SignaPay May Have Overcharged You
If you accepted credit cards through SignaPay or any other credit card processing company between 2017 and 2019, recent changes to the law may entitle you to refunds of certain debit card and credit card processing errors and overcharges. See this post to find out if your were among the businesses affected and to learn how you can get your money back.
Founded in 2006
SignaPay, established in 2006, is a merchant account provider based in Irving, Texas. The company appears to be a large ISO of Cynergy Data but may also be partnered with Chase Merchant Services, First Data, and TSYS for its processing networks as well as Clover and Mynt as POS systems. SignaPay acquired PayHub in 2014.
SignaPay Location and Ownership
SignaPay’s corporate headquarters is located at 4100 W. Royal Lane, Suite 150, Irving, Texas 75063, and the company is a registered ISO of Citizens Bank. Providence, Rhode Island, Wells Fargo Bank, N.A., of Concord, California, Esquire Bank of Garden City, New York., and the Canadian branch of U.S. Bank National Association and Elavon. John Martillo is listed as the founder and CEO of SignaPay.
SignaPay Review Table of Contents
- Costs & Contract: SignaPay offers variable contract terms through First Data, Priority Payment Systems, and TSYS.
- Complaints & Service: SignaPay has received over 15 complaints, most of which are in the comment section of this review.
- BBB Rating: SignaPay has an “A+” rating and has received 5 complaints and 3 reviews in the past three years. The company has been accredited by the BBB since 2008.
- Sales & Marketing: SignaPay appears to hire independently contracted agents and has received a handful of complaints related to its sales team.
- Rates & Fees: How Merchants Got The Best Rates With SignaPay
Types of Businesses Served
- High risk
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SignaPay Rates, Fees, and Costs
|Swiped Rate||1.00% - 4.99%|
|Keyed-in Rate||1.00% - 4.99%|
|Virtual Terminal Rate||1.00% - 4.99%|
|IRS Reporting Fee||$2.95 Per Month|
|Early Termination Fee||Up to $495|
|PCI Compliance Fee||$99 Per Year|
|Equipment Lease Terms||48 Month (locked)|
All of these contracts include a 3-year agreement that automatically renews for at least one year. The agreements through First Data and Priority Payment Systems include a $495 termination fee, while the TSYS agreement does not explicitly list a termination fee. The First Data agreement charges an annual fee of $99, an annual PCI compliance fee of $99, and an IRS reporting fee of $2.95 per month. The Priority Payment Systems agreement charges a $25 monthly minimum, an annual fee of $89, and an IRS reporting fee of $2.95 per month.
The TSYS agreement only lists a monthly PCI compliance fee of $6 and an IRS reporting fee of $2.95 per month. Due to the company’s use of independent resellers, it is possible that some of these terms will vary depending on the agent setting up the account and the merchant’s business type, size, and time in business.
Virtual Terminal and Payment Gateway Pricing
In addition to its storefront payment processing services, SignaPay also dedicates a portion of its website that advertises its virtual terminal and payment gateway services through PayHub+. However, pricing on either of those services is not disclosed. One unique aspect of the PayHub+ gateway is that it allows merchants to charge a service fee to online transactions so that processing costs can be offset. Additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates typically apply to these e-commerce services.
Cash Discount Program
SignaPay has launched a service called PayLo that allows merchants to offer a discount to customers that pay with cash—or, to put it another way, surcharge customers who pay with cards. These surcharges are meant to offset traditional per-transaction fees, theoretically saving a large amount of money for participating merchants. This program comes along at a time when many other processors are beginning to experiment with similar services, so we have yet to see how it actually pans out for participating merchants.
Company Contract Terms
Overall, the company’s terms are slightly less competitive than industry averages and aren’t favorable when compared with the cheapest merchant accounts. We therefore award SignaPay a “C” in this section.Are you happy with your SignaPay fees? Tell us about them before your go!
SignaPay Complaints & Customer Reviews
|Total Online Complaints||15+|
|Live Customer Support||Yes|
|Most Common Complaint||Hidden Fees|
Low Complaint Total
We have found over 15 negative SignaPay reviews in the comment section below, some of which accuse the company of being a ripoff or a scam. These complaints have been posted with regularity over the past few years, which indicates average performance for the company in this category. None of these complaints have received a public response from a company representative. Nearly all complainants mention hidden or excessive fees charged by SignaPay.
In November of 2015, SignaPay was sued by Priority Payment Systems for copyright infringement. In the matter of Priority Payment Systems, LLC v. SignaPay, Ltd. alleges that the company misappropriated trade secrets after accessing confidential data from the plaintiff’s merchant management systems. Priority Payment Systems asserts that SignaPay used its proprietary information to create their own version of the software.
SignaPay Customer Support Options
Despite SignaPay’s low complaint total, the consistent complaint rate in the last couple years and the content of the complaints has lowered its grade to an “B” in this category. The company’s website lists several dedicated support phone numbers, but it’s likely that merchants receive phone support from one of SignaPay’s backend processors. SignaPay’s support options, therefore, do not qualify it as a top-rated payment processor for customer service at this time.
SignaPay BBB Rating Summary
Key Points - BBB
|Product & Service Complaints||1|
|Billing & Collection Complaints||2|
|Advertising & Sales Complaints||2|
|Guarantee & Warranty 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.
Under 10 Complaints
As of this update, the Better Business Bureau maintains two profiles for SignaPay. The page for the company’s Irving, Texas, headquarters shows an “A+” rating and accreditation since 2008, while the page for the company’s Minnesota location shows accreditation since 2012 and awards the company an “A+” rating. For the sake of simplicity, we will combine the figures found in both profiles. SignaPay is showing a total of 5 complaints, with 1 due to a product or service issue, 2 related to billing or collection issues, and 2 due to problems with the company’s advertising or sales. Signapay has successfully resolved 1 complaint, while the remaining 4 either were resolved to the dissatisfaction of the merchant or did not receive a final response from the merchant.
What Merchants Say
In addition to the 5 complaints filed on SignaPay’s BBB profile, the company has also received 3 informal reviews. All 3 reviews are negative. The latest review is from a merchant who describes being charged after canceling and account:
I INFORMED SIGNAPAY ALMOST 3 MONTHS AGO i WAS NOT GOING TO RENEW OUR CONTRACT. HERE THEY ARE AFTER THEY DECIDED TO RENEW IT WITHOUT MY CONSENT AND ARE CHARGING ME STILL. VERY UNSCRUPULOUS COMPANY.
Signapay issued a response to this review:
We called Chris after reading this review and we worked with him in regards to his account with SignaPay. He never filled out the required cancellation form to close out his account, which was the issue. However, we informed him that we are willing to let him out of his contract in May of 2019 and Chris was pleased with our response and decision.
To the company’s credit, the issue behind this review was addressed and resolved. However, to avoid a situation like this, merchants should understand what steps to take to cancel their accounts without incurring such costs.
An “A” Rating Overall
Given the company’s relatively low complaint total, resolution ratio, and attentiveness to complaints and reviews filed against it, we agree with the BBB rating of an “A.”
Truth In Marketing & Advertising
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||Yes|
SignaPay appears to utilize independent resellers to market its services. This practice can often result in an elevated complaint rate for a company, as it is difficult for any business to monitor the conduct of independent sales entities. In the case of SignaPay, we are able to locate a handful of recent SignaPay complaints describing misrepresentation of terms and fees by sales representatives. Complainants claim to not have been informed about the company’s cancellation fee, PCI compliance fees, and downgrade fees before signing up. If you, too, suspect that SignaPay is charging you undisclosed fees, we recommend seeking a free third-party statement audit.
As of this review, SignaPay’s merchant application is available for download on the company’s website (available in the section above). We advise all merchants to bear in mind that this “application” appears to be, for all intents and purposes, a binding contract that the company will enforce. It is fairly standard for companies to present contracts as “applications” in the credit card processing industry, but rarely is such a document freely available for review. Merchants are encouraged to look this application over and take note of where some fees appear to be disclosed and where others are actually listed. This may prove helpful when reviewing other contracts or applications.
SignaPay Marketing Example
About Phillip Parker
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.