Paysafe May Have Overcharged You
If you accepted credit cards through Paysafe or any other credit card processing company between 2017 and 2019, recent changes to the law may entitle you to refunds of certain debit card and credit card processing errors and overcharges. See this post to find out if your were among the businesses affected and to learn how you can get your money back.
A Rapidly Growing Payment Processor
Also known as “Paysafe Group,” Paysafe is a UK-based merchant account provider that has acquired multiple large payment processing subsidiaries during the past five years. The company was formed in 2015 as a rebranding of Optimal Payments, and it was subsequently acquired in August 2017 by two private equity firms called The Blackstone Group and CVC Capital Partners. Its major acquisitions under both the Optimal Payments and Paysafe brands include Skrill, Meritus Payment Solutions, MeritCard Solutions, Merchants’ Choice Payment Solutions, and, most recently, iPayment.
Paysafe Headquarters and Ownership
Paysafe is a registered ISO/MSP of Merrick Bank, South Jordan, Utah, and is headquartered at 41 Victoria St, Douglas, Isle of Man IM1 2LH. Joel Leonoff is the president and CEO of Paysafe, who has also served as the CEO of Skrill since 2015..
Paysafe Review Table of Contents
- Costs & Contract: Paysafe offers variable pricing terms among its many products and services.
- Complaints & Service: Paysafe has received more than 100 public complaints.
- BBB Rating: Paysafe’s California location currently has an “A+” rating with the Better Business Bureau and has received eight complaints in the last three years.
- Sales & Marketing: Paysafe maintains different sales practices at each of its subsidiary organizations.
- Rates & Fees: How Merchants Got The Best Rates With Paysafe
Types of Businesses Served
- Online gaming
- Property management
Our unbiased reviews are supported, in part, by helping you find highly rated merchant accounts. You can learn more here.
Paysafe Rates, Fees, and Costs
|Swiped Rate||1.00% - 4.99%|
|Keyed-In Rate||1.00% - 4.99%|
|Virtual Terminal Rate||1.00% - 4.99%|
|Payment Gateway Fee||Undisclosed|
|Early Termination Fee||$495+|
|Monthly Minimum Fee||$14.99|
|Equipment Lease Terms||48 Month (locked)|
Variable Contract Terms
Paysafe owns a wide range of sub-brands that each offer their own products and pricing structures. Its pricing is therefore likely to vary depending on which Paysafe subsidiary you are working with and who your sales representative is. This Paysafe merchant agreement. from 2016 describes a one-year contract, but we have seen other evidence that Paysafe’s standard merchant account contract is a three-year agreement with an early termination fee of at least $495, a monthly minimum fee of $14.99, and a long-term, non-cancellable equipment lease. This pricing would be consistent with iPayment’s reported pricing.
Virtual Terminal and Payment Gateway Pricing
In addition to its storefront payment processing services, Paysafe also dedicates a portion of its website that advertises its virtual terminal and payment gateway services. However, pricing on either of those services is not disclosed. Additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates typically apply to these e-commerce services.
Paysafe does not list any specific pricing or contract terms on its website, but most evidence suggests that Paysafe merchants will pay standard merchant account prices. At this time, there is no reason to believe that the company’s pricing will undercut the cheapest merchant accounts in the industry. Merchants are advised to work with sales representatives they trust and to read all relevant documentation.Are you happy with your Paysafe fees? Tell us about them before your go!
Paysafe Complaints & Customer Reviews
|Total Online Complaints||100+|
|Live Customer Support||Yes|
|Most Common Complaint||Paysafecard Issues|
Moderate Complaint Total
Paysafe Group itself has received fewer than 10 public complaints, but we are currently able to locate hundreds of complaints filed against Paysafe subsidiaries and Paysafe-owned brands. Complaints related to Paysafe’s payment processing products describe misleading sales tactics, undisclosed fees, fund holds, high cancellation penalties, undesirable equipment leases, and poor customer service. There does not appear to be any change in the frequency or the content of these complaints as a result of Paysafe’s acquisition of smaller brands, which suggests that Paysafe has not imposed new corporate policies on its acquisitions.
We have not found any outstanding class-action lawsuits or FTC complaints filed against Paysafe. Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
Paysafe Customer Support Options
Paysafe does not list any dedicated customer support contact information on its official website, but this is because each of its subsidiary services offer their own support options. Most Paysafe subsidiaries offer phone support with the notable exception of Skrill, which has racked up hundreds of public complaints. In general, Paysafe appears to perform at an average level in this category—well below the top-rated processors for great customer support.
