Preferred Card Services 2023: Reviews & Complaints
(800) 656-0077 Note: As of 2023, it appears that Preferred Card Services is out of business. If you have any information about the company’s status, please let us know in the comments below.
Company Overview
Established in 1986, Preferred Card Services is a merchant account provider serving businesses of most types and sizes. The website for Preferred Card Services states that the company is “powered by First Data,” which indicates that the company resells First Data (now Fiserv) contracts.
Article Summary
Before we dive in, here’s a short summary of what we’ll cover:
- Preferred Card Services’ various payment processing services.
- The company has received few complaints.
- There is little information about the Preferred Card Services contract, but it likely resembles that of First Data/Fiserv.
Preferred Card Services Payment Processing
Preferred Card Services processes most major debit and credit cards for most business types. Their services include access to a payment gateway, mobile solutions, e-check processing, gift card programs, cash advances, PCI compliance, and data reporting and analytics.
Location & Ownership
Preferred Card Services is headquartered at 301 N 3rd St, Coeur d’Alene, Idaho 83814, and is a registered ISO/MSP of Wells Fargo Bank, N.A. of Walnut Creek, California. The company’s president and CEO is John Mahin.
Table of Contents
- Costs & Contract: Offers variable contract terms that depend on…
- Complaints & Service: Has received fewer than…
- BBB Rating: Has an “A+” rating with the Better Business Bureau and has received…
- Sales & Marketing: Hires independent resellers and has received a few…
Preferred Card Services Customer Reviews
Here's What Their Clients Say
| Item | Result |
|---|---|
| Total Online Complaints | <10 |
| Live Customer Support | Yes |
| Most Common Complaint | N/A |
| Recent Lawsuits | No |
Low Complaint Total
As noted above, most of Preferred Card Services reviews that accuse it of being a scam or a ripoff appear to have been mistakenly filed following an interaction with an unrelated company. Excluding these complaints, we were only able to locate one Preferred Card Services review, found in the comment section of this review, which expressed frustration with the company’s customer support. In this case, the merchant was charged for PCI non-compliance despite going through what the merchant thought was the appropriate process. If you have your own Preferred Card Services review to make, please do so in the comments below.
Preferred Card Services Lawsuits
We have not found any outstanding class-action lawsuits or FTC complaints filed against Preferred Card Services. Dissatisfied clients who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
Preferred Card Services Customer Service Options
The aforementioned complaint received a professional rebuttal from a company representative who indicated that the merchant may not have even dealt with Preferred Card Services. It is likely that Preferred Card Services relies on First Data (Fiserv) for its customer support, and this arrangement does not appear to be a source of frustration among client. Still, the available evidence does not suggest that this credit card processor should qualify as a top-rated processor for customer service at this time.
Preferred Card Services Online Ratings
Here's How They Rate Online
| Item | Result |
|---|---|
| BBB Reports | 0 |
No BBB Complaints
The Better Business Bureau profile for Preferred Card Services currently has an “A+” rating and has not received BBB accreditation. The company has received 0 any complaints or informal reviews in the past 36 months.
An “A” Rating For Now
Given the company’s nonexistent complaint total, we agree with the BBB’s rating of an “A” but will continue to monitor complaints and reviews that surface. Readers should still be aware that there are good reasons to be skeptical of the BBB’s Preferred Card Services reviews.
Preferred Card Services Fees, Rates & Costs
A Closer Look at The Contract
| Item | Result | >
|---|---|
| Cancellation Penalties | Yes |
| Monthly & Annual Fees | Yes |
| Processing Rates | Variable |
| Equipment Leasing | Yes |
Likely Similar to First Data (Fiserv)
There is hardly any publicly available information about the standard Preferred Card Services contract. Preferred Card Services is “powered” by First Data (Fiserv), which means that the company resells standard First Data (Fiserv) contracts.
A typical First Data (Fiserv) contract offers a wide variety of terms and conditions but its standard agreement is typically a multiyear contract with an early termination fee of $495, a monthly PCI compliance fee of $19.95, and tiered pricing. Businesses that process up to $50,000 each month will receive a swiped rate of 2.69% plus $0.19 and a keyed-in rate of 3.69% plus $0.19. Businesses whose monthly charges exceed $50,000 will receive a swiped rate of 2.29% plus $0.19 and a keyed-in rate of 3.29% plus $0.19. Another facet of these contracts are non-cancellable, long-term equipment leases through First Data Global Leasing.
Preferred Card Services does have the freedom to alter these terms depending on a business’ size, business type, and processing history as a reseller of First Data (Fiserv) services. However, with a lack of readily available information on the company’s rate and fee structure, merchants considering its services should refer to First Data (Fiserv) as a point of reference.
