Encore Payment Systems Review
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Title Test
- 53 comments
- Updated on:
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- Date Established
- 2004
- Location
- Addison, TX
NOTE: Encore Payment Systems appears to be out of business. This review is archived and will no longer be updated. Check out our Merchant Account Comparison Chart to find the best credit card processing company for your business.
Encore Payment Systems Overview
Well, they can’t all be winners…
Founded in 2004, Encore Payment Systems (EPS) is a merchant services provider based out of Addison, Texas. They also do business as Prodigy Payment Systems and Momentum Payment Systems – which is always a red flag for me. When a provider uses multiple business names to market very similar services, it’s usually a sign of trouble. This case, as it turns out, is no exception. The Encore Payment Systems “family” of businesses all have the same pitfalls.
Simply put, EPS is not competing at the same level as the best in the business, not even the same level as the average providers. Just look at their website. It’s difficult to use, has little useful information, and overall it does not provide the initial sales experience I consider appropriate for 2016. No important disclosures are made, and it seems there is little standardization across the sales experience. Mix that with poorly regulated outside sales reps and aggressively marketed terminal leases – and you have a recipe for sub-par service.
EPS likes to push a 4-year terminal non-cancellable lease, which can lock you into paying a ridiculous amount of money over the course of your contract. And what’s worse – sales agents will generally gloss over this information, leading to very surprised (and very angry) merchants down the line.
Another problem: They have a pretty aggressive recruiting program for outside sales reps. From my experience, the ISOs and MSPs that rely heavily on outside reps have a lot of customer satisfaction issues due to a lack of standardization and regulation. Don’t get me wrong – there are probably a few great sales reps at EPS, but do you really want to roll the dice on it? I wouldn’t, especially not when there are so many other great providers offering consistently good sales experiences.
Encore Payment Systems needs to update their sales practices, web presence, and contract terms if they want to seriously compete in this industry in the coming years. Smooth-talking salespeople will only get them so far. Any merchant who takes the time to shop around will almost certainly choose a different provider. I’m going to leave EPS at 2.5 stars for now, but – as always – I sincerely hope to come back to this review with good news.
If you can get a trustworthy local agent willing to modify any low-quality contract terms, then I don’t want to scare you away from that. It could work. But please – proceed with caution! And while you’re at it, take a moment to check out their competition.
Check out the full Encore Payment Systems review below for more information, and please leave your review as a comment!
Table of Contents
Products & Services
Based on all of the Encore Payment Systems sales information I’ve reviewed, the following brief list of services marks their core offerings:
- Merchant accounts: While the rep I reached out to told me that Encore is a direct processor, I’ve heard otherwise. At least one report cites Chase Paymentech as a possible processor for the Encore family of companies. If you have insight about this, please leave me a comment.
- Credit card terminal leasing: Specifically, their proprietary “Clear Advantage” terminal packages. These terminals tend to come with expensive 4-year, non-cancellable leases. While I don’t think terminal leasing makes a whole lot of sense for most merchants (read this), if you’re set on leasing make sure you understand all of the terms involved. For those who don’t want to lease their hardware, check out our recommendations.
- Check processing: They will lease you the necessary check scanning equipment.
- Gift card/loyalty programs
It’s a brief list, further illustrating the minimal amount of added value you’ll find with Encore.
Fees & Rates
Absolutely no standardized fees, rates, or contract terms are disclosed publicly by Encore Payment Systems. While it’s true that your rates will vary depending on your business type and processing habits, I would really like to see at least a few standard disclosures in the public sphere.
I can tell you that they charge a “security fee” (probably PCI) of about $100 annually. I don’t like PCI-compliance fees in general, and I would advise you to avoid them or at least set your max at $80 annually.
As always, I recommend you demand interchange-plus pricing for the fairest, most predictable, most transparent pricing.
Contract Length & Early Termination Fee
They like to call this a “deconversion fee” at Encore Payment Systems. But make no mistake: This IS an early termination fee, and it seems to usually be about $400-500. Contract length is usually three years and auto-renews for one-year periods thereafter, with a 60-day window for cancellation.
Sales & Advertising Transparency
An overall lack of consistency and standardization is the main issue in terms of sales and advertising transparency. Because Encore relies so heavily on outside sales agents who appear to be poorly regulated, you’re left rolling the dice. So while they don’t use overtly deceitful advertising online, at some point it becomes lying by omission. In terms of how Encore’s salespeople conduct themselves, I’ve heard mixed reviews.
I’d like to note here that you should always demand a complete copy of your merchant agreement and application for you to keep, and never sign on the same day as a sales meeting. Always take the paperwork home and look it over for a couple of days. Don’t succumb to high-pressure, limited-time sales pitches.
