Flagship Merchant Services Review
Merchant Maverick's Rating: (4.5 out of 5)
Last Updated: June 1st, 2011.
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Overview:
Flagship Merchant Services has been in business since 2001. They're based out of Charlestown, Massachusetts and have boarded about 120,000 merchants since they opened their doors. That's a pretty decent sized company.
Even though they're a bigger company, they still don't have very many complaints against them. I've seen much smaller ISO/MSPs that have racked up BBB complaints in the triple digits, but Flagship is still in the low 20's (see here). That's good news!
They do have a few complaints against them on RipOffReport.com, but those complaints lack any type of consistent pattern. What that tells me is that Flagship merchants don't have any regular or recurring issues that you should be concerned about.
With that said, It seems that Flagship charges a PCI compliance fee (around $100/yr), but you can get out of it if you just do a little work on your end. Visit the PCI Security Standards Council website. Learn about the Self-Assessment Questionnaire, and make sure that you're compliant. If you are, then you can provide the necessary documentation to Flagship, and they'll most likely waive the fee. Talk to your rep to learn more.
Here's what I like about Flagship...
To start off, they've been around since 2001, and even though they do have some complaints, those complaints aren't nearly as much as I'd expect Flagship to have. Especially since they're one of the larger ISO/MSPs out there.
Secondly, they don't lock you into a contract like most other providers, which is a huge plus! (As always, double check your contract just to make sure. Generally, you'll find all the info you need in the "Termination" section of the agreement.)
Finally, they offer interchange-plus pricing, and they don't seem to push the bogus terminal lease programs that other ISO/MSPs rely on.
Finally, they have a Facebook page, Twitter account and LinkedIn profile, although all of them look pretty dormant right now.
I'm gonna keep my eye on Flagship to see how they do. Until then, it's 4.5 out of 5.
Feel free to let us know your experience with them.
Get Started With Flagship Merchant Services | Need More Help? Click Here
Date Established:
2001.
Location:
Charlestown, Massachusetts.
Domain Name(s):
- www.cardservicesales.com.
- www.flagshipmerchantservices.com.
- www.flagshipmerchantservice.com.
- www.flagshipmerchantaccounts.com.
Parent/Partner Company:
Flagship Merchant Services is the DBA of CardServ Inc.
Type:
Registered ISO/MSP under the name CardServ Inc.
Acquiring Bank(s) (Acquirer):
Wells Fargo Bank.
Payment Processor(s):
First Data or iPayment.
Payment Gateway(s):
Authorize.Net. Do you need help setting up your payment gateway with your website? Click here.
Trust Symbols:
The Flagship Merchant Services BBB profile has an "A+" rating as of this review, with 21 complaints in the last 36 months.
Here's the Flagship Merchant Services corporate info. Flagship's corporate name is Cardserv, Inc., not to be confused with CardService International, Inc., which is a property of First Data Corp.
Negative Reviews:
RipOffReport has a few complaints along with this one on ComplaintsBoard.com.
You'll notice that three out of five of those ROR complaints are by the same person. You'll also notice that hardly any of those complaints have any type of rebuttal submitted by Flagship Merchant Services...not good.
Common Complaints:
The only similarity that I found between most of the negative reviews was that the merchant's issue was with Flagship's processor First Data. For one reason or another, First Data shuts the merchant down, and Flagship ends up taking the heat.
I'm not protecting Flagship here, but facts are facts. ISO/MSPs hardly have any say in what the banks or processor's do.
The only other issue that has come up has been with their PCI compliance fee. You can get out of paying that fee though, if you show Flagship that you are PCI compliant. The best way to do that is to visit the PCI Security Standards Council website, then take a Self-Assessment Questionnaire that will tell you what you need to do to get compliant. Once you are compliant, you can show proof to Flagship, and they should waive the fee.
Verifiable Testimonials/References:
There are quite a few testimonials on the Flagship site, but none of them have any business related info, so they're hard to verify. Be sure to ask for references.
Security/Privacy:
The Flagship site is secured by Security Metrics.
Customer Service:
Haven't had a chance to deal with their customer service, so don't forget to leave us a review if you have.
