Prodigy Payment Systems Review

Category Breakdown
Sales & Marketing rated D
Costs & Contract rated D
Complaints & Service rated D
BBB Rating rated D

Overall Rating

"D" Credit Card Processor Rating


Overview

Prodigy Payment Systems (prodigypay.com) is an alternate business name of Encore Payment Systems. The company is based out of Addison, Texas, and was founded in 2004. Prodigy Payment’s overall rating is based on our Encore Payment Systems review. Along with Momentum Payment Systems, Prodigy Payment Systems appears to have been created for the sole purpose of absorbing complaints that would otherwise have been filed against Encore Payments Systems. The services offered by these three entities do no appear to vary in any significant way, and they are all headquartered at the same address.

Prodigy Products and Services Industries Served
  • Debit and credit card processing
  • Check conversion
  • Wireless processing
  • EBT acceptance
  • Gift and loyalty programs
  • Retail
  • Mobile
  • MOTO
  • E-commerce
  • Restaurant
  • Hospitality

Related: Find The Best Processor For Your Business Type

Sales & Marketing | D

This section is covered in the Encore Payment review.

Summary:

  • Ethically questionable marketing
  • Use of multiple business names
  • Hiring mill” recruiting strategy of Independent Sales Agents (ISAs)
  • Agents appear to receive higher commissions for selling expensive contracts and rates
  • Underwriting policies allow for excessive fees and contract terms
  • Markets expensive and non-cancellable equipment leases

Prodigy Payment Systems Marketing Example

Related: Find The Best Providers By Processor Type

Costs & Contract | D

Prodigy Payment uses the same merchant account agreement as Encore. An older version is available below. In recent months, merchants have reported even more expensive contract terms than those shown in the linked document.

Summary:

  • Pricing will vary by merchant based on business type and sales agent.
  • Standard contract includes 3- or 4-year service agreement
  • Early Termination Fee (ETF) of $195 but some merchants have reported ETFs of $450 or more
  • Equipment leases often have a four-year commitment and cannot be cancelled without paying the full lease amount, often in the thousands of dollars (leasing equipment is optional)
  • See the Encore Merchant Application

Related: Best Processors For Quickbooks Integration

Complaints & Service | D

This section is covered in the Encore Review.

Summary:

  • Company has received a moderate-to-high number of complaints for its size and time in business.
  • Numerous complaints have been filed by former employees and agents.
  • Common complaints include expensive and non-cancellable equipment leases, and undisclosed/”hidden” fees.

Related: Best Processors For E-Commerce

BBB Report | D*

Prodigy Payment Systems has its own Better Business Bureau report despite merely being an extension of Encore Payment Systems. As of this review, the company is not accredited with the BBB and has a “A” rating. The BBB is reporting 57 complaints filed in the last 36 months (down from 65 as of our last review); however, there are over 180 complaints filed against the company when combining all of its known DBAs together. Please see the Encore Payment Systems review for full details on this company’s BBB complaints. Based on the complaint count and resolution ratio, we are adjusting its rating to a “D” for the purposes of this review. You can learn more about why we adjust BBB ratings in our rating criteria.

* Denotes CPO-adjusted BBB score

Related: Best iPad & Tablet Point of Sale Services

Prodigy Payment Systems Bottom Line


Prodigy Payment Systems Review

Rated 1 out of 5 Stars
Reviewed by Phillip Parker
Reviewed on 2016-01-26

Prodigy Payment Systems rates very poorly as a merchant services provider due to its deceptive sales practices, its poor customer service reviews, its expensive contract terms, and its high BBB complaint total. For a full understanding of Prodigy Payment Systems, please visit the Encore Payment Systems review.

This review was originally published on 10/20/11 and was last updated on 1/26/16.

Leave your review of Prodigy Payment Systems in the comment section below:

Phillip Parker is a former merchant services agent turned small business advocate and the author of "Fee Sweep," which teaches merchants how to dramatically lower their processing rates, eliminate junk fees, and avoid fine-print scams. He founded CardPaymentOptions.com to help merchants enact positive change in the credit card processing industry. Schedule a Consultation with Phillip

Schedule a Consultation with Phillip

25 reviews Leave Your Review Below

  1. Oh Lord, why didn’t I read about this company before I signed their contract? Oh yeah, because my other machine broke down and my current processor couldn’t get me a machine for weeks. All of these reviews are SO TRUE and ALL OF THESE THINGS ALSO HAPPENED TO ME.
    The problem I’m also having with this shady company is: I have a chip readable machine, but they won’t program my machine! I’ve been bugging them since October 1st 2015, they keep lying to me about the software program not being available yet. Now they claim I have to sign a new form with them in order for them to be able to update my machine. I don’t want to sign ANYTHING from this scam company. Why aren’t they getting in trouble with Visa/MasterCard International for not programming merchants machines? They don’t want to program my machine because they want to make 30.00 for each chargeback we get for non EMV chip reads, that’s why!


