Paymerica / It is a very unethical company to deal with
1. They solicit companies’ business by promising to save them money on their bank fees relating to the acceptance of credit cards.
2. When Paymerica entices a company to switch to their services they compare the rates that the company is currently paying to accept credit cards with their processing company, and then promise to provide the same service at lower rates. There are many different rates that are charged to accept credit cards. Typically there is a qualified rate (the lowest rate), a mid-qualified rate, and a non-qualified rate. Paymerica gives their customers a very low qualified rate, but then ends up processing way fewer credit cards at the qualified rate than the prior company. Basically, Paymerica offers a great qualified rate to gain the new customer’s business and then ends up putting a much larger proportion of the cards the company accepts into the more expensive categories. Businesses who expect to save a lot of money by switching to Paymerica could actually end up even paying more.
3. The other thing that Paymerica does is tells new customers that if they lease their equipment that the new equipment will be better equipped to “differentiate” between the credit cards and could actually save the customer money because more of their cards could actually be billed at the “qualified” rates. This is blatantly untrue. It is the credit cards themselves that determine their rate, NOT the machine itself. Therefore, customers who already own their own equipment, which could be easily be used to process with Paymerica, find themselves entering leases on new equipment that they don’t really need. This is a total SCAM.
4. In our situation, we cancelled our accounts once we discovered that the promised savings were completely false. We had an agreement “in writing” from Paymerica that if we chose to cancel our relationship with them at any time that there would be no “early termination” fees. When we cancelled their service they took $350 out of each of our 5 bank accounts. That is $1, 750! We called them, and faxed them the proof. The bank then accepted our proof and put the money back into our accounts. Two months later Paymerica went into our bank accounts again and deducted $1750! This was 3 months after we had stopped doing business with them! We had to fight with the bank again to get our money back. We are being forced to cancel and reopen bank accounts because we are afraid that they will illegally try to access our money again in the future.
Do Not do Business with Paymerica