Summit Merchant Solutions Review

Merchant Maverick's Rating: (2 out of 5)

Last Updated: February 7th, 2012.

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Overview:
Summit Merchant Solutions (SMS) is a subsidiary of First American Payment Systems (FAPS), and is part of a three company conglomerate including TransTech Merchant Group and Certified Payment Processing. They have been in business since 2005 (according to the BBB) and are based in Carrolton, Texas.

SMS and its sister companies have racked up quite a few complaints in the past few years. I found some commonalities amongst those complaints, so be sure to read the Common Complaints section below to learn more.

Additionally, a merchant account with SMS carries a hefty early termination fee (see Cancellation Fee) that can cost a merchant hundreds, if not thousands to get out of.

Given the large number of complaints, and expensive cancellation fee, I can't in good conscience recommend SMS as a good processor. My suggestion would be to find someone else.

Summit Merchant Solutions gets a 2 out of 5 rating.

Date Established:
2005.

Location:
Carrolton, Texas.

Domain Name(s):
www.sms-360.com

Parent/Partner Company:
Summit Merchant Solutions is owned by First American Payment Systems, and is part of a three company conglomerate including TransTech Merchant Group and Certified Payment Processing.

Type:
ISO/MSP.

Acquiring Bank(s) (Acquirer):
Fifth Third Bank.

Payment Processor(s):
First American Payment Systems.

Payment Gateway(s):
Authorize.Net or FirstPay.Net 2.0.

Do you need help setting up your payment gateway with your website? Click here.

Trust Symbols:
You can find the Summit Merchant Solutions BBB profile here. They have a "D+" rating and 36 complaints as of this update.

Negative Reviews/Complaints:
Look here and here for negative reviews and complaints against Summit Merchant Solutions. They also have a Yelp profile.

You can also search for reviews and complaints related to SMS's sister companies TransTech Merchant Group and Certified Payment Processing.

Common Complaints:
Here are some common problems that you may want to look out for...

• Expensive terminal lease contracts through Merimac Capital: Looks like Summit Merchant Solutions likes to push credit card machine leasing. Leases are a big money maker for processors that push them, but because they're so unfair to the merchant, most of the honest processors have walked away from them. A terminal lease usually carries a 4-year contract, which can be extremely expensive to get out of. Nowadays you can buy a terminal outright for far cheaper. Leases only make sense for very large organizations that need multiple terminals and don't have the upfront capital to purchase them.
• Large number of complaints from former sales reps: Whenever I see a high number of complaints from sales reps, it tells me that the company is running a "churn and burn" type operation. The goal being to get as many commission-only independent or in-house sales agents under the SMS banner, then letting them loose. The focus becomes quantity over quality. That's always a bad recipe for the merchant because usually these reps aren't educated enough and end up signing you into bum deals due to the lure of a fat paycheck.
• High cancellation fee: Here's what the Summit Merchant Solutions agreement says about their cancellation fee; "MERCHANT agrees to pay bank/processor early termination fees established by Bank, but in no event less than four hundred ninety five dollars ($495.00) for each MERCHANT location, plus any and all losses (including consequential damages and loss of profits, costs, expenses, and liabilities) incurred by Bank in connection with termination." So, bottom line is that you'll pay a MINIMUM of $495 to break your contract...most likely more than that.
• PCI compliance fee: A few of SMS's merchants are having an issue with the annual PCI compliance fee of $124.74. Although PCI compliance is necessary for anyone that plans on accepting credit cards for their business, SMS is not required to charge their merchants any type of fee for that compliance. So, contrary to what you may have heard, processor's are not required to pass that charge on to you.

Verifiable Testimonials/References:
No verifiable testimonials on the Summit Merchant Solutions website.

Security/Privacy:
No on-site security features (i.e. McAfee, Security Metrics etc...). The security issue really depends on what kind of information the merchant account provider is collecting from you. If they require you to fill out a full digital application with sensitive info like SSN numbers, then they should definitely have some third-party security in place. Sometimes, and in the case of Summit Merchant Solutions, the initial contact form only requires some basic info, then the real application is taken care of by fax or later on through a secure online app.

Customer Service:
I haven't dealt with SMS's customer service, so it's difficult for me to make an assessment here. If you've been a customer of Summit Merchant Solutions, please let us know.

Contract Duration:
3-years (auto-renewing).

Cancellation Fee:
No less than $495.00 for each location including consequential damages and loss of profits, costs, expenses, and liabilities. This considered a Liquidated Damages type contract, and can be especially expensive to the merchant.

Interchange-Plus Pricing:
Interchange-plus is offered by SMS.

Seasonal Downtime:
Seasonal downtime is also offered by SMS.

Product/Service Offering:
Retail (Credit/Debit), Online/e-Commerce Payments, Secur-Chex, Gift & Loyalty, ATM, Cash Advance, Recurring Billing.

Product/Service Specialty:
None.

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