• Report: #612172
Complaint Review:

Ripoff Report | Merchant Services Canada Inc

  • Submitted: Wed, June 09, 2010
  • Updated: Sat, October 04, 2014

  • Reported By: xMSI — Vancouver British Columbia Canada
Merchant Services Canada Inc
1 St. Paul Street Suite A301 Nationwide 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.

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REVIEW UPDATE: MAY 1 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. [continued below]....


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
 Federated Payment Systems 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..

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.



Merchant Services Canada Inc MSI, MSI Canada, Federated Payments Corp, Federated Payments Fraud Alert; Wrongful dismissal; Breach of Contract; Illegal business operations in Canada; Fraud; Failure to pay employees; Changing contract terms on customers Vancouver, Nationwide

I'd be careful before getting into to anything. I actually work for their biggest competitor, direct for the bank and through my employer, I found out some disturbing things, namely:

1. MSI, Merchant Services Inc all don't exist as companies anywhere in Canada. My employer has me working with their legal department to investigate this matter and void each of the contracts I signed and sign up with Moneris. This will be executed Nation Wide. MSI et al changed the contract terms for each and every one of my customers, numbering over 25 for a breach of contract in the millions of dollars.

2. MSI or Federated Payments is what they are calling themselves, failed to pay me and we are in adjudication with the Province of BC to get my owing commissions of over $11,000. They tried to dupe me and the province by trying to state that they signed a contract with my company, but issued me a T4A (Employee Statement of Self Employed Earnings). Oops! By BC Law, all self employed contractors are entitled to at least minimum wage if commissions are not sufficient to cover minimum wage levels. Plus, employers are required to pay vacation pay, termination pay and for stat holidays. The Strangest thing is that I signed my contract with MSI or Merchant Services Inc but my T4A came from Federated Payments. I don't think these guys really know what they are doing, just expoited our country and our people.

3. Failure to register a legal company within each province is illegal and having contracts signed with a false name is illegal as well. I actually spoke to the Vancouver Police fraud detective who is compiling evidence from me and Afftidavits from each of my customers to substantial criminal charges with the Crown Prosecutor. The owner won't be able to hide in the States if there is a criminal charge laid.

4. I will be filing a Wrongful dismissal, fraud, breach of contract statement of claim in Supreme Court here in BC and already filed in Ontario. In BC, I retained a lawyer who seems to think I have a solid case and is working on contingency for me.

5. I have complied a list of ALL employees in Canada of MSI which I have forwarded to the competition bureau and Employment Standards for further investigation. I am confident that presenting my evidence including signed contracts, Schedules, afftidavits from customers I will win my case both with Employment Standards and in Supreme Court of BC.

6. I've gone to so many sources including the CRA to investigate tax fraud, the competition bureau, industry canada, the Police, and most importantly the courts which should leave a public record of events which can be used as press releases in the future for all aliases in Canada and the US. I am also in the process of trying to get a fraud alert issued for employees, customers and businesses who can be affected by this company.

As you know, in this technology age, it is easy to go after a company from a multitude of angles. I will stop when they pay me what they owe me, plus damages and wrongful dismisall and contract breaches for my customers and myself. Ironically, I was on pace to make over $150K with them but now I will make even more working for a reputable company and directly for the bank.

Unfortunately, they found the wrong person to screw in me. I will fight this to the end and won't stop until justice is served. The longer this takes, the more damage inflicted to their reputation. Yes, I think all of my interviews are completed and my lawyer has a few thousand pages to sift through, thank goodness he is working on contingency and he will work with each of the parties involved to formulate a proper legal strategy in BC going forward. I'll keep the blog posted when I have time. I'm swamped working and signing deals (I actually average about 7 - 10 deals a week) so I have to do the litigation work in between.

But, mark my words, I will NEVER stop until Justice is served.

This report was posted on Ripoff Report on 06/09/2010 12:51 PM and is a permanent record located here: http://www.ripoffreport.com/reports/merchant-services-canada-inc/nationwide/merchant-services-canada-inc-msi-msi-canada-federated-payments-corp-federated-payments-612172. 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.

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Updates & Rebuttals

#1 UPDATE EX-employee responds

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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#2 UPDATE Employee

Not A Dum Blondee

AUTHOR: Not a Dum Blondee - (Canada)

I was employed as a private contractor for about a two weeks now and  I can tell you that all of this is shamefully true on their part, (Wholesale Merchant Services), they want YOU, the contractor to go and sign up those business's, sending you to talk to a person who really doesn't have a clue as to why your there. While you do all the paperwork, running around, a guy from NY is saying "Good Job". He's getting the credit as your manager and getting paid YOUR commission. While you burn your gas and do all the work, this slime bag is taking most of your commission. So no, you will not be paid what was promised, and will think of any excuse not to. You may get $100 bucks if he likes you.

I was suspicious when they did not want me to call the customer prior to the appointment and make sure that they had the most recent copy of their statement and that they were expecting you.