Contract Duration:
No contract length. Just make sure you verify that with your rep, and review it in your contract.
Cancellation Fee:
No early-cancellation fee.
Interchange-Plus Pricing:
Interchange-plus pricing is offered by Flagship.
Seasonal Downtime:
Seasonal downtime is also offered.
Product/Service Offering:
Retail, Wireless, Restaurant, Mail Order/Telephone Order (MOTO), e-Commerce, eCheck, Petroleum Cards, Hotel/Lodging.
Product/Service Specialty:
None in particular.
Don't forget to leave your review and rating in the comment section. 
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December 12th, 2009 - 23:03
Thanks for posting this review (I asked about them a month ago)! I actually went with CDG but I had talks with Flagship and they were very helpful. Either one seems good.
December 13th, 2009 - 00:08
Hi Guy!
Sorry about the delay. Who would’ve thought gathering and researching data on the internet would be so time consuming.
I also had a few other requests in the pipeline, so I couldn’t get to Flagship sooner. I hope everything works out with you and CDG. It’s a bit early right now, but at some point, I’d love to hear how your experience with them plays out.
http://www.merchantmaverick.com/reviews/cdg-commerce-review/
June 18th, 2010 - 12:37
Hi,
Now I concerned. In good faith, I just gave all my info to this company to get credit card processing ability, since the Top Ten Reviews website had such rave stats for them. Do I have reason to be concerned??? I can’t have this become a nightmare in my life. I am very anxious now.
June 18th, 2010 - 13:07
Hi Cindy,
I don’t think you should be worried. Just because they’re not a 5 star provider on my site, doesn’t mean that they are bad. I gave them a 4 out of 5, which is still pretty good. So long as you do your own due diligence, then you should be fine.
From my experience, the two most important areas that you want to focus on are:
1. What are all of my fees? Be sure to verify them on your contract.
2. What is the contract duration, and cancellation fee? Usually found in the “Termination” section of your contract.
Feel free to contact me if you have any specific questions.
June 18th, 2010 - 13:58
Merchant Maverick,
Thanks for your very quick response and helpful, I might add! I just called my bank and asked them if the information I gave earlier today to Flagship Merchant (without naming any names) is legit and what they would require in order to get the processing started and they said yes. My bank might have a few different ways to get the account approved initially, she said, but what was asked of me wasn’t out the ordinary.
I am feeling somewhat better so I can rest easier thru the weekend til Monday.
Thanks much!
July 23rd, 2010 - 20:22
I wanted to comment on the ripoffreport.com complaint. I started a correspondence with Flagship, but I got cold feet after reading the ripoffreport. I was asked why not go through with the application, and I thought Ross at flagship was worth an explanation as he did handle himself professionally.
I wrote very bluntly about how the ripoffreport made me feel as a potential costumer. I mentioned that not responding to the complaint made me feel uneasy. I treated the info as “unchallenged allegations.” I stated that if the allegations were true, it made me worry for the type of treatment described.
Moreover I pointed out that the complainant is allegedly unemployed.
Ross pointed out that the claims made are not congruent with the BBB rating and the lack of complaints. He also cited our brief conversation where the non-charging of fees thing was not mentioned. To which, I must confess is a valid point (or if he did mention it, I don’t recall it).
With that said, I would like to see flagship offer this guy a chance to produce a W-2 to show that he was unemployed. If so, I know that it is not Christmas, but I just feel for unemployed people. Because some unemployed people are entrepreneurs with no funding, I think that everyone with an interest in this website can relate to him.
September 27th, 2010 - 17:10
Do not use flagship or first data who handles the backend processing for flagship. They will shut down your merchant account over any miniscule excuse they come up with (not knowing the last four digits of your new business’s tin). They will then keep your money for six months. Look up flagship and/or first data merchant services on ripoffreport.Com or just google them. Stay away!
September 30th, 2010 - 00:35
Thanks for the review Seth. I did the honor of removing the caps lock from your comments. I’m not a big fan of all caps.