    Are you with Prodigy Payment Systems? Learn how to resolve this complaint.

    1. I got scam with them also and contacted the attorney general which was not help. I would go to the news media I investigetion of texas

    2. I am sorry you are part of the Prodigy Screwed Me Club. I too have wrestled with their fees and termination charges.
      I would suggest all people posting here share their experiences on Facebook.
      The only tool we have is public shaming via Social Media.

  2. Prodigy payment systems Will ROB you , DO NOT USE THEM , i m a loyal customer for 4 years with them . untill now. i been keeping an eye on my Batch. they take more then it suspose too. and also other merchant give me better rates, so i change merchants, Prodigy still take $$$$ out of my Bank even after i have send them my cancellation letter. i call to comfrom they did get my cancellation letter i faxed it. a month past by , i not have use and have cancelled. THEY STILL DRIFT MONEY OUT OF MY BANK ACCOUNT!!!!!!!!! once they have your bank infromation, they striaght up ROB YOU < DO NOT USE THIS PROCESSER!!!!!!!!! and i will continoue to repost this , and report them .

  3. They were supposed to be competing with square. I was supposed to be paying on average 1.7 percent with 0 fees or commitment. They LIED. Do not listen to there representitave they only go by the contract and they will hammer you. They Gave me all these numbers that turned out to be untrue. They told me I wasn’t locked in and I could get out any time which was a lie. I noticed my bank account kept getting unusual charges turns out prodigy has all this fine print where they take a 100 dollars a year and 10 dollars a Monty. They were draining me and when I called to cancel they told me I would have to pay 600 dollars to get out of a 4 year agreement that I had no idea about. When I asked the representative about the guy who explained the contract she said the fine print says they’re not responsible for anything they tell you.

  4. THIS IS THE WORST CARD PROCESSING COMPANY IN EXISTENCE!
    Please never do business with Prodigy, I’ve had the worst experience with them, their customer service basically gets paid to take you in circles without resolving anything! I am trying to cancel with them because they refused to reimburse me for the cancellation fee of my previous card processor and they still have not given me the $200.00 rebate the sales rep specified in the contract!
    They really top off the horrible experience with a $450.00 cancellation fee, I’m surprised they are still in business.

  5. DO NOT USE PRODIGY PAYMENT SERVICES. Upon the completion of our 2 year contract they continued to charge us monthly fees for 5 months despite of phone calls, emails and faxes we did not wish to renew. They also charged us a $250 cancellation fee despite our contract being complete. They stated without proper notification of wish to cancel (which we tried many times) the contract automatically renews and therefore we need to pay a cancellation fee.

    I think we may take this to court to fight. I have never had this many headaches with any other business!

    Lisa M.

    1. Lisa,
      I just read your note and want to share with you some language we used that helped us get ‘disconnected’ from Prodigy. My husband called numerous times and FINALLY was told that if he in fact used this phrasing, “I do not wish to renew my contract” that would work. In fact, he was also instructed to refer to his contract and it did reference that terminology in the contract.
      At the time when we contacted Prodigy instructing them that we no longer cared to use the service, they advised us to fax them a letter of cancellation. After doing so they continued to charge our bank account and of course made us jump through hoops to terminate our contract. They debited our account $350. for cancellation charges and eventually did credit us back.
      It’s unfortunate that NO ONE has shut them down. They are thieves and deserve to have their business license revoked.
      I am sure sorry that this has happened to yet another individual. Can’t imagine how many others this has happened to that haven’t written about their experience.
      GOOD LUCK

  6. I called Prodigy Systems to cancel payments taken from my checking accouont. When i talked to agent SHANTE , she said to call back in 24 hours. Did that, 3 times, still no responce from her. I told her that my Auto Repair business closed Dec 31 2012, and needed to have final statement forwarded to me. Please have this done ASAP. [Redacted: Account Information] Thank You.

  7. Prodigy Payment System was the first Merchant Service company I have had experience with. The employees in their customer service department are less than helpful that is unless they are trying to sell you or up-sell you one of their services.
    They charge for invoices, they charge for cancellation even if you’ve fulfilled your original agreement or contract . They will tell you there are no termination fee, only to find out at a later date after you have submitted all necessary paperwork to discontinue their service, it will cost you $350 to have them cease debiting your accounts!
    EVERYTHING about this company screams FRAUD.
    They are without a doubt a SCAM, A CON and lacking any business ethic whatsoever.
    I am making every effort to inform EVERY BUSINESS owner of their scandalous business practices.
    The internet is a POWERFUL tool and can most assuredly affect their practices.

