T1 Payments Overview
Global E-Commerce Processing
Headquartered in Las Vegas, Nevada, T1 Payments is a merchant account provider that serves standard and high risk e-commerce businesses in the U.S. and across the globe. The company may also operate under the name “7 Processing.”
Location and Ownership
T1 Payments does not list its acquiring bank on its website, but it is likely that the company has partnered with multiple banks around the world in order to facilitate offshore payments. The T1 Payments website lists addresses at 10161 W Park Run Drive, Suite 150, Las Vegas, Nevada 89145. There are multiple reports about the company’s founding year, with the company’s Facebook page listing a 2012 foundation and the company’s LinkedIn page claiming a 2010 establishment. Donald Kasdon is listed as the company’s CEO.
T1 Payments Review Table of Contents
- Costs & Contract: T1 Payments appears to offer month-to-month contracts with interchange-plus pricing to standard risk merchants, while high risk merchants receive 36-month contracts with liquidated damages style early termination fees.
- Complaints & Service: T1 Payments has received more than 10 public complaints.
- BBB Rating: T1 Payments has an “A+” rating with the Better Business Bureau and has received 3 complaints and 2 reviews since in the last 3 years.
- Sales & Marketing: T1 Payments appears to hire independently contracted sales agents and has received two complaints about its sales team.
- Rates & Fees: How Merchants Got The Best Rates With T1 Payments
Types of Businesses Served
- High risk
- Web design
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T1 Payments Rates, Fees, and Costs
|Virtual Terminal Rate||1.00% - 4.99%|
|Payment Gateway Fee||Undisclosed|
|Early Termination Fee||$1,000+|
|PCI Compliance Fee||Undisclosed|
|Equipment Lease Terms||Undisclosed|
Exorbitant Pricing for High-Risk Merchants
T1 Payments appears to offer a month-to-month contract with interchange-plus pricing to standard-risk merchants, but the company’s high risk merchants may be forced to pay exorbitant cash reserves and early termination fees. The company’s website refers to a flat rate payment structure.
Virtual Terminal and Payment Gateway Pricing
In addition to its storefront payment processing services, T1 Payments also dedicates a portion of its website that advertises its virtual terminal and payment gateway services. However, pricing on either of those services is not disclosed. Additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates typically apply to these e-commerce services.
High Early Termination Fees
The language of T1’s complaint against Dermaktive describes a 36-month contract with a liquidated damages-style early termination fee totaling $867,135.42, $336,198.16 of which went to Atlantic-Pacific Processing Systems. Despite the fact that this may be the highest early termination fee we have ever seen in the industry, T1’s legal complaint also states that Dermaktive was responsible for racking up $119,199.01 in chargebacks. In our opinion, the high processing volume of this particular account may have necessitated an extremely large early termination fee, but an early termination fee that exceeds the total chargeback amount by more than $600,000 seems unreasonable.
It is common within the credit card industry for high risk merchants to receive less competitive contract terms than standard risk merchants. However, there appears to be a massive discrepancy between the terms that each type of merchant will receive from T1 Payments. Given the sheer size of the only termination fee we’ve found from T1 Payments, we cannot recommend the company’s pricing for high risk merchants at this time. It is also unclear whether T1’s standard risk contract terms are much better and how they stack up compared to the cheapest merchant account providers. If you have any knowledge of the standard T1 Payments contract (including the company’s per-transaction rates and PCI compliance fees), please share that information in the comment section below this review.Are you happy with your T1 Payments fees? Tell us about them before your go!
T1 Payments Complaints & Customer Reviews
|Total Online Complaints||10+|
|Live Customer Support||Yes|
|Most Common Complaint||N/A|
Low Complaint Total
We are currently able to locate ten negative T1 Payments reviews, a couple of which describe the company as a scam or ripoff. Issues cited by complainants include higher-than-quoted fees, exorbitant termination fees, poor (even rude) customer service, and withheld funds. One complaint has received a rebuttal from company representatives, who insist that the merchant in question was engaging in excessively high-risk sales conduct. T1 Payments lists a dedicated customer support email address on its website, but we do not consider T1 Payments to be a top merchant account provider for customer service.
