• Report: #427977
Complaint Review:

Ripoff Report | Federated Payments | Ripoff Report Verified™ …businesses you can trust. Federated Payments takes a consultative approach in developing long-standing relationships with merchant customers, Independent Sales Offices, & Cash Advance Partners to enhance the way they do business. Federated Payments provides electronic payment solutions, related merchant services for independent business owners within the U.S. & Canada.

  • Submitted: Tue, February 24, 2009
  • Updated: Mon, May 01, 2017

  • Reported By:Fresno California
Federated Payments | Ripoff Report Verified™ …businesses you can trust. Federated Payments takes a consultative approach in developing long-standing relationships with merchant customers, Independent Sales Offices, & Cash Advance Partners to enhance the way they do business. Federated Payments provides electronic payment solutions, related merchant services for independent business owners within the U.S. & Canada.
2 Huntington Quadrangle Melville,, New York U.S.A.

Federated Payment Systems TRUSTED BUSINESS REVIEW: Federated Payment Systems demonstrates strong commitment to merchant customers, internal employees, vast network of independent sales representatives in U.S. & Canada.
*UPDATE: Federated Payment Systems recognized by Ripoff Report Verified™ as a safe business service.

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REVIEW UPDATE: September 11 2017: Federated Payment Systems remains committed to increased customer satisfaction and has improved their business practices over the years to better serve their customers. Federated Payment Systems is truly dedicated to making sure their customers are satisfied and that any complaints which do arise are addressed promptly and fairly.

To date, Federated Payment Systems has made good faith efforts to resolve all complaints reported on Ripoff Report. Based on our experience, the member business has proven to be among the top members of the Ripoff Report Corporate Advocacy Business Remediation and Customer Satisfaction Program as a Verified Safe Business™.

Over time and since becoming a member, Federated Payment Systems has remained actively engaged and improving the way they address customer service complaints. As an active and current member of the Ripoff Report Corporate Advocacy Business Remediation and Customer Satisfaction Program we are happy to report that now more than ever Federated Payment Systems remains committed to improving customer satisfaction.

Remember, no company or individual can ever satisfy 100% of the people 100% of the time. There are no products or services that will always be perfect for everyone and even the best companies will receive complaints from time to time. However, by participating in the Corporate Advocacy Program, the member business has made a commitment to working with its customers to resolve complaints quickly and fairly whenever possible.

Please keep in mind that as a consumer you have some responsibilities as well. Success has many definitions that based on your past experiences, current situation and your perceived expectations. Success with any product or service is always based on the proper application and understanding. The fastest car will not run if you never turn the engine on. Look at how you used the product or service that was provided in relation with the instructions that you received. The Corporate Advocacy Business Remediation and Customer Satisfaction Program will help you get your voice heard but please be prepared with documentation and fair representation of your concern, also have an idea of how the company can fix your concern. Can they offer additional services, extend warranties, offer a fair refund or just get you talking with someone that can help. ..let them know and let us know!

*Any consumer not receiving satisfaction from a member of the Corporate Advocacy Program should email us at editor@ripoffreport.com

Ripoff Report Verified™ REVIEW:

EDitor’s UPDATE: Positive rating and recognition has been given to Federated Payment Systems for its high level of dedication to its customers, employees and extensive network of independent sales representatives.

Since 1999, Federated Payments remains the premier provider of credit card processing solutions and related merchant account services for independently owned businesses within the U.S. and Canada. They are 100% committed to their customers, employees and extensive network of outside sales representatives. Led by an Executive Team with more than 75 years combined experience in processing, Federated Payments enhances the way their customers, sales team and Independent Sales Offices do business.

Ripoff Report’s discussions with Federated Payment Systems have revealed an ongoing commitment by the company to customer and employee satisfaction. This means that they can expect that Federated Payments will take all actions necessary to find a mutually satisfactory resolution to any issues or concerns that may arise.

The information provided in this report below is based on comments made by Greg Slote during an on-site inspection held by a third-party verification company with no biases toward Federated Payment Systems.

Federated Payments is Ripoff Report Verified
Ripoff Report Verified™ .. part of Ripoff Report Corporate Advocacy Business Remediation & Customer Satisfaction Program.A program that benefits the consumer, assures them of complete satisfaction and confidence when doing business with a member business..