  8. Yesterday (1/22/13 @ 4:58 p.m.) I received a call from a salesperson at Prodigy. I politely told him that I had recently changed credit card services over to my bank and would not be changing any time soon while I evaluate them. I then proceeded to thank him for his call and said have a good day. He continued to talk. I continued to say no thank you but thank you for calling and have a nice day. At which point I thought I had as sternly, yet politely as possible, told him I did not need his services. The phone then rang again and the man started yelling at me and tellilng me I was rude. I stated that he was being rude and that he was harrassing me and it was not acceptable. At this point he is still yelling at me! Of course I hung up. If I handled my business this way, we would be out of business — harrassing businesses to obtain customers is not a good sales tactic. Makes you wonder how they would be to actually work with.

  9. I made the big mistake of listening to a Prodigy “consultant” who came into my business and told me how I could really save money if I signed up with Prodigy. Long story short, I signed up with them and wound up with a 4 year leasing agreement on a machine that cost a little over $200. The “consultant” who I dealt with was a local girl and I just assumed she was being honest and forthright. Believe me, Prodigy has it all figured out how to dupe you into signing the contract. She told me repeatedly if I changed my mind about using Prodigy, she would pick up the machine. I did change my mind when my bank draft came through from Northern Leasing Company, whose name wasn’t on the leasing agreement. The leasing agreement said Lease Source, which I found out is another name Northern Leasing uses. I did cancel with Prodigy, assuming she would pick up the machine as promised, but when I tried to contact her to get the machine as she had told me she would do, she was nowhere to be seen. When I called Prodigy to complain, they informed me they had asked me on the phone if I had any verbal agreements with the consultant and I had told them no and they had my recorded statement. I did not want any dealings with Northern Leasing Company when I found out their reputation (see “Northern Leasing Sucks” on Facebook), so I contacted a lawyer and made them a buyout offer. It has cost me approximately $2600 to get rid of them, but after one year of stress, I am finally free of the whole deal.

  10. This post goes as a WARNING to anyone that knows someone or is looking to work with Prodigy Payments Systems. They will sell you on the idea that while working for them, you will get 2-4 appointments per day from their “call center”, only to really be sent to pitch people that already told them to go away. Over 2 days they sent me out to 5 appts in a row where merchants who did not know eachother said the same thing, “I told those fast talking over me idiots, fools, etc. that I was not interested, yet, they still sent you to see me?!”.

    I got DUPED, but it is what it is……I hope my experience will help some of you or someone that you may know not make the same mistake I made.

  11. I got the cell phone payment system from prodigy and said i would be charged 9.00 per month and and 4.75% per swipe. i used it once and it was to much time to set it up compair to the square system. so i didnt use it for the next month and i got charged of around $65 for somthing i didnt use, and i could cancel it but they wouldnt refund the money THIS IS A TOTAL RIPOFF!!!!!!! Plese stay away from this company, save you the headaches….

  12. Simply do not even think about doing business with these people. Like many others, I was pitched with better pricing and better service. Actually, the processing charges are not way out of line but better deals are available if you look. Your real problems will show up when you have a problem or try to cancel. A three year contract isn’t bad enough. They renew you to a new three year term without you really realizing what you’re in for. All this means it that they will get you for $250.00 any time you cancel. Never talk to them on the phone. Never sign anything with them. Doing business with a loan shark is safer.

  13. DON’T DO IT!!!!!!!!!! I have never seen such a bunch of crooks. Sales rep has also taken a leave of absence. This has cost me a fortune. stuck with equipment and a rediculus payment. Was told payment on equipment would be dropped from $59.95 to $42.00 and now they r chargeing me $72.00 a month. Northern Leaseing is as crooked as Prodigy. All the coments above is exactly what i experenced. There should be laws against company’s like this. Ive tried to get Northern Leasing to send me a payment book but they say they do not supply payment books and they charge extra to send out statements. The lease I signed isnt even ledgable.Any suggestions on how to get out of this would be much appreciated.

  14. My prodigy rep has taken a leave of absense and cannot be reached. I am in the middle of trying to deicide if I want to change. Am I in trouble???? Can I go back to my original company????? My terminal was free and I was promised they would pay my cancelation fee. Not gonna happen right????? My appointment with the regional manager(with them for 3 years) Ha. will be Monday April 17th, 2012. Help!!!!!!

