, Facilitating Telemarketing Fraud
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency.  If the matter is being appealed, it will be noted below.The Federal Trade Commission is mailing 1,244 checks to consumers who bought deceptively marketed credit card interest rate reduction services after being contacted via illegal robocalls. Affected consumers will receive full refunds, with most receiving $1,100 or more, within the next week.

This warning relates to the government action taken that has been addressed in the complaints and service section of this review.

Over 40 Complaints Across 2 Profiles

Newtek has received 48 total BBB complaints in the past 36 months. This is an extremely large increase from the 10 across 3 profiles at the time of our last review, though it appears that many of the complaints have to do with the loan side of the business and not credit card processing.

What Merchants Say

In addition to those 48 complaints, Newtek has received 106 informal reviews across its 2 BBB profiles. All but 2 of these reviews are negative in tone. Again, however, the majority of these reviews come from the loaning side of the business, and it appears that Newtek takes the time to personally respond to and investigate each review. The most recent review that refers to card processing details unexpected charges:

Newtek Merchant Solutions are crooks! They charged me for an annual fee I was not aware about for an account I had not used in months with Clover. Clover provided poor customer service which prompted me to look elsewhere for better credit card services. I called Newtek right after I was charged and was told I would get a refund for the new annual fee of $99. I called today since I had not seen that refund and the “supervisor” denied the request for refund. If you are looking for more reliable and honest credit card services, look elsewhere–this company is NOT what you want. If you want to just give money to a corporation because you have money to burn, then feel free to donate it to Newtek Merchant Solutions–they will take your money for providing NO service!

This prompted a response from the company:

Newtek Payments takes every customer service inquiry seriously and the comments of *********************** as owner of Pawz 4 Peeps, LLC have been reviewed by our Head of *****************

The ********************** signed an Agreement for these services on or about October 25, 2021. Within the terms of the Agreement **************** agreed to the charges processed and agreed to have the amounts debited from the business’s checking account. Our records reflect that **************** paid all equipment charges and fees while utilizing the merchant processing account on a limited basis.**************** requested the merchant account be closed on December 6, 2022, the merchant account was immediately closed and charges were stopped after that date. All charges paid by Paws 4 Peeps were contractually agreed.

In reviewing the limited usage of the merchant processing account and in an effort to satisfy Ms. ******* concern, we will issue a one-time courtesy refund of $99.

We wish **************** and her business Pawz 4 Peeps the best of success and welcome a call to Newtek if she needs our services in the future.

For clients who believe their processor is charging undisclosed fees, we recommend seeking a third-party statement audit to find and eliminate hidden charges.

An “A” Performance

Despite the subject matter of the reviews, it appears that much of the consumer dissatisfaction has to do with the convoluted structure of the loans they apply for and the related deposits. While the BBB references the company’s legal history, the reviews and complaints across both profiles don’t shed light on any new issues. In light of these figures, we agree with the BBB’s score at this time.

Newtek Merchant Solutions Fees and Rates

A Closer Look at the Contract

Cost Summary

Cancellation Penalties
Processing Rates
1.00% - 4.99%
Monthly & Annual Fees
Equipment Leasing

Newtek Contract Terms

The standard Newtek merchant contract (available below) is a two-year agreement through Redwood Merchant Services with automatic renewal for one-year terms and an early termination fee of $295. The client will also be subject to monthly and annual fees (which may include PCI compliance fees, monthly minimums, and variable transaction fees) as specified in a separate document that we are unable to obtain at this time. According to some client complaints, the company charges an annual “security fee” (possibly a PCI compliance fee) of $89.95, which businesses must opt out of to avoid paying. Although the company’s other fees aren’t clearly labeled in client complaints, multiple reviews cite hidden and unexpected fees charged every month by Newtek.

Fund-Hold Complaints

A significant portion of the available Newtek complaints are filed as a result of fund-holds. Like many processors, Newtek reserves the right to place funds in a reserve account in the event that a client incurs excessive chargebacks. Newtek does not appear to be abusing this policy at this time, but merchants should be aware that they may encounter fund-holds when processing through the company and may need to take steps to force Newtek to release their money. See the Newtek/Redwood Merchant Services Merchant Agreement.

Newtek Merchant Solutions Jobs and Employment

Hiring Standards and Ethical Marketing Assessment

Key Points

Uses Independent Resellers
Misleading Marketing
Discloses All Important Terms

Outside Sales Agents

Newtek appears to utilize independent sales agents and strategic partnerships to market its services. The use of independent sales agents is frequently linked to high complaint rates due to the lack of oversight and training these agents typically receive. In this case, we have located a handful of negative Newtek reviews that describe misrepresentation or nondisclosure by the company’s sales representatives, specifically with regard to the company’s “Meet or Beat” guarantee.

