TransFirst Merchant Services Review
Merchant Maverick's Rating: (3.5 out of 5)
Last Updated: June 26th, 2010.
Overview:
TransFirst is an ISO/MSP that has been around since 1995. They're headquartered in Hauppauge, New York, but have offices in a few different states. They're one of the larger processors out there with $30 billion in transactional volume per year (as of this update). They also own the ISO/MSP by the name Merchant Accounts Express (aka Merchant Express), and have other ISOs (Independent Sales Organizations) and ISAs (Independent Sales Agents) that resell their payment processing services. To get a better idea of where TransFirst fits into the whole process read this article.
Putting all of that aside, let's check out some other things about TransFirst...
For a processor of their size, their complaint and negative review count is pretty low. Even though I don't place that much weight on an ISO/MSPs complaint count alone, I've seen other processors of the same size or even smaller have a ridiculous amount of complaints, so it's good to know that TransFirst is at or below average with theirs.
Speaking of complaints, TransFirst could be doing a much better job at publicly responding to any negative feedback that they're receiving. As of now, they're not really submitting rebuttals to any of the complaints on sites like RipOffReport and Complaints Board. Granted, some of those complaints could be completely falsified or erroneous, but a few of them do address some really important issues like the auto-renewal of the TransFirst contract.
Binding a merchant into a contract is less than ideal, but auto-renewing that contract once it's up, is even worse. By doing so, the processor is basically betting on the fact that either the merchant doesn't know about the auto-renewal, or is too lazy to do anything about it. By transferring responsibility over to the merchant, they have an airtight excuse..."Sorry sir/ma'am, your contract clearly states that you need to notify us in writing that you want to cancel your 3-year term with us within 90-days of its expiration, otherwise your contract will auto-renew for another year." Not cool!
Moving on...
I definitely would like to see some fully disclosed testimonials and/or case studies on their website as well. I know they have some testimonials on their subsidiary website (www.merchantexpress.com), but those don't have the merchant's full-name and company name, so they don't count.
You can find TransFirst on Twitter and Facebook.
They get a 3.5 out of 5 for now.
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Date Established:
1995.
Location:
Hauppauge, New York (corporate headquarters). You'll find a full list of their other locations directly on the TransFirst contact page.
Domain Name(s):
- www.transfirst.com.
- www.transfirst.net.
- www.yestotransfirst.com.
- www.paymentresource.com.
- www.transfirstsales.com.
Parent/Partner Company:
TransFirst Holdings, Inc. is the parent company. They have several corporate and technology partnerships with other entities as well. You can see all of them by visiting the TransFirst website.
Type:
Registered ISO/MSP.
Acquiring Bank(s) (Acquirer):
Fifth Third Bank, Merrick Bank and Columbus Bank & Trust.
Payment Processor(s):
TransFirst is the processor.
Payment Gateway(s):
Transaction Central or Authorize.Net.
Do you need help setting up your payment gateway with your website? Click here.
Trust Symbols:
The TransFirst BBB profile has an "A+" rating as of this review, with 74 complaints in the last 36-months.
Negative Reviews/Complaints:
You'll find an average amount of complaints on the usual sites like RipOffReport and Complaints Board. Not too out of control though.
If you read through them, you'll also notice that a few of those complaints are actually directed at a reseller of TransFirst (Universal Merchant Services Corp.). I'll try to write a review about UMS soon.
Common Complaints:
Here they are...
- Expensive terminal lease contracts through Lease Finance Group (LFG) and Northern Leasing: It is well known within the industry that terminal leases are a big money maker for sales reps. They usually come with a 4-year contract, and can cost you a ton of money. I've actually seen similar complaints against Lease Finance Group (LFG) and Northern Leasing when doing my review of Pivotal Payments and EVO Merchant Services. My advice, avoid terminal leases unless absolutely necessary. Rarely have I seen a merchant that cannot afford the $200-$400 that it will cost to just buy a terminal outright.