High Risk Merchant Concerns
In general, there seem to be two drastically different versions of events offered by T1 Payments and the high risk merchants who complain about the company. Without full access to the details of each situation, we cannot speak authoritatively about what occurred, except to note that the company’s overall complaint total is low for a provider of any size. T1 Payments will receive a slightly lowered rating in this section until more definitive information is available.
T1 Payments Lawsuits
T1 Payments was both a plaintiff and a defendant in two 2016 lawsuits involving a now inactive company called Dermaktive, LLC. Dermaktive’s complaint against T1 Payments alleged that the company intentionally conspired to steal millions of dollars from Dermaktive, while T1’s lawsuit alleged that Dermaktive breached its merchant processing contract by intentionally defrauding consumers. T1 Payments also seems to have been involved in a 2017 lawsuit in which an undisclosed complaint against the company was filed by credit card processor Vantiv. Only the most recent of the three legal actions appears to have been resolved, but the available documentation does reveal that T1 Payments is a sub-ISO of Atlantic-Pacific Processing Systems.
T1 Payments Customer Support Options
The company’s website offers an email address for customer support but does not specify a dedicated phone number, live chat, or any other options. The lack of multiple customer service options is far from those offered by top merchant accounts for customer service.
T1 Payments BBB Rating Summary
Key Points - BBB
|Product & Service Complaints||2|
|Billing & Collection Complaints||1|
|Advertising & Sales Complaints||0|
|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.
No BBB Complaints
T1 Payments is not an accredited business with the Better Business Bureau. The company has a “B” rating based on 3 complaints filed in the last 36 months. 2 complaints were left in relation to a product or service issue and 1 was left in relation to a billing or collection dispute. 2 complaints were resolved to the satisfaction of the merchant while 1 has yet to be resolved.
What Merchants Say
In addition to the 3 complaints filed against T1 Payments, the company has also received 2 informal reviews on its BBB profile. 1 review was positive and 1 was negative. The most recent review remarks on the company’s poor customer service:
Claim to be the best processor but the owner seems more focused on ******* everybody off while getting as rich as possible. Donald K****** the owner, will tell you to “go **** ********** a million times and promise to shut you down if you don’t do exactly what he wants. Customer support is terrible. Their ads claim high approval rates but that is also a lie. They may be solution of people in the US but they are based in the UK and full of themselves. Be careful
High risk merchant accounts face a unique set of problems that arise during the course of business. This makes the need for excellent customer service an essential component of merchant account providers dedicated to serving them.
An “A” Rating
Given the company’s low complaint total and resolution ratio, we have adjusted the BBB’s rating from a “B” to an “A” at this time. Merchants should note, however, that there are valid reasons to be skeptical of BBB ratings.
Truth In Marketing & Advertising
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||No|
Inside and Outside Sales Agents
T1 Payments appears to hire in-house sales agents as well as independently contracted outside sales representatives to market its services. We have found two T1 payments complaints that mention undisclosed fees and contract terms, but only one was filed in relation to the company’s payment processing service. This complaint states that a T1 Payments rep quoted a low per-transaction rate, but that the merchant’s effective rate was ultimately much higher than the sales agent let on.
No Deceptive Quotes
Overall, though, there does not appear to be any evidence of widespread misrepresentation by T1 representatives, and there are no misleading rate quotes or unrealistic guarantees on the company’s website. In fact, the company’s sales training appears to emphasize interchange-plus pricing, which is more transparent than tiered pricing. If you suspect that T1 Payments is charging you undisclosed fees, however, we recommend seeking a third-party statement audit to eliminate hidden costs.
T1 Payments 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.