Out of curiosity, the account that Flagship shut down, is it the Child Custody site that you have as your web address? If so, I can tell you that those types of industry’s are always being scrutinized. Especially, by processor’s like FD. You may have some more luck going with a high risk provider. They’re used to dealing with your business model, and won’t freak out at the drop of a hat.
October 6th, 2010 - 21:31
First of all they started taking money early…of course they blame that on me even though I told them we would not actually be operating for weeks and I was just wanting to be prepared. Secondly they take more than they are supposed to out of my bank ( extra debit card fee and minimum balace fee even when minimum reached and a CD fee?) and then on what they do admit to being wrong about take several weeks to refund or rather it has been weeks and I am still waiting.
November 20th, 2010 - 20:39
I’m told that by the Flagship rep that I have been in contact with that they also use iPayment as a processor in addition to First Data. As many reviews state, many users have had all sorts of horror stories with First Data and I want to stay as far away from them as possible. That being said, do you know about iPayment as a processor? I haven’t been able to dig too much up on them.
Thanks for the great resource Mav!
November 29th, 2010 - 12:17
Hi Jay,
I’m actually working on a review of iPayment, so stay tuned.
December 30th, 2010 - 12:34
I had the same question. Searching iPayment seems to produce just as many complaints as for First Data. I also see iPayment in fact purchased a large portion of business from First Data. So it is not clear that there is any real difference between them.
March 3rd, 2011 - 12:42
I just signed up for a merchant account with flagship, and they did sent me a welcome letter via post to my address, including a CD (for Guide) and some other papers confirming my processing rates etc…
The strange part is that i find “iPayment” logo on their welcome papers, Because actually i was thinking that they are a FirstData company.
Anyways, I am still confused about if i should go with them or no. they just have some bad reviews (with no good reviews at all), and moreover “iPayment” have TONS of bad reviews.
I do web hosting, i don’t want to get suspended by them like Seth said. and freezing my money for 6 month.
Anybody can help? is there some more reviews about them? what do you guys recommend me? go with them or no?
Thank a lot!
March 22nd, 2011 - 11:11
I have been going back and forth comparing Flagship with Chase PaymentTech. The service reps at both have been very helpful and surprisingly accomodating to all my questions. And both have dropped fees/rates to match the other. The big issue for me is that I have no experience in this part of business and tend to be skeptical of larger businesses like Chase – especially when they require such a lengthy contract. Flagship seems like they’ll treat you as less of a number and has no contract but can’t quite meet Chase’s lower monthly fees. They both rate rather high. How do you weigh the impact of the types of complaints each get? How often would you expect to need customer service contact? Should the First Data complaints be a big concern? And is a 3-year contract with Chase excessive?
April 5th, 2011 - 16:39
I am talking to flagship rep and he says no contract that i can go month to month is that true
April 6th, 2011 - 23:47
Thomas,
From what I know, Flagship does not have a contract, so you’ve most likely been told the truth. Always double check your agreement though.
May 19th, 2011 - 14:20
Flagship does not care about the service they provide. They sell you a package and your bank statement reflects something different. They are not good in responding to emails. They prefer to do sales and after you locked in with them, they brush you aside and tell you something different and explain that the additional charges, is due to when you activated the account, you did not check off some of the boxes. They do provide the best rates, but the best rates dont give you the best service. And when you get that additional charges, they have some way of telling you is protection program that just come into effect. There is always a story behind the additional charges.
I have emails back and forth with them since I started my account, at this point, I am going with my own bank even the charges are higher, so I dont deal with the middle man
June 13th, 2011 - 17:17
Horrible!!! I have received so many extra fees, that all my profit is going to them. They forgot to mention a $99.95 yearly fee that they charge plus a security service you have to take and if you do not they charge you $19.95 every month until you do. Stay away for your own good.
June 27th, 2011 - 23:38
I do also get $99 fee (they didn’t tell at first) for annual compliance fee, plus $19.95 additional fee if you are not pci-compliance, means you don’t pass the security questionaire. I am relieved to switch to [name removed] now since they offer lower rates and no hidden/pci fees.