- Undisclosed contract terms: The truth is that most sales reps are going to avoid talking about contract terms regardless of which provider you go with. They want you to sign up, so it's to their benefit to just stay hushed in that regard. I think a little vigilance on your part will go a long way though. And, if you're reading this review, then none of TransFirst's contract terms should be a surprise to you (see below).
Verifiable Testimonials/References:
No verifiable testimonials listed on any of the TransFirst websites. I would expect a company as large as TransFirst to invest some time and resources in building out a nice "success stories" section, but as of this update, they don't have anything.
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 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 TransFirst, 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:
Have you worked with TransFirst? Feel free to leave us your review. Don't forget to read the user review and comment policy.
Contract Duration:
Here's the exact wording from the TransFirst contract:
Term/Renewal. The initial term of this Merchant Agreement shall be for the term of three (3) years (the “Initial Term”) commencing on the date this Merchant Agreement is executed by authorized officers of Merchant Bank and Processor. At the expiration of the Initial Term, this Merchant Agreement will automatically renew for successive one (1) year periods (each a “Renewal Term” and collectively with the Initial Term the “Term”) unless a party provides the other parties with notice of its intent not to renew this Merchant Agreement at least ninety (90) days prior to the expiration of the then current term.
Cancellation Fee:
There are actually a few different cancellation fees depending on which contract you get. I was able to pull three different versions of the "Damages for Early Termination" clause in their merchant agreement (PDF) from off of their site. I've uploaded them to my site so you can take a look. Here they are:
I've also copied snippets from each of those contracts so you don't necessarily have to download them if you don't want to.
Version #1
(d) Damages for Early Termination.
(i) Bank and Merchant acknowledge and agree that in addition to all other remedies available to Bank under this Merchant Agreement or as otherwise available in law or equity, if this Merchant Agreement is terminated prior to the expiration of the applicable Term of the Merchant Agreement for any reason other than for a material, uncured breach by Bank, Merchant agrees to pay Bank damages (the “Damages”) determined by:
(ii) computing the number of months remaining from the date of termination to the end of the then current Initial or Renewal Term; and
(iii) multiplying that number by the Merchant’s minimum monthly fees; and
(iv) adding an account closure fee as follows: (1) $250 for Merchants with less than twelve months remaining from the date of termination to the end of the then current Term, or less than $33,500 in average monthly processing volume; (2) $500 for Merchants with twelve to twenty four months remaining or between $33,500 and $50,000 in average monthly processing volume; or (3) $1000 for Merchants with more than twenty four months remaining or greater than $50,000 in average monthly processing volume.
Version #2
(d) Damages for Early Termination.
(i) Bank and Merchant acknowledge and agree that in addition to all other remedies available to Bank under this Merchant Agreement or as otherwise available in law or equity, if this Merchant Agreement is terminated prior to the expiration of the applicable Term of the Merchant Agreement for any reason other than for a material, uncured breach by Bank, Merchant agrees to pay Bank damages (the “Damages”) determined by adding an account closure fee as follows: (1) $250 for Merchants with less than twelve months remaining from the date of termination to the end of the then current Term, or; (2) $500 for Merchants with more than twelve months remaining.
Version #3
(d) Damages for Early Termination.
(i) Bank and Merchant acknowledge and agree that in addition to all other remedies available to Bank under this Merchant Agreement or as otherwise available in law or equity, if this Merchant Agreement is terminated prior to the expiration of the applicable Term of the Merchant Agreement for any reason other than for a material, uncured breach by Bank, Merchant agrees to pay Bank damages (the “Damages”) determined by adding an account closure fee of $495, unless such termination occurs either within fifteen days of any increase in Processing Fees or in any of the thirty days prior to the end of the then current Term.
Interchange-Plus Pricing:
Interchange-plus is offered by TransFirst.