Incessant Sales Calls

In addition, a large number of online telemarketing complaints name Newtek as the source of constant, unwanted sales calls. This is most likely due to the company’s association with TYS, a telemarketing scam that was recently the subject of legal action by the FTC. Although Newtek did not operate this scam itself, its partnership with TYS has contributed to its being included in these complaints.

No Affiliation with the SBA

As a final note, the Newtek website was previously found at “” due to the company’s use of the slogan, “The Small Business Authority.” Despite this former domain name, business owners should not confuse Newtek with the U.S. Small Business Administration, and the company’s homepage at one point explicitly stated that Newtek is neither affiliated with nor endorsed by the SBA. To its credit, Newtek’s website does not prominently feature any misleading rate quotes. If you suspect that Newtek is charging you undisclosed fees, we recommend seeking a third-party statement audit to find and eliminate hidden charges.

Newtek Merchant Solutions Review Summary

Our Final Thoughts and Opinions

Newtek Merchant Solutions rates as an average credit card processing provider according to our rating criteria. The company is showing a low-to-moderate number of complaints and was recently the subject of FTC action as a result of its connection to a telemarketing scam. Newtek’s overall rating may be subject to change once more is known about its fee schedule, or once the BBB aggregates its three separate profiles for the company. For now, business owners should compare Newtek’s rates and service to the value offered by top-rated payment processors.

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Customer & Employee Reviews

What Others Are Saying About Newtek Merchant Solutions

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9 Responses

  • Ross Perot

    Barry Sloane the CEO of Newtek is a liar, backstabber, thief, and psychopath.

  • Ricky


  • Sebastian Bustamante

    Where to begin? This company has been a nightmare! Between the lack of internal communication and organization this has bee the worst business decision I have ever made.
    We applied for an SBA loan and a line of credit to help us with payroll and pay for equipment. The process was just a pain! They asked for so many documents and paperwork that we found ourselves working overtime to send everything in. The representative assigned to our case, which was a different person every day, was asking for documents that were submitted the day before, so we did double the work. They have zero organization skills and were unable to give a straight answer when we called in. Within the first month of the application process we had to make a payment. After six months of submitting documents and paying half of the equipment ourselves they decided to give us a closing date. They change the date week after week, then another four months went by with the excuse of new documents needed before closing. Finally, after waiting so long they finalized the closing date and time. without any notification a notary arrived at our office with no contract to sign and telling us that the contract was supposed to be overnighted to us to be signed the next day. After closing we had no idea that we needed to wait for a second process for the line of credit… again waiting and waiting while not been able to do anything or get additional funding. The following day we received a check to pay our vendor’s broker for the equipment. They check had a foreign address and the name on the check was not even the correct name, again this goes back to the lack of organization and communication. The loan office just told us to give the check to the vendor and let them deal with it. Our vendor tried to deposit the check and the broker’s account got close due to the foreign address and not having the full name on the check. We tried to call to get assistance and the loan officer just told us that he had no time for this and had too many cases to work on and hang up the phone. They had to recall the check. then they accuse of fraud and even try to intimidate us saying that an investigation was open because we didn’t do business with no vendors. they didn’t do anything even after they contacted the owner of our vendor which confirmed that we did, in fact do business with them. No check has been received and here we are still waiting for the check to be recall. Every time we called to get an update no one was able to give us an answer and just told us that an email was sent… there is no communication within departments and no one had an answer for us.
    Nothing was explained to us on how the process for the line of credit worked. They assigned a representative for the line of credit to “supposedly” help us with the process. However, she didn’t take the time to explain anything and just dump a bunch of information, talking extremely fast! And she has no patient at all. She then asks me to submit request on the portal they use, without explaining or showing us how to use it, when I ask her for help she just emailed an outdated guide which had nothing to do with the portal. Then after having all our client’s payments rerouted to them they decided to freze our account due to the “investigation” and we didn’t get funded, so we had no funds available and all of our client’s payments had been sent to them, so we had no money for payroll. We decided to terminate all relationship with them and sent out an email asking them for the next step to terminate. After three days of waiting they sent us an email with a letter showing a balance and a note stating “ we have decided to terminate our contract” then the representative assigned to our account sent an email to our client directly asking for status of a payments which was escalated to the owner of our client. This was just unacceptable in many levels… they were supposed to contact accounting not the owner. Apparently, our nightmare will continue until we receive a release letter.

