Complaint Review: Securus Payments - portland Oregon

We took over small business in 2012 in Hawaii.  We were approached by a salesman representing Securus Payments, an ISO who contracts with First Data as their merchant aquirer.  The salesman told the owner that Securus will provide him the lowest rates possible in the industry, much better than the previous service that was already in place when we took over the business.  He told the owner that the only way to get this extremely low rate was to sign on to a two year contract with Securus and a four year contract with First Data Global Leasing for the use their proprietary credit card swiper.

Since we were just starting out in business and did not know better, the owner agreed in good faith as to what the salesman was telling him was true.  We were not given the time to fully look at a contract in detail prior to the agreement nor were we given a copy of a contract after the agreement was made.  

Unfortunately, we went forth with the service since we were sent the card swiper from First Data.  As time passed, we noticed the addition of more and more fees. When contacted about the fees, Securus could not provide us with understandable reasons for the new fees.  After one year we tried to cancel the service but was told we would incur a large cancellation fee and that we would still be responsible for the First Data credit card swiper lease.  One inquiry made resulted in verbally abusive and threatening responses from Mr. Kunle, one of the top people at Securus.  Other inquiries resulted in absolutely no action from Securus, including the request for a copy of the actual contract agreement. 

We thought we were done with them this year but was recently told we had apparently signed on to a three year contract and that we would have to pay at least $400 to either get out of the contract this year or $419 if we remained in contract with them but did not use their services.  Either way, we were also responsible for the lease of a proprietary credit card swiper that normally costs $200 to buy regardless if we used it or not.  To buy out of the First Data lease would cost us $1098.02.

Since we were not able to resolve our problems with Securus,  we made a complaint to the Better Business Bureau about their unethical and exploitive practices.  But apparently, this company does not take complaints through the BBB either.  According to their CEO, Mr. Lemma (as stated in a published article in the Portland Business Journal in March 28, 2013) regarding his companies BBB rating of "F", he cannot be held responsible for his agents who sell his services.  He stated his company does their best to resolve complaints.  Unfortunately, if this is the best this company can do, this is a very sad reflection on their integrity as a company.

Since then, we have found out that most reputable merchant services will not make their merchants sign multiple year contracts and they will have the merchant buy their own credit card swiper that is reprogrammable.  They don't charge their customers "misc fee" and PCI compliance fees.  Nor do they charge early cancellation fees.   Securus and First Data prey on new merchants who are most vulnerable to their tactics due to inexperience in business and unfamiliarity with merchant processing. 

New business owners please beware of these companies and any merchant service processors who try to make you sign any long term contracts.  Don't let it happen to you!