Seasonal Downtime:
Seasonal downtime is also offered by TransFirst.
Product/Service Offering:
Retail (Credit/Debit), Online/e-Commerce Payments, EBT, Point-Of-Sale (POS), Mail Order/Telephone Order (MOTO), Wireless, Cash Advance, Check Services, ACH Processing, Gift & Loyalty, Recurring Billing.
Product/Service Specialty:
None.
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October 29th, 2010 - 14:53
I have to use Tranfisrt as our processer through US merchant Services. First off all, because of changes on the way we process credit cards, I did not need 3 accounts with Transfirst. It took over 3 months to cancel both of these accounts.
Also, they started charging us breach insurance on all 3 accounts. Which I was asking for a refund, because we use a Gateway and don’t need that coverage.
Also they were charging us $25 per month on each account for Minimum Discount Due. These additional charges just started to show up and my Rep from US Merchant that these were not warranted. I did receive credit for the 3 months on 1 of the accounts I closed. But none so far from the others after several attempts. These guys have terrible customer service and still owe us $611.10. So I say avoid this processor art all cost.
April 18th, 2011 - 09:23
I asked my Merchant Express rep 6 times in writing about the fees and costs involved and was never disclosed a single term before the service was activated, without any schedule or setup process disclosed or explained to me. I can’t even remember signing a contract, I certainly have no copy of one. The kicker is, I came to Merchant Express (from Bluehost where I had a 3 year term waiver) through a friend who referred me to the same rep. I was promised the same deal he got and he received a Addendum to waive 3 year terms and any early termination fees, but she did not provide a copy to me for my business. In addition she is non-respondent now in spite of still being employed by Merchant Express. So I have sent them notice of my intention to file a claim against them if they do not cancel my account without incurring an ETF fee. You should not put the burden of terms review on the customer if they were not disclosed anything even after requesting it in writing 6 times! Transfirst and Merchant Express are clearly participating in deceptive business practices and should be required to disclose terms upfront in simple language just like the credit card companies are. Until my situation is resolved, I believe this company is abusive and would not award them any stars for anything.
April 20th, 2011 - 15:05
Good news! I received a prompt call from Transfirst after sending them a very specific complaint with evidence. They waived the ETF fee. I am happy with the way I was treated and am glad they reconciled their mistakes. I would encourage anyone who is signing up for cc processing to be very careful in reviewing the terms of the agreement in their entirety, page for page.
September 27th, 2011 - 21:31
Most likely you did not sign anything. They claimed I approved with an “electronic signature”. The contract was in an email that fortunately, I never opened. And when questioned they claimed I approved and gave me my IP address. I’m sure they logged the IP address when I looked at the contract 3 weeks after they claimed I signed it.
Something needs to be done about this. I see this as a form of identity theft.
August 10th, 2011 - 12:32
I have never felt so abused by a business partner. I tried on multiple occasions to terminate but the termination fees kept changing. I was finally able to get terminated and a month later they pulled additional funds from my account. When my relationship manager finally called, she spoke in circles, compounded lies and threatened me with collections. I would not recommend this processor to anyone.
August 15th, 2011 - 11:19
We called Transfirst and talked to a [name removed] there, I described our business in detail, (an internet cigar store based in the USA, for off shore customers) He reassured me that they did service this type of high risk account . I explained to him that we needed to get this going because we lost a good month with US bank who said the same thing and then found out last minute after we went through the entire application process ( 30 days worth) they do not cover internet cigar stores that are offshore. I explained we did not and could not waste this time again, was he sure, yes he was sure. We waited 4 days, though it was only supposed to be 2 days, no answer. I called last Friday left a message, no response. I called again late Monday morning around 11:00 am ( one week after we initially applied) He seemed surprised to hear from me, said he was out on Friday and then tried to call us back this morning to our business line and it was disconnected. This I am quite sure was a lie, our business line had no problem getting calls from other people and we are not on it much at all since we are just starting up. He then informed me ( one week had passed since we applied) that they Do NOT cover offshore customer based, internet cigar stores. Then he tried to direct me to their companie’s sister company, Durango Merchant Services here in Colorado and said more than once that they do in fact service this type of business. Well I called Durango Merchant Services and they do not… no big surprise. Once again [name removed] did not know what he was talking about. Be careful when you call these people, the customers service reps that are answering the phones really don’t know their job or what they are doing. If you have time to waste, then take a chance and apply with them, but you will most likely have to call them back. They will not call you back if you are not approved . They just don’t do that here. Now between them and US Bank we have lost 5 weeks trying to find a merchant when this could have been easily answered from the first phone call, had [name removed] known his job.
