Usio Review: Fees, Comparisons, Complaints & Lawsuits
Previously Known as Payment Data Systems
Formerly known as Payment Data Systems and founded in 1998 under the name Billserv, Usio is a merchant account provider for e-commerce and retail merchants as well as non-profit organizations. The company acquired Singular Payments in September 2017. Usio appears to resell the merchant services of Merrick Bank.
Usio Payment Processing
Usio processes all major debit and credit cards for most business types. Their services include EMV readers and card swipers, mobile solutions, text payments, cryptocurrency acceptance, donations, check printing, printing and mailing invoices, gift card programs, PCI compliance, e-commerce solutions including virtual terminals, ACH and RCC processing, fraud and chargeback protection, and data reporting and analytics.
Usio Location & Ownership
Usio is headquartered at 3611 Paesanos Pkwy #300, San Antonio, Texas 78231. The company is a registered ISO/MSP of Wells Fargo Bank N.A., Walnut Creek, California, and Central Bank of St. Louis, Clayton, Missouri. Louis Hoch is listed as the vice chairman, president, CEO, and co-founder of Usio.
Usio Review Table of Contents
- Costs & Contract: Payment Data Systems offers a 3-year contract through Merrick Bank with an early termination fee of more than $350.
- Complaints & Service: Usio complaints number fewer than 10 on public complaints forums.
- BBB Rating: Usio has two profiles with the BBB. Their main profile has an “A+” rating and has received 0 complaints in the past 3 years and their profile as Payment Data Systems has no rating with 0 complaints. The company is no longer accredited by the BBB.
- Sales & Marketing: Usio does not appear to hire independent sales representatives and has not received any complaints about its sales practices.
Usio Customer Reviews
Here's What Their Clients Say
|Total Online Complaints||<10|
|Live Customer Support||Yes|
|Most Common Complaint||N/A|
No Public Complaints
We are currently unable to locate any Usio reviews that accuse the company of being a scam or a ripoff. The company is showing 0 total complaints on this and other review websites, which seems to indicate that it employs a responsive and capable customer service team. It is possible that some Usio complaints intended for the company are instead redirected to the online profiles of its apparent processor, Merrick Bank, but we have not seen evidence that this is occurring. If you have your own Usio review to make, please do so in the comments below.
There appears to have been a lawsuit brought against Usio in 2014 that involved their alleged failure to stop $181,709 of fraudulent transactions, but there is little information on the case.
A potential major lawsuit was brought against Usio in 2021, which involves online merchants the World Health Merchants and Laitan Group suing Usio for an alleged $1.8 million in held funds. The details of the case are complex and raise some eyebrows, as the people involved have ties to the marijuana industry and Russian business figures going to court in relation to the indictment of ex-President Donald Trump. It appears that Usio believes they can beat the case, and we will wait to take this case into account for our review until more details emerge.
Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
Usio Customer Service Options
Usio offers a customer login portal for customer support along with a phone number and email. These options are short of what we expect of top-rated providers for customer service but they appear to handle Usio complaints in-house.
We have located a single Usio customer service number:
(210) 249-4100 – General Customer Service
Usio also offers a dedicated email support address at [email protected].
The lack of complaints are an encouraging sign but could be influenced by the change in the company’s name. While it may be another consequence of the company’s recent re-branding, the lack of available customer support options is the main reason Usio receives a “B” rating in this category.
Usio Online Ratings
Here's How They Rate Online
Online Ratings Summary
No BBB Complaints
Usio has two BBB profiles. As Payment Data Systems, the company was formerly an accredited business of the Better Business Bureau since 2011 but is no longer accredited and holds no rating at this time of review. As Usio, the company is showing an “A+” rating and no accreditation. The company has received 0 complaints in the past three years across both profiles. It also has not received any informal reviews on its BBB profiles, although it should be noted that these reviews are not subject to verification by the BBB.
An “A” Performance
In light of its clean complaint record, we agree with the BBB’s rating at this time. However, merchants should keep in mind that there are reasons to be skeptical of BBB ratings.
Usio Fees, Rates & Costs
A Closer Look at The Contract
|Swiped Rate (debit)||1.53% + $0.25|
|Swiped Rate (credit)||1.94% + $0.20|
|Keyed-in Rate (debit)||1.99% + $0.35|
|Keyed-in Rate (credit)||2.28% + $0.30|
|Application & Set Up Fee||$30|
|Account Fee||$25 Per Month|
|Early Termination Fee||$350+|
|Monthly Minimum Fee||$25|
|PCI Compliance Fee||None|
|Equipment Lease Terms||Undisclosed|
According to a sample merchant agreement and pricing sheet previously released when the company was still doing business as Payment Data System, Usio resells the merchant services of Merrick Bank. The terms of the standard Usio contract include a three-year agreement that automatically renews for three more years if not canceled before the final 90 days, an early termination fee (ETF) of $350 plus any other monthly fees for the remaining term of the agreement, and a $25 monthly minimum fee.
The pricing structure for Usio describes a standard tiered rate model. According to the pricing sheet, the company offers a swipe rate of 1.53% plus $0.25 for debit cards and 1.94% plus $0.20 for credit cards. Keyed-in transactions are charged at 1.99% plus $0.35 for debit cards and 2.28% plus $0.30 for credit cards.
High Cancellation Fee
The terms of this early termination fee appear to resemble a liquidated damages clause, but the actual enforcement of this penalty may vary depending on the circumstances. Overall, these contract terms are slightly less competitive than industry averages, but the total absence of complaints about Usio indicates that most merchants are satisfied with their terms.
We therefore assign the company a “C” in this category but do not consider it one of the cheapest merchant accounts at this time.
Usio Employee Reviews & Sales Tacitcs
Should You Work For Them?
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||No|
No Sales Complaints
Usio appears to primarily market its services by partnering with other financial institutions that act as resellers of the company’s products. We are currently unable to locate any negative Usio reviews that mention unethical conduct by its sales team. In our view, this indicates that there is a general policy of transparency among the company’s sales staff.
No Misleading Rates
Usio also does not appear to engage in any deceptive advertising strategies in its official materials. It therefore receives an “A” rating in this category. However, if you suspect that Usio is charging you undisclosed fees, we recommend seeking a third-party statement audit to eliminate hidden charges.
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