Newtek Merchant Solutions is the merchant services division of a financial solutions company. It accepted tax credits from state governments to create jobs and spur business growth within these states.
Newtek offers its own payment gateway for merchants, which is PCI-compliant, real-time reporting, and features a shopping cart, virtual terminal, and built-in database.
Newtek Business Services, Inc. is a registered ISO/MSP of Westamerica Bank, Wells Fargo Bank, Concord, CA, Merrick Bank, South Jordan, UT and is headquartered in New Hyde Park, New York.
Redwood Merchant Services charges $295 for early termination and has received more than 10 public complaints. It also hires independent sales representatives and has 38 complaints and 38 reviews across all its profiles.
The standard Newtek merchant contract includes a two-year contract with automatic renewal for one year terms and an early termination fee of $295. The company may also charge additional fees.
Newtek reserves the right to place funds in a reserve account, and merchants need to take steps to force Newtek to release their money.
Newtek Merchant Solutions has received over 10 negative reviews, which are the result of claims of undisclosed fees and poor customer service.
Newtek was also the subject of a 2013 complaint filed by the FTC regarding payment processing for a telemarketing credit card scam. They were ordered to pay $1.7 million to the FTC, and agreed to a settlement that bar them from processing payments for certain categories of clients.
The Better Business Bureau maintains 2 separate profiles for Newtek, and the headquarters profile currently has an “A+” rating.
Newtek has received 38 total complaints in the past 36 months, 36 of which were due to product or service problems, 1 due to advertising or sales problems, and 1 was due to a guarantee or warranty.
In addition to 38 complaints, Newtek has received 38 reviews across its 2 BBB profiles. All of these reviews are negative, and all of them give the company a 1 out of 5.
Despite the subject matter of the reviews, the BBB’s score for the company appears to be accurate.
Newtek appears to use independent sales agents and strategic partnerships to market its services, and some reviews describe sales representatives misrepresenting the company.
Newtek has been named as the source of several online telemarketing complaints, most likely due to their association with the telemarketing scam TYS.
Newtek’s website is not affiliated with or endorsed by the SBA, but its homepage may have shown misleading rate quotes. We recommend that you seek a third-party statement audit if you suspect any undisclosed fees.
Newtek Merchant Solutions rates as an average merchant services provider, based on a low-to-moderate number of complaints and recent FTC action, but it is not yet rated by the BBB.
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