August 15th, 2011 - 13:16
Jean,
I’ve removed the sales rep’s name per my policy, but your message is still clear.
Thanks for the review.
August 15th, 2011 - 15:12
that’s fine, I did not realize the customer service person’s name could not be mentioned. Thanks for fixing it.
September 24th, 2011 - 17:50
I’ve worked with several merchant processors over the last 15 years. I made a huge mistake of signing up with TransFirst. They are the absolute worst of them all. They screwed up the descriptor which caused a higher charge back ratio, and instead of addressing the problem as a business partner, they shut down the account without notice, held all the funds, and TMF’d the company. After 15 years of business, just having Transfirst as a processor for less than 6 months, they almost put me out of business. They should be sued for what they did. My advice is do not do business with Transfirst.
September 27th, 2011 - 21:24
I applied for services and during the process Transfirst sent me an email with a contract. When you clicked the link to “begin signing” you immediately signed without seeing the contract (the contract was on the following link).
Fortunately I did not even open the link because I had already found another company. About 3 weeks later, they just sent me a credit card machine, even though I never responded or sent them the information they required. The sales person on the phone said they had an “electronic signature” which I had approved on the telephone. I informed him my state did not allow telephone contracts. I then checked my email and found the contract, unopened. The company claimed they had an electronic signature, logging from my IP address. This was absolutely impossible because I never opened the email until 3 weeks after they claimed they got the signature.
So my question is did some employee just hack and get my “electronic signature”? Or does the company employ such tactics. I can not imagine trusting this type of company with secure information. I am going to change my bank account to prevent them from committing more fraud. The company would never admit they did not have a legitimate electronic signature, even though they cancelled the agreement. However I have to pay the postage to return the credit card machine, which I never ordered.
Surely someone like the FCC should step in and investigate this company.
September 27th, 2011 - 21:26
Giving them a rating of 1.
October 10th, 2011 - 11:05
I wish I had never switched to this company, they are terrible to deal with, and their sales person basically lied to me. I told him I would only switch if I could get better rates and a waiver of the PCI fee, the contract I signed even showed $0 next to the PCI fees. We are an online service and do not accept credit cards directly, so have absolutely no access to customer card info, and no need for the PCI protection.
After a couple of months I noticed I was being charged this fee and other fees I did not expect, and had never had to pay with my previous provider. I called them to complain, only to be told I had to pay the fee or cancel my service at a cost of over $500!
I will be making complaint through as many agencies and online rating services as I can find. THIS COMPANY CANNOT BE TRUSTED!!
October 10th, 2011 - 12:27
Avoid this company at all cost. They pitch a good game on how their fees are lower, and after you get started they raise them. They claim if you do not dispute the higher fees within 15 days you have no claim for voiding the contract. When I asked them to credit the annual administrative fee (paid forward) upon contract cancellation they would not do it. We call this a unethical business practice in my business, and if I did business this way, I would be out of business. Find a different processor.
December 14th, 2011 - 19:11
My experience with Transfirst has been horrible.
They have shown themselves to be totally incompetent and have erroneously de-activated my account two times – causing my company a huge headache.
On top of theat, their fees are random and exorbitant.
Stay away!