Paya Review: A Must Read Before Making the Switch

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Paya

Rating
C
3/5
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Pros and Cons of Paya

Pros

Customizable payment system
eCommerce support
Agile technology platform

Cons

Variable processing rates
Long-term contracts
Potential cancellation fees
Limited customization
Pricing lacks transparency

Overview

In this review of Paya, a major U.S. payment processor now owned by Nuvei, we will examine this brand's history from its beginnings as Sage Payment Solutions to its current role in the payment processing space. Our analysis covers Paya’s payment processing capabilities, integrated solutions, digital onboarding, and technology platform, along with its fees, rates, and contract terms. We also look at the company's customer support quality, and legal challenges, including recent lawsuits, while considering customer reviews, industry ratings, and marketing practices. This balanced review highlights both the strengths and weaknesses of Paya, giving businesses a clear understanding of its services, reputation, and place in the payment processing industry.

About Paya

Screen Capture Paya Homepage
Paya Homepage

Formerly known as Sage Payment Solutions, Paya is a large, U.S.-based merchant account provider that was founded in 1989. According to its website, the company specializes in providing solutions for education, government, B2B, healthcare, and nonprofit processing. When it operated as a subsidiary department of Sage Group, Paya specialized in payroll and accounting services for businesses, but it also managed to carve out a solid share of the payments market in both the U.S. and UK. In August 2017, a private equity firm named GTCR acquired Sage Payment Solutions from the Sage Group. It officially rebranded the organization to Paya in January 2018. The company now claims to serve more than 100,000 merchants and has narrowed its focus to becoming a top-rated payment processor. In August 2020 Paya announced a merger with FinTech Acquisition Corp. III. In 2023, Pay was purchased by fintech giant Nuvei. It appears that Nuvei will continue to operate Paya under its own brand, but we will update this Paya review if that changes.

Products & Merchant Services

Payment Processing

Paya processes major debit and credit cards for various business types, including B2B. Their services encompass POS solutions, mobile payments, check/ACH processing, virtual terminals, e-invoices, data reporting and analysis, and PCI compliance.

Integrated Payment Solutions

Paya offers integrated payment solutions compatible with various SaaS platforms, providing secure and reliable options for businesses.

Digital Boarding Process

Paya’s digital boarding process allows for quick onboarding of new customers, enhancing their ability to expand their customer base efficiently.

Multitiered Support

The company offers multi-tiered support, ensuring that client relationships are managed by a team of experts, with an emphasis on professionalism and responsiveness.

Technology Platform

Paya uses an agile technology platform designed to adapt to market changes, offering business solutions that integrate with existing technology.

Financial Metrics

Paya processes $40 billion annually and serves 100,000 customers. They work with over 2,000 distribution partners and have more than 300 software integrations.

Customer Reviews & Sentiment

Relatively Low Complaint Volume for Paya

For a company of Paya’s stature and duration in the industry, the volume of negative feedback found online is relatively minimal. With around 40 documented Paya complaints across various platforms, issues predominantly revolve around undisclosed fees, challenges with customer support, steep cancellation costs (ranging between $100 and $700), and auto-renewing contracts. Recent critiques particularly highlight difficulties in accessing supportive customer service, leading us to conclude that Paya may not yet meet the criteria for a premier merchant account provider in terms of customer service. We encourage sharing your personal experiences with Paya in the comments.

Customer Support Offerings by Paya

Despite the critiques, Paya’s relative scarcity of complaints for a company its size has earned it an above-average rating in this domain. This performance indicates a competent handling of customer issues when compared to industry norms.

Industry Scores & User Ratings

Online Ratings Summary
PaymentPop1
BBB Rating3.67
ComplaintsBoard Rating1
Average Rating2.33

PaymentPop Rating for Paya

Negative Feedback

This is the most expensive payment processor I have ever used. Loads of hidden fees, and terrible customer service.

Positive Feedback

There are no positive reviews published about Paya on the PaymentPop website.

Paya BBB Rating

Paya is not BBB accredited but holds an A+ rating. It has an average customer review rating of 3.67/5 stars based on 3 customer reviews. There are 8 customer complaints closed in the last 3 years, with 2 closed in the last 12 months. Common themes in the reviews and complaints include issues with billing and collection as well as dissatisfaction with the response to customer inquiries.

Negative Feedback

Noticed a strange fee that came out of my checking account for $110 (not insignificant); after lengthy research, tracked it back to Paya. What was the fee for? After finally receiving a call back after days from an account representative, he disclosed to me that the fee was due to me not filling out a business “assessment” by some weird tertiary company – though I was NEVER made aware that this was part of the process to get enrolled. I did NOT authorize this charge – so this is in fact completely unacceptable and unethical business practice. Furthermore, the token they sent me to get my account activated did not work for several months, while I continued to pay for the service. All around a joke of a company.

Positive Feedback

Paya has been a fair and transparent company to work with and their support team is very responsive when I have questions.

ComplaintsBoard Rating Analysis for Paya

Paya has a significant number of customer complaints on ComplaintsBoard. Common issues include poor customer service, delayed payments, technical glitches, hidden fees, and unauthorized transactions. Many customers express dissatisfaction and frustration due to these problems. It’s important to note that only 0% of the 10 complaints listed have been resolved, indicating a lack of effective complaint resolution by Paya.