Paysafe BBB Rating Summary
Key Points - BBB
|Product & Service Complaints||15|
|Billing & Collection Complaints||6|
|Advertising & Sales Complaints||1|
|Guarantee & Warranty Complaints||0|
Formerly Meritus Payment Solutions
The Better Business Bureau’s profile for Paysafe is simply the retitled BBB page for Meritus Payment Solutions. This is due to the fact that the BBB does not cover UK businesses and therefore only reviews Paysafe entities based in the United States. We will factor this profile into our review because it is relevant to a certain sector of Paysafe’s business, but merchants should note that it is not representative of the overall Paysafe organization.
Paysafe BBB Profile
The BBB currently assigns Paysafe an “A+” rating. The company has been accredited by the BBB since 2010. Paysafe has received 23 complaints in the past 36 months, with 15 related to products or services, 6 related to billing and collection, 1 related to advertising or sales, and 1 related to delivery. Only 2 of the complaints were successfully resolved, though all of them received an answer from Paysafe. This is a huge increase from the time of our last update to this review when the company had only 11 complaints.
What Merchants Say
Paysafe has also received 6 informal negative reviews to its BBB profile. The most recent review describes hidden fees:
Horrible company. I am a small business owner, just starting out and I stupidly went for this over a more reputable company like Square or Vagaro to try to save a % or 2. I hit a few bumps in the road before my grand opening so I haven’t even used my Paysafe reader, yet they charged my account $1.25 a few weeks ago. I ignored it because it’s $1.25, no big deal. But this morning for $130.25! I called to ask what it was about and they said an annual fee! I told the customer service rep we have emails stating the terms I’d be using the reader on and how none of it included an annual fee, just a percentage off my sales (which have been $0) and his response was “well.. there are processing and account fees here and there associated with your account”. It’s in the emails in bold how there will be “no monthly fee” and how “this is not an introductory price or offer”. Now 1 hour and 6 minutes into being on hold to hopefully cancel my account and get the charge reversed. Based on other reviews here I don’t see that going in my favor
Merchants who have had similar experiences may benefit from understanding which contract terms to avoid to escape being charged unforeseen fees.
An “A” Rating Overall
We do not see enough evidence to adjust the BBB’s rating at this time, but merchants should be aware that there are reasons to be skeptical of the BBB’s review process.
Truth In Marketing & Advertising
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||No|
A Different Approach From Each Subsidiary
As the parent organization of many different payment processing companies, Paysafe appears to adjust its sales approach from market to market. The company’s high-level advertising is very generalized, and there does not appear to be a unique “Paysafe” sales team so much as a distribution of ISOs, sub-ISOs, and resellers. Paysafe’s traditional merchant account sales operation functions like most of its competitors, with independent sales agents initiating telephone and in-person contact with merchant prospects. By contrast, the company’s e-commerce and online platform products appear to rely more on internet marketing and strategic partnerships to target niche and high risk industries.
Paysafe Sales Complaints
Despite the company’s aggressive growth strategy, we have found only a few Paysafe sales complaints from merchants. The available complaints cite misleading rate quotes, undisclosed cancellation fees, and promised savings that did not materialize. Paysafe’s recent acquisition of iPayment (a “D” rated provider on CPO) could generate more sales complaints in the future, as iPayment has a reputation for providing negative sales experiences. For now, though, the company is outperforming expectations on this front. If you suspect that Paysafe is overcharging you, we recommend a third-party statement audit to find and eliminate hidden fees.
Paysafe Marketing Example
About Phillip Parker
Thank you for reading my review. I hope that it has helped you with your research.
Why I'm Qualified to Write About Credit Card Processing and Merchant Account Services
I'm a former credit card processing sales director who left the industry because I didn't like how it takes advantage of small business owners. It feeds like a leech on businesses and thrives by imposing fees that are nearly impossible to comprehend. Seeing a need for change, I left and built this website help business owners better understand the industry, research merchant services providers, and get refunds of excessive merchant account fees. My experience of working "behind the curtain" in the industry, and using that knowledge for good, has resulted in millions of dollars returned to hard-working small business owners as well as enterprise-level companies.
From the time that I starting working in the merchant services industry to when I left to create this website, I've been on the pulse of payments for nearly 15 years. It didn't seem fair to keep this "insider" knowledge to myself. To lift the fog, I've reviewed hundreds of companies, read thousands of user reviews, and learned the pricing tricks of every provider. If you have questions about credit card processing, you can find the answers on this website.