Federated Payment Systems is a credit card processing center and merchant account provider operating in both the United States and Canada. Their business model is to focus on improving the operating procedure of small to mid-size businesses by helping them save on operating costs while at the same time providing efficient and excellent customer service. Federated Payment Systems acquires leads through internet advertising and by purchasing targeted call lists in which their employees at the call center contact the potential clients. Once a client expresses interest, an appointment is set and confirmed and they will meet with a sales rep to review the services offered. All sales appointments are reported to and reviewed by the regional manager. Leads are also generated by client referrals and if any of those leads result in a sale, the client is paid a referral fee.

Once a sale is generated, the application is reviewed by the risks and underwriting department. Once approved, a welcome kit is sent out to the customer which includes operating instructions for the equipment. The equipment is then sent out to the client. The new system gets activated and tested. Customer service department is directly involved to handle any initial questions. Thereafter, clients can contact merchant support which is available 24 hours a day, 7 days a week.



At times, a client may not feel satisfied with the product or services they received. Upon receiving a complaint from an unsatisfied client/customer, a representative from whichever department is involved will contact the customer. The supervisor from that same department well be informed of the complaint as well as all actions taken to rectify the situation. Recently, a client contacted Federated Payment Systems complaining that the equipment he was sent was very difficult to understand and to use. Federated Payment Systems, at its own expense, sent the client new equipment that was operated in a different manner which made it easier for the client to understand and use. This is not a common complaint, however. All equipment is thoroughly tested prior to being shipped.

Merchant support helps all new clients to operate and understand the equipment, therefore it is very rare that clients call to complain about the use and operation of the equipment. To resolve this issue, Federated Payment Systems immediately shipped the client new equipment. Merchant services followed up to ensure everything was working properly. The client was very pleased on how fast the situation was resolved. Once a client complaint is resolved they are sent a satisfaction survey. If any client fills out the survey and gives a rating which is below an outstanding receives a follow-up call by either customer support or merchant services. To ensure that a potential client fully understands all details and is fully aware of the company’s processes, all new clients fill out the contract with a sales rep present to answer any questions. The client initials every page. Once the contract is complete, the client then reviews it and signs the last page in front of the sales rep.

Federated Payment Systems also has protocols in place for dealing with employees who may not be performing up to the expected standards to ensure that they are treated fairly, even if they need to be let go. When an employee is not performing up to standards or other work related problems are occurring, they are first given a verbal warning to get back on track. If that warning does not work they are then given a written warning. If they still do not improve, they are given a final warning. If all that fails, they are then terminated from employment. All employees are issued an employee handbook in which they must sign a “do not compete” order. If they violate that order, or if they are caught stealing customer information, they are terminated immediately.

In response to a complaint posted about Federated Payment Systems on Ripoff Report, Vice President of Marketing Greg Slote states that they have increased employee training and staff meeting. Additionally, all employees are instructed to make customer satisfaction their number one priority. Mr. Slote also recognizes the value of working with Ripoff Report and the Corporate Advocacy Business Remediation and Customer Satisfaction Program, and the platform it provides for businesses and clients to interact and resolve issues. “Federated Payment Systems appreciates the opportunity to remediate any complaint or issue that may arise from consumers, customers, clients or employees. [This program] allows the business to help resolve the problems.”

FEDERATED PAYMENT SYSTEMS / Statements from the Senior VP of Sales Scott Avery

"Federated Payments is 100% dedicated to customer satisfaction and has made every possible effort to ensure that all customers, employees, and sales team members have a positive experience. At Federated Payments we make every effort to ensure that all customers are satisfied. Acknowledging issues from both customers, employees, and independent sales agents is critical to our growth and future success. It’s important to make the proper adjustments and corrections quickly to eliminate any similar issues in the future. Our dedication and commitment to customers and agents always has and will continue to be the top priority and focus of our firm.”

Scott Avery assured Ripoff Report that the business continues to refine their products and services to ensure the highest possible level of customer satisfaction.

In speaking with another member of the Federated Payment Systems’ team, a regional sales manager, they confirmed Mr. Avery’s thoughts, “Our goal is to provide our customers the best quality, value and professional excellence in the industry." Federated Payment Systems is dedicated to obtaining and listening to both customer and employee feedback. Federated Payment Systems systematically reaches out to its customers, employees, and sales team on a daily basis.

