Agree with our rating?
Leave a comment below
Red Payments 2023: Card Processing Reviews & Complaints
Agree with our rating?
Red Payments is a merchant account provider that appears to operate as a DBA of National Merchant Services. The two companies share an address at 132 W 36th St, New York, New York 10018, and the National Merchant Services website displays some ad copy that mentions Red Payments by name. Red Payments serves most standard-risk business types and claims to serve over 10,000 merchants. The company also claims to have been founded in 2008, but it was not incorporated in the state of New York until 2011.
Before we dive in, here’s a short summary of what we’ll cover:
- Red Payments’ various payment processing services.
- The company received a number of complaints from 2018-2021, often mentioning unexpected charges, but there have not been many complaints recently.
- Red Payments’ contract includes a number of undesirable fees, including expensive equipment leases.
Red Payments Point of Sale
Red Payments offers point-of-sale solutions including countertop, wireless, and mobile options. Their equipment accepts all electronic payment methods including EMV chip & PIN, NFC, and magstripe, and all are claimed to be PCI PTS 2.x and 3.x certified with SRED and Open protocol modules. Their swipers are Ingenico and Verifone, their terminals Clover, and their mobile solutions are MagTek.
Red Payments equips businesses with the ability to accept multiple types of electronic payments, including credit cards, debit cards, and mobile wallets. By offering a wide range of payment options, the company aims to enhance customer satisfaction and streamline the transaction process.
The company offers business financing solutions. This is aimed at helping businesses with their financial needs for growth and operations.
Gift and Loyalty Programs
Red Payments provides gift and loyalty programs to businesses. These programs are designed to enhance customer engagement and retention.
The company offers merchant analytics services. This is intended to help businesses understand their performance and make data-driven decisions.
Online Restaurant Ordering
Red Payments also offers online restaurant ordering services. This is particularly aimed at the food and beverage industry to streamline their order management.
Location & Ownership
Red Payments is a registered ISO/MSP of Merrick Bank, South Jordan, Utah, and of Wells Fargo Bank N.A, Walnut Creek, California. Red Payments is located at 132 W 36th St 3rd floor, New York, NY 10018. Alex Groyzburg is the president of Red Payments, while Simon Lobanov is the company’s CEO. LinkedIn also lists Mike Smith as Managing Director.
Table of Contents
- Costs & Contract: Appears to offer a three-year contract with…
- Complaints & Service: Complaints number more than 100 on…
- BBB Rating: Has an “A+” rating and has received…
- Sales & Marketing: Hires independent sales representatives and has received…
Red Payments Customer Reviews
Here's What Their Clients Say
|Total Online Complaints||100+|
|Live Customer Support||Yes|
|Most Common Complaint||Hidden Fees|
Moderate Complaint Total
We are currently able to locate more than 100 negative Red Payments reviews, some of which accuse the company of being a scam or a ripoff. Issues that are commonly cited by clients include hidden fees, higher-than-expected rates, undisclosed equipment leases, outright lies from sales agents, and poor customer service. We have also found more than 10 complaints from current and former employees of the company who describe unpaid residuals and a poor working environment. The Red Payments complaint total far exceeds that of National Merchant Services, which could indicate that it utilizes different sales methods or offers less appealing contract terms to merchants than NMS. If you have your own Red Payments review to make, please do so below.
Red Payments Lawsuits and Fines
Red Payments was sued in 2019 in a somewhat bizarre class-action suit that saw a small business attempt to sue Red Payments after allegedly receiving and being charged for equipment they did not request. Strangely, the plaintiffs in the case revealed that they were made aware that this is called “slamming” by a Red Payment sales agent. The legal details of the case are fairly complex, but the end result was that the case was dismissed due to the specifics of Pennsylvania state law as well as the fact that the plaintiffs never paid the unexpected charges. That said, the details of the attempted slamming do not seem to be in dispute, which is reason for concern for those considering engaging with Red Payments.
A further 2019 lawsuit was ROLLER v. RED PAYMENTS L.L.C. et al, a legal case in which the plaintiff, Timothy Roller, filed a lawsuit against Red Payments LLC and other associated defendants. The case primarily revolves around allegations of unsolicited telemarketing calls made by Red Payments, which the plaintiff claims violated the Telephone Consumer Protection Act (TCPA). The TCPA is a federal law that aims to protect consumers from unwanted telemarketing calls, text messages, and faxes. The results of this case are not available online.
Dissatisfied clients who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
Red Payments Customer Support Options
At this time, most of the client feedback about Red Payments is negative in tone and consistent in its criticisms of the company’s pricing, sales tactics, and customer service.
Red Payments Customer Service Number
- (888) 733-8188 – Toll-Free General Customer Service
To its credit, the company offers live phone support to all clients. However, it performs at a level far below the top-rated payment processors for great customer service.
Red Payments Online Ratings
Here's How They Rate Online
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.
Under 10 Complaints
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.
Long-term equipment leases are a contract term to avoid as they result in charges like those described in this review. Clients can avoid this issue by purchasing a high-quality EMV terminal outright rather than leasing it.
A “C” Performance
Given the company’s complaint total and resolution ratio, we have adjusted the BBB’s rating to a “C.”
Red Payments Fees, Rates & Costs
A Closer Look at The Contract
|Monthly & Annual Fees||Yes|
|Processing Rates||1.00% - 4.99%|
According to multiple merchant complaints, the standard Red Payments contract is a three-year term with 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, other assorted incidental fees, and flat-rate pricing that may actually be tiered pricing.
Most complainants also state that they were locked into a 48-month equipment lease through First Data Global Leasing without their knowledge. Various reported monthly fees for these leases include $57.94, $60, and $100. The cost to cancel these leases ranges from $1,000 to more than $4,000, and we do not recommend that businesses ever sign a long-term equipment lease. Instead, we recommend business owners check out our list of the providers of the best merchant accounts.
Similar to National Merchant Services
Although Red Payments does not publicly provide any documentation of its contract terms that would allow us to corroborate the complainants’ claims, we can confirm that the reported terms are similar to those described by National Merchant Services clients. Therefore, it seems likely that Red Payments rates and contract terms are not competitive with budget-friendly merchant accounts, and these contract terms are responsible for a good portion of the complaints filed against the company. If you have any specific knowledge or documentation of the standard Red Payments merchant agreement, please share that information in the comment section below this review.
Red Payments Employee Reviews & Sales Tacitcs
Should You Work For Them?
|Uses Independent Resellers||Yes|
|Discloses All Important Terms||No|
Inside/Outside Sales Team
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.
Copyright © 2023 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. We may earn revenue if you obtain services from a provider that we recommend. See this page to learn how we support our operations.