Complaint Review: US Merchant Systems LLC

December 3, 2013

We were told that this credit card clearing service, US Merchant Systems, LLC was going to cost less money to use than our existing Bank of America credit card clearing service.  After signing a contract, paying startup fees and buying an expensive terminal machine, we then uncovered that the claim of saving was not true.  

The rate for credit card clearing services was higher, the cost of the machine was an expense versus a free machine from Bank of America and US Merchant Systems, LLC charged a monthly fee which was not charged and is not charged by our bank.  In all ways, the claims of of savings by the sales person representing US Merchant Systems, LLC were false.

When we called US Merchant Systems, LLC, and explained that we were not using their service, we never consumated the transaction through use and that the salesperson repurchased the new terminal for less than what it had been purchased for in the first place, there was no forgiveness.

The company acknowledged that we had not used their service and they offered to accept a "buyout" for substantially more than the remaining term of service.  Further, we were told that we had to notify the company, in writing, of our desire to be rid of their monthly fees or we would automatically be obligated for yet another term.  We found that US Merchant Systems, LLC is the kind of company that is exposed on programs such as 60 minutes.

This company is deceptive in their false claims of savings.  This company binds small merchants to onerous contractural conditions that are not reasonable in length of term and that are not in the best interest of the unsuspecting business owner who is led to falsely believe that the services provided by US Merchant Systems, LLC will save money when in fact, the opposite is true.

In addition to sign-up and one-time processing fees, a merchant is required to purchase new equipment which is priced higher than identical equipment provided by reputable banking firms.  In our case, we will pay $26 a month for 36 months which is an additional $936 in expense up and above any processing fees and over-priced terminal fee.  Does this sound like savings to you?

Consider:  You will pay startup and one time registration fees.  Then, you will need to purchase a new terminal which is priced substantially higher in price than identical equipment sold by reputable banks and credit clearing services.  There's even more.  You will then pay $over $936 for three years in monthly service fees which are fees not charged by a bank.  Tat's not all.  After all the sign-up fees, terminal equipment purchases and monthly fees for three long years, then you will additionally pay a higher rate to clear credit card charges than what you would have paid to a bank for the same services.

We were suckers.  We were stupid.  We were duped.  We were misled.

I caution anyone who is thinking of signing a contract with US Merchant Systems, LLC to think twice before believing their unethical sales pitch of savings and/or signing their onerous, long-term contracts which are written to only benefit US Merchant Systems, LLC but do not benefit the unsuspecting merchant.

Buyer beware of US Merchant Systems, LLC.