UPDATE 2/2/2017: The PowerPay website currently states that the company is now EVO Payments International, so it appears that it has been fully absorbed into the EVO Payments International brand. We therefore will no longer update this profile. For up-to-date information about this company, see our EVO Payments International review.
Based in Portland, Maine, PowerPay (powerpay.biz) is a merchant account provider that primarily markets credit card processing services to e-commerce and telephone-order business types, but the company states that it can also supply merchant accounts and services for most other processing needs. PowerPay is the parent company of e-onlinedata and appears to be either a direct processor with HSBC Bank or a reseller of EVO/Global Payments. The company utilizes Authorize.net for its payment gateway and virtual terminal, so a PowerPay merchant may be dealing with multiple companies depending on the card acceptance methods needed. The company is also often referred to as “Power Pay,” with two separate words. Jim Raftice is listed as the president of PowerPay.
Sales & Marketing
Key Points - Sales & Marketing
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||No|
This reviewer found no uses of deceptive advertising or rate quoting by PowerPay. The company relies heavily on recruiting outside independent sales agents, a practice which normally lowers a company’s score due to an elevated complaint rate. PowerPay is no exception, as there are multiple PowerPay negative reviews that allege nondisclosure of contract terms and hidden fees, particularly with regard to early termination fees and cash reserves. Although the total number of complaints regarding the company’s sales practices is low for PowerPay’s size, the fact that complainants consistently report surprise fees is enough to lower the company’s grade to a “B” in this category.
Costs & Contract
Key Points - Costs & Contract
|Early Termination Fee||$250|
|PCI Compliance Fee||Unknown|
|Equipment Lease Terms||Variable|
Like most traditional merchant account providers, pricing with PowerPay may vary based on several factors such as a merchant’s business type, processing volume and the agent setting up the account. Generally, this means PowerPay’s rates and fees are highly negotiable. Learn how to get the lowest merchant account rates and fees in “Fee Sweep.”
An agent informed us that PowerPay offers month-to-month contracts with no cancellation fee, which is ideal for most businesses. This appears to be only partially true, however, as a copy of the company’s merchant agreement (available below) reveals a three-year credit card processing agreement with a $250 early termination fee. Merchants can avoid paying this fee by submitting a written notice of their intent to cancel at least 30 days in advance of switching providers. Failure to provide notice will result in being charged the early termination fee, and several merchants appear to have experienced this penalty as a result of not clearly understanding the policy.
The sample contract provided also lists an annual fee of $29, a monthly service fee of $10, a monthly minimum fee of $25, and an Authorize.net setup fee of $99. It is unclear at the time of this review whether PowerPay imposes a PCI Compliance fee, so merchants are encouraged to inquire about it before proceeding with account setup. See the PowerPay Merchant Agreement.
Complaints & Service
Key Points - Complaints & Service
|Total Online Complaints||30+|
|Live Customer Support||Yes|
|Most Common Complaint||Fund Holds|
For a company of its size and time in business, PowerPay has a low-to-moderate volume of complaints filed online. The common theme among the complaints that do exist are reports of sudden account terminations initiated by PowerPay, sudden holds placed on funds, unexpected fees, difficulty with resolving problems, and trouble reaching the company’s customer service. The issues with fund withholding appear to be split between legitimate complaints about poor communication and account setup by PowerPay and complaints by merchants whose accounts were cancelled due to very high chargeback rates. Overall, PowerPay’s phone support appears to provide an industry-average level of customer assistance.
Key Points - BBB
|Product & Service Complaints||30|
|Billing & Collection Complaints||32|
|Advertising & Sales Complaints||2|
|Guarantee & Warranty Complaints||0|
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.
As of this update, the Better Business Bureau is showing that PowerPay has been BBB accredited since 2004 and is awarding the company an “A+” rating. PowerPay has received 65 complaints within the last 36 months. Of the total, 32 are regarding billing disputes, 30 are related to product and service problems, two have to do with advertising or sales issues, and one is a delivery problem. PowerPay has resolved 14 of the complaints successfully, while the remaining 51 were either resolved to the dissatisfaction of the complainant or did not receive a final assessment from the complainant. PowerPay also has 19 negative reviews filed against its BBB profile compared to just one positive review, although it should be noted that these reviews are not subject to BBB verification. In light of the company’s complaint total and resolution ratio, we have adjusted the BBB’s rating to a “B-.”
Related: EMV Terminal Recommendations
About Phillip Parker
Hi, I’m Phillip and I’m disgusted by the state of credit card processing in the U.S. and abroad. I believe that the industry has been overrun by people who engage in fraud and deception in order to steal money from hard working business owners. I’ve made it my mission to expose the companies and individuals who engage in predatory marketing, pricing, and contracts, or just provide terrible service. Along with uncovering the bad guys, I’ve also discovered the good guys who do stand out from the status quo. CPO is a website where you will find ratings and reviews of these companies along with advice on how to save money and which service providers consider. Together we can move the industry in a positive direction. If you would like to help support my work, please checkout “Fee Sweep” my eGuide to getting the lowest possible fees when accepting card payments. If you haven’t heard of “interchange” this advice will save you hundreds, even thousands, in processing fees.Schedule a Consultation with Phillip
Related: Phillip’s Top All-Purpose Merchant Account Picks
Copyright & Disclaimer
Copyright © CardPaymentOptions.com, Inc. (Digital Fingerprint: 0d38c6720f0d78a701b74d58653af608). Getting paid to re-write this page? Click here to earn a reward.
Any unauthorized copying and reproduction of the content of this page, including all meta data and computer code, is strictly prohibited. While the information in the above article is believed to be accurate as of its publish date, the author and publisher make no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents. The author and publisher shall in no event be held liable to any party for any direct, indirect, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this material, which is provided “as is,” and without warranties. Any and all use of trade names and/or marks are for identification purposes only and shall not be construed as a claim of affiliation, or otherwise, with CardPaymentOptions.com, Inc. ("CPO") in any form. The sole purpose of the material presented herein is to alert, educate, and inform readers. It is not intended as legal or financial advice.