Negative Feedback

I been tryna cancel my merchant account for weeks now. I called like 8 times and left voicemails but nothin’. I talked to 3 different peeps in the cancelation department and all 3 times they put me on hold and then the phone just sends me to another voicemail. I called twice and waited like 10 minutes and then it says ‘we can hold your place in line and call you back’ but then it says ‘error has occurred.’ Like, what the heck? I just want my account canceled and it shouldn’t be this hard.
– Complaint from A. Hackett

So, I got this bill from a doctor I paid last year, and it said I still owed them money. But I had proof that I paid it already. So, I called them up and they said that Paya, the company that processed their credit card payments, messed up and didn’t take the money from a bunch of people’s accounts. My bank confirmed it too. The doctor said they fired Paya, but now they want their money back from me. I think Paya should take responsibility and help out somehow. Don’t companies like this have insurance for when they mess up big time?
– Complaint from A. Powlowski

Positive Feedback

There are no positive reviews published about Paya on the ComplaintsBoard website.

Processing Rates & Fees

Variable Pricing

Pricing and fees of a Paya merchant account tend to differ based on the type of business, volume of transactions, and the agent or sub-ISO responsible for setting up the account. A copy of the company’s standard terms and conditions under the name Sage Payment Solutions is publicly available. Paya charges a liquidated damagesearly termination fee, which is determined by multiplying the remaining months in a client’s contract by $25. This can lead to substantial penalties for termination that may deter business owners from cancelling their contracts. Moreover, the company reportedly imposes an annual PCI compliance fee of approximately $100.

Virtual Terminal and Payment Gateway Pricing

In addition to its storefront payment processing services, Paya promotes its virtual terminal and payment gateway services on its website. Details on pricing for these services are not publicly disclosed. Typical additional costs include gateway fees, technical support fees, batch fees, and extra transaction rates, which are generally part of the pricing for e-commerce services.

Worse-Than-Average Terms

Paya is assigned a “C” rating in this category due to its significant cancellation fees and automatically renewing contracts. While there have not been many public complaints or customer reviews directly addressing Paya due to the relatively recent adoption of its name, its history under the Sage brand has been significantly affected by customer complaints regarding high costs. Paya is currently not considered an affordable option for merchant services. Business owners are advised to review our selection of the best merchant accounts to find more competitive pricing and terms.

Lawsuits & Legal History

Paya has faced several lawsuits, including a notable 2020 case (Jasmine Young v. Paya Holdings Inc.), which accused Paya Holdings Inc. of unauthorized telemarketing practices, leading to a $4.2 million settlement and an overhaul of its telemarketing strategies.

Furthermore, a class action suit filed by KSF in October 2020 accused Paya Holdings Inc. of securities law violations, culminating in a $3.5 million settlement in March 2021 without admission of fault.

Most recently, in 2023, Nuvei Corp was sued for allegedly failing to compensate Paya Holdings Inc.’s shareholders post-acquisition, as per the agreed $9.75 per share, sparking a lawsuit for unmet merger agreement terms and Delaware law violations. The case seeks damages from Nuvei for non-compliance.

Employee Reviews & Sales Practices

Many Third-Party Resellers

Paya markets its services via several different types of sales partnerships. These include independent software vendors, value-added resellers, independent resellers and agents, and sub-ISOs. Paya’s sub-ISO program allows other merchant account sales organizations to resell Paya credit card processing services. These third-party organizations can partner with Paya as either a “non-registered ISO” or as a “registered ISO.” Registered ISOs are allowed to operate under their own separate brand names while reselling Paya’s services. A non-registered ISO must sell under the Paya brand and present itself as an independent representative of Paya.

Paya Sales Agent Complaints

Several reports from Sage users indicated some problems with sales agents using deceptive sales tactics. Although there is no evidence that Paya condones these types of tactics, it’s apparent that the company did at one point enforce contracts even when business owners claimed to have been deceived. Since this does not appear to be a widespread problem with Paya, we have not lowered the company’s grade in this section. If you suspect that Paya is charging you undisclosed fees, we recommend seeking a free third-party statement audit. This does not compare favorably to our list of best credit card processors.

Paya Competitors

Compare Paya to competitors that earned top marks.

Bottom Line

Paya currently holds an average rating as a credit card processing provider. Given its relatively recent rebranding from Sage Payment Solutions, it’s still too early to gauge if its practices and policies have diverged significantly from its predecessor. The available information suggests that no substantial overhaul has occurred so far.

For Paya to achieve its stated objective of becoming a leading merchant account provider in sectors like retail, education, healthcare, manufacturing, and non-profits, it needs to enhance its services. Improving transparency, reducing complaint volume, and refining contract terms are crucial steps that could help Paya elevate its standing in the industry and distinguish itself as a top contender.

Read Actual User Reviews

All user reviews have been moved to our partner, PaymentPop.com

Contact Paya

Contact & Customer Support
CEOJeff Hack
Headquarters303 Perimeter Ctr N STE 600 Atlanta, GA 30346
Toll-Free General Customer Service(800) 261-0240
Check Services(866) 307-1627
Gift and Loyalty Programs(888) 884-7171
Additional Support ChannelsOnline Contact Form and Live Chat
Websitepaya.com