Also, for the record, you should be aware of the other domains that Encore sells through:
- www.encorepaymentsystems.com
- www.encorepaymentsystems.net
- www.momentumpayments.com
- www.prodigypay.com
Customer Service & Technical Support
Encore does not advertise much about its support systems. While merchants from the testimonials page seem satisfied (of course), their reputation around the web is less encouraging. A few merchants have reported developing satisfactory relationships with local account managers, but this doesn’t seem to be the standard experience.
Have you worked with Encore Payment Systems? Feel free to leave us your review. Don’t forget to read the user review and comment policy.
Negative Reviews & Complaints
The public complaints volume against EPS has increased subtantially since our last update, with 105 formal complaints in the past three years. But despite this and the fact EPS isn’t BBB accredited, it still has an A rating.
The most common complaints include:
- Expensive terminal leases: Here’s how it happens: A rep enters your store. They tell you that they can save you money on your merchant account. They tell you that they’ll also throw in a terminal that will cost you X amount per month. They also tell you that you have 60-days to cancel without any repercussions. What they don’t tell you is that there are actually two contracts. The merchant account itself (provided by EPS) is cancellable within 60-days, but the terminal that you’re paying that X amount for, carries a 4-year non-cancellable agreement. So you’re stuck, and EPS makes a nice profit. Many merchants have complained about getting stuck in lengthy terminal leases, which are very expensive to get out of. My recommendation is that you never lease a terminal unless absolutely necessary. Terminals are very cheap to purchase these days.
- Unsatisfactory customer service: A noteworthy percentage of reviews currently circulating cite poor customer support. If you have a serious complaint and can’t seem to get it settled over the phone, go to the BBB with it. Based on complaints I’ve read through the BBB, Encore is usually willing to compromise when you involve a third party.
- Poorly disclosed contract terms: This comes up a lot in regard to processing rates as well as early termination fees. Many BBB complaints cite inexperienced and fumbling sales reps who do not disclose many important contract terms, or even intentionally mislead merchants. Don’t take your sales rep’s word for anything. If you want to protect yourself, you have to read your entire contract and application, paying special attention to the fee schedule which is included as part of the application.
Positive Reviews & Testimonials
Encore does offer a brief testimonials page, but it is of little use. The reviews do not contain business names or last names for the owners, so it is impossible to verify their legitimacy. You can find a few sales agents and merchant chiming in around the web to defend Encore, but they are relatively few and far between.
Final Verdict
If Encore Payment Systems wants to be taken seriously, they need to take a look around at the market. These days standardization, honesty and fair options are key, alongside excellent support and dedicated account managers. Terminal leases, expensive early termination fees, wild-west-style independent sales reps, laughable websites, and multiple DBAs are hallmarks of providers doomed to fail. So my advice to you: Don’t get on a sinking ship.
With all of this said, I don’t think that EPS is among the worst of the worst. They have a good-sized pool of satisfied clients, I’m sure. Some of their sales reps are probably very honest and dedicated. But there are no guarantees. So if you’re considering Encore I’d urge you to very carefully review your contract and to ask your sales rep for references. Otherwise, I’d advise you to look elsewhere. Encore only earns 2.5 stars today. Hopefully I’ll have better news next time.
Until then, check out our comparison chart to see the best in the biz, and don’t forget to comment!
Tom DeSimone
Title Test
Based in New York’s Hudson Valley, Tom has written for Merchant Maverick since 2013. His work is cited by publications including TechCrunch, Washington Business Journal, and Bank Advisor. He currently serves as Product Manager.
View Tom DeSimone's professional experience on LinkedIn.
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I have had many problems with this company getting funds ever since they took over several years ago from Prodigy payment systems. I suggest you stay away from this company.
This comment refers to an earlier version of this review and may be outdated.
encore is the biggest ripoff ever. they tried to strongarm me to purchase new equipment in excess of $1000.00, and when i cancelled them ,they still continued to take money out of my account saying a letter of cancellation was needed. after they received my letter, they took another $395.00. they suck and i strongly advise anyone against doing business with the sorry crooks!!
This comment refers to an earlier version of this review and may be outdated.
The same thing happened to me. They made promises of upfront business loans and when I cancelled the service they continued taking money out of my account. I called and complained they told me I would have to send a letter to cancel service, once I sent that in I was still billed another 6 months for services that was never rendered and I never even received any equipment. I had to put a block on my account to stop payments. A complete rip off…I don’t recommend them to anyone.
This comment refers to an earlier version of this review and may be outdated.