Federated Payment Systems’ takes employee satisfaction just as seriously. One of Federated Payments’ independent sales representatives recently informed us, “It is a pleasure to receive such support. My Regional Sales Manager and Sales Support team is there whenever I have questions or need help. Plus if any of my customers have any questions, they have round-the-clock world class live technical support.”

Ripoff Report was pleased to learn that Federated Payment Systems is totally committed to merchant customer and employee satisfaction.



"At Federated Payment Systems, we have lengthened our initial sales training and instituted evening advanced trainings each week for our sales representatives so they can fully explain pricing, products and services to independent business owners in the U.S. and Canada.

Federated Payments has recently increased the size of our sales support team dedicated to answering any questions from our network of independent sales representatives quickly.

Federated Payments has added 10 customer service experts to help reduce hold times and provide the highest level of support in the U.S. and Canada. Each customer service rep undergoes a rigorous 5 week training program ensuring they are specialists in every product we sell or lease.

Federated Payments has upgraded our agent portal to make sure all sales representatives have the latest tools they need to efficiently and effectively manage each of their customer accounts.

Federated Payments proactively conducts what we call our “Merchant Check-up”. On a quarterly basis, we reach out to all customers to review their accounts further ensuring we deliver the best customer service and technical support.

Federated Payments is constantly adding new programs and developing vendor partnerships to provide our merchant customers additional ways to grow their business and increase profits.

Because security is critical in our industry, Federated Payment Systems conducts criminal background checks on every single employee as well as all contracted sales representatives.”

In summary, after our review and discussions with representatives of Federated Payment Systems and their customers, Ripoff Report is convinced that Federated Payment Systems is committed to quality delivery of services resulting in total client, employee and sale team satisfaction.

Read more about why consumers should feel confident when doing business with a member of Ripoff Report's Corporate Advocacy Business Remediation & Customer Satisfaction Program. Yes, it’s a long name for a program that does a lot for both consumers and businesses alike.

Read about Ripoff Report Corporate Advocacy Business Remediation & Customer Satisfaction Program, a program that benefits the consumer, assures them of complete satisfaction and confidence when doing business with a member business. this program works.



Federated Payments- Scott Avery California Melville, New York

VP Scott Avery is a slime bag, and will tell you all kinds of BS, but can never back it up, as he will never respond to any E-Mail or phone call.These guys will tell you anything to go to work for them. If you do make a sale, they won't pay you. You will spend YOUR time , YOUR money and YOUR office supplies, for these guys to rip you off. If you ask them any tough questions you will be ignored. IF you want more Heartache in your life , go to work for these punks, and let them send you off to bum f_ _ _ Egypt on a wild goose chase they call an appointment. I've been there! They or a big Ripoff! Justic Fresno, California

This report was posted on Ripoff Report on 02/24/2009 01:24 PM and is a permanent record located here: http://www.ripoffreport.com/reports/federated-payments-ripoff-report-verified-businesses-you-can-trust-federated-payments-takes-a-consultative-approach-in-developing-long-standing-relationships-with-merchant-customers-independent-sales-offices-cash-advance-partners-to-enhance-the-way-they-do-business-federated-payments-provides-electronic-payment-solutions-related-merchant-services-for-independent-business-owners-within-the-us-canada/melville-new-york-11747/federated-payments-scott-avery-california-melville-new-york-427977. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

Click Here to read other Ripoff Reports on Federated Payments | Ripoff Report Verified™ …businesses you can trust. Federated Payments takes a consultative approach in developing long-standing relationships with merchant customers, Independent Sales Offices, & Cash Advance Partners to enhance the way they do business. Federated Payments provides electronic payment solutions, related merchant services for independent business owners within the U.S. & Canada.

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Updates & Rebuttals

#1 UPDATE Employee

Sales 101

AUTHOR: ChrisWMS - ()

The simple law of sales is that if you sell you get paid. True sales professionals know this and know that THEY and only THEY control their income. If you can't sell you dont get to eat. Every time one of my accounts has activated I have received my commision as it was supposed to be and I ALWAYS get my residual payments. I am new to the company but like what I do and enjoy working for the people at the company.