I am filing a complaint with my provincial labor standards. I hope to at least get the minimum wages that are legally owed me.

I just chalk it up as a lesson learned. They are the most clever scam artists out there , preying on those who are unemployed and desperate. :(
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#3 UPDATE EX-employee responds

great company to work for

AUTHOR: theyrippedmeoff - (Canada)

I previously worked for them from 2008-2010. I was extremely please with all of the support and service they provided. When i first started as a sales rep, i was a bit nervous as it was all new to me. After a few weeks it took right off.

The reason I am posting this is because a friend of mine recently started with Federated and he happened to stumble upon this posting and I felt compelled to stand up for them and provide some good info about them.  I even visited the office for a Christmas party and got to meet everyone. I was shocked to see over 400 people at this event.

I was always paid right on time and accurately. In fact, even after I left due to personal reasons I still continue to receive my monthly residual income right on time every month. My contract with them said I had to remain an active rep for at least one year and sell 2 account per month to receive ongoing residual income just like the person who started this post said too. I did my part and they held up to their end perfectly.

I have over 200 clients in the GTA Ontario area. I can honestly say 99.9% of them never have problems with the service. I have 1 person who had some trouble getting setup but that was because they were using a system that we informed them wouldnt work very well.

The best part about working for them the residual income. I havent been with them for 8 months now but still receive a direct deposit every month for just over $3800. they split the monthly revenue on the accounts i signed with them 50-50. i couldn't be happier as this income is going to be there for a long time. Bottom line, it is a great place to work and make a TON OF MONEY!

Hope this helps, Tim P. - GTA

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#4 UPDATE Employee

Not a Rebuttal

AUTHOR: Coach1177 - (Canada)

I have started with MSI Canada just 2 weeks ago, and have experienced some of this run around already and have signed only 1 contract.  Are you telling me I will not be paid??
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#5 UPDATE EX-employee responds

Read b4 you work for Federated Payments

AUTHOR: shane75 - (United States of America)

I  recently completed my 30 day due diligence with this outfit. There sales approach is very high pressure and intense. You're expected to close 3 out of 10 appointments. The expectation is you'll close them on your first meeting. This is virtually impossible because there preset appointments are often not with the decision maker of the companies your visiting.

Even if the decision maker is there-they use the quote as leverage with there current credit card processor-like Moneris to get them to lower there existing pricing. It's not different than you trying to switch phone,TV,insurance companies.They'll DO ANYTHING to keep you as a customer. They send you willy nilly over your territory with no regard to all the mileage and gas your using.They pay no auto allowance,draw,salary nothing.

You're not an employee just an independent contractor. This whole industry is very cutthroat.
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#6 Author of original report

Resolved to my satisfaction

AUTHOR: xMSI - (Canada)

Since Ripoff report does not allow posters to retract their statements, I am updating additional comments to acknowledge that my original posting was in reaction to a miscommunication between MSI Canada and me which has since been completely resolved. MSI Canada is indeed a legitimate and reputable company operating legally in Canada. The same is true for Federated Payments in the U.S. In addition, Scott Avery and Scott Glazer are two separate individuals and are neither liars or scam artists.
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#7 Author of original report

Merchant Services Inc Canada aka MSI Canada fraud, unethical business practices

AUTHOR: xMSI - (Canada)

I have over 14 people who have worked for MSI and have the same experiences as me.

1. Not getting paid.

2. Scooping agents with "ISO" agents to target customers already having rapport with you.

3. Changing contract terms.

4. Not honoring contracts with customers. I have over 26 such cases just in my file.

5. Misrepesenting themselves in Canada by using a PO Box located at A301 1 St Paul Street. Google Steet Map it.

6. Not having a valid corporate identity in Canada. Their legal entity is Federated Payments Corp. What the heck does Federated Payments have to do with MSI? They don't own MSI. They are not operating under MSI. All contracts signed between MSI and their customers is with Merchant Services Inc, which doesn't exist, which voids each and every contract in Canada from Coast to Coast. Every single customer was defrauded under these terms.

7. I am only after my wages and breaches of contract. I'll let the IRS (CRA in Canada), plus the Competition bureau and Industry Canada as well as other government bodies investigate this along with the Police fraud division.

8.The media and Associated Press will also be involved once my lawyer is ready to release the press release. My lawyer is also contacting the Ombudsman for banking and each of the major banks including all the main players in the processing industry here in Canada.

9. MSI or whatever they want to call themselves are simply a reseller of Global Payments which is a real player in the processing industry.

Let's see where all of this leaves the company in the coming weeks ahead.

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#8 UPDATE Employee

The Above Is Simply Not True

AUTHOR: YesICan - (United States of America)

It looks to me that you don't want justice - you are just trying to shake this company down for money.

I have worked for MSI and I can tell you my experiences with them are the complete opposite of the individual above.  The customers I sold for them are happy with MSI's services.  MSI saved them money on their credit card processing.  I was paid fairly for the work I produced.  I have spoken with other salespeople who worked for them and they are happy with the work they did and what they were paid.



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