Complaints

Since November 2016, the BBB Houston & South Texas have received several disputes that exhibit the following pattern.

According to disputes received at the BBB, it has been alleged, that Merchant’s Choice Payment Solutions, Inc. is using deceptive sales practices to sell new credit card machines to companies.  Complainants are informed by Merchant’s Choice that their current credit card machine carrier and the current machine need to be replaced to meet  Payment Card Industry Data Security Standards.  Upon realizing that they are now dealing with a new company, attempts are made to contact Merchant's Choice which go unanswered and subsequently the complainant would be under contract with Merchant’s Choice Payment Solutions, Inc. for 2 – 4 year.  Complainants claim they were told that their current terminal was not compliant and they were going to be sent a new terminal at no additional charge. When complainant tries to cancels prior to end of this long contract, a large cancellation fee is charged.

Merchants’ Choice Payment Solutions Would Like You To Know

Upon investigation of the complaints identified by the BBB, Merchants’ Choice Payment Solutions (“MCPS”) has confirmed the following:  (1) neither it nor its independent sales agents ever indicated that MCPS was a Complainant’s current processor; (2) the Complainants executed documents clearly identifying MCPS as the payment processor with whom they were applying for merchant services, and in some instances, acknowledged that they were cancelling their processing services with their former processor and switching to MCPS;(3)MCPS and each sales agent identified MCPS repeatedly during the telephone conversations.

A.  “Merchants’ Choice Payment Solutions, Inc. is using deceptive sales practices to sell new credit card machines to companies.”

First and foremost, MCPS does not even sell credit card machines. Further, MCPS does not use deceptive sales practices to sell credit card machines.  MCPS provides payment card processing services and may provide processing equipment to the merchant at no cost or, in limited instances, through a third-party equipment lease, as part of those services. Merchants may always use their own equipment as long as it is compatible with MCPS payment card processing services. MCPS provides accurate information to prospective merchants and sales practices are not “deceptive”.

MCPS clearly identifies itself to prospective merchants in calls, recordings and documents.  All documents executed by merchants include the Woodforest National Bank name, and MCPS name or in certain instances the name of the independent sales office on each document.  Merchants executing Free Equipment Placement forms acknowledge that MCPS is providing the equipment at no cost and merchants that execute Notice of Cancellation of Previous Bankcard Processing Account forms acknowledge that they are fully aware of the fact that they are electing to change their existing processing company to Merchants’ Choice Payment Solutions.  Merchants also receive monthly account statements provided by Woodforest National Bank and customer service calls are answered in the name Merchants’ Choice or the name of the independent sales office offering MCPS product and services (if the merchant contacts the independent sales office directly).

B.  “Complainants are informed by Merchants’ Choice that their current credit card machine carrier and the current machine needs to be replaced to meet Payment Card Industry Data Security Standards.”

MCPS does not inform Complainants that their current credit card machine carrier needs to be replaced to meet Payment Card Industry Data Security Standards. MCPS’ independent sales agents inform merchants and prospective merchants about mandatory PCI PED updates that are required by the payment card industry data security standards (“PCIDSS”).  They may also inform them of the upcoming EMV chip technology that older credit card machines are not set up to accept.  If a merchant wants to replace their equipment with PCI PED approved or EMV ready equipment and wishes to sign up for MCPS payment card processing services, independent sales agents may provide new equipment with these features to them at no cost.

C.  “Upon realizing that they are now dealing with a new company, attempts are made to contact Merchants’ Choice which go unanswered and subsequently the Complainant would be under contract with Merchants’ Choice Payment Solutions, Inc. for 2-4 years.”

MCPS strives to respond promptly to all merchant inquiries and concerns in a timely manner; however, as with all large businesses, there are occasional isolated instances where this does not happen.  Such instances are promptly investigated and changes are implemented when necessary to ensure that similar incidents do not occur in the future.  MCPS has discovered that in a majority of the complaints MCPS or an independent sales office responded to the merchant within 24-48 hours of their call, but the representative was unable to speak to the Complainant because they were unavailable.

D.  "When Complainant tries to cancel prior to the end of this long contract, a large cancellation fee is charged.”

MCPS payment card processing agreements provide for a standard early termination fee in the event the merchant terminates the agreement before the expiration of the current term; however, in most cases, merchants have 45 day grace period in which to cancel their services without incurring the early termination fee.  Our early termination fee is normally $495,which is typical for the payment card processing industry.