Paynet Systems Review

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.

Payment Processing

Paynet Systems provides payment and credit card processing support for businesses of all sizes. Their services accommodate keyed-in transactions and credit/debit card processing. They also offer a free virtual point of sale for online processing and a free webstore for merchants.

Point of Sale Systems

Paynet Systems offers point-of-sale (POS) systems designed to manage in-person transactions efficiently. These systems track sales, manage inventory, and generate reports, providing valuable business insights.

eCommerce Solutions

For businesses operating online, Paynet Systems provides a secure platform for eCommerce transactions.

Mobile Payment Processing

Paynet Systems offers mobile payment processing, allowing businesses to accept card payments on mobile devices.

Merchant Cash Advance

Paynet Systems also provides a merchant cash advance service, offering businesses access to funds by purchasing a portion of their future sales.

An Overview of Paynet Systems Reviews

In our analysis, we identified over 15 negative Paynet Systems reviews across various consumer protection sites. It’s important to note that due to the similarity in names with Paynet Systems, LLC., there’s a possibility of review confusion between the two entities. This review count is on par with what might be expected for a company of Paynet Systems’ size. The majority of complaints focus on unexpected fees, billing issues, inadequate customer support, and challenges in canceling services. Paynet Systems has addressed some of these issues, with responses generally maintaining a professional tone. We encourage users to share their Paynet Systems reviews in the comments for a more diverse perspective.

Legal Standing of Paynet Systems

There are no current class-action lawsuits or FTC complaints against Paynet Systems. For clients seeking non-litigious methods of dispute resolution, contacting relevant supervisory bodies is recommended.

PaymentPop Rating for Paynet Systems

Positive Feedback

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

Paynet Systems BBB Rating

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. Business owners should be aware, however, that there are definite reasons to be skeptical of the BBB’s information.

Variable Pricing

Paynet Systems employs a pricing strategy that highlights qualified rate tiers prominently on its website, while relegating the non-qualified, card-not-present rate to less visible sections. This structure indicates that “Swiped” rates, applicable to qualified swiped Visa/MC/Discover network transactions, are differentiated from most rewards, corporate, government, and international card types, which are billed at non-qualified rates. Similarly, “Manually Keyed Rate” applies to qualified manually keyed transactions with verified addresses and CVV2 information, with all other transactions falling into the non-qualified category of 3.50% and $0.30.

This nuanced pricing suggests variability in rates and fees based on numerous factors, potentially leading to charges as high as 3.50% plus $0.30 for both swiped and keyed-in transactions. Client feedback has highlighted instances of unexpected or higher-than-quoted monthly fees. The presence of a PCI compliance fee remains unconfirmed, and a clause within the merchant agreement outlines a monthly lease fee for credit card terminals. Further details on Paynet’s terms can be reviewed here.

Virtual Terminal and Payment Gateway Pricing

Paynet Systems extends its offerings to include virtual terminal and payment gateway services, though specific pricing details remain undisclosed. Expected additional costs for these e-commerce services include gateway fees, technical support fees, batch fees, and other transaction-related charges.

Paynet Systems Contract Terms

Paynet Systems provides service agreements ranging from three to six months, accompanied by a $75 early cancellation fee, significantly lower than industry standards. The company applies a variable monthly minimum fee based on the service utilized, with an annual processing cap of $5,000, beyond which a non-qualified rate of 3.50% plus $0.30 is imposed. Additionally, Paynet promotes a smartphone processing service offering a $10 monthly service fee waiver for the initial six months.

Businesses are advised to thoroughly review Paynet Systems’ contract terms against those offered by more competitively priced merchant account providers to ensure clarity on pricing structures and avoid unforeseen fees. For options potentially offering better terms, we recommend exploring our curated list of the best merchant account providers.

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 client’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.

Sales Complaints

Aside from the misleading quotes, we found no other use of deceptive marketing or sales tactics, other than a few Paynet Systems reviews from businesses 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.

Paynet Systems appears to be an average merchant services provider within the credit card processing industry. Given its history as a former subsidiary of Pipeline Data, it’s challenging to determine the extent to which Pipeline’s poorly rated business practices have influenced Paynet. The company’s rating could significantly improve by addressing several key areas of concern.

Removing misleading rate and fee quotes from its website would enhance transparency and trust with potential clients. Additionally, reducing or eliminating the early cancellation fee and the six-month service agreement would make its terms more favorable to merchants. Another critical area for improvement is the company’s complaint resolution process. By reducing the volume of future complaints and resolving a higher percentage of BBB complaints to the clients’ satisfaction, Paynet Systems could bolster its reputation. For now, business owners are advised to consider top-rated credit card processors to ensure they secure the best possible deal and avoid potential issues associated with Paynet Systems.