Report: #939099

Complaint Review: Ripoff Report | Federated Payments

  • Submitted: Mon, September 10, 2012
  • Updated: Sun, October 05, 2014
  • Reported By: Disgruntled — Winnipeg Manitoba Canada
  • Federated Payments
    Two Huntington Quadrangle
    Melville, New York
    United States of America

Federated Payment Systems TRUSTED BUSINESS REVIEW: Federated Payment Systems dedicated to total customer satisfaction. Federated Payment Systems focused on providing highest quality merchant services, credit card processing for customers, employees, network of independent sales representatives in U.S. & Canada
*UPDATE: Federated Payment Systems pledges their commitment to Ripoff Report Corporate Advocacy, Business Remediation and 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 recognized by Ripoff Report Verified™ as a safe business service.

Show customers why they should trust your business over your competitors...

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

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 Merchant Services scammed, misled Melville New York

This goes out as a warning to anyone considering doing business with Federated Payments.

We had a sales rep from Federated Payments come into our place of business, pitching to us the necessity of a debit machine. We initially said that our business wasn't big enough and didn't do enough sales to warrant the use of a debit machine. He was very persistent and adamant; then proceeded to offer us a 30-day no obligation free trial.

In order to receive the machine for trial, we had to fill out a form. We also agreed to pay for the shipping and 5 business days later, we received the debit machine. After 3 weeks of use, as we had originally speculated, we only did a few small transactions and found that we really did not need the machine and wanted to return it. The rep said that we had to contact head office and that the return had to be done through them.

We phoned Federated Payments' head office, which is based in New York with a Canadian office in Montreal, asking what the procedure was to return the machine. They informed us that the so-called 30-day free trial form that we signed was in actuality a contract and it was going to cost us $500.00 to terminate the agreement.

As it also turns out, they said that they did not offer a 30-day free trial. The Federated Payments rep lied to and misled us, thus duping us into signing the contract. Even after explaining the situation to a corporate executive at Federated Payments, they still maintained we had to pay the $500.00 in order to be released from the agreement.  In addition, upon termination, if the machine did not arrive back at the head office within 9 business days, we would be charged an additional $900.00, their cost for their debit machine. We expressed the machine back and got it to head office within the 9 business days.
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This report was posted on Ripoff Report on 09/10/2012 12:29 PM and is a permanent record located here: 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

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