Appstar Financial Reviews

Appstar Financial Overview

Appstar Financial is a merchant account provider that, despite its representatives’ insistence to the contrary, appears to resell the products and services of First American Payment Systems. Although Appstar Financial’s representatives have privately denied a potential link between Appstar Financial and First American Payment Systems, there are many public comments from Appstar Financial merchants who specifically claim to have disputes with both Appstar Financial and First American Payment Systems.

Appstar Financial’s products and services include conventional credit and debit card terminals, check processing, gift and loyalty programs, point of sale systems, a breach protection program, EBT processing, e-commerce solutions, and merchant cash advance. Appstar Financial does not list a dedicated customer support line on its website, but it does provide a phone number that can be reached from 7 a.m. to 5 p.m. PST, Monday through Friday. Mark Leibowitz is the CEO of Appstar Financial.

AppStar Financial is a small business credit card processing provider that primarily targets small and mid-sized business.

AppStar Financial offers merchants services including a cash advance program, discounts for cash payments, EBT processing, and E-commerce solutions through FirstPay.net.

AppStar Financial is a registered ISO/MSP of Fifth Third Bank, Cincinnati, Ohio, and Wells Fargo Bank, N.A., Concord, CA, that shares its address with the now-defunct Amazon Processing LLC.

Appears to offer a three-year contract with a $495 early termination fee, and a BBB ranking of A+.

AppStar Financial charges a fee of 1.59% plus $0.10 for swiped and 2.19% plus $0.10 for keyed in credit cards. However, many complaints state they have been misled into paying a higher fee.

AppStar Financial offers storefront payment processing services, virtual terminal services, payment gateway services, and technical support services.

The company’s standard merchant account agreement includes a $495 Early Termination Fee (ETF) and $125 annual PCI compliance fee. The contract automatically renews for successive one-year terms.

AppStar Financial is accused of predatory business practices, including deceptive sales tactics, nondisclosure of important fees, and holding of merchant funds.

A class-action suit was dismissed on March 13, 2017, accusing Amazon of multiple violations of The Telephone Consumer Protection Act of 1991.

A lawsuit was brought against Amazon Processing LLC claiming that they incorrectly classified workers as independent contractors. However, we can not determine if the suit became a class action suit.

AppStar Financial provides a contact phone number on its website, but the company’s customer service department falls far short of what we expect.

AppStar Financial has had 45 complaints, 29 of which were resolved, 13 of which were billing or collections issues, and 3 were due to advertising or sales problems.

AppStar Financial relies on telemarketing and independently contracted outside sales agents to market and sell its services, and the company encourages these agents to set up expensive merchant accounts with long credit card processing service agreements.

AppStar Financial management might condone aggressive sales tactics and encourage high merchant account pricing, but it looks like it enforces agreements even when merchants describe the use of deceptive sales tactics by their agents.

AppStar Financial has received numerous complaints about high fees, rates and predatory business practices, and it can improve its rating by improving upon the areas that are adversely impacting its customers.

At a glance

Founded: 2002

Location: San Diego, California

Acquiring bank: Fifth Third Bank

Website: appstar.net

Phone number: 866-754-5368

E-mail: Contact form here

Appstar Financial Promotional Video

Online reputation and reviews

Appstar Financial has received over 200 negative reviews across all consumer protection websites. These complaints have been posted with regularity over the past few years and consistently mention the same problems: misrepresentation of rates, nondisclosure of contract terms, irritating telemarketing calls, hidden fees, fund holding, long-term equipment leases, and poor customer support. There are also a number of complaints filed by former employees of the company alleging insufficient compensation, low-quality leads, and employee mistreatment. The volume and subject matter of these complaints are consistent with most resellers and subsidiaries of First American Payment Systems.

Legal actions and lawsuits

There are no outstanding or recently resolved legal actions related to Appstar Financial at this time.

Have you used Appstar Financial for your business? Rate the company at the top of this post and tell us about your experience in the comment section below: