Complaint Review: Electronic Payment Systems

I served in an independent sales capacity for EPS.  Having first hand knowledge of the internal workings of the organization, I can confidently offer the following advice to anyone thinking of either signing up for credit card payment processing or to serve as a local salesman...DON'T. 

From a merchant standpoint...

1) Unnecessary equipment is pushed on merchants.  Equipment that can be purchased for $400 - $650 is leased to merchants for over $5,500 over the life of the lease!  This is done in the "best interest" of the merchant, claiming tax benefits of writing off the lease payments as well as helping the merchant with monthly cash flow.  Additionally, claims are made that the system pays for itself.  And given enough use the system does pay for itself.  However, seeing the system in real world use, merchants are generally luck to break even.

2) Very little training is provided to merchants.  The sales reps are generally ill-trained to be able to train the merchant on the necessary aspects of the system.  As such, the merchants are generally very poorly trained.  When merchants or reps call HQ for additional support, the sales rep is routinely "thrown under the bus" for not sharing information with the merchant or training them correctly.  In reality, the rep was never trained from the beginning to successfully train the merchant.

3) Merchants take on a HUGE headache making the switch...and for little benefit.  One of the selling points of switching credit card processing to EPS are lower rates (the same claim every other merchant services company offers).  In reality, EPS lowers rates to a percentage that is perceived to be a good deal.  Unless the merchant has considerable processing on a monthly basis, the savings to a merchant for the lower rate is generally in the $12/month range ($134/year).  If the merchants already owns their processing equipment (meaning they're currently paying $0/mth), EPS requires the merchant to "trade in" the equipment for a discount on their equipment, which is leased (for $99 - $125/mth for 48 months).  If the merchant agrees to take on the full compliment of EPS equipment, the switch is actually pretty seamless.  However, if an alternative solution is reached, there are generally hardware/software conflicts or the new setup is simply not as user-friendly as the merchant's previous setup.  Either way, it's not worth the minimal savings received from the processing side (and often added expense of the monthly lease!).

From an employment standpoint...

1) EPS does not provide adaquate training for local reps.  They will train you on the pitch, but there is little to no training on actual product or processes.  This places you in a very poor position to make sales calls, and an even worse position if you actually close a deal.  I was often put in a position where I closed a deal with a merchant only to have the hardware not work with the merchant's existing software; to have the hardware not function as promised; or provide software that only works on Windows XP (multiple OS behind the current Microsoft offering). 

2) EPS actively engages in false pretense.  As part of the training, reps are taught to do everything you can to have a merchant fill out the paperwork, which serves as the contractual agreement.  The line given to the merchant is that by filling out the paperwork you are only agreeing to be "approved" to do business with EPS.  The paperwork is sent to HQ and the rep is to return to the merchant the following day, with the good news that they're approved.  The merchant is told they can still decline when the rep returns the following day.  "I can live with 'no' all day long," says owner John Dorsey in training videos.  In reality, the merchant is signing a legally binding agreement that will be enforced.

3) EPS promises sales reps things that are never delivered.  When I was recruited by EPS, I was adament that I was not interested in cold-calling.  Not only was I told I wouldn't have to cold call, I was promised 3-4 twice-qualified leads daily.  I never once received four leads in a day, much less three.  Two leads were the maximum number provided and more often then not it was only one.  I generally had at least one day a week where I did not receive even a single qualified lead.  Additionally, I was told leads would be provided within a 30-mile radius of my home address.  This was another fabrication.  Leads were regularly provided in excess of 120 miles away.  Last, I was sold on the idea that reps generally close one in every four deals, at a minimum.  Both from my own personal experience as well as speaking with other reps across the country, this closing rate is simply not attainable. 

In my personal opinion, EPS is not an ethical company to do business with - either from a merchant standpoint or from an employment standpoint.  If you choose to enter into a business arrangement with EPS from either position, I worry that you're going to have the same headaches I've seen merchants have...or worse, the same personal experiences I've had. 

I hope this helps you before making any decisions to do business with EPS.  I wish I would've known this prior to entering into my arrangement!