Red Payments Reviews & Complaints

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How did they treat you? ▼

Pros & Cons
Pros: Cons:
EMV terminal purchase option Complaints about sales tactics
Accepts various card types Long-term equipment leases
Offers different processing options Three-year contract term
Early termination fee ($495)
Multiple monthly fees
Possible tiered pricing


In this review of Red Payments, a merchant account provider operating under National Merchant Services, we will examine their operations and services. Red Payments serves standard-risk businesses and has a substantial client base, offering various services such as point-of-sale solutions, payment processing, business financing, and programs for customer loyalty and gift rewards. Despite their wide range of offerings, the company has faced criticism and legal challenges, raising concerns about their sales tactics, contract terms, and customer service quality.

We will look at different aspects of Red Payments, including their rates and fees, contract terms, and common customer complaints. Our review also covers the company's industry ratings and employee reviews, providing insights into the internal workings and reputation of Red Payments. Additionally, we'll discuss their specific payment processing solutions, including hardware and software capabilities, and how these offerings aim to meet diverse business needs.

We will address the legal challenges and customer reviews that have influenced the company's public perception, examining lawsuits, fines, and detailed customer feedback on service satisfaction and issues encountered. Through this review, we will aim to give a balanced view of Red Payments, considering both their service offerings and the controversies they have faced, helping readers make informed decisions about their merchant service needs.

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 Products and Services

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.

Payment Processing

Red Payments enables businesses to accept a variety of electronic payments, such as credit cards, debit cards, and mobile wallets. This flexibility is designed to improve customer satisfaction and simplify the transaction process.

Business Financing

The company provides business financing solutions to support the financial needs of businesses, aiding in their growth and operational expenses.

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, helping businesses analyze their 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 to streamline order management and improve efficiency.

Red Payments payment processing
Red Payments offers standard payment processing services

Red Payments Customer Reviews

Here's What Their Clients Say

Customer Reviews Summary
Total Online Complaints 100+
Live Customer Support Yes
Most Common Complaint Hidden Fees
Recent Lawsuits Yes

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.

Legal Challenges and Litigation Against Red Payments

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.

For those preferring to avoid litigation, reporting grievances to appropriate supervisory bodies offers an alternative pathway.

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.

Accessing Red Payments Customer Service

  • (888) 733-8188 – Toll-Free Customer Service Number

Red Payments provides live phone support to all customers. However, evaluations indicate that the quality of service significantly lags behind the industry leaders in customer service.

This revised content seeks to offer a balanced view of Red Payments, highlighting user reviews, legal issues, and customer support features while ensuring SEO optimization for better visibility under terms related to “reviews,” “complaints,” “customer reviews,” and “customer service.” The inclusion of keyphrases aims to enhance discoverability for topics relevant to Red Payments.

Red Payments Online Ratings

Here's How They Rate Online

Online Ratings Summary
BBB Reports 1

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

Cost & Fees Summary
Cancellation Penalties Yes
Monthly & Annual Fees Yes
Processing Rates 1.00% - 4.99%
Equipment Leasing Yes

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.

Red Payments Employee Reviews & Sales Tacitcs

Should You Work For Them?

Jobs & Marketing Summary
Uses Independent Resellers Yes
Telemarketing Likely
Misleading Marketing 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 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.

Our Red Payments Review Summary

Our Final Thoughts

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.

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.

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Which is Most Important for You?

If you had to pick one, which quality would you say will be the most important with your next credit card processor? Tap or click your selection to register your vote:

  1. Low Transaction Fees
  2. No Monthly Fees
  3. No Contract
  4. Reliable Customer Support
  5. Quick Signup

Testimonials & Complaints

How Did Red Payments Treat You?

15 User Reviews

  • Brian Summer

    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.


    Our contract with (this extremely fraudulent company) Red Payments ended 12/2019. So we went with new credit card processing company on 9/29/2020. I called Red Payments & spoke with Chantel on 9/16/2020 then I was passed to a woman named Nikita at Red Payments to close our account because our contract with this company had expired or ended. The last credit card we processed with Red Payments equipment was 9/28/2020. On 11/2/2020 a charge for $87.38 went thru our bank account. I call Red Payments again on 11/3/2020 & Nikita said our acct has not closed but will close soon case #00172805. Another charge to our bank account on 12/2/2020 for $5.00 Today 1/4/2020 a new charge for $104 was charged to bank account. I called Red Payments 1/4/2021 & spoke with Richard he said the acct still has not closed but gave us a new case #205639 & said the acct will close soon. I called Richard back 3 more times 1/6, 1/7 & 1/8/2021 & our account still has not closed. Richard said on the 1st call the account would close in 24 to 48 hours.

  • Shelly

    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


  • Tony Stempak

    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


  • Mary Dishaw

    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


  • Linda Gan

    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

  • Sean

    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.

  • Norman

    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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  • Charles ozuruone

    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


    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

  • Jay Hatcher

    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


    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.

  • Ken Morris

    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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