July 27th, 2011 - 12:48
I found out that this PCI-Compliance fee of $99 is charged by every credit card processing company. The $19.95 fee they charged was for not filling out the form. When I did fill out they returned that $19.95 back to me.
I called them today and they were actually very nice. Since my business is very small i was able to negotiate a better rates for myself. They were very helpful.
I retract my previous statement that they are Horrible. They are actually not so bad
November 23rd, 2011 - 11:19
I used this merchant for our credit card processing and only after losing my business (and home) in a fire, including both retail and virtual terminal merchant account numbers, did I find out I wish I had gone with a different vendor. I didn’t have the contact info for the gentleman (a great guy) who handled the account setup and that I usually called with general questions, so when I needed to call to shut down the accounts after deciding to close the business, I called the 800 number listed at the top of the website. I figured that would at least get me in and they could re-direct my call to the appropriate department from there.
The only information available to give was my name, social security number, and business info. The man I spoke with couldn’t have cared less about trying to help. When I said I didn’t have the merchant account numbers his first reaction was to tell me I didn’t have an account with them. After explaining that I must still have the account because I was still being charged, he disagreed because the charge wouldn’t show up as ‘Flagship,’ which was a ridiculous argument! I asked if he could at least get me contact info for authorize.net to help in some way and after saying they don’t do business with them, he gave me the number to call to cancel their virtual terminal linked to the Flagship account. If they don’t to business with them why did he have the number right in front of him?!?
I hung up after bursting into tears. All I wanted was some help. I scoured old emails and found the application number from when we first applied for the accounts. I called back, got someone different who brought the accounts right up, without the application numbers mind you, and directed me to exactly who I needed to talk to.
Overall, the service we’ve received from this company was good, but one bad apple ruins the bunch. We just lost our house, all our memories, and our business in a fire. The last thing I needed was a poor attitude from someone who’s job it is to help paying customers, and by poor attitude I mean flat out rude and unkind. It reflects poorly on the employee and on the company, because of that, I can’t recommend Flagship Merchant Service. If you’re considering them, keep looking.
November 23rd, 2011 - 11:46
Worst company you could ever possibly deal with. Absolutely horrible customer service. Hidden fees. They do not care about you as a client at all. DO NOT USE THIS COMPANY. FIND SOMEONE ELSE and save yourself a lot of frustration, time, and money.
December 12th, 2011 - 04:08
I love flagship, and all they have done for me. Been with them for about 9months. Had a wireless credit card terminal with them for the first 3 months, and had an authorize.net gateway since month 3. My rep, [edited: name removed], is awesome.
I have been happy with everything…except their use of ipayment as the processor. I HATE them so far. They don’t inform you about much. I have to call them on almost a monthly basis. They charge my bank account before I get the statement…and its never what I expect. After two months of goofiness, I called to see why it cost so much. I was informed of some pci compliance things. wasted a bunch of time getting compliant and getting monthly charges back to normal. Then, this month, they charged like $120. $100 more that “usual”. So, I call about a week after this change (waited a week cause that how long it took to get the statement in mail after they charged me). Their statements make NO sense to me until I get to the summary section: $20.xx in processing fees (the breakdown of “processing” fees I can’t understand cause that’s in the body of the statement which just looks like babble to me) and the $99 for additional fees*. that asterisk led me to a note saying “for an explanation of additional fees, call us at xxxxxxxxx”
flagship: awesome
authorize: nothing special. have called multiples times, and on 2 occasions my rep had no idea what she was saying, and I was transferred to someone who did (had problems accepting amex a few times).
ipayment: customer service is awesome. you call, someone picks up, they ask for merchant id, they confirm your id, then ask what’s up. but that’s it…everything else sucks. what I don’t like about ipayment is their crappy statements that seem to be generated in excel1982 and their general lacking of the pertinent information. From what I’ve learned and gathered, ipayment is for bigdawg businesses processing more than the “measly” couple grand that I do each month…often less than a grand on bad months. it takes up way to much of my time just to make sure I save the $30 non-compliance fee. ipayment control panel has a login, the pci compliance has a whole other login, then there is another one that you need a login for. Can it just be built it?