Red Payments Overview

8/19/2019: As of this update, Red Payments website domain is no longer registered with the company. It remains unclear whether this means the company is no longer in business. Red Payments parent company, National Merchant Services, still has a functioning website and was had its review on this website last updated on June 27, 2019. Merchants with any insight into the current status of the Red Payments’ operations are encouraged to leave any insight they have in the comments section of this review.

A DBA of National Merchant Services

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.

Red Payments Location and Ownership

Red Payments is a registered ISO/MSP of Merrick Bank, South Jordan, Utah and of Wells Fargo Bank N.A, Walnut Creek, California. Alex Groyzburg is the president of Red Payments, while Simon Lobanov is the company’s CEO.

Red Payments Review Table of Contents

  • Costs & Contract: Red Payments appears to offer a three-year contract with an early termination fee of $495.
  • Complaints & Service: Red Payments has received more than 50 public complaints.
  • BBB Rating: Red Payments has an “A” rating and has received 43 complaints and 12 reviews in the past three years. The company has been accredited by the BBB since 2015.
  • Sales & Marketing: Red Payments hires independent sales representatives and has received a moderate number of complaints about its sales practices.
  • Rates & Fees: How Merchants Got The Best Rates With Red Payments
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Products & Services Offered

Types of Businesses Served

  • Retail
  • Restaurant
  • Mobile
  • E-commerce

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Red Payments Rates, Fees, and Costs

Key Points

Swiped Rate 1.00% - 4.99%
Keyed-in Rate 1.00% - 4.99%
Account On File Fee $9.99 Per Month
MasterCard Location Fee $10 Per Month
Monthly Minimum Fee $25
Early Termination Fee $495
Equipment Lease Cost $100 Per Month
Equipment Lease Terms 48 Month (locked)

Three-Year Contract

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.

Long-Term Leases

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 merchants ever sign a long-term equipment lease.

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 merchants. Therefore, it seems likely that Red Payments offers contract terms and pricing that 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.

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Response from Red Payments

Are you a representative of Red Payments? Add your voice to this section for free!

Red Payments Complaints & Customer Reviews

Key Points

Total Online Complaints 50+
Live Customer Support Yes
Most Common Complaint Hidden Fees

Moderate Complaint Total

We are currently able to locate more than 50 negative Red Payments reviews, some of which accuse the company of being a scam or a ripoff. Issues that are commonly cited by merchants 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. Red Payments’s 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.

Red Payments Lawsuits

We have not found any outstanding class-action lawsuits or FTC complaints filed against Red Payments. Dissatisfied merchants 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 merchant feedback about Red Payments is negative in tone and consistent in its criticisms of the company’s pricing, sales tactics, and customer service. To its credit, the company offers live phone support to all merchants. However, it performs at a level far below the top-rated payment processors for great customer service.

Do you have a complaint or testimonial about Red Payments? Make your voice heard before you go!

Response from Red Payments

Are you a representative of Red Payments? Add your voice to this section for free!

Red Payments BBB Rating Summary

Key Points - BBB

Product & Service Complaints 29
Billing & Collection Complaints 11
Advertising & Sales Complaints 3
Guarantee & Warranty Complaints 0
Delivery 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.

Over 40 Complaints

Red Payments currently has an “A” rating with the Better Business Bureau and has been BBB-accredited since March 2015. The company has received 43 complaints to its profile in the past 36 months, as well as 18 complaints which have been closed in the last 12 months. 29 related to a product or service problem, 11 having to do with billing or collection, and 3 categorized as an advertising or sales issue. The company has resolved 12 complaints to the merchant’s satisfaction, while the remaining 31 complaints either were resolved to the dissatisfaction of the merchant or did not receive a final response from the merchant.

What Merchants Say

Red Payments has also received 12 informal reviews on its BBB profile in addition to the 39 complaints. 7 of the reviews are negative while the remaining 4 are positive. It should be noted that these reviews are not necessarily subject to authentication. The most recent review describes deceptive fees and charges including an expensive equipment lease:

got a call said were gonna save you money on cc processing . i usually blow them off . i listened and said awesome lets do this . didn’t really pay attention to the fine print and yes i did i keep hearing i signed a 10 page contract with a no cancellation page . every contract has a out clause but not theirs.the catch is im not paying cc processing ,their charging my customer 3.99 percent .so one a 1500.00 dollars repair bill my customer has to pay another 59.85 on top theirs no way my customer are going to pay that at all . look i dont want this cc processing company or the equipment by the way most cc processors charge you from 100 to 250 or free terminal. but i got the special price of 109 a month and a 4 year contract totaling 5300.00 for a credit card machine. look if this would have been explained properly theirs no way i would have done this . they say one thing and dont tell you about the fine print im un happy. so why dont we agree to disagee . the solution just take equipment back its un used and leave me alone quit threatening me with terminated merchaint files and cancel my lease ps try not being so rude on the phone you know what you doing is crooked and wrong just leave me alone and focus on good business and you will probally do better and less negitive reviews

Long term equipment leases are a contract term to avoid as they result in charges like those described in this review. Merchants 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.”

