Vericomm (vericommcorp.com) is a merchant account provider that specializes in marketing credit card processing services and point-of-sale (POS) systems to small retail and restaurant businesses. There is some evidence that the company is a reseller of iPayment contracts, and it may also resell National Processing Company services. Vericomm appears to have begun operations in 1996 and may also use the alternate business names “Vericomm Credit Card Systems” and “Vericomm Electronics.” Vericomm is a registered ISO of Wells Fargo Bank, N.A., Walnut Creek, California. The company is located at 27200 Tourney Road, Ste 220, Valencia, California 91355.
Sales & Marketing
Key Points - Sales & Marketing
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||No|
Vericomm primarily markets itself through the use of independent sales agents. The company is showing numerous complaints related to its sales tactics, including nondisclosure of fees, misrepresentation of rates and service lengths, and deceptive claims related to the company’s equipment leases. Generally speaking, Vericomm appears to be a standard “hiring mill” company with a team of minimally trained, poorly regulated sales agents. Vericomm’s responses to merchant complaints about agent deception generally hold the merchants to their contracts and make little effort to rectify the situation. To its credit, Vericomm does not appear to engage in deceptive advertising strategies on its website.
Vericomm Marketing Example
Costs & Contract
Key Points - Costs & Contract
|Early Termination Fee||$595|
|PCI Compliance Fee||Variable|
|Equipment Lease Terms||48 Months, Non-Cancellable|
The standard Vericomm contract (available below as part of the company’s sales rep kit) is a three-year agreement through iPayment with an early termination fee of up to $595, an annual fee of up to $99, a monthly minimum fee of $25, a chargeback fee of $35, a statement fee of up to $15, costly tiered pricing, and, most notably, equipment leases through Northern Leasing/MBF Leasing/Lease Finance Group. The terms of the iPayment contract, which may also include PCI Compliance fees, are essentially the most expensive contract terms offered by iPayment’s processor, First Data.
As a major strike against the company, Vericomm is partnered with Northern Leasing for its equipment leases. Northern Leasing is a known provider of long-term, expensive, non-cancellable equipment leases that cost merchants thousands of dollars for equipment that should cost only a couple hundred dollars. In fact, the sales rep kit linked above mentions that sales reps may sign merchants up for leases of $169.95/month for equipment that shouldn’t cost more than $300 to buy. This is an expense of over $8,000 over the life of the non-cancellable contract. The company’s iPayment contract alone would be enough to lower the company’s score in this category into the “D” range, but the attendant equipment leases push it into “F” territory. See the Vericomm Sales Rep Kit.
Complaints & Service
Key Points - Complaints & Service
|Total Online Complaints||30+|
|Live Customer Support||Yes|
|Most Common Complaint||Hidden Fees|
We are currently able to locate over 30 Vericomm negative reviews, some of which accuse the company and its leasing affiliate, Northern Leasing, of being a scam or a ripoff. Common complaints include nondisclosure or misrepresentation of fees, difficulty cancelling service, expensive equipment leases, and poor customer service. The official Vericomm responses to many of these complaints insist that the company’s hands are tied when it comes to its equipment leases and early termination fees, and the company usually denies any liability for the verbal guarantees made by its independent agents. This stance does not indicate an emphasis on helpful customer service at Vericomm.
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.
Due to an ongoing review of greater Los Angeles-area companies, a current Better Business Bureau profile for Vericomm is unavailable at this time. At the time of our last review, Vericomm held an “A+” rating with the BBB and had obtained BBB accreditation in 2001. The report showed that the company had received 15 complaints within the previous 36 months, consisting of eight regarding problems with products and services and seven with advertising and sales issues. Out of the total, only five of the complaints were resolved to the merchant’s satisfaction while 10 merchants reported that they were not satisfied with the company’s response. Given the company’s figures at the time of our last update and its performance in other categories of this review, we have adjusted this category to a “B-” for the time being.
About Phillip Parker
Phillip Parker is a former merchant services agent turned small business advocate and the author of "Fee Sweep," which teaches merchants how to dramatically lower their processing rates, eliminate junk fees, and avoid fine-print scams. He founded CardPaymentOptions.com to help merchants enact positive change in the credit card processing industry. Schedule a Consultation with PhillipSchedule a Consultation with Phillip
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