Newtek Reviews & Complaints

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Overview

In this article, we provide an analysis of Newtek Merchant Solutions, examining key aspects of their services and their impact on small and medium-sized businesses. We'll discuss their rates, fees, contract terms, and address common customer complaints to give a well-rounded view of the company. Special attention is given to Newtek Gateway, their advanced payment gateway, and the company's ability to cater to diverse payment processing needs, including those of high-risk merchants. We explore the company's security measures, customer service approach, and the legal challenges it has faced. We also scrutinize customer support options, online ratings, and the intricate details of Newtek's fee structure and contract terms, aiming to equip businesses with essential information for informed decision-making.

About Newtek

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.

Video Summary

Pros & Cons
Pros: Cons:
Zero set up fees Complaints about unexpected fees
24/7 customer support Annual "security fee"
Immediate merchant account approval Early termination fee ($295)
Secure SSL certificate for transactions Numerous BBB complaints
Variety of business solutions Outside sales teams used

Newtek Merchant Solutions Customer Reviews

Here's What Their Clients Say

Customer Reviews Summary
Total Online Complaints 10+
Live Customer Support Yes
Most Common Complaint Poor Service
Recent Lawsuits Yes

Limited Complaint Total

We have identified over 10 negative reviews of Newtek Merchant Solutions, with some expressing concerns about the company possibly being a scam or ripoff. Most complaints seem to stem from Newtek’s association with the TYS telemarketing scam. Other grievances relate to undisclosed fees, poor customer service, and challenges in canceling the merchant account, with recurring themes noted. Despite Newtek’s low complaint volume relative to its size and tenure, the recent FTC settlement and consistent complaint patterns have impacted its rating in this aspect. If you have your own experience to share concerning Newtek, please feel free to do so in the comments section below.

Newtek Legal Action

In 2013, the FTC filed a complaint against Newtek for processing payments related to a telemarketing credit card scam known as TYS (Treasure Your Success). The complaint alleged that Newtek processed payments for TYS without customary reviews and despite clear signs of fraud. Further details on the case and settlement can be found here. In subsequent legal proceedings, Newtek was ruled against and ordered to pay $1.7 million to the FTC, with conditions set to prevent future violations.

Newtek Merchant Solutions Customer Support Options

Newtek provides phone and email support to its merchants. While the company has been rated a “B” in this category, it currently falls short of being recognized as a top-performing credit card processor for customer service.

Newtek Merchant Solutions Customer Service Contact 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 Online Ratings

Here's How They Rate Online

Online Ratings Summary
BBB Reports 154

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, Rates & Costs

A Closer Look at The Contract

Cost & Fees Summary
Cancellation Penalties Yes
Processing Rates 1.00% - 4.99%
Monthly & Annual Fees Yes
Equipment Leasing Undisclosed

Newtek Agreement Details

The standard Newtek merchant contract (available below) entails a two-year commitment facilitated by Redwood Merchant Services. It automatically renews for one-year terms and includes an early termination fee of $295. Additionally, clients are subject to various monthly and annual charges, including PCI compliance fees, monthly minimums, and fluctuating transaction fees. Although specific fee details are not readily accessible, client feedback suggests the presence of an annual “security fee” of $89.95, potentially related to PCI compliance, which businesses must actively decline to avoid. While other fees remain ambiguously labeled in client feedback, several reviews highlight undisclosed and unexpected monthly charges imposed by Newtek.

Concerns Over Fund-Holds

A notable portion of the available complaints against Newtek stem from fund-hold issues. Similar to numerous processors, Newtek retains the authority to place funds in a reserve account in response to excessive chargebacks. While there’s no evidence of Newtek abusing this policy presently, merchants should acknowledge the possibility of encountering fund-holds when utilizing the company’s services. They may need to take remedial actions to prompt Newtek to release their funds. Access the Newtek/Redwood Merchant Services Merchant Agreement for further details.

Newtek Merchant Solutions Employee Reviews & Sales Tacitcs

Should You Work For Them?

Jobs & Marketing Summary
Uses Independent Resellers Yes
Telemarketing Yes
Misleading Marketing No
Discloses All Important Terms No

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 “thesba.com” 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.

Our Newtek Merchant Solutions Review Summary

Our Final Thoughts

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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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 Newtek Merchant Solutions Treat You?

10 User Reviews

  • Sean Kovarovic

    Wu De Health and Combat (Wdhc)

    I have a small nonprofit. They told me that thier POS machine was free. They decided to do an annual fee a year later, and I wanted to cancel services. Well the fee was already charged. My nonprofit is struggling and the money would have done a lot of good. It took over 5 hours on the phone over 3 weeks just to cancel services. Then they told me I could not get a refund. It took another 3 weeks of fighting to get a supervisor to say yes. It’s been a month and still no refund.

  • Sebastian Bustamante

    DO NOT USE THIS COMPANY….
    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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