Redwood Merchant Services 2023: Reviews & Complaints

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Redwood Merchant Services Rating
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Company Overview

Redwood Merchant Services is a merchant account provider headquartered in Santa Rosa, California. Founded in 1991, the company was acquired by Westamerica Bank in 2005.

Redwood Merchant Services Payment Processing

Redwood Merchant Services processes all major debit and credit cards. Their services include POS systems, fraud protection, and data reporting and analysis.

Mobile Payment Solutions

In response to the growing demand for flexible and mobile payment options, Redwood Merchant Services offers mobile payment processing solutions. These services are designed to integrate with most mobile devices, thereby allowing businesses to securely process transactions from virtually anywhere. This feature is particularly useful for businesses that have a mobile component or often operate outside a traditional storefront, such as food trucks, outdoor events, or pop-up shops.

E-commerce Payment Processing

Recognizing the vast potential of online commerce, Redwood Merchant Services offers robust e-commerce solutions. These solutions include secure online payment gateways that encrypt data to ensure the security of online transactions. The company’s e-commerce solutions are designed to provide seamless integration with most online shopping carts and platforms, allowing businesses to offer a streamlined online checkout experience for their customers.

Point-of-Sale Systems

Beyond payment processing, Redwood Merchant Services provides point-of-sale (POS) systems. These systems are designed to handle various business operations, from managing sales transactions to tracking inventory levels and generating detailed sales reports. This all-in-one system allows businesses to centralize their operations, thus increasing their efficiency and productivity.

Gift and Loyalty Card Programs

As part of its services portfolio, Redwood Merchant Services offers gift and loyalty card programs. These programs enable businesses to issue branded gift cards and implement loyalty schemes that reward repeat customers. By offering these programs, businesses can incentivize customer loyalty, potentially increasing their repeat business and overall customer retention.

Merchant Cash Advances

Lastly, Redwood Merchant Services offers merchant cash advances, a form of business financing that provides businesses with immediate access to funds based on their future credit card sales. This service offers a solution for businesses in need of quick capital, providing a cash advance that is repaid through a portion of future credit card transactions.

Location & Ownership

Redwood Merchant Services utilizes First Data (now Fiserv) for its processing network. Redwood Merchant Services is a division of Westamerica Bank and is located at 3750 Westwind Boulevard, Suite 210, Santa Rosa, CA. David Payne is the CEO of Westamerica Bank, and the BBB lists Scott Tucker as the principal for Redwood.

Table of Contents

Redwood Merchant Services Customer Reviews

Here's What Their Clients Say

Key Points

Total Online Complaints <10
Live Customer Support Yes
Most Common Complaint Fund-Holds
Recent Lawsuits No

Low Complaint Total

We are currently able to locate at least seven negative Redwood Merchant Services reviews, a few of which accuse the company of being a scam or a ripoff. As noted above, nearly all of these complaints are related to sudden and unauthorized holds placed on funds, usually as part of Redwood’s fraud prevention or cancellation policies. A few complainants expressed difficulty canceling the service, which may simply be an extension of the problems with fund withholding. Most of these complaints are over three years old, indicating that the company may have improved its communication regarding this issue in recent years. If you have your own Redwood Merchant Services review to make, please do so in the comments below.

Redwood Merchant Services Lawsuits and Fines

We have not found any outstanding class-action lawsuits or FTC complaints filed against Redwood Merchant Services. Dissatisfied clients who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.

Redwood Merchant Services Customer Support

The Redwood Merchant Services website lists dedicated phone lines for customer support, but the company currently does not qualify as a top-rated processor for customer service.

Redwood Merchant Services Customer Service Numbers

  • (800) 939-9942 – Toll-Free Customer Service
  • (800) 228-0210 – Fiserv Customer Support (account numbers beginning with “4”)
  • (800) 552-8227 – TSYS Customer Support (account numbers ending in “9”)
  • (800) 347-6007 – RMS Sales

Other Support Options

Redwood Merchant Services 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 BBB Complaints

Redwood Merchant Services holds no rating with the BBB and has had 0 complaints filed against it in the last 36 months. As of this review, its parent company, Westamerica Bank, holds a “B-” rating with the BBB and has had 5 complaints filed against it in the last 36 months.

