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Updated 12/19/18: The Payment Systems Corporation website is no longer active and appears to have gone out of business. In March 2017, an informant contacted us with the following allegations about Payment Systems Corporation:
The informant stated that Payment Systems Corporation was previously owned by three people at varying percentages, and that roughly seven independent companies were created in the wake of its collapse. Every Payment Systems Corporation location closed except for the company’s Orlando and Dallas locations, which were subsequently acquired by i3 Verticals. i3 Verticals is therefore responsible for handling the complaints of former Payment Systems Corporation merchants.
The informant also stated that the former owner of Payment Systems Corporation, Matthew Wiltsey, now runs a new payment processing company called Lava Network Solutions (lavanetworksinc.com). This company is supposedly a new company with an entirely new staff rather than a rebranding or DBA of Payment Systems Corporation. However, at the time of this update, the Lava Network Solutions website is unavailable and it is unclear whether the company is still active.
The informant also stated that TransMerit Merchant Services is owned and operated by a former owner and regional manager of Payment Systems Corporation. They are allegedly locked in a legal dispute with Payment Systems Corporation and do not work with Payment Systems Corporation’s former principals in any way, although they do retain a large number of Payment Systems Corporation’s old employees.
Finally, the informant stated that Merchant Club of America is owned by another former Payment Systems Corporation owner, but that the company does not operate in partnership with Payment Systems Corporation at this time. As with TransMerit, Merchant Club allegedly retains a large number of former Payment Systems Corporation employees.
Our independent research confirms or supports most of the informant’s claims. If you have any extra information to add, please share that in the comment section below this review.
Payment Systems Corporation (paysysco.com, paysysmerchant.com) is a merchant account provider headquartered in Los Angeles, California. Founded in 2007, the company offers point-of-sale equipment, e-commerce and mobile payment solutions, check services, fraud and risk management, and virtual terminals. Payment Systems also offers tailored solutions for merchants in the beauty, automotive, e-business, retail and restaurant industries. Payment Systems Corporation appears to be an ISO of First Data, but the company also appears to resell Northern Leasing equipment leases. Payment Systems is a registered ISO/MSP of Wells Fargo Bank, N.A. in Walnut Creek, California with corporate headquarters at 515 S. Flower St. Suite 1200, Los Angeles, California 90071.
Payment Systems Corporation Customer Complaints & Reviews
Here's What Users Think
We are currently able to locate approximately 200 Payment Systems Corporation complaints outside of the BBB, many of which accuse the company of being a scam or a ripoff. Common themes among complainants include 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. After taking all of this information into account, we have assigned the company an “F” rating in this category.
Payment Systems Corporation BBB Rating and Report
Our Better Business Bureau Profile Assessment
Due to the shutdown of the Better Business Bureau’s Los Angeles branch, Payment Systems has received a rebooted BBB profile that only dates back to March 10, 2013. Payment Systems Corporation is currently not an accredited business with the Better Business Bureau, and the company holds an “F” rating with the BBB 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 whatsoever. This is a stunningly poor complaint resolution ratio, and we are therefore inclined to agree with the BBB’s grade of “F.”
Payment Systems Corporation Fees and Rates
A Closer Look at the Contract
According to what appears to be a combined merchant services agreement and equipment lease (found below), the standard Payment Systems Corporation contract is 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 is incredibly harsh for several reasons. To start with, it is to be no less than $995, which already makes it two to three times as expensive as the industry average. Additionally, it calculates its liquidated damages as the total of all monthly fees for the remainder of the five-year contract, which could launch 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 will owe 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.
This document is uncommon in that it appears to simultaneously sign the merchant up for a merchant account and an equipment lease without describing too much about either agreement. According to numerous complaints on this site and elsewhere, the equipment lease is through Northern Leasing, while the payment processing services may be through First Data. It is unknown at this time whether the document we have provided is the company’s standard merchant agreement. If you have any information about the standard Payment Systems Corporation merchant agreement, please share that information in the comment section below.
Payment Systems Corporation Jobs and Employment
Hiring Standards and Ethical Marketing Assessment
According to multiple complaints filed by former Payment Systems employees, the company utilizes 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 is no exception, as we are currently able to locate numerous negative Payment Systems Corporation reviews that accuse the company’s sales team of deceptive sales tactics. Common complaints include failure to provide or explain the full contract, the undisclosed addition of expensive equipment leases, and aggressive telephone sales tactics. The company does not appear to engage in deceptive advertising strategies in its official materials.