Virtual Terminal and Payment Gateway Pricing
In addition to reselling those contracts, the company also provides a virtual terminal and gateway services to merchants. These services often include gateway fees and other costs for technical support and membership costs. However, Preferred Card Services’ website does not disclose these fees. The website does list the company as a preferred reseller of Authorize.net, whose gateway fee is $25 per month. Payments processed through Authorize.net’s gateway are also subject to a rate of 2.9% plus $0.30 and a batch fee of $0.10. However, Preferred Card Services reserves the right to alter these terms and conditions as a preferred reseller. The ability to alter these terms and conditions demonstrates the importance of understanding how to negotiate lower rates and fees.
No Contract Complaints
We have found no complaints mentioning Preferred Card Services’ contract or fees, so it appears that the terms are either well communicated or that they are not causing problems for clients. At this time, there is no way of knowing whether or not Preferred Card Service’s contract terms are competitive with those of the cheapest merchant accounts. If you have any information about the standard Preferred Card Services contract (including any PCI compliance fees or monthly minimum fees), please leave that information in the comment section of this review.
The Preferred Card Services software-access list, including Authorize.net
Preferred Card Services Employee Reviews & Sales Tacitcs
Should You Work For Them?
| Item | Result |
|---|---|
| Uses Independent Resellers | Yes |
| Telemarketing | Yes |
| Misleading Marketing | No |
| Discloses All Important Terms | No |
Independent Sales Team
Preferred Card Services appears to rely on independent resellers to market its services. The use of independent resellers usually causes more complaints than a company’s telemarketing practices, but in the case of Preferred Card Services, this trend seems to be reversed. Nearly all of the available complaints about Preferred Card Services cite persistent and aggressive telemarketing tactics, but they have also received rebuttals from a company representative explaining that Preferred Card Services has nothing to do with the company making these calls. This is a strange case, as it seems that the actions Preferred Card Services has taken to put a halt to this other fraudulent telemarketing operation have not been particularly effective.
Lacking Clear Information
In the absence of any clear information, we are taking Preferred Card Services at its word on this issue and awarding it an “A” in this category. If you suspect that Preferred Card Services is charging you undisclosed fees, however, we recommend seeking an independent statement audit to spot hidden charges.
Our Preferred Card Services Review Summary
Our Final Thoughts
According to all available information, Preferred Card Services rates as a better-than-average credit card processing provider. The company enjoys a low complaint rate and appears to be distancing itself from a fraudulent telemarketing operation that had been hurting its reputation. Although details about its standard contract are unavailable as of this update, merchants can likely expect service typical of First Data (Fiserv). Readers are encouraged to be thorough when researching the company and to compare its costs to those of top-rated providers.
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How Did Preferred Card Services Treat You?5 Responses
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John mahin
To whom it may concern,
In reviewing your service it seems you are all pretty in tune to our industry. The service you provide merchants is greatly needed since there are so many scams in our industry. Thank you.
I want to dispute the comment from Ian Le. we have not now or never used Security Metrics for our PCI compliant service. We have been using Control Scan since the beginning of PCI. Also we did a name scan and have no such name to a merchant account we process for. He seems a little confused.
As for our sales and marketing we represent and number of national associations most have been with us for over 26 years. You all take away points to companies who use contracted companies, we have sales representatives working for us and over the past 27 years have been very selective of the people who represent our company.
As for complaints it was a merchant who received a charge back from a card holder. As you know we do not have any control over chargebacks. I feel for the merchants when this happens but when you get a large out of state sale which is out of the norm use common sense and question the transaction.
We appreciate your service but we feel A- does not represent our company. We are an A+ company that is why after 27 we still represent large national associations and have the same name. Only a hand full of companies in our business can say this.
lan le
I have been with this company for years and was told if Itake a pci compliant test that i would be fine. i was still being charged fees which on one can seem to understand why . they also said the company they sent me to “Security Metrics” is invalid company that they never done business together ,which is another lie because i would’ve never knew to go directly to them ,to take my compliance test all these years . and trying to get a hold of a manager ….. .. Dont bother because they also dont know what that person would even begin to look like .
very un-happy Lan Le
Sally Burtis
I get calls from these people a fewf times a day. Leave me alone. Remove my phone number from your lists.
My phone number is: [redacted]. If this doesn’t stop, I’ll have to take other action. You wake up the baby and annoy me to death with your constant calling. Remove my phone number from your business lists and don’t sell it to another company. You are a scam..
Phillip CPO
Hi Sally,
I have redacted your phone number from this comment since we are not affiliated with Preferred Card Services. This page is an independent review of the company.
John Mahin
The campany calling you is not Preferred Card Services Inc. We are a credit card processing company . There is some company that is selling credit cards to indaviduals that is a scam. We get calls all the time on this company.