What Merchants Say

Redwood has also received 1 informal review on its BBB profile, but it appears that the review in question was posted in error to the profile and is actually meant for a company with a similar name.

A “C” Performance

Given the company’s complaint rate and resolution ratio, we have slightly adjusted the BBB’s grade to a “C.” Business owners should be aware that there are good reasons to be skeptical of the BBB’s rating criteria.

Redwood Merchant Services Fees, Rates & Costs

A Closer Look at The Contract

Key Points

Cancellation Penalties Yes
Monthly & Annual Fees Unclear
Processing Rates 1.00% - 4.99%
Equipment Lease Terms Unclear

Redwood Merchant Services Pricing

According to the Redwood Merchant Services merchant agreement (available below), the company’s standard contract is a 24-month agreement with a $295 early termination fee. There is no mention in this document or in merchant complaints of a PCI Compliance fee or a monthly minimum fee. Redwood Merchant Services complaints generally do not appear to express dissatisfaction with the cost of Redwood’s merchant services, but it is worth mentioning that the Redwood Merchant Services contract terms are not competitive with the cheapest merchant accounts.

Contract Complaints

There are some negative Redwood Merchant Services reviews relating to the company’s fund-withholding policies. In several Redwood Merchant Services complaints, the company is accused of withholding a reserve fund until clients have settled all outstanding payments due to the company. Multiple complainants appear to be under the impression that Redwood has outright taken their money. Reserve account policies are fairly common within the industry, but it does appear as though Redwood’s policy could benefit from a clearer explanation at the point of signing.

High-Risk Credit Card Processing

A company representative has stated that Redwood takes on some high-risk accounts. It is therefore likely that some of the company’s fund-holding complaints have been filed by some of its high-risk businesses, and standard-risk business types should not be concerned about aggressive fund-holding policies. See the Redwood Merchant Services Merchant Agreement.

Redwood Merchant Services Employee Reviews & Sales Tacitcs

Should You Work For Them?

Key Points

Uses Independent Resellers Yes
Telemarketing Possible
Misleading Marketing No
Discloses All Important Terms No

Outside Agents and Resellers

Redwood Merchant Services appears to partner with ISOs and independent sales agents to market its services. This practice usually results in an elevated complaint rate for companies, as it is difficult for any business to monitor the conduct of independent sales entities. In this case, however, we are currently unable to locate any negative Redwood Merchant Services reviews that accuse the company’s sales team of unethical behavior.

No Deceptive Advertising

Additionally, the company’s website does not appear to engage in any deceptive advertising strategies. We will assign the company an “A” rating at this time, but if you suspect that Redwood Merchant Services is charging you undisclosed fees, we recommend seeking a third-party statement audit to find and eliminate hidden costs.

We also encourage business owners to check out our list of the providers of the best merchant accounts.

Our Redwood Merchant Services Review Summary

Our Final Thoughts

Redwood Merchant Services rates as an above-average credit card processing provider according to our rating criteria. The company has a very low number of complaints for its size and time in business, and many of these are over three years old. The company’s overall rating has been lowered by its use of ISOs and independent sales agents, some merchant confusion over its cancellation and fraud prevention policies, and its resolution ratio with the BBB. We will continue to monitor the company’s reputation to determine whether it will become one of the worst-rated providers or a worthy competitor to the top-rated providers.

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Your Comments & Reviews

How Did Redwood Merchant Services Treat You?

2 Responses

  • Marcie Lewis

    Redwood Merchant Services

    HI, me again, the redwood company mentioned in the “what merchants say ” is not our company. Therefore it is false. I have asked before and I will ask again. Please use the phone numbers listed above to clear this up.

  • kent ledford

    RIP OFF!

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