Redwood Merchant Services Reviews & Complaints

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4.3
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How did they treat you? ▼

Pros & Cons
Pros: Cons:
Secure transaction processing. Complaints of hidden fees.
Suitable for small to medium businesses. Lacks transparent service details.
Caters to diverse industries. Occasional unwarned fund holds.
Offers mobile payment processing. Rates not very competitive.
Provides online payment solutions. Customer support below average.
Recurring billing options available. Contractual issues reported.

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.

Redwood Merchant Services Customer Reviews

Here's What Their Clients Say

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

Evaluating Redwood Merchant Services Reviews

A search for Redwood Merchant Services reviews reveals a modest number of negative comments. Some of these reviews describe the company as a scam or ripoff, mainly due to unexpected fund holds, often linked to fraud prevention or cancellation policies. Issues with service cancellation are also noted. The fact that most of these complaints are over three years old may suggest improvements in Redwood’s communication and policies since then. We encourage those with recent experiences with Redwood Merchant Services to share their feedback in the comments.

Legal Status of Redwood Merchant Services

No class-action lawsuits or FTC complaints have been recorded against Redwood Merchant Services. Clients preferring non-litigious solutions can report their concerns to relevant supervisory organizations.

Redwood Merchant Services Customer Support Overview

While Redwood Merchant Services offers dedicated phone lines for customer support, the absence of a wider range of support options or details on their effectiveness keeps them from being categorized as a top-rated processor for customer service.

Contact Details for Redwood Merchant Services

  • (800) 939-9942 – Toll-Free Customer Service
  • (800) 228-0210 – Fiserv Customer Support (accounts starting with “4”)
  • (800) 552-8227 – TSYS Customer Support (accounts ending in “9”)
  • (800) 347-6007 – RMS Sales
  • Customer support email at [email protected]

Providing multiple lines for specific customer needs, Redwood Merchant Services shows an effort to address client inquiries. Further enhancement in customer support could improve their service quality and customer satisfaction.

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

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

Redwood Merchant Services Pricing

The standard contract for Redwood Merchant Services, detailed in the merchant agreement, outlines a 24-month term with a $295 early termination fee. The documentation and feedback from merchants do not indicate the imposition of a PCI Compliance fee or monthly minimum fees. While the pricing structure of Redwood Merchant Services may not align with the most affordable merchant account services available, there is a notable absence of merchant dissatisfaction regarding the service costs in public reviews.

Contract Complaints

Concerns have been raised in some reviews about Redwood Merchant Services’ practices regarding reserve funds. Certain clients have experienced funds being held until the resolution of outstanding balances. This has led to misunderstandings and frustrations among those who felt their funds were unfairly retained. While reserve policies are standard in payment processing, especially for mitigating risk, clearer communication from Redwood at the contract outset might improve understanding and prevent such grievances.

High-Risk Credit Card Processing

Redwood Merchant Services has been identified as accommodating high-risk merchants, which could explain the reserve-related complaints found among such account types. Businesses classified as standard risk might not encounter the same strict reserve requirements. Merchants are encouraged to review the Redwood Merchant Services Merchant Agreement for a comprehensive understanding of their contract.

For those evaluating payment processing options, considering a range of providers, including those known for competitive rates and terms, is advisable. Reviewing our curated list of the top merchant account providers could provide valuable insights and alternatives.

Redwood Merchant Services Employee Reviews & Sales Tacitcs

Should You Work For Them?

Jobs & Marketing Summary
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 boasts a very low number of complaints relative to its size and time in business, which is a strong indicator of customer satisfaction and reliability. Notably, many of these complaints are over three years old, suggesting that Redwood Merchant Services may have improved its practices over time. This track record indicates that the company is attentive to its customers’ needs and is committed to maintaining a positive reputation within the industry.

However, the company’s overall rating has been affected by several factors. The use of ISOs (Independent Sales Organizations) and independent sales agents has led to some merchant confusion and dissatisfaction, particularly regarding cancellation and fraud prevention policies. Additionally, the company’s resolution ratio with the Better Business Bureau (BBB) leaves room for improvement. These issues, while notable, do not overshadow Redwood Merchant Services’ potential to be a competitive player in the industry. Whether Redwood Merchant Services becomes one of the worst-rated providers or emerges as a worthy competitor to the top-rated providers will depend on its ability to enhance transparency, improve customer service, and resolve complaints effectively. Businesses are encouraged to thoroughly research and compare multiple payment processing options to ensure they choose a provider that best meets their needs.

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.

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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 Redwood Merchant Services Treat You?

2 User Reviews

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