Electronic Merchant Systems Overview
A subsidiary of the Francis David Corporation, Electronic Merchant Systems (EMS) is a merchant account provider that has been active for nearly 30 years. The company claims to have over 40 locations and serve over 35,000 merchants. Electronic Merchant Systems is a unique case within the credit card processing industry because it does not appear to meet the criteria for operating as a direct processor like First Data or Elavon, but it also does not appear to be an ISO of any known direct processor. According to one source, the Francis David Corporation has obtained special status as a Visa Third-Party Agent, which enables it to provide acquiring services but does not give it direct access to VisaNet.
Electronic Merchant Systems’ products and services include conventional credit card processing terminals, mobile phone processing solutions, point-of-sale equipment and software, a virtual terminal, sales reporting, web integration, e-commerce solutions, and gift and loyalty programs. The company offers 24/7 support by phone and email. Dan Neistadt is the CEO of Electronic Merchant Systems.
Electronic Merchant Systems is an Ohio-based merchant account provider that also appears to do business as the Francis David Corporation.
EMS offers POS solutions, including Total Touch and MaxxPay, which provide cloud-based reporting, employee permissions and timekeeping, and tab management.
Electronic Merchant Systems offers an 18-month contract with an early termination fee of $595. It hires independent sales agents and has received a moderate number of complaints about its sales practices.
Electronic Merchant Systems’ contract terms are too expensive compared to industry averages, and are far from competitive with cheapest merchant accounts available.
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We are able to locate 70 negative reviews for Electronic Merchant Systems, which include misrepresentations of rates, expensive contracts, high-pressure sales tactics, poor customer service, high termination fees, and poor treatment of employees.
There are several complaints from merchants stating that Electronic Merchant Systems hiked their monthly fees without notification and threatened to sue if the merchant didn’t pay.
The Consumer Financial Protection Bureau filed a complaint against Global Payments, Electronic Merchant Services, Frontline Processing, and Pathfinder Payment Solutions for facilitating the collection of debt payments for debt collection companies that allegedly target millions of consumers with debt collection calls.
EMS was involved in a lawsuit over a third-party calling service, but the case was eventually ended.
The judge ruled that EMS broke a contract with one of its selling agencies and ordered EMS to pay $5,527,791.29 to Choice.
The Electronic Merchant Systems website lists a dedicated phone support number, live chat, and support email, but they do not effectively resolve merchant issues.
EMS has an “A+” rating with the Better Business Bureau, with 79 complaints filed in the last 36 months. 27 of these complaints were resolved to the satisfaction of the merchant.
Electronic Merchant Systems’ hiring practices tend to generate complaints of poor training and high commissions, and it does not compare favorably to our list of best credit card processors.
The comments posted by current and former employees of the company indicate that hidden fees are allowed and encouraged by the company.
Electronic Merchant Systems rates as a substandard payment processor, so we advise signing up with a reputable provider to get the best service and rates.
At a glance
Founded: 1987
Location: Independence, Ohio
Acquiring bank: BMO Harris Bank, Chesapeake Bank, Merrick Bank
Website: emscorporate.com
Phone number: 800-615-1330
E-mail: Contact form here
Electronic Merchant Systems Promotional Video
Online reputation and reviews
Electronic Merchant Systems has received more than 150 negative reviews on merchant forums. Complainants describe deceptive sales tactics, undisclosed fees, higher-than-quoted rates, high early termination fees, poor customer service, and unexpected long-term equipment leases. These types of complaints have remained consistent in terms of their content and their rate of publication during the last five years, which indicates that the company has not taken effective steps to reduce its public complaint count.
Legal actions and lawsuits
Electronic Merchant Services is currently the subject of an April 2015 Consumer Financial Protection Bureau complaint alleging that the company processed payments for a robo-call phantom debt scheme. The CFPB claims that Electronic Merchant Systems ignored clear red flags about the scammers’ business practices and directly profited off of the fraudulent scheme. This complaint has not received a resolution at this time.
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