ReversePAY Overview

Possibly Linked to Reverse My Fees

Headquartered in Florida, ReversePAY is a merchant account provider that uses an unconventional, surcharge-based pricing structure by relying on a zero fee processing program. ReversePAY shares a basic concept, a founding year, and some identical marketing language with a subsidiary of Electronic Exchange Systems LA (EXS LA – called Reverse My Fees, but the two companies do not publicly acknowledge any link between them. EXS LA is an ISO of Total Merchant Services. ReversePAY also describes itself as a “Cash Tech” company, which seems to mean that it is a DBA or subsidiary of CashTechATM, an ATM provider under the same ownership.

ReversePAY Location and Ownership

We will discuss ReversePAY’s pricing approach in greater detail below. Vy Chantharasy is the president and co-founder of CashTechATM and ReversePAY, which is headquartered at 12001 Research Parkway, Orlando, Florida 32629.

ReversePAY Review Table of Contents

  • Costs & Contract: ReversePAY offers the ability to surcharge customers in order to offset transaction fees.
  • Complaints & Service: ReversePAY has received fewer than 10 public complaints.
  • BBB Rating: ReversePAY does not have a profile with the Better Business Bureau at this time.
  • Sales & Marketing: ReversePAY appears to hire independent sales agents but has not received any complaints about its sales practices.
  • Rates & Fees: How Merchants Got The Best Rates With ReversePAY
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Products & Services Offered

Types of Businesses Served

  • Retail
  • Bars
  • Gas stations
  • Utilities
  • Auto repair
  • Real estate

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ReversePAY Rates, Fees, and Costs

Key Points

Swiped Rate 1.00% - 4.00%
Keyed-in Rate 1.00% - 4.00%
Virtual Terminal Rate 1.00% - 4.00%
Payment Gateway Fee Undisclosed
Zero Fee Processing Surcharge 4%
Early Termination Fee Undisclosed
PCI Compliance Fee Undisclosed
Equipment Lease Terms Undisclosed

Surcharge-Based Pricing Model

ReversePAY does not disclose any details of its pricing on its website except for the general premise of adding convenience fees to each transaction to offset interchange costs. Given the company’s nearly identical branding to Reverse My Fees, it’s possible that it closely imitates Reverse My Fee’s pricing model. Reverse My Fees charges merchants 4% on all credit card transactions but adds a surcharge equivalent to the interchange fees of all transactions and then transmits the proceeds from those surcharges to the merchant. It should be noted that merchants in California, Colorado, Texas, New York, Florida, Kansas, Maine Connecticut, Massachusetts, and Oklahoma cannot participate in the company’s zero fee processing program. As a result, the merchant effectively pays 4% minus the cost of interchange, with Reverse My Fees keeping the difference. According to a sample statement shown on the Reverse My Fees’ website, the company also charges a $5 monthly service fee, a $9.95 assurance fee, a $3.50 regulatory compliance fee, and a $9.95 monthly loss protection fee. These fees plus the difference between 4% and the company’s surcharges will constitute Reverse My Fees’ profit on a merchant’s account.

Other Possible Fees

There are other undisclosed elements of the ReversePAY contract that can heavily impact a merchant’s costs, such as its pricing for debit transactions, any annual PCI compliance fees, its monthly minimum fee, its equipment leasing policies, and its early termination fee. The company does not disclose these details on its website. If ReversePAY charges 4% on debit card transactions, then it will make an absurd profit on debit card payments (which can receive interchange rates as low as 0.05% plus $0.21). Since surcharges cannot legally be added to debit card purchases, the company’s standard “surcharge” model does not allow for a way to reimburse merchants for those transaction fees.

Virtual Terminal and Payment Gateway Pricing

In addition to its storefront payment processing services, ReversePAY also dedicates a portion of its website that advertises its virtual terminal and payment gateway services. Pricing on either of those services is not disclosed. However, the company does disclose that its surcharges based pricing is an option for e-commerce merchants. Additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates typically apply to these e-commerce services.

Surcharge Restrictions

There are also broader questions that surround ReversePAY and its implementation. For instance, Visa’s rules for surcharging state that merchants must “limit surcharging to credit cards only (no surcharging debit and prepaid cards) and limit the amount to your merchant discount rate for the applicable credit card surcharged,” meaning that merchants cannot add a surcharge to a card that exceeds the card’s discount rate (interchange fee) or 4%, whichever is lower. Therefore, it would seem that ReversePAY can only comply with card network rules if its software calculates the discount rate of each transaction and adds an equivalent surcharge in real-time. The examples provided by the company in various promotional materials indicate that it is more likely to apply a fixed surcharge of 3%-4% to all transactions with the expectation that this will cover a merchant’s discount rate for most cards. However, since this approach would result in some surcharges exceeding a card’s discount rate, it is unclear whether this approach is compliant with the rules outlined by Visa.

Surcharge Disclosure

Another issue is the matter of proper surcharge disclosure, which is a burden that falls to each individual merchant in compliance with state laws. It is our belief that ReversePAY has an obligation to assist its merchants with proper signage and disclosure in all cases. Furthermore, merchants who use the ReversePAY system will need to communicate to their customers that they are passing an additional cost of nearly 4% on to them for the use of a credit card, which may or may not affect their ability to remain competitive.

Risk of Non-Compliance

We have received a private correspondence alleging that Reverse My Fees surcharges all debit cards, does not provide compliant signage to merchants, and does not give card brands the 30 days’ notice that they require to add surcharges. However, we have seen no public complaints that corroborate these claims, and it is unclear if they are applicable to ReversePAY. If they are true, then ReversePAY could potentially be exposing its merchants to legal ramifications. If the company is in fact operating in compliance with all rules and regulations, then it is theoretically possible that it could save merchants large sums of money.

Score Withheld

Considering everything we know about ReversePAY and the allegations made privately about its practices, we will refrain from assigning it a rating in this section. Moving forward, we will rely heavily on verifiable merchant feedback when it comes to filling in the details of its service and the rating it should receive.

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Response from ReversePAY

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ReversePAY Complaints & Customer Reviews

Key Points

Total Online Complaints <10
Live Customer Support No
Most Common Complaint N/A

No Public Complaints

With the exception of a single private correspondence that we have received, we are unable to locate any negative ReversePAY reviews that accuse the company of being a scam or a ripoff. ReversePAY is still a very new brand with multiple DBAs and an unorthodox approach, so it is possible that it hasn’t developed a large enough user base to generate public feedback. It’s also possible that some complaints intended for ReversePAY have found their way to the public profiles of CashTechATM instead. In the absence of any evidence of customer dissatisfaction, we would typically assign ReversePAY an “A” rating in this category.

ReversePAY Lawsuits

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

ReversePAY Customer Support Options

ReversePAY lists a phone number for general contact and a dedicated email address for customer support on its website. This falls short of our expectations for the top-rated payment processors for great customer service.

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Response from ReversePAY

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ReversePAY BBB Rating Summary

No Profile Available

The Better Business Bureau does not maintain a profile for ReversePAY, Reserve My Fees, or CashTechATM at this time. We therefore will not factor a BBB rating into this review.

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Response from ReversePAY

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Truth In Marketing & Advertising

Key Points

Employs Independent Resellers Yes
Advertises Deceptive Rates No
Discloses All Important Terms No

Zero Fee Processing Explained

ReversePAY takes a highly unconventional pricing approach by using proprietary software to charge customers “convenience fees” that are equal to the interchange fee of each credit card transaction. It then gives the proceeds from these convenience fees directly to merchants to offset ReversePAY’s monthly and per-transaction fees. In effect, this enables ReversePay to charge a very high flat per-transaction fee and collect a profit while also helping merchants cancel out their processing costs with surcharges. This is accomplished by shifting the costs of interchange fees directly to customers.

Zero Fee Processing Regulations

The pricing structure used by ReversePAY is made possible by a 2013 legal settlement between a group of merchants and the major credit card brands. This settlement granted merchants the right to charge their customers a maximum surcharge that is equal to their discount rate on any credit card transaction (with a maximum surcharge of 4%). In order to start adding these surcharges, businesses must notify the card networks and their acquiring bank of their intention to add surcharges at least 30 days before they start surcharging. They must also add signage disclosing the surcharges to their customers. Surcharges cannot be added to debit cards, prepaid cards, or EBT cards, and surcharges are completely outlawed at the state level in California, Maine, Florida, Kansas, Texas, New York, Massachusetts, Texas, Florida, Oklahoma, and Colorado. Visa has provided a useful FAQ on this issue here and a separate infographic here.

Look Past the Ads

At first glance, ReversePAY’s marketing language about “reversing” fees and “zero fee” processing appears highly suspicious and unrealistic. These descriptions aren’t entirely accurate since nothing is really being reversed and each merchant’s overall cost is likely going to be above $0. However, the company does explain its pricing approach on nearly every page of its website, which will hopefully limit confusion among merchants. Aside from the fact that it resorts to simplistic promotional language to describe its complicated pricing structure, there is no evidence that ReversePAY engages in deceptive or unethical marketing tactics.

No Sales Complaints

Similarly, we are unable to locate any ReversePAY complaints that describe negative experiences with the company’s sales agents. Given the lack of any evidence that ReversePAY is engaged in unethical sales behavior, we would typically assign the company an “A” rating in this section. If you suspect that the company has misrepresented the rates you are paying, you can double-check your monthly bill with a third-party statement audit.

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Response from ReversePAY

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ReversePAY Marketing Example

ReversePAY Logo

Our Opinion of ReversePAY

An Interesting Option

We are withholding an overall rating for ReversePAY at this time due to the company’s brief time in business, unusual pricing strategy, and lack of public merchant feedback. At first glance, the company’s pricing seems like an interesting option for merchants who are willing to surcharge their customers, but it also has the potential to generate some unacceptably high markups for ReversePAY. Merchants who are considering ReversePAY should educate themselves on the differences between cash discount and zero fee processing.

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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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