How has Red Payments treated you? Tell us about it here!

Response from Red Payments

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Truth In Marketing & Advertising

Key Points

Employs Independent Resellers Yes
Advertises Deceptive Rates No
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 Red Payments complaints that describe misrepresented rates, hidden fees, undisclosed lease agreements, and outright lies from sales agents. One merchant states that a sales representative presented an application as a non-binding agreement and then opened a merchant account without informing the merchant.

Red Payments Employee Complaints

There are also multiple complaints 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 complaints 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 merchants claim that they were deceived about the 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.

Did you get what you expected from Red Payments? Tell us why, or why not.

Response from Red Payments

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Red Payments Logo

Our Opinion of Red Payments

A Substandard Option for Most Merchants

Red Payments rates as an average merchant services provider according to our rating criteria. The company has received a moderate-to-high number of complaints that consistently describe a pattern of deceptive sales tactics, higher-than-average pricing, and poor customer service. Red Payments does not disclose its relationship to National Merchant Services in its official materials, but there is a great deal of evidence to suggest that the two companies are closely linked and may even be the same organization. Merchants are likely to obtain a better deal with more reliable service from a top-rated merchant account provider.

We rely on your feedback about Red Payments to keep this review accurate and up-to-date. Please take a minute to tell us about your experience. We and the small business owners of this world thank you!

Thank you for reading my review. I hope that it has helped you with your research.

Why I'm Qualified to Write About Credit Card Processing and Merchant Account Services

I'm a former credit card processing sales director who left the industry because I didn't like how it takes advantage of small business owners. It feeds like a leech on businesses and thrives by imposing fees that are nearly impossible to comprehend. Seeing a need for change, I left and built this website help business owners better understand the industry, research merchant services providers, and get refunds of excessive merchant account fees. My experience of working "behind the curtain" in the industry, and using that knowledge for good, has resulted in millions of dollars returned to hard-working small business owners as well as enterprise-level companies.

From the time that I starting working in the merchant services industry to when I left to create this website, I've been on the pulse of payments for nearly 15 years. It didn't seem fair to keep this "insider" knowledge to myself. To lift the fog, I've reviewed hundreds of companies, read thousands of user reviews, and learned the pricing tricks of every provider. If you have questions about credit card processing, you can find the answers on this website.

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13 Reviews Leave Your Review for Red Payments Below

  1. Shelly says:

    I was approached by a sales rep named Devon Hodson. He asked me if I was happy with my current processor and I explained the fees. He said I have something you will like. No fees for cash or debit cards. If your customer uses a credit card, you simply up charge them 3.99%. Since I signed up I have been charged fees for both credit and debit and when I call to speak to someone at Red payments, they are very rude. Ive called several times trying to get to the bottom of this. Why would I have switched processors for higher fees? Makes no f**g sense. Devon Hodson does not return calls nor have we seen him since he lied to us about his wonderful company. Looking to get out of this hell!


    This post will help: Find and Eliminate Hidden Fees in Your Monthly Bill

    -Phillip

  2. Tony Stempak says:

    I called RP because we had an additional charge on our bank account not on our statement. We are charge by a lease fee from Ascentium Capital every month on or around the 15th & RP claims they (RP) have no way to contact this company. The additional charge was on the 29th. We did not assigned Ascentiun company, RP did. Only 17 months left on the 4 year contract we signed with RP. We will be so glad to see this horrible company go away!


    This post will help: Cancelling a Merchant Account Without Paying a Fee

    -Phillip

  3. Mary Dishaw says:

    Red Payments contacted us promising less fees etc. we finally did sign with them. Big mistake!! We found a better company and sent Red Payments the cancellation letter and never heard from them and then received a phone call from one of the rudest person, he started off by asking how we were liking Red Payments, I explain to him that we sent the cancellation form and he immediately raised his voice saying he never received such a thing, but knew that was a lie, because he then got louder threading me about what will happen if we canceled. We had a 3 year contract and it was illegal to cancel, he would not let me talk and became more rude and more threats. A few days later they had taken out $1408.83 out of our bank acct. when I called to discuss this. He told me “ I warned you what would happen if you cancel. When I asked to speak to the agent that we originally worked with he told me there was no one by that name and I was only able to talk to him. When asked where to send back the machine he told me not his problem.