    1. Jerry: I don’t know about your contract, but my Heartland Rep (the machine I had before Prodigy) told me I had 60 days to cancel, which I did–but I was hooked on a lease agreement for the machine, which doesn’t sound like the same offer you have. The contract stated I had 7 days to cancel the lease, which I did not read, since the rep assured me there would be no problem if I decided to cancel–said she would pick up the machine and give it to someone else, which never happened. She disappeared once she had me hooked–will not answer her cell phone. I went back to Heartland. There are plenty of reputable companies out there and I would never advise anyone to deal with Prodigy. You might just check with your other company, as that’s how I found out all the bad news–the Heartland Rep called me when they notified her of the cancellation and I was able to go back without any fee.

  15. Followup to previous comment I posted. I looked up the credit card machine that I “leased” through Prodigy, and it sells for $211 on Amazon. Northern Leasing charged me $106 for taxes and insurance, which is a yearly thing, plus monthly payment of $46.81 for the 4 years. Contract says $39.95, plus I was supposed to get a rebate of $400 which was supposed to be applied to the leasing agreement and I have never seen. Actually haven’t seen any statement from Northern Leasing as to what they are charging and why. As Mike and Nick says, this company is crooked, and all their sales reps are responsible for is to get you to sign on the dotted lines anyway they can, which includes lieing and then they are out of the picture. BEWARE of anyone who comes in to your business trying to sell you on the Prodigy Payment Systems. This rep almost hooked another business in town, but because they read these reviews, she was able to get out before she got hooked.

  16. I cannot begin to tell you the problems we have had with Prodigy. We fell for a sales pitch and ended up going with them. Our first week we processed a few payments and never got any of it in our bank account. We kept calling and they kept stalling by the end of the second week they were “holding” about 4 grand and none of it was going into our account. They told us that they were holding these deposits until we have actually completed the events (most were deposits for events from 6-12 months away. We sent them a cancelation letter and reset our terminals to go back to our regular processor. We also cancelled our bank and put a stop payment on any future payments to this company. The stop payment ended 6 months later and then we come to find out that this company has been taking money out of our account for the last 6 months because they said they never sent got the cancelation letter. We have been in business for 20 years and have never ran into a more crooked company. I have been a member for 12 years of the BBB and didn’t even check out this company before going with them. We have been really taken to the cleaners by prodigy and felt we needed to warn everybody we can about this very crooked company.

    1. I too fell for their sales pitch and agree with Mike,that this is a crooked company.The two I spoke with said I could always call with any questions that I had on any issues that may surface and speak directly with them.I made several calls to ask on many issues that arose over time and neither one to be available,nor did they return my calls.A Red Flag went up as this continued to happen with all my calls.One to be deathly sick and on leave,the other over seas getting married.I faxed my cancellation in on time so no charges would be taken from account,but still was charged a one year membership fee and early termination fee and 3 months merchant club fee! The not so nice lady I spoke with said the fax was not signed therefore the cancellation meant nothing without the signature.The fax did have a header with our company logo so they knew it was legit.How about common curtisy from someone saying ,”We received your fax on cancelling but need a signature for it to go thru.” They waited until after the 3 month trial period ended to let me know this when they received my fax 3 days on time!

  17. This company is as crooked as they come. After assuring and promising me that they would cover any cancellation fee of my previous company, I send them the bill for reimbursement and then they say they will only pay up to $450. The cancellation fee was close to $3,000.

    Why does it not say this on the contract and why did every single Prodigy rep I talked to neglect to tell me there is a $450 reimbursement limit on cancellation fees from previous companies?

    I already filed a couple of complaints and will continue to expose the corrupt sales practices of Prodigy / Momentum / Encore payment systems.

    1. Prodigy payment system 3801 Arapaho Rd. Addison Texas 75001 are not honest people/ company. They told me that if I cancle from a previous company that they will pay all fees and never did. I change my bank account so they can’t have access to it but for some reason they broke into my account and took out money. The problem is the BBB and the attorney general are doing an investagation on this company. Please dont do business with these people. Names Fuentz, Angel James lets all get together and sue this compant.

  18. I had my own credit card machine which I had purchased from Heartland and was doing business with them. A sales rep from Prodigy came in our restaurant with her sales pitch about how much cheaper the rates were even if we leased the machine for 4 years. I wound up changing to prodigy, only to find that what I was told and what really happens are not the same. The worst thing, I found out too late, is the lease was not with Prodigy, but with Lease Source, Inc., who I guess is aka Northern Leasing Company, which is the company who submitted the bank draft to our bank.
    The lease we signed doesn’t even mention Northern Leasing. I have cancelled with Prodigy, but I am still responsible for the lease (the machine I found out later sells for $350-$400, and I signed up for 4 years at $47.+ per month. I signed the contracts, so I am responsible, but the rep misrepresented the facts. Don’t ever sign anything until you have checked out the company through BBB & Attorney General’s Office.
    When I finally did, it made me sick to see all the complaints filed about Northern Leasing.

Leave a Review

Your email address will not be published. Required fields are marked *