Paramount Payment Systems: Reviews & Complaints

Paramount Payment Systems Contract Terms

The standard Paramount Payment Systems contract (available below) is a three-year agreement through NPC with automatic two-year renewals and a liquidated damages early termination fee that is calculated as follows:

ii. if the Merchant Application states that all Card Organization fees will be passed through to Merchant, an amount equal to (a) the average monthly fees paid by Merchant to Processor under this Agreement (excluding Card Organization interchange and assessment fees) for the three calendar months in which such revenue was the highest during the preceding twelve calendar months, or such shorter period if this Agreement has not been in effect for twelve months, multiplied by

(b) the number of months remaining in the then current term of this Agreement, on a pro rata basis, or

1) if Merchant is not a pass through merchant governed by

a. above, an amount equal to (a) the average monthly fees paid by Merchant to Processor under this Agreement for the three calendar months in which such revenue was the highest during the preceding twelve calendar months, or such shorter period if this Agreement has not been in effect for twelve months, less

(b) two percent (2%) of the average monthly sales dollar volume during the three calendar month review period, multiplied by (c) the number of months remaining in the then current term of this Agreement, on a pro rata basis.

Paramount Payment Systems complaints also mention a four-year, non-cancellable lease through Lease Finance Group.

High Risk, High Fees

Paramount Payment Systems’ focus on hard-to-place industries increases its exposure to chargebacks and regulatory hazards. To compensate for this elevated level of risk, the company and its banking partners may charge higher-than-average per-transaction fees and require the establishment of a cash reserve. This is a common practice within the payment processing industry, and businesses operating in high-risk spaces should be prepared to receive rate quotes in excess of 5%.

Some Contract Complaints

We have found some Paramount Payment Systems reviews that mention high pricing, unexpected long-term agreements, and undisclosed terms surrounding the company’s lending policies. The company’s standard contract is not at all competitive with the cheapest merchant accounts, and we would advise merchants not to sign any equipment leases through Lease Finance Group. See the Paramount Payment Systems Merchant Agreement. We also encourage clients to check out our list of the providers of the best merchant accounts.