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#2 UPDATE Employee

Federated Payments, Federated Payment Systems - Info

AUTHOR: anonguest - ()

They always say its you. But whats always the common denominator? They are.

When an employee almost dies after being found the next morning, blood soaked in an elevator, after using drugs and alcohol in the Melville office with Scott Avery afterhours, you must believe something is wrong

As a former employee of this organization for MANY YEARS at an executive level, I can only agree with the negative remarks posted. Not only have I had a professional relationship with this organization, I have also had an extensive personal relationship with the individuals mention at this company. In the end, I was treated just like everyone else was; disposable.

No matter how good you are, how much revenue you earn them, how hard you work for them It will come to an end and they will fabricate anything to put the blame on the other party. This is a company who fired 20+ employees, just hours before a company Christmas party. This is a company who intentionally cuts off residual payments weeks before they vest for life to the agent. This is a company who will [and has] take away the livelihood of the most loyal of employees.  All because they are greedy. CEO Jon Levitt says it best with his famous line, My kids eat first.

Jon Levitt recently terminated the #1 sales manager for the past 5 years, via a phone call from home, while the employee was at his desk working to earn this company more. This is a manager who has accounted for over 10,000 of their existing clients. Thats more than Scott Avery, VP, has even accounted for. All over a rumor that this individual was looking to advance his career else ware after CEO Jon Levitt stated, as long as L**** is employed at Federated, he will be a sales manager here. Period. Furthermore, they attempted to slander his name across the company after his dismissal rather than resolving the matter privately. This is an employee who would work 65+ hour weeks with no overtime; fueled by his dedication to the company.

They will attempt to discredit you: They will hypocritically denounce you. Calling you irresponsible, dishonest, or disloyal.

Then they use lines like:  Just another case of a rep who cant close Just a guy mad that he cant sell -  You violated your agreement ( usually based on fabricated info)  to rebuttal any blogs like these.

They will tell you: We cant set appointments in your area anymore, its a bad area. (this is how they get you to perform below your contract requirements so they dont have to pay you anymore)

The bottom line at this company is the bottom dollar. I understand free enterprise, I appreciate capitalism, and yes I was part of this organization for a very long time.

Just remember EVERYONE IS DISPOSABLE at this company.

Federated Payment Systems, a.k.a. Federated Payments, a.k.a. FPS, a.k.a. OnePay, a.k.a.  National Debit Card Network, a.k.a. MSI Canada, a.k.a. Federated Payments Canada, a.k.a. Wholesale Merchant Services, a.k.a. U.S. Bankcard Center, is directed by Jon Levitt, John Guirguis, and a silent partner who has no part in the daily operations of this company. Evan Schweitzer is the CFO and Scott Avery is the #2 to Jon Levitt.  
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#3 UPDATE EX-employee responds

TRUTH - Scott Avery does not care about his REPS

AUTHOR: Former Sales Manager - ()

I am a former Sales Manager at US Bankcard, one of several identities these guys have.  I have been in this industry for years and have found the way this office is run to be very questionable.

Now I am not here to totally bash the companies, but have sat back and thought about how they approach reps and merchants.

To start off, they will say that US Bankcard or Federated Payments has over 100,000 merchants.  This is not true.  Maybe all together, there are at least 6 companies under this umbrella.  Not one of these companies has 100,000 merchants, maybe combined and that's questionable.  Now they may have serviced over 100,000 merchants combined, but they are not active.

When I went to work there, I was shell-shocked when I witnessed how Scott Avery talked to his Sales Managers.  I have never been talked to the way he talked to some of these Managers.  I have personally heard him cuss out Managers using the F Bomb and to the extent of using the B and C word.  All this while standing in the CEO's office with the CEO there.  I was appalled that the CEO never said a word to him about the way he was speaking to employees.

About being a Rep, I would never........Although most companies do not set leads, this is what they are good at.  This is a bonus to a rep.  Not all leads are perfect, it is a name and address where there is a business owner that knows that you are coming.  And at times business owners will lie and say they never set the appointment.  But it is your job to close the deal. 

That being said, I have heard from Scott Avery's mouth his opinion about his reps and this is a quote.  "F@!K the rep"  YES I heard that out of his own mouth while standing in the office.  This was the first step of me leaving the company.

I have also seen him try to cut the pay off a rep if they had several locations to write.

