United Payment Services Review

About United Payment Services

UPDATE 3/1/2019: United Payment Services was acquired by Direct Connect Holdings in April 2017. United Payment Services no longer appears to be an active business name, and the United Payment Services website currently redirects to the Direct Connect Holdings website. We will therefore no longer update this review, and we plan to publish a review of Direct Connect Holdings in the near future. Founded in 1998, United Payment Services (unitedpaymentservices.com) is a Newbury Park, California-based merchant account provider that serves most standard-risk business types in the United States. The company is a reseller of First Data products and services and was acquired by Direct Holdings, LLC, in January 2017. Scott Rosen is the president of United Payment Services, which is a registered ISO of Wells Fargo Bank, N.A., Walnut Creek, California. The United Payment Services website does not provide an address for the company, but the Better Business Bureau gives a location at 3537 Old Conejo Rd #113, Newbury Park, California 91320, while Google lists the company at 31186 La Baya Dr, Westlake Village, California 91362.

We have found over 50 negative United Payment Services reviews, many of which accuse the company of being a scam. Common complaints include nondisclosure of termination fees, misrepresentation of rates, poor customer service, and difficulty cancelling service. The company has been active since 1988, but all of the available complaints have been posted no earlier than 2008. For a company of United Payment Services’s size, this constitutes a moderate complaint total.

Some of these complaints have received responses from United Payment Services representatives. In every instance, including situations where the merchant claims to have been intentionally deceived, the company stands by its agents and holds merchants to the terms of the contract. In our opinion, this does not reflect positively on the company’s customer support. Given the company’s complaint total, its responses to complaints, and the frequency with which it has received public complaints over the past three years, we have assigned it an average rating of “C” in this category.

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.

United Payment Services currently has an “A-” rating with the Better Business Bureau and is not BBB accredited. The company has received seven complaints in the past three years, with two related to billing and collection, four due to product or service issues, and one having to do with advertising or sales problems. Six complaints either were resolved to the dissatisfaction of the merchant or did not receive a final response from the merchant, and one complaint has not been addressed by United Payment Services at all. Considering the company’s poor resolution ratio, we have adjusted the BBB’s rating to a “B” for the purposes of this review.

According to merchant complaints, the standard United Payment Services contract is a three-year agreement through First Data with a $399 early termination fee, a $79 annual fee, a $7 monthly PCI compliance fee, a $7.50 monthly customer support fee, and a $25 monthly minimum fee. Merchants also report higher-than-expected rates and subsidized equipment that must be returned upon account cancellation.

It is likely that some of these contract terms can be adjusted by sales representatives depending on each merchant’s size, business type, and processing history. However, nearly every complaint about United Payment Services’s contract terms mention the $399 termination fee. This fee is higher than industry averages and appears to be enforced without exception. United Payment Services has received a “C” in this category due primarily to the complaints about this fee.

United Payment Services primarily markets its products through independent sales agents, referral partnerships, and conventional advertising. The use of independent resellers is often linked to high complaint rates in the credit card processing industry, and United Payment Services appears to be no exception. We are able to locate over 30 United Payment Services complaints that describe nondisclosure of fees, misrepresentation of rates, and difficulty contacting sales agents after account activation. These complaints consistently mention higher-than-expected rates and hidden cancellation penalties, and they have been posted with regularity over the past five years.

Although there are complaints about “teaser” rates, we are unable to find any unrealistic rate quotes in the company’s official marketing materials. Merchants are therefore advised to only work with sales agents they can trust and to double-check any agent claims against the actual paperwork. United Payment Services has received a “C” grade in this section due to the quantity and consistency of complaints about it sales practices.

United Payment Services rates as a run-of-the-mill merchant services provider according to our rating criteria. The company appears to offer industry-average contract terms and has received a moderate amount of complaints for its size. Merchants are encouraged to request and review all contract terms, and to bear in mind that they will be held to their merchant agreements without exception.