Red Payments merchant services, Credit card processing New York New York
To whom it may concern,
A sales man called me from Red Payments. His name is Garrett Kassler. He offered me a $50 ($50 statement fee + $0.25 Batch Fee which is a bit less than $60 per month) monthly flat fee for merchant services. He said no matter how many transactions I had, but this was the amount I was going to pay. I decided to give it a try, because it sound too good to be true.
After a month, I received the May statement. My net sales was $17,179.94 and I had been charged $880.01. I contacted the sales man Garrett. He told me that the $50 per month was only for his business. The rest charges were for Visa and Master. He also said rates were wrong and he was going to give me $400 refund and lower my rates for next month. I knew the $50 flat fee did not exist in this world, so I accepted his offer.
But I did not receive my refund in the time frame he promised. I called Garrett again. Garrett told me to ask Ross (his sales manager) for the refund. By this time, I received my June statement. My net sales was 17,852.14, the charge was $936.94. So Garrett never gave the refund and never lowered the rates for me. I realized Garrett won’t do anything for me. Then, I called this Ross guy. Ross told me he was just a sales, he did not have the authority to give me refund. He transferred me to a lady called Catherine. Catherine told me that she would talk this issue with her boss, figure out how much money they are going to refund me and call me back in the same day. Off course, she never called me back. I called her again, she said the same thing. But she never called me back.
At this point I knew I got screwed badly. I was really upset and I texted Garrett (he gave me his cell phone number) and thanked him for ripping me off. He told me that he quitted the job at Red Payment and Ross did have the power to give refund. He also admitted Red Payment screwed me.
Be ware about Red Payments!!! This company is filled up with liars!
5 Updates & Rebuttals
Dengster
Flushing ,New York,
USA
$50 flat fee
#6Consumer Suggestion
Wed, May 04, 2016
Dude, for someone who is processing close to $20k monthly and believed in a $50 flat fee... Come on! If someone sold u an iPhone 6 for a quarter, would you have bought it? Use common sense!
Garrett
Plainview,New York,
USA
Mike
#6UPDATE EX-employee responds
Tue, March 31, 2015
I was not fired from this company. I quit becuase I was not paid properly. It is nice to see Mike covering his a*s to make himself looks good. I was with Red payments for four months and quit after seeing what I promised and was told could not be made true to customers. I firmly believe in truth and cannot work for a fraudulent company. Screw Yourself Mike.
JSorcie
Minneapolis,Minnesota,
Avoid Merchant Processing Rip-offs
#6Consumer Suggestion
Tue, February 25, 2014
As a sales representative for a competitor to Red Payments my suggestion to anyone looking to establish a merchant account to accept credit card payments is this: 1) Do Your Homework. There are a lot of processors out there, some very fair and reputable and other that are not. If they are randomly calling you on the phone or walking in your door offering HUGE savings without knowing a lick about our business, thank them and then ask them to leave. Anything that seems too good to be true probably is. 2) Gain a basic understanding of how the credit card processing industry works before talking to any one processor. Know that there is a minimum cost to every business that accepts credit card payments (Interchage) that is passed on and then understand that no processor provides service for free so expect some kind of mark-up over that base Interchange cost either in the form of a blended rate or pass through program. Make sure the sales rep clearly states (not hidden in the small print of some long contract) every potential cost that could impact your business and clearly understand the terms of their contract and and potential penalties if you are to terminante that contract early. Most procesors have a three year contract (my company does not) so they will either charge a flat $ for early termination or they will calculate what they (the processor) would have made during the remainder of the contract term and that becomes the early termination fee, which can add up to a lot of money in the end. 3) Ask other local business owners who they use for processing and what it generally cost them to take credit card payments and how they like their service. 4) Talk to your local bank!!!!
Many financial institutions have trusted contractual relationships with a national procesor so you automatically have a local advocate through that institution that will hold the processor accountable for their actions. The sales reps that work for the bank's processor partner rely on that bank relationship for referrals so they are very motivated to be fair and honest with their business customers. If they are not, they no longer get referrals and struggle to survive in this industry. TRUST ME, it is worth paying a little more for service if you get piece of mind to go with it! 5) Trust and Honesty: A good sales rep will not only present a proposal for service but will also educate you as to process and offer up addition products and services that will help grow the business like gift cards and loyalty programs, integrated POS systems that are cost effective for a small business owner, check guarantee service and so on. Don't be afraid to ask questions. If the rep stumbles to answer or doesn't have a reasonable answer, walk away! 6) Check the company website for testimonials or referrences or a list of other businesses they support or ask your sales rep for a referrence that you can personally call on that is relative to your business. Merchant Services can be VERY confusing so follow these steps and you'll be fine. I feel for you but unfortunately your story is not new to me so feel free to call if you want further advice (612)282-2722
Consumer
Brooklyn,New York,
ex employee
#6Consumer Comment
Thu, December 19, 2013
I DON'T RECCOMEND REDPAYMENTS SERVICES TO ANY BUSSINESS OVNER. THIS IS LIERS COMPANY..Someone have to stop this RedPayments liers agents. They teach how to lie to murchand before to sign the contract, after they screw the murchandS and sucking funds from them.
The same happaned with my previouse job. Russian guy came and gave me good deal and with no concelation fee so anytime if we don't like we could terminate the contract so i recomended to my boss and contract was signed.
After 1 month my boss recived doble charges for....and my boss was angry at me, but when my boss wanted to terminate the contract RedPayments send us copy of contract where they added in empty space with hand writing con"None canselation tract" can you emmagine....all extra hiden charges was added after signing the contract without informing us and they aded lease for transaction machine 48 months as NONE CANSELATION CONTRACT...plus $ 21.99 monthlyy fee plus protection 4.99 plus tax .... e.t.c.
So my boss fiered me becouse we couldn't fined the guy with whom we signed the contract, he wasn't longer working with RedPayments any more, it sounds so strange ... i did really sugested to my boss RedPayment's liers and i was fiered for. and now my bos or loosing a lot of money and keep continue work with RedPayments becouse of NONe conselation contract or he will hier a lawers to fight with them, eather way my boos will loose a lots of money for.... I hope any goverment organizations will start investigate RedPayments intier sistem or froudelent activity agains bussiness ovners, anyway someone would stop them before they suck many bussinesses......
Mike ( RP merchant services )
New york,New York,
Responce to this artical ( Mike EVP of Sales )
#6UPDATE Employee
Fri, October 04, 2013
Responce to Joe
My name is Mike and I am the Executive Vice President for Red Payments here in New York. I would like to address your article here on Ripoff Report to clarify this matter.
Garrett was hired as a sales rep here at Red Payments corporate headquarters. He was only employed for a short period of time and your account is one that I can only assume was signed by him. In order to verify everything in your post I would need your MID or merchant identification number or DBA doing buissness as name in order to pull up all records. I would first like to point out that Garrett was fired after less then two month's of employment with my company. Due to confidentiality I cannot disclose the reasons for Garrett's termination. It was not voluntary on his part. Moving on to other aspects in your post I noticed you claimed that you absolutley knew that a flat fee of 50.00 dollars all in with no other costs was not possible yet you still signed our merchant application/agreement which fully discloses all the costs. Did you read over the agreement? I am willing to look into your situation further if I can get some information from you the business owner. We have a good reputation in the merchant processing comunity and have a vast book of small, medium and large merchants that are happily processing with us currently. We have stayed in buissness for a very long time by always being up front with our clients and providing stellar customer service and saving merchants money when they transfer their processing to us. I can upload a full copy of your merchant aggrement showing that in fact you signed an agreement with other fees above and beyond the $50.00 flat fee and batch fee you referenced. In your picture I see the rest of the fee's are cut off at the top and even still I can make out a Batch fee for 0.25 cents which means that every single time you Batch ( close out ) you're terminal you would be charged a fee of 0.25 cents. This would mean that in fact there was not only a 50.00 dollar flat fee alone in this merchant contract. I am willing to help you resolve this issue and make sure you are satisfied. Obviously, and as you know, each card has a cost assigned by Visa, Mastercard etc.. The bulk of the cost for any merchant to process coonsists of fees paid directly to the card companies. I am aware, based on what you wrote, that you understand this as well. Surely you cannot expect a procesor to pay you to accept credit cards. On the other hand, I want you to know that I am sure we can find an amicable resolution. Please feel free to contact me at any time to gain closure on this issue.
Contact info :
PH : 646-274-1620
EMAIL : Mike@redpayments.net