Encore miss led me from the very beginning, I do not blame the outside sales rep, she was relatively new but did fully understand the product. The people in the home office are very misleading to the point of lying. I was told multiple times that I would not be charged any fees at all until I uploaded the software to my swiper, they insisted that I had to sign a contract but it meant nothing until I performed the upload….it was all lies, the contract turned out to be inaccurate for what they told me and they are charging me monthly fees even though I never uploaded their software. Like most of these companies they are nothing but crooks. They prey on very small businesses that cannot afford someone to read the fine print, funny thing, if they would have lined out the items on the contract that they said I would not be paying, but forgot to line them out, I would have switched to Encore and been stuck for 4 years, now I have to pay monthly fees for a service I do not use or desire to use. Stay far a way from this company and it’s other companies listed in a report.
This comment refers to an earlier version of this review and may be outdated.
Warning! Do not give Encore Payment systems your bank account information. They will steal money from you for months after your account is closed. Closing the account was one of the most difficult things I have ever done. They take white collar crime to a level that I have never experienced.
This comment refers to an earlier version of this review and may be outdated.
Never ever ever sign up or do any type of business with this company!!! If you see any of their sale rep run or tell them to f*** off! This company is deceiving, the employees are conniving tricksters! They will do and say anything to get you sign up for their contract and then disappear on you and let you deal with an expensive mess!!! They tell you one thing and sign you up for another without your knowledge. They will not tell you the full detail of the contract and will rush you through it, get your signature and then you will be screwed royally. Future customers if you do decide to go with this lying thieving company please read every fine print and details fully before signing or agreeing to anything. You will be lock in a 4 years lease for an equipment you can buy out right for $300-$400 (top of the line) instead of this lease they trick you into and you end up paying over $2000 and at the end of it all.. The quipments isn’t even yours!!! The payment service is another contract they will trick you with, you don’t get your money the next day, you get them 2-5 days later, and they take their percentage out at the end of the day. Encore payment system is by far the worst company I’ve ever dealt with! Thank God I got out of it with out having to spend a penny with them! Know your rights and don’t let them scare you force you to stay!!! Cancel cancel cancel and run while you can!!!!!!!
This comment refers to an earlier version of this review and may be outdated.
This has got to be the worse company in USA. Do yourself a favor & look for an alternate company to process your credit card transactions. It is almost impossible to cancel this service once they have “hooked” you. It’s amazing how they can get away with these dishonest business practices !After informing them that I wished to cancel this service they automatically renewed my contract for another year and then charged me $250 to terminate this same contract.
This comment refers to an earlier version of this review and may be outdated.
The two people I spoke with at Encore were cordial. After verifying our contract expiration date with our current processor, I explained we decided to stay with them till expiration. Encore requested that, in the future, when they solicit our business we should disregard it since we have not accepted any of their offers, past or present. I was not aware they were also Prodigy till I called their number and they answered that way. I also checked the BBB, some testimonies and complaints and was concerned about the quality of service we would receive. I was going to check in November to see if their reviews were better but will not do that now.
This comment refers to an earlier version of this review and may be outdated.
This is a rip off company and I strongly suggest you do not do business with them. They tell you there is no charge. They say they just take a percentage of the sales you make. That is a lie, they just hit us for 42.00 and they say that is a monthly fee after you start using them. The rep who signed us up they claim she does not work for them nor represent them. I have closed them out and put a block on anything they try to do through my bank. It costs me 35.00 to due this but it is worth it. If they come in your business I strongly suggest you run them out.
This comment refers to an earlier version of this review and may be outdated.
I was approached by a field rep to switch my credit card processing to encore. The only reason I gave him my time is that he said they would pay me $200 just for giving him 15 minutes to see what they could do. After 40 minutes, I still didn’t see any numbers regarding processing rates and fees. It was all about what services they could provide to increase sales at my store like a credit line and gift cards. Finally, the sales rep, who was very green (in fact this was his first presentation), started giving false information about how I had to have a pos system to run the gift cards and receive the rebates (this is where the $200 enticement came in). When I told him I wasn’t interested in a pos system or signing a 4 year commitment, so he could go, he put me on the phone with his “support team” who offered me all kinds of deals that I still wasn’t interested in until he finally asked me “what can I do to make you sign with us today?” They were barely beating my current rates, and wanted to charge me for the credit card terminal and an application fee. I did not sign up for their service, but I did want to let anyone who is thinking about signing up with them that you can negotiate their terms. They were willing to go with no contract, waive the application fee, and no pos system. However, I would have to pay for a card terminal, which I currently get for free from my provider. Buyer beware and know that you don’t have to settle for their first offer. I can’t speak to their service as I didn’t sign up. Just some advice during the sales process if you’re considering them
This comment refers to an earlier version of this review and may be outdated.