Agree with our rating?
Leave a comment below
Velocity Merchant Services 2023: Reviews & Complaints
Agree with our rating?
Velocity Merchant Services, founded in 1998, is a merchant account provider located in Downers Grove, Illinois. Velocity claims to have a merchant portfolio numbering in the thousands and appears to resell the services of First Data (Fiserv) and EVO Payments International.
Velocity Merchant Services Payment Processing
Velocity Merchant Services processes most major debit and credit cards for all business types. Their services include point-of-sale solutions from Clover and Velocity, mobile payments, virtual terminals, e-commerce solutions, EMV swipers, business credit cards, payroll, marketing, loyalty solutions, inventory, team management, gift cards, and cash discounts.
Location & Ownership
Dema Barakat is the founder and current president of Velocity Merchant Services, while LinkedIn lists Danoush Khairkhah as the CEO. The company is a registered ISO/MSP of Deutsche Bank, AG, New York, and it is headquartered at 3051 Oak Grove Road, 2nd floor, Downers Grove, Illinois 60515.
Table of Contents
- Costs & Contract: Offers a three-year contract through EVO Payments International and First Data Global Leasing with an early termination fee of $395 and…
- Complaints & Service: Has received more than 40 public complaints regarding…
- BBB Rating: Has an “A+” rating with the Better Business Bureau but has received 19 complaints and 10 reviews in regards to…
- Sales & Marketing: Appears to hire independent sales agents and has received a low-to-moderate number of complaints about its…
Velocity Merchant Services Customer Reviews
Here's What Their Clients Say
|Total Online Complaints||60+|
|Live Customer Support||Yes|
|Most Common Complaint||Hidden Fees|
Moderate Complaint Total
Velocity is showing an average number of non-BBB complaints for its size and time in business, but several negative reviews suggest that Velocity Merchant Services is a ripoff or scam operation. Since the initial publication of this review, the comment section has received nearly 40 complaints, a few of which were directly addressed by a company representative. These complaints tend to cite Velocity’s sales tactics as the primary issue, although undisclosed fees are also frequently mentioned.
Cause For Concern
We were able to find roughly 25 negative Velocity Merchant Services reviews on other consumer protection websites, many of them filed by former employees. This is a troubling sign, as many of these complaints warn that deceptive sales strategies are a part of the company’s formal agent training. One sample complaint states the following: “First off, we were sales people plain and simple, but when we talked to potential customers we used names like Financial Consultant to make it seem like we weren’t sales, but some sort of licensed professional. What they had us tell people were flat out lies. Lies about rates, lies about services, and lies on top of lies.”
Velocity Merchant Services Lawsuits and Fines
We have not found any outstanding class-action lawsuits or FTC complaints filed against Velocity Merchant Services.
We have, however, found evidence that Velocity Merchant Services was fined $19,007 in 2019 for wage and hour violations.
Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
Velocity Merchant Services Customer Service Options
The company’s website offers live chat, a support ticket system, and a dedicated customer service line, but there are over ten complaints across various review websites that mention long customer service wait times and rude or unhelpful representatives.
We have located multiple Velocity Merchant Services customer service numbers:
801-876-8998 or 801-516-4590 – General Customer Support
630-708-6005 – Fax
Velocity Merchant Services also offers a customer support form on its website, live chat, and the following customer service email addresses:
[email protected] – General Customer Service
[email protected] – Sales
[email protected] – Tech Support
[email protected] – Installation Support
[email protected] – iOS Support
[email protected] – Web Development
This supports our decision not to include Velocity in our list of the best-rated merchant accounts for customer support.
Velocity Merchant Services Online Ratings
Here's How They Rate Online
|Product & Service Complaints||10|
|Billing & Collection Complaints||3|
|Advertising & Sales Complaints||4|
|Guarantee & Warranty Complaints||1|
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.
Nearly 20 Complaints
As of this review, Velocity Merchant Services is not an accredited business of the Better Business Bureau and currently holds an “A+” rating. The company’s profile is currently showing 19 complaints in the last 36 months. 10 of the complaints were due to a problem with a product or service, 3 were billing or collections issues, 4 were due to advertising or sales problems, 1 was a problem with a guarantee or warranty, and 1 was an issue with delivery. Only 4 of these 19 complaints were resolved by the company to the satisfaction of the merchant. The remaining 17 were resolved to the dissatisfaction of the merchant or received no final response.
What Merchants Say
In addition to the 19 complaints filed on the company’s BBB profile, Velocity Merchant Services has also received 10 informal reviews. Of the 10 reviews, 6 are positive in tone while the remaining 4 are negative. The most recent negative review describes misleading sales and poor customer support:
I am convinced that the only positive reviews this company has is from their own employees. VMS is a truly terrible company. They are only responsive in the beginning because they want to seal the deal but this changes the minute you sign the paperwork. Suddenly they are too busy for phone calls and can’t be bothered with concerns. I was completely misled into purchasing their EBT terminal for my business. They told me they would submit all the proper paperwork to get us up and running but this was a lie. Turns out, I needed an entirely different business license in order to qualify for EBT. I informed *** that I would not be activating or unboxing the merchant terminal because I did not want to pay for something I may not ever be able to use. She told me that would be OK and when I sorted everything out we would revisit this. This was also not factual. The payments started 30 days later and when I reached out for assistance, *** was reluctant to help me. She was very cold and told me that there was nothing she could do – my ONLY option was to PAY the $4K+ for my terminal or **** it off on someone else. ****, a very old woman who conveniently only works for a limited amount of time per week, ended up calling me to resolve this issue and promised to have *** pick up the terminal, which I thought was odd. I waited to hear back from her for days, weeks, and now months. Still no response! This company is a SCAM and needs to be shut down immediately.
This complainant could benefit from understanding how to negotiate favorable rates.
A “C” Performance
Due to the company’s average amount of complaints for a provider of this size and its poor resolution ratio, we have adjusted the BBB‘s rating to a “C” for the purposes of our review.
Velocity Merchant Services Fees, Rates & Costs
A Closer Look at The Contract
|Swiped Rate||1.00% - 4.99%|
|Keyed-in Rate||1.00% - 4.99%|
|Virtual Terminal Rate||1.00 - 4.99%|
|Payment Gateway Fee||Undisclosed|
|Early Termination Fee||Up To $700|
|PCI Compliance Fee||$120 Per Year|
|Equipment Lease Terms||48 Month (locked)|
The standard Velocity Merchant Services contract is through EVO Payments International. The agreement shown is a three-year contract with automatic renewal for one-year terms and an early termination fee of $395. The standard EVO PCI compliance fee costs $120 per year. Numerous complaints filed on this website and elsewhere report the standard Velocity contract to be a 48-month agreement with an early termination fee ranging from $495 to $700, but these reports are less reliable than the actual text on the company’s website.
Beware Long-Term Leases
Before October 2014, Velocity partnered with Northern Leasing to provide its equipment leases, which often resulted in some confusion among merchants who did not realize they were signing a separate agreement with Northern Leasing. Now it appears that the company continues to lease terminals and POS equipment, but its leasing partner is First Data Global Leasing. One merchant recently reported a $35 monthly lease for a 48-month term, which is about standard for long-term leases. It should be noted that most credit card terminals can be purchased for under $500. Non-cancellable, long-term leases mean a merchant can pay thousands for that same equipment making them a contract term to avoid. We encourage merchants to check out our list of the providers of the best merchant services.
Virtual Terminal and Payment Gateway Pricing
In addition to its storefront payment processing services, Velocity Merchant Services also dedicates a portion of its website to advertising its virtual terminal and payment gateway services. However, pricing is not disclosed on either of those services. Additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates typically apply to these e-commerce services.
Velocity Merchant Services Contract Terms
Although specific documentation about Velocity’s rate structure is scarce, the few numbers we do have are slightly less than competitive for the industry. We therefore award Velocity a “C” in this category. Merchants are more likely to see savings with a top budget merchant account provider. If you have any specific knowledge of Velocity’s contract terms, please leave that information in the comment section of this review. See the Velocity Merchant Services Merchant Agreement.
Velocity Merchant Services Employee Reviews & Sales Tacitcs
Should You Work For Them?
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||Yes|
|Discloses All Important Terms||No|
Telemarketing and Outside Sales Agents
Velocity Merchant Services appears to hire independent sales agents in addition to an in-house telemarketing team to market its services. The use of independent sales agents is a common practice within the card processing industry that often produces a team of untrained, unregulated sales agents. In the case of Velocity Merchant Services, a large number of complaints cite agents’ nondisclosure of contract terms, aggressive sales tactics, and misrepresentation of rates. This does not compare favorably to our list of best credit card processors.
Evidence of Slamming
In addition, some Velocity Merchant Services complaints filed by former employees suggest that the company trains its telemarketing agents to present themselves as representatives of Visa and MasterCard, possibly in a bid to convince merchants that Velocity agents are agents of their current providers and get them to unwittingly switch to Velocity (a tactic known as “slamming“).
The sheer amount of complaints that mention the credit card processor’s sales tactics are significant enough to lower its score to a “C” in this section. If you suspect that you have had undisclosed fees added to your Velocity Merchant Services contract, we recommend seeking a third-party statement audit to eliminate hidden fees.
Copyright © 2023 CardPaymentOptions.com, Inc. (Digital Fingerprint: 0d38c6720f0d78a701b74d58653af608). Getting paid to re-write this page? Click here to earn a reward.
Any unauthorized copying and reproduction of the content of this page, including all meta data and computer code, is strictly prohibited. While the information in the above article is believed to be accurate as of its publish date, the author and publisher make no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents. The author and publisher shall in no event be held liable to any party for any direct, indirect, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this material, which is provided “as is,” and without warranties. Any and all use of trade names and/or marks are for identification purposes only and shall not be construed as a claim of affiliation, or otherwise, with CardPaymentOptions.com, Inc. ("CPO") in any form. The sole purpose of the material presented herein is to alert, educate, and inform readers. It is not intended as legal or financial advice. We may earn revenue if you obtain services from a provider that we recommend. See this page to learn how we support our operations.