Paramount Payment Systems Contract Terms
The standard contract with Paramount Payment Systems, affiliated with NPC, extends over three years with automatic renewals for two additional years. The early termination fee is based on liquidated damages, calculated either by the average monthly fees (excluding interchange and assessment fees) for the highest revenue three months in the last year, multiplied by the remaining months in the term, or, for non-pass-through merchants, a similar calculation minus 2% of average monthly sales volume. This can result in substantial termination costs depending on the contract’s remaining length.
Additionally, there are reports of a four-year, non-cancellable equipment lease through Lease Finance Group, adding another layer of commitment for merchants.
High Risk, High Fees
Specializing in serving high-risk industries, Paramount Payment Systems may implement higher per-transaction fees and establish cash reserves to mitigate the risk of chargebacks and regulatory issues. While this approach aligns with industry standards for high-risk accounts, businesses in these sectors should anticipate rates potentially exceeding 5%.
Some Contract Complaints
Feedback from some merchants points to concerns over high fees, unanticipated long-term commitments, and lack of transparency in lending terms. These factors contribute to the perception that Paramount Payment Systems’ contracts may not offer the most favorable terms compared to other market options, especially concerning equipment leases via Lease Finance Group. Merchants considering Paramount Payment Systems are advised to review all contractual details thoroughly to avoid unforeseen obligations.
For merchants seeking more competitive terms and transparency, we recommend exploring our selection of the best merchant account providers.