    This post will help: Cancelling a Merchant Account Without Paying a Fee

    -Phillip

  4. Linda Gan says:

    I signed up with Red payment in september 2018 because the Red Payment agent Justin Grisom talked about how the company can saved me money on the processing fees and asked if I will give him a chance to prove it. And so I did. He told me that there’s a 30 days review period that the company will give you if you would like to go with Red Payment. I noticed there’s a hidden fees on the paper that was not disclose on our phone conversation. He said that will be waived when I sign the agreement. So I signed it. But then I change my mind, and told Justin that I would like to terminate the agreement instead. From there on, I have problem finding him or anybody to answer my call or email. I got a call from RED PAYMENTS legal department said that they will bring me to court if I don’t want to pay their fees as per signed agreement. I have called to cancel and returned their machines and yet still get charged until now, which is February 2019. I have emails proof that I have submitted a cancellation notice within time period and proof of returned machines from UPS and they still ignored me. I don’t know what else that needed to be done so that Red Payment will not bleed people dry of their money.


    This post will help: Cancelling a Contract Without Paying a Fee

    – Phillip

  5. Sean says:

    For a short time I was a sales agent for RedPayments, and I hope that you will read this review, because I’m trying to be insightful and fair. I left the company because I found out I could make more money and give better service to my clients by working for a different merchant processor. First, merchants should know that that RP agents only make commissions when they sign an equipment lease deal. Some bonus is paid for those who self-source a lot of deals, and tiny residual payments are made for accounts that stay open, but the majority of a rep’s income is from pushing equipment, sometimes that the merchant doesn’t want or need. RP has nice gear, but it is very overpriced. They will lease you a cash register/payment portal for $100/month (for 48 months) that you can buy yourself on Amazon for under $1000. Agents are not allowed to call appointments ahead to confirm, and we were trained to endlessly badger business owners if they cancel or move an appointment. They advertise that agents will be given 2-3 appointments per day by their telemarketing department, but reps are still required to call 50 businesses per day to self-source deals. Finally, the RP director giving our training was claiming that RP is the only company in the market doing merchant surcharge/cash discount, but a quick online search shows that there are many companies offering this service. If you are a merchant looking for quality processing, or if you are an agent looking for a good company, I would recommend you pass on RedPayments.

  6. Norman says:

    These People are Vicious. Stay far away. Their sales people sucker you in and then they shaft you. I told them that I did not need or want a terminal, since we did all transactions on line. They sent it free with the comment that I could sell it. It came with the package. Well it is $57.94 a month for 48 months ($2781.00) not bad for a $300.00 terminal. They suck with service.
    Stay AWAT, FAR AWAY. They got me.

    From The Editor
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  7. Charles ozuruone says:

    DO NOT SIGN UP !!!! , any legit credit card processing company offers a trial period , where you have enough time to evaluate the companies service , now the sales rep told me there was 30 days . I didn’t even accept the equipment , cause I was lied into not paying any fees than noticed i was on a terminal lease for a monthly payment of $60.00 , when i called them to complain , Boris the person that’s in charge of this department , basically told me I had to pay 4,500 to cancel ? I don’t understand how this is legal ?


    From The Editor
    This Post Might Help: Cancelling a Merchant Account Without Paying a Fee

  8. JULIE PRUITT says:

    This company is horrible…. DO NOT SIGN UP WITH THEM!!!! I had a three year contract with Red Payments , fulfilled my 3 years and the 4th year left them for a less expensive processor… They threatened to charge me even though I was out of contract and then got really nasty. Next day I looked at my business account and they charged over 4000.00!!! It took weeks for my bank to refund my money and then they said they would put it in collections and ruin my credit.. WHAT A BUNCH OF LOSERS Daria and Farah were their names….


    From The Editor
    This Post Might Help: Cancelling a Merchant Account Without Paying a Fee

  9. This company is highly unethical. I original signed up as a reseller to add another offering to my clients. I should have done far more research on research on Rep Payments. Their “sales manager” Alphonso is a fast, slick talker and after completing an application with one of my clients alarm bells started ringing immediately. To protect my client as best as possible I completed the rates in the contract based on the quote Red Payments prepared for them. I had a feeling they would insert different rates than what the quote was based on. I also did not have my client complete the lease section. After sending in the paperwork without my client inserting his SS# they still activated his account. Right then and there I knew they were Boiler Room wannabes that didn’t care about their clients or resellers. I immediately had my client cancel their service and return the equipment within the 30 day time period. Red Payments is still deducting money from the client and of course customer service nor Alphonso have replied to my emails or calls about refunds and ensuring the service is cancelled. Total frauds. run as fast away as you can.


    From The Editor
    This Post Might Help: Cancelling a Merchant Account Without Paying a Fee

  10. CHUCK TVETER HAMMERS GUN SHOP says:

    I was told I would only have to pay $99 a month if I changed to Red Payments. I have not had a month under $300 and now I am being told if I want to change to someone else it will cost me $3579. I was lied to by their rep on every level so please beware.

  11. carrie crocker says:

    very happy with my girl at red payments…Farah Mangolin was always helpful !!!

    1. CPO Admin says:

      Hi Carrie,

      Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!

  12. Ken Morris says:

    My local rep left the Annual fee space and the PCI Annual fee space on the contract empty and I, unfortunately, did not catch it . I just had $ 284.00 taken out of my business account due to this. Buyer beware.

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