    Please safe your time and money DO NOT USE THEM!

    From The Editor
    This Post Might Help: Best Merchant Accounts for “High Risk” Businesses

  • Dell kim

    Newtek one is scam. The biggest scam. They promise sba loan. With $1300 deposits . And keep asking for endless document. After that they state your loan is decline base on the info that you given, and lack of document. Don,t fall for they sceme. Don,t ever deposit your money, or you will never see you dollar ever again. I implore you to take your business somewhere els. Read all review about this scumbag company. Don,t do it .

    From The Editor
    This Post Might Help: Best Merchant Accounts for “High Risk” Business Types

  • Ross Barker

    So, Newtek is a fraudulent company that uses tax payer dollars to fund itself stolen from States CAPCO funds. Just do a quick google search and you’ll find out what I am talking about. The turnover at the company is ridiculous. I have been dealing with Newtek for several years, but now all of the good people that used to be able to help me are gone. I get tossed around customer service reps who are nothing but monkeys with no idea what they are doing. I asked them how they have been there and not one of them could say more than a few months. The old people I used to work with there are gone, and they probably jumped ship for a good reason. The only reason I stay with Newtek is because they locked into a loan probably funded with laundered money that would be too expensive for me to break away from. They do enough just to get by without me bringing my attorney in to get me out of this nightmare.

    From The Editor
    This Post Might Help: How To Get Out of a Merchant Account Contract

  • Karen

    Not very helpful to loyal customers when the equipment you buy from them doesn’t work right. They send a lot of referb units and charge you for them. Customer service rating for lack of a better review F! The only thing good is their rates, but then again they charge you for lots of other items including referb processing units. Search long and hard before going with this company!

  • Steve Green

    I’m a small one man wholesale business and do not take all that many credit card for sales during the year. Most of my customers get 30 days to send me a check. However as a convenience to my customers most of whom I know and do repeat business with I do take CCs. I have changed my credit card merchant processing companies various times over the years. Its always for the same reasons the fees and commissions creep up to unacceptable levels. Six years ago when I signed up with NEWTEK Business Services Corp Mike Wholean one of their employees promised me this would never happen with Newtek. Well over the years Newtek has enacted a variety of sneaky fees (not commissions as they say) that would add up to 5% more to the commissions they took from me. In the past when I have caught this they have refunded me these fees and sometimes not. They get away with it since I was a bit lax and am not always keeping an eagle eye on them. Well when I reviewed the last 6 months of my credit card transactions with Newtek I see that I was only getting 92% of the money I charged my customers. That sucked and I decided I had it with this company and closed my account. Good riddance Newtek.

  • Matt Jones

    Newtek are scam artist. They have been taking a compliance fee of $30 for the past 5 months from me because supposedly im not compliant. I call the compliant company and they said that i am compliant and give me another number to call. Newtek says they will issue a refund then the next month i get they take the compliance fee out of my bank account once again. I have four 800 numbers that have been giving to me that they say to call and to correct this problem and the last one I get gives me the first 800 number i called in the first place. They hire out several different companies to deal with your account which all have access to all your bank records and all your personal information. Do not deal with Newtek. I have had nothing but problems since day one with them.

    Are you with Newtek? Learn how to resolve this complaint.

  • Brandon Spaugy

    VERY UNHAPPY !! I have had to call or had my employees call NewTek many times in the last month to resolve issues. Just to install the new chip card terminal was supposed to take 15 minutes. Tried it twice and both times after spending almost 30 minutes on the phone had to abort to deal with customers who needed our help. Then had the representative come out and try. His name is Bill Eldridge. He has been handling our card terminal for a few years. It took him almost a full hour to install the new terminal. That was the last time we talked to Bill. He no longer answers his phone so we have had to talk to Newtek to get several issues dealt with. The last and final straw was getting a call from Newtek telling us today “10-17” that our terminal did not batch out on 10-7. Over a thousand dollars is not put into our account and they would try to recall the card numbers to resubmit. I asked what would happen if the cards didn’t go through as the merchandise is gone. The woman on the phone sais she couldn’t guaranty we would get our money. SO LET ME BE CLEAR, IF YOU HAVE A TERMINAL FROM NEWTEK THAT SHOULD BATCH OUT ON ITS OWN AND IF IT DOES NOT, THEN THEY COULD CALL YOU A FEW WEEKS LATER AND TELL YOU THAT YOU MAY NOT GET YOUR MONEY AT ALL


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