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In this review of Red Payments, a merchant account provider operating under National Merchant Services, we examine the company’s operations and service offerings. Red Payments works primarily with standard-risk businesses and supports a large client base. Their services include point-of-sale solutions, payment processing, business financing, and customer loyalty programs. The review also looks at pricing, contract terms, and customer feedback to give businesses a clear picture of whether Red Payments is a good fit for their needs.
Rates, Fees, and Contract Terms
Despite their wide range of services, Red Payments has faced criticism for their sales tactics, contract terms, and customer service quality. We will explore their rates, fees, and contract terms, along with common customer complaints.
Industry Ratings and Employee Reviews
Our review includes industry ratings and employee feedback to give insights into how Red Payments operates internally and their overall reputation.
Payment Processing Solutions
We will also discuss Red Payments’ payment processing solutions, including their hardware and software options, and how these services meet the needs of various businesses.
Legal Challenges and Customer Reviews
Red Payments has faced legal challenges, including lawsuits and fines. We will review these issues, as well as customer feedback on service satisfaction and the problems customers have encountered.
Final Thoughts on Red Payments
This review aims to provide a balanced view of Red Payments. We’ll consider their service offerings and the controversies they have faced, helping readers make informed decisions about their merchant service needs.
Company Background
Red Payments operates as a DBA of National Merchant Services. Both companies share the same address in New York and have served over 10,000 merchants since their founding. While Red Payments claims to have started in 2008, they were not incorporated in New York until 2011
About Red Payments
Red Payments Homepage
Founded in 2008 and headquartered in New York City, Red Payments is a U.S.-based merchant services provider operating as a DBA of National Merchant Services. The company offers a range of payment processing solutions tailored for small and medium-sized businesses. Their services include credit and debit card processing, point-of-sale (POS) systems, mobile payment options, and e-commerce integrations. Red Payments also provides business financing solutions, gift and loyalty programs, and merchant analytics to support business growth. The company emphasizes transparent pricing and claims to offer competitive rates in the industry. They provide various hardware options, including terminals from Ingenico, Verifone, and Clover, as well as mobile solutions compatible with iOS and Android devices. Customer feedback for Red Payments is mixed. While some clients appreciate the range of services and equipment options, others have reported concerns regarding hidden fees, contract terms, and customer support responsiveness. The company has faced legal challenges, including lawsuits and fines, which prospective clients should consider when evaluating their services.
Products & Merchant Services
Payment Processing
Red Payments enables businesses to accept a variety of electronic payments, such as credit cards, debit cards, and mobile wallets.
Point of Sale
Red Payments provides a range of point-of-sale (POS) solutions, including countertop, wireless, and mobile options. Their equipment supports various electronic payment methods, including EMV chip & PIN, NFC, and magstripe. All devices are PCI PTS 2.x and 3.x certified with SRED and Open protocol modules. The company uses swipers from Ingenico and Verifone, terminals from Clover, and mobile solutions from MagTek.
Business Financing
The company provides business financing solutions to support the financial needs of businesses.
Gift and Loyalty Programs
Red Payments offers gift and loyalty programs aimed at increasing customer engagement and retention, helping businesses build lasting customer relationships.
Merchant Analytics
Red Payments provides merchant analytics services to analyze performance and make informed, data-driven decisions.
Online Restaurant Ordering
The company also offers online restaurant ordering services, tailored for the food and beverage industry.
Customer Reviews & Sentiment
Overview of Customer Complaints Against Red Payments
We have identified over 100 negative Red Payments reviews, with allegations ranging from scam accusations to reports of ripoff practices. Clients frequently report issues such as undisclosed fees, higher-than-anticipated rates, unexplained equipment leases, misleading statements by sales representatives, and unsatisfactory customer service. Additionally, there are more than 10 grievances from both current and former employees regarding unpaid residuals and substandard working conditions. Compared to National Merchant Services, Red Payments has a significantly higher complaint volume, suggesting differing sales strategies or less favorable contract terms for merchants. We encourage individuals with personal experiences with Red Payments to share their reviews below.
Feedback on Red Payments Customer Support
The majority of feedback regarding Red Payments’ customer service is negative, highlighting concerns over the company’s pricing strategies, sales approaches, and overall client support quality.
Industry Scores & User Ratings
Online Ratings Summary
PaymentPop
1
BBB Rating
N/A
Google Maps
2.7
Average Rating
2.7
PaymentPop Rating for Red Payments
Negative Feedback
Very dissatisfied with Red Payments. When I called with a question about a charge, I was told I would be getting a lower rate and charges would come off in the future. It never happened, they told me this story more than once. When I finally had had enough, I asked to cancel and was told I would have a cancellation fee – this was after being with them four years – it was hundreds of dollars. I called my bank, shut off access to my account and switched proicessors.
Felt very ripped off.
Positive Feedback
There are no positive reviews published about Red Payments on the PaymentPop website.
Red Payments BBB Rating
Red Payments currently has an “A+” rating with the Better Business Bureau and had previously been BBB-accredited since March 2015 but is no longer accredited. The company’s profile is currently showing 1 complaint in the last 36 months. The 1 complaint was either resolved to the dissatisfaction of the client or received no final communication.
What Merchants Say
Red Payments has also received 0 informal reviews on its BBB profile in addition to the 3 complaints. A previous review described deceptive fees and sales practices:
Get everything in writing ! They signed me up with Nuvei and everything was great until I got a cancellation notice giving me 13 days to find another processor. Reason was “Unsupported Business Model”. Guess what? even though they canceled me, I still have to pay $58.20 a month for my machine that I can’t use, for 42 more months. I had told the salesman that I would rather buy outright, he said I’ll save more money in the long run with the lease. Watch out for Slice/ Red Payments.
Given the company’s complaint total and resolution ratio, we have adjusted the BBB’s rating to a “C.”
Google Maps Rating for Red Payments
Red Payments has a 2.7 out of 5 star rating based on 86 user reviews on Google Maps.
Positive Feedback
Red payments has shown great customer service. We have been with them for over 5 years and have been very happy. They are very responsive to our emails and calls which is very important and rare in this field. They don’t disappear once you agree to use them as your credit card processor. I would recommend them to any business.
Negative Feedback
Got scammed into the contract with misleading information. The sales rep was actually had a pending court case for scamming old people.lol So I paid the fees and never processed a payment for 3 years. Now after my 3 year term I have called to cancel 3 days in a row and no one from red payments retention team will get on the phone with me but there agents tell me that’s who has to handle my cancellation. They have promised to return my call every day and so far nothing.
Processing Rates & Fees
Three-Year Agreement
As per multiple merchant complaints, the typical Red Payments contract spans three years and entails an early termination fee of $495, a $25 monthly minimum fee, a $9.99 “account on file” monthly fee, a $10 MasterCard location monthly fee, various incidental fees, and flat-rate pricing that might essentially be tiered pricing.
Extended Leasing Terms
Most complainants report being bound to a 48-month equipment lease through First Data Global Leasing without prior knowledge. Monthly lease fees mentioned range from $57.94 to $100. Canceling these leases can cost anywhere from $1,000 to over $4,000. It’s strongly advised against signing long-term equipment leases. Instead, business owners are encouraged to explore our list of the best merchant account providers.
Similar to National Merchant Services
While Red Payments doesn’t publicly disclose its contract terms, the reported terms align closely with those experienced by National Merchant Services clients. Hence, it’s probable that Red Payments’ rates and contract terms are not competitive with budget-friendly merchant accounts, contributing significantly to the complaints against the company. Should you possess specific insights or documentation regarding the standard Red Payments merchant agreement, please share in the comments section below this review.
Lawsuits & Legal History
In 2019, Red Payments was involved in a noteworthy class-action lawsuit (ROLLER v. RED PAYMENTS LLC) initiated by a small business for allegedly being charged for unsolicited equipment, a practice known as “slamming.” Despite the complex legal intricacies and the case’s eventual dismissal due to specific aspects of Pennsylvania state law, the incident raises concerns. Another legal battle in 2019, ROLLER v. RED PAYMENTS L.L.C., centered on accusations of unauthorized telemarketing practices breaching the Telephone Consumer Protection Act (TCPA), although the outcome remains unspecified.
Red Payments appears to primarily market its services with a combination of inside sales managers and independently contracted sales agents. This practice usually generates higher-than-average complaint totals for payment processors, and Red Payments is no exception. As with National Merchant Services, we have found a moderate-to-high number of negative Red Payments reviews that describe misrepresented rates, hidden fees, undisclosed lease agreements, and outright lies from sales agents. We previously found one Red Payments complaint that stated that a sales representative presented an application as a non-binding agreement and then opened a merchant account without informing the client. This does not compare favorably to our list of best credit card processors.
Red Payments Employee Complaints
There are also multiple Red Payments reviews from former sales representatives that allege unpaid residuals and extreme mismanagement. One former employee stated in the comment section below this review that Red Payments trains agents “to endlessly badger business owners if they cancel or move an appointment” and “lease you a cash register/payment portal for $100/month (for 48 months) that you can buy yourself on Amazon for under $1000.” According to this commenter, “RP agents only make commissions when they sign an equipment lease deal.”
No Misleading Quotes
These negative Red Payments reviews are not surprising for a company that appears to be connected to National Merchant Services. As a small point in the company’s favor, Red Payments does not post “teaser” rates on its website. However, we have seen so many business owners claim that they were deceived about the Red Payments rates they would pay that it is hard to believe that Red Payments sales agents are quoting their prices appropriately. If you suspect that you were misled about your contract terms through Red Payments, you can double-check your monthly bill with a third-party statement audit.
Red Payments Competitors
Compare Red Payments to competitors that earned top marks.
Red Payments is evaluated as an average credit card processing provider. The company has been the subject of a moderate-to-high volume of complaints, which paint a concerning picture of its operational practices. These complaints frequently highlight a pattern of deceptive sales tactics, suggesting a lack of transparency in how services and pricing are presented to potential clients. Additionally, the pricing structure at Red Payments is reported to be higher than average, which could place unnecessary financial strain on businesses. Customer service quality is another area where Red Payments falls short, with numerous reports indicating dissatisfaction among its users.
Adding to these challenges, Red Payments has not been transparent about its affiliations, particularly concerning its relationship with National Merchant Services. Despite the absence of official acknowledgment in their materials, substantial evidence points to a close link between the two entities, potentially indicating that they operate as a single organization. This lack of clarity and openness further contributes to the distrust clients may feel towards Red Payments.
Given these various concerns, businesses in the market for credit card processing services would likely benefit from considering alternatives. Top-rated merchant account providers generally offer more reliable service and more competitive pricing structures. These providers maintain higher standards of transparency and customer service, making them preferable for businesses seeking a straightforward and trustworthy processing solution.
