Report: #650025

Complaint Review: Merchants' Choice Payment Solutions

  • Submitted: Tue, October 12, 2010
  • Updated: Mon, January 28, 2013
  • Reported By: Warren — Winter Haven Florida United States of America
  • Merchants' Choice Payment Solutions
    P.O. Box 8339
    The Woodlands, Texas
    United States of America

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We contracted with Merchants Choice Payment Solutions, a credit card processor, in January, 2007 to handle our credit cared transactions. The initial term was for three years. We elected to purchase the terminal outright at the time the contract was signed. In Sept. or 2010, 9 months after the contract had expired, we were offered better terms and a lower monthly account fee by another local processor. The savings over MCPS was substantial. Merchant's Choice offered a "rate review" at that point, but my secretary let them know we preferred to go more local, with a representative nearby. This month we received another statement for monthly account fees. I contacted them at 1-800-327-0093 to make sure they were aware we were no longer needing their services. Here is the unethical, if not illegal part. Our contract was thru January of this year. But unless MCPS is contacted 30 days prior to the end of the current contract they automatically renew it for another three years! According to their representative, we are in violation of their contract terms and owe a $495 penalty for terminating before another three years is completed. If there is any attorney interested in a class action filing on these unclear, dishonest and perhaps illegal contract terms, we would be happy to work with you. In 28 years of business, I've never seen another contract that automatically renews for a period as long as three years, with no option to cancel except for a very narrow 30 day window once every 36 months.

With so many credit card processors to choose from, there is no good reason to consider Merchant's Choice Payment Solutions (MSPS). There are better terms available from other providers who do not attempt to rip-off other businesses in their contract small-print. They've turned account termination into a huge profit center.
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This report was posted on Ripoff Report on 10/12/2010 11:50 AM 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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Updates & Rebuttals


#1 General Comment

Nothing Could Be further from the truth


Not all put you in contracts, with cancellation fees. We don't. Don't need to. Contracts are for raising rates, and poor service. We don't do either. A+ with the BBB. Not one complaint in 15 years. Not one complaint online anywhere. That's what no contract will do for a company!!

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#2 General Comment

To Jonathan Hill, employee of Merchants' Choice

AUTHOR: M&W - ()

Jonathan, if you have sold for Merchants' Choice for 2 years, per your Report in Jan 2013, then you havent even been there long enough to address a merchant's cancellation after term ends..... DUH!

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#3 UPDATE Employee

MCPS is a great company

AUTHOR: Jonathan Hillis - (United States of America)

I have worked for Merchant's Choice Payment Solutions for almost two years.
They are great people to work with.
I read the reports and problems from other merchants and rival salespeople bashing the company.
Most times it's merchants who don't read their contract very well. I explain it and circle our terms of termination and  for how long. Banks get merchants in 5 year contracts!
Nearly every processor and banks have automatic renewals.
Everyone has customer problems at times. Ever heard the business rule "the customer is always right?"
 Let he who is perfect cast the first stone.
In my time with MCPS, they are some of the finest people I have ever met in the industry.
My customers have rare complaints and when they do, I as a professional,  takes care of them.
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#4 UPDATE EX-employee responds

Well done then

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

I'm curious; did the new processing company accept the revision by the representative? With the companies I write business for now I am allowed to make certain changes in term, fees, etc- but if I tried to send in an application with strikeouts in the material terms of the contract underwriting would kick it back so fast it would make your head spin.

Sorry if I sounded like a smart a*s. I peruse the complaints about merchant services companies on here from time to time, and it seems they all boil down to two complaints- I didn't read my agreement, and "they wouldn't leave me alone so I said yes." I think both reflect more poorly on the business owner than the processing company.

A tip- the one thing all processors seem to have in common is fear of a bad BBB rating. I know that with the guys I write for now, all a merchant need do is say the phrase "I'm calling the Better Business Bureau" and they get whatever they want. Might work with Merchant's Choice.

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#5 Author of original report

You owe me a steak dinner

AUTHOR: Warren Merrill - (United States of America)

I can absolutely assure you that I have no automatic renewal clause with my current provider. Once burned and all that.

Not only that we did not obligate ourselves to any specific contract time terms, having that section deleted by request from our contract and signed/acknowledged by the representative. Anyone looking for a new provider can do the same thing as we did during the negotiation. Tell them you won't commit to a initial or auto-renewal contract term and want the right to cancel at any time without penalty. If they balk then simply contact someone else. It can be done.
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#6 UPDATE EX-employee responds

Does anyone read their processing agreements??

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

I have six years experience in the merchant;s services field, and I spent a couple of years sending some of my business to Merchant's Choice. 

The rollover agreement you are referring to is clearly spelled out in your agreement. Not only that, it is near universal in the industry. Granted, very few companies rollover their merchants for three years- usually it is a year.

I would bet you a steak dinner that the local representative you want to switch to works for a company with a rollover clause in its contract. But you are unaware of it, because you didn't read the agreement for the new company, either.
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#7 UPDATE EX-employee responds

Merchants Choice+ Thieves!!!!

AUTHOR: Shark5801 - (United States of America)

I am an ex-employee they have the appointment setters tell the potential clients that they guarentee to save them 20-30% off monthly their processing fee and for 5-10 minutes of their time if Merchants Choice cannot save them money they will give them a $500 Visa card. I know from the inside they do not have any gft card to give it is all a gimmack-and lithen to what they are saying-if they cant save you money which could be a penny then they will give you a 500 card which they dont have-TOTAL SCAM-inside and OUT-and Florida is the main telephone appt setter group and they are thieves and nasty men who think women are their slaves-they make appointments throuthout US-need help with a lawsuit I am filing as an employee-still waiting for two weeks of pay checks-supposedly in the mail-a week before and for a 3 hr ck from this wk-

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#8 General Comment

Standard Practice

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

After six years in the merchant processing industry, I can assure you that the auto-renewal you suffered is practiced by every company in the industry. Some of them only roll you over for another year, and some have a 60 day cancellaton window, rather than a 30 day, but- as bad as it sucks- every single company does it.

Look at the contract for the processor you have now, under termination of agreement, and it will spell it out for you.

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#9 Consumer Comment

Same problem

AUTHOR: urban - (United States of America)

I have the same problem. I want to terminate my account because i'm closing the business. After 3 years of business, I called Merchant's Choice Payment Solutions (MSPS), they want me to pay $495 penalty for termination because they automatically renew it for another 3 years unless i contact them 30 days before the contract ends. This contract looks like never ends.

Did you pay the penalty or you have resolve the complaint?
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#10 Consumer Comment

I know attorneys look at this site...and

AUTHOR: Bman - (United States of America)

they look at the reports made with this government agency. Please consider filing a report at:

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#11 Author of original report

Additional Information

AUTHOR: Warren Merrill - (United States of America)

Expecting a typical form response, (ie., If you could please give me your business name and phone number I will be more than happy to investigate the claim you have against us.  I have no way of looking into this matter without this information.)

Our company name is Gator Sign Corp, 2099 42nd St NW, Winter Haven Florida. If you represent Merchants Choice, you have our number.
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