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Note: As of 2022, there is apparently no website for Paynet Systems. It is unclear whether the company is still in business or not. If you have any information one way or another, please let us know in the comments below.
Formerly Owned By Pipeline Data
Paynet Systems is a small to mid-size merchant account provider based in Alpharetta, Georgia. Founded in 1999, the company was bought by Pipeline Data in 2006 but continues to operate as its own brand. Unfortunately for Paynet Systems, Pipeline was one of the poorest rated processors in the credit card processing industry before its dissolution. With that said, it appears that Paynet may have shielded itself from Pipeline’s reputation and has since been able to operate independently of Pipeline. For this reason, we will treat Paynet as its own company for the purposes of this review. It should be noted that Paynet Systems is not the same company as Paynet Systems, LLC.
Paynet Systems Payment Processing
The company offers payment processing and credit card processing support for all sizes of businesses. Their systems support keyed-in transactions and credit/debit card processing. They also offer free virtual point of sale for online processing and a free webstore to merchants.
Headquartered in Alpharetta, Georgia
Paynet Systems, located at 5955 Shiloh Rd #100, Alpharetta, Georgia 30005, is a registered ISO/MSP of Wells Fargo Bank, N.A., Walnut Creek, California, and of Synovus Bank, Columbus, Georgia. Jack Chevalier is listed as the president of Paynet Systems.
Paynet Systems Review Table of Contents
- Costs & Contract: Paynet Systems Processing appears to offer a 6-month contract with an early termination fee of $75.
- Complaints & Service: Paynet Systems complaints number more than 15 on public complaints forums.
- BBB Rating: Paynet Systems has an A+ rating with the Better Business Bureau and has received 0 complaints in the past 3 years.
- Sales & Marketing: Paynet Systems does not appear to hire independent sales representatives but has received several complaints about its sales team.
Should You Trust Paynet Systems?
Lawsuits, Reviews & Complaints
Here's Who We Trust.
Total Online Complaints
Live Customer Support
Most Common Complaint
Low-Moderate Complaint Total
There are more than 15 negative Paynet Systems reviews on this and other consumer protection websites. It should be noted, though, that because Paynet Systems, LLC. has an almost identical name, it may be that reviews for the two companies are getting mixed together. Compared to providers of similar sizes, this is an average amount. Although most of the complaints are not overly alarming, there is a theme of merchants complaining of unexpected fees, improper billing, poor customer support, and difficulty canceling service. Paynet has responded to a few of these complaints, but not many, although the company’s responses are usually professional in tone. if you have your own Paynet Systems review to make, please do so in the comments below.
Paynet Systems Lawsuits and Fines
We have not found any outstanding class-action lawsuits or FTC complaints filed against Paynet Systems. Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
Paynet Systems Customer Service Options
The Paynet Systems website listed dedicated phone support numbers for its clients, but with the site now down, it is unclear what channels they have for support. These channels, regardless, were not sufficient to qualify the company as a quality payment processor for customer service.
Is the BBB Rating for Paynet Systems Accurate?
Better Business Bureau Profile
See Which Processors Offer No Monthly Fees And No Contracts.
Note: We have adjusted this company’s BBB rating according to our own standards. To better understand why we adjust BBB ratings, please see our Rating Criteria.
No BBB Complaints
As of this review, the Better Business Bureau is showing Paynet Systems as not approved under its accreditation program. The BBB is reporting a rating of an A+ based upon 0 complaints filed within the last 36 months, which is a significant decline in complaints since our last review.
An “A” Rating
Given the company’s clean complaint record, we agree with the BBB’s rating at this time. Merchants should be aware, however, that there are definite reasons to be skeptical of the BBB’s information.
How Expensive is Paynet Systems Service?
Rates, Fees, and Contract Terms
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3.50% + $0.30
3.50% + $0.30
Virtual Terminal Rate
3.50% + $0.30
Payment Gateway Fee
Early Termination Fee
PCI Compliance Fee
Equipment Lease Terms
Undisclosed Monthly Fee
“Swiped” rate requires the Paynet Systems card reader and applies to qualified swipedVisa/MC/Discover network transactions. Most rewards, corporate, government and international cardtypes are considered non-qualified transactions and merchant will be charged the non-qualified rate.
“Manually Keyed Rate” will be charged on all qualified manually keyed Visa/MC/Discover Networktransactions that have verified addresses and CVV2 information. Any Visa/MC/Discover networktransaction that does not meet the requirements for swiped and/or manually keyed rates will becharged a non-qualified rate of 3.50% and $0.30.
Due to this fact, merchants should be aware that Paynet Systems rates and fees will vary from merchant to merchant based on a variety of factors. Merchants being charged the non-qualified rate by the company could be charged as high as 3.50% plus $0.30 for both swiped and keyed-in transactions. Several merchants have reported a variety of other monthly fees that were either unexpected or higher than originally quoted. It is unclear at the time of this review if the company charges a PCI compliance fee of any kind. The company’s merchant agreement also includes a clause that assesses a monthly leasing fee of any credit card terminal. One version of Paynet’s terms and conditions can be found here.
Virtual Terminal and Payment Gateway Pricing
In addition to its storefront payment processing services, Paynet Systems also dedicates a portion of its website to advertising its virtual terminal and payment gateway services. However, pricing is not disclosed on either of those services. Additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates typically apply to these e-commerce services.
Paynet Systems Contract Terms
On a positive note, Paynet offers short-term service agreements that appear to vary from three to six months with a $75 early cancellation fee, which is far less than the industry average. The company enforces a variable monthly minimum fee depending on which service a merchant uses. Merchants processing up to $5,000 annually are also afforded the option of paying a $9 monthly fee without any transaction fees. However, charges exceeding that threshold are charged a non-qualified rate of 3.50% plus $0.30.
Additionally, the company offers a smartphone processing service that reportedly waives a $10 monthly service fee for the first six months. Merchants should compare Paynet Systems’ terms to those of cheap merchant account providers and are highly encouraged to review all contract terms and request any relevant information regarding pricing structures in order to avoid unexpected fees.
We also encourage merchants to check out our list of the providers of the best merchant accounts.
Does Paynet Systems Use Deceptive Marketing?
Advertising & Sales Strategy
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Employs Independent Resellers
Advertises Deceptive Rates
Discloses All Important Terms
Misleading Rate Quotes
Paynet Systems has received an average rating in this section because it formerly promoted misleading rates and fee quotes on its website. It did this by prominently quoting the “Qualified” transaction rate and making no mention of the more expensive “Mid-Qualified” and “Non-Qualified” rates that 50-80% of a merchant’s transactions will experience, except in minuscule font far below the Qualified quote. Additionally, Paynet does not disclose other ancillary fees such as batch fees, statement fees, AVS fees, etc.
This does not compare favorably to our list of best credit card processors.
Aside from the misleading quotes, we found no other use of deceptive marketing or sales tactics, other than a few Paynet Systems reviews from merchants reporting that company representatives failed to disclose full pricing prior to account setup. The company appears to market primarily through partnerships, affiliates, and an inside sales staff. If you suspect that you are being charged undisclosed Paynet Systems fees, we recommend seeking a third-party statement audit to find and eliminate hidden charges.