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The Payment Systems Corporation seemed to shut down around 2018 or 2019, but its website has recently resurfaced. It is unclear if the new version of this brand has the same ownership. Here is what we know about the earlier version of Payment Systems Corporation.
In March 2017, an informant shared the following claims about Payment Systems Corporation:
The informant said that Payment Systems Corporation was owned by three individuals in different shares. After its collapse, about seven independent companies emerged. All Payment Systems Corporation locations closed, except for those in Orlando and Dallas. These two locations were acquired by i3 Verticals, which now manages complaints from its former merchants.
They also reported that Matthew Wiltsey, a former owner of Payment Systems Corporation, now runs a new payment company called Lava Network Solutions (lavanetworksinc.com). This company reportedly has a new team and is not a rebranding of Payment Systems Corporation. However, the Lava Network Solutions website is currently unavailable, and it is unclear if the company is still active.
The informant also claimed that TransMerit Merchant Services is owned by a former owner and regional manager of Payment Systems Corporation. While they retain many former employees, they are reportedly in a legal dispute with Payment Systems Corporation and do not collaborate with its former principals.
Additionally, they stated that Merchant Club of America is owned by another former Payment Systems Corporation owner. Like TransMerit, Merchant Club employs many former employees but does not partner with Payment Systems Corporation.
Our independent research supports most of these claims. If you have more details to add, please share them in the comments below.
Payment Systems Corporation (paysysco.com, paysysmerchant.com) is a merchant account provider based in Los Angeles, California. Founded in 2007, the company offers point-of-sale equipment, e-commerce and mobile payment solutions, check services, fraud management, and virtual terminals. It also provides solutions for beauty, automotive, e-business, retail, and restaurant businesses. Payment Systems seems to be an ISO of First Data and resells Northern Leasing equipment leases. It is a registered ISO/MSP of Wells Fargo Bank, N.A. in Walnut Creek, California. Its corporate headquarters is located at 515 S. Flower St. Suite 1200, Los Angeles, California 90071.
Customer Reviews & Sentiment
As of our last update in 2019, there were approximately 200 Payment Systems Corporation complaints outside of the BBB, many of which accuse the company of predatory business practicews. Common themes among complainants included expensive equipment leases through Northern Leasing, unexpected or undisclosed fees, misrepresented rates, poor customer service, and long contract terms.
We were also able to locate a handful of complaints filed by former employees who describe an unprofessional work environment with poor training and support. This is a very high complaint rate for a company that has only existed for six years, and it appears to be the product of many factors. Even more discouraging is the fact that the company does not appear to have actively responded to more than one or two of these complaints.
Industry Scores & User Ratings
Online Ratings Summary
BBB Rating
N/A
Yelp
1.4
Average Rating
1.4
Payment Systems Corporation BBB Rating
Due to the shutdown of the Better Business Bureau’s Los Angeles branch, Payment Systems had received a rebooted BBB profile that only dated back to March 10, 2013. Payment Systems Corporation is currently not an accredited business with the Better Business Bureau, and the company held an “F” rating due to 192 complaints filed against it in under two years.
Of the total complaints, 115 were filed in regards to problems with products or services, 45 for advertising or sales issues, and 32 for billing or collection issues. Payment Systems successfully resolved 22 of the complaints. The remaining 170 complaints either failed to receive a response or were not resolved to the customer’s satisfaction, with a vast majority receiving no response from the company.
Yelp Rating for Payment Systems Corporation
Payment Systems Corporation has a 1.4 out of 5 star review based on 30 user reviews on Yelp.
Positive Feedback
I agreed to an appt with Payment Systems corp when they called my biz. The Account rep was very helpful since i did not have a pin pad – and could not take debit- they got me one so i could. I own a grocery store- and most of my sales are debit- and now i pay 0% and don’t have to keep receipts. They still call, but i pay less – so I am happy.
Negative Feedback
Thieves and liars. They currently have a lawsuit against them for interchange fees. They will gradually increase your charges and forget about trying to cancel after your lengthy contract since it always gets lost. Even trying to get in touch with someone is impossible as they never respond within their 24 hour response time if you are not able to get ahold of a rep. They are all rude and run away from this company. Nothing is what it seems to be.
Processing Rates & Fees
According to what appears to be a combined merchant services agreement and equipment lease (found below), the standard Payment Systems Corporation contract was a five-year agreement with an early termination fee that includes Liquidated Damages plus a $500 de-conversion fee (to total no less than $995), an activation fee of $199, and a tiered pricing structure. This document does not mention a PCI Compliance fee or annual fee, but it is entirely possible that the company also enforces these fees.
The early termination fee was incredibly harsh for several reasons. To start with, it was to be no less than $995, which already made it two to three times as expensive as the industry average. Additionally, it calculated its liquidated damages as the total of all monthly fees for the remainder of the five-year contract, which launched its cost into the thousands of dollars. On top of this, it tacks on a “de-conversion” fee of $500, and if a merchant also signs up for a five year equipment lease, they would have owed 70% of their remaining monthly payments for the duration of the equipment lease. The total cost of this early termination is electronically drawn from the merchant’s bank account immediately upon termination.
Employee Reviews & Sales Practices
According to multiple complaints filed by former Payment Systems employees, the company utilized an inside telemarketing staff and independently contracted sales agents to market its services. The use of independent sales agents is a common hiring practice within the industry, and it generally results in an elevated complaint rate for a company. Payment Systems Corporation was no exception, as we were able to locate numerous negative Payment Systems Corporation reviews that accuse the company’s sales team of deceptive sales tactics. Common complaints included failure to provide or explain the full contract, undisclosed expensive equipment leases, and aggressive telephone sales tactics.
Payment Systems Corporation Competitors
Compare Payment Systems Corporation to competitors that earned top marks.
Payment Systems Corporation rated very poorly as a merchant services provider according to our standards. The company had a high number of complaints, many of which never appeared to receive a resolution. Additionally, a document that appeared to be the company’s merchant agreement and equipment lease listed very high fees and long service terms.
If you have any information about the newly resurrected brand, please share it in the comment section below.
