FFMS is a well-known company that specializes in providing merchant services, offering customized payment processing solutions for a wide range of businesses. Founded in 1995 and based in Medina, Minnesota, FFMS has expanded greatly over time, establishing itself as a reputable entity in the financial services industry. The company takes pride in providing top-notch service and creative solutions that aim to improve business efficiency and elevate customer satisfaction. Let’s read in detail about First Financial Merchant Services Review.
Company Background
Founded in 1995, FFMS has its headquarters in Medina, Minnesota. Over nearly three decades, the company has established itself as a leader in merchant services, providing exceptional support to a wide range of clients. FFMS provides a wide range of services such as credit and debit card processing, mobile commerce, point of sale (POS) systems, and loyalty programs. These services are designed to help businesses manage transactions efficiently and securely, ultimately contributing to their growth and success.
FFMS is known for its partnerships and affiliations with major financial institutions and technology providers. Notably, the company has a strong relationship with First Data (now Fiserv), which allows it to leverage advanced payment processing technologies and offer competitive