If you like to work with people that cuss every other word and that is a fact, including the Sales Managers, than I would say you are a good fit.  To most, I would not recommend it.  They talk like this to reps as well.  And when they hang up the phone from talking to a merchant, all I heard was how dumb the merchant is or how much of a "B" they are or this dumb "MF".

But to conclude,

Scott Avery is a salesman, he will tell you what you want to hear, to get you do what he NEEDS you to do.

For anyone reading this and wanting to get into the business do yourself a favor.  STAY AWAY.

Helpful tip, go to the greensheet.com, you can be an independent rep for a ton of companies.  You can get an 80/20 residual split with no liabilty.  With these guys you get very little residual.  With another you can get 100% lease funding....example a 59.99 lease with "A" credit you can make approximately 2,000 dollars depending on the machine that is leased.  With these guys you will be lucky to make 500 dollars.  Residuals are FOR LIFE, as long as the merchant is active, you will be paid.  Do the research, some will pay 50/50 residual with free equipment placement and a upfront bonus if you cant afford to build residuals slowly. 

PLEASE PLEASE PLEASE, do the research.  The only thing they offer that you would need is leads.  You will be paid more by everyone else.  Is the lead worth all of the residuals and lease money you will lose?

Here are a few to look at: North American Bankcard, Total Merchant Services, MSI Merchant Service, First American Payment Systems

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#4 REBUTTAL Owner of company


AUTHOR: opus - (Canada)

Scott, you should announce your relationship to Federated  as part of your rebuttal. Frankly, these anger blasts simply deter future clients from dealing with your company

Your BBB rating in Canada is a'c'- which indicates REAL concerns

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#5 UPDATE EX-employee responds

Just a sales Rep that really can't sell

AUTHOR: maddog1 - (United States of America)

Hey Avery what the hell you talking about? You know that blogger is telling the truth. You guys do not pay s**t to these reps. You treat them like garbage and then get rid of them in 3 months. The company is the biggest scam ever! To the person who orginally made the complaint I back up everything you say. The company is a scam and the corporate office is a joke. They will do everything they can not to pay sales reps and the appointments are 90% garbage appointments. You will waste your gas and time working for this company.
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#6 UPDATE Employee

Did You Even Read Your contract?

AUTHOR: SaudiDO - (United States of America)

I'm a retired United States Air force officer and have been self employed for the last seven years. Burnout as a general manager of a full service fire and water restoration franchise led me to find something less rigorous.  I have only been with federated Payments a few weeks, but I have found the staff and coaching to be very knowledgeable, on top of that they are very honest.

I had one appointment set by the company which the business owner mistook me as a representative of their current credit card processor, so I called my manager, Gabe. Gabe told me "simply apologize for the missunderstanding and thank them for their time" and he would look into it.

Really dude: Read the full contract, it's your signature.
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#7 UPDATE Employee


AUTHOR: Linda - (United States of America)

I have been a Representative of Federated Payments for several years now and don't always agree with everything they say, BUT I have also worked for several other credit card processors and Federated Payments is by far the best and most honest credit card processor to work for.  Yes,as a rep you get appts in many different areas and it is not always easy but the telemarketing department is the best I have ever worked with. Most of the time it is with a business owner but not always... it is your job as a salesperson to get through the door and most of the time it is with the business owner and they are prepared with a statement ready to go over possible savings.  I can see how someone that isn't familiar with the industry would struggle in the learning process and it takes all kinds.  It sounds like this guy/girl just isn't the sales type!

I also have never NOT been paid for an appointment that I signed.

Linda, PA
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#8 REBUTTAL Individual responds

Just a sales Rep that really can't sell

AUTHOR: Scott - (U.S.A.)

Just look at all the excuses this person has for their own unsuccessful performance. Waste your time, gas, office supplies. We provide all sales materials as well as training kits including Pre-Set, Pre-Qualified appointments.

Don't pay WE PAY DAILY on all accounts as soon as installed. Don't return calls, each and every sales rep; has my cell phone number, it's in the training book and online!

How many sales reps nation wide would you like to talk to and get a referral from, 50, 100, 150 or more? Come on! Really, do you think posting something like this offsets your lack of ability to sell?

Get real, Get a Life and Go to Work at a Fast Food Chain!
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