Sphyra Review
We take our role in providing guidance and education regarding the card payment industry very seriously. At our own expense, we have vigorously defended our right to continue expose unethical and predatory practices in the industry, successfully defeating every attempt to silence us. However, fending off frivolous lawsuits is costly. To sustain these efforts, one of the ways we generate revenue is through affiliate partnerships with ethical providers. This means that some of our outgoing links connect business owners to trustworthy, low-cost payment processors, which is what most of our readers seek. We see this revenue channel as a win-win-win for everyone involved. Business owners find good processors, processors get good clients, and we are able to continue to provide a valuable service to the small business community. We also recommend and link to many services that do not compensate us. Our priority is to guide you to the best solutions for your needs, regardless of potential revenue. If you have questions, please feel free to contact us.
All mentions of rate and fee costs are estimations based on publicly available information and client feedback. Actual costs may vary based on a variety of factors unique to your business.
Sphyra
Rating
Customer Reviews & Sentiment
Sphyra offers a dedicated phone support line on its website in addition to an email form. If we include Merchant Services Direct complaints, there are over 40 negative Sphyra reviews on various consumer protection websites as of this writing. Complaints mostly mention the sales and marketing tactics addressed in the above sections, but some also cite a lack of available customer service representatives, including a tendency for Sphyra sales agents to disappear from the company after a short period of employment. Sphyra has been very active in responding to complaints on these forums, but it’s unknown whether complainants ultimately received a satisfactory resolution in these cases. For now, we assign Sphyra a “D” in this category.
Industry Scores & User Ratings
| Product & Service Complaints | 35 |
|---|---|
| Billing & Collection Complaints | 7 |
| Advertising & Sales Complaints | 9 |
| Guarantee & Warranty Complaints | 0 |
| Delivery Complaints | 0 |
As of this update, the BBB is giving Sphyra/Merchant Services Direct a “C-” rating, citing 51 complaints filed against the company in the past 36 months and the FTC lawsuit. Of the 51 complaints, 35 are related to the product or service, nine are due to advertising or sales issues, and seven have to do with billing and collection. Eight of these complaints were not resolved to the merchants’ satisfaction, with one of them receiving no resolution whatsoever. There are also 15 negative informal reviews posted to Sphyra’s BBB profile, but it should be noted that these reviews are not subject to verification by the BBB. In this case, we agree with the BBB’s rating for the company.
Processing Rates & Fees
Sphyra’s website includes a link to a Merchant Program Guide (available below) that appears to outline a number of Sphyra’s contract terms. The guide refers to iPayment and First Data as the processors for Sphyra merchant accounts, and the terms outlined therein describe a three-year agreement that automatically renews for one year following a cancellation window of 30 days. The early termination fee is $350 for merchants who cancel within the first year of the contract, and it is reduced to $250 for merchants who cancel beyond that point. Complaints filed on other consumer protection sites also indicate that the swipe rates quoted by sales agents are usually much lower than the effective rates actually paid when services are rendered. The program guide does not list any specific terms for equipment leases, but merchants should keep in mind that it is common for equipment contracts to also lock signees into an equipment lease for which the cancellation conditions may or not be clearly disclosed. These equipment leases usually come with early termination fees of their own. See the Sphyra Program Guide.
Sphyra Competitors
Compare Sphyra to competitors that earned top marks.
Bottom Line
Sphyra rates as a substandard merchant account provider according to our criteria. The current litigation against the company is troubling, as it seems to confirm the long-term pattern of misrepresentation by the company’s sales agents that has been alleged in numerous reviews. The company can improve its rating by exercising greater control over its agents, avoiding further litigation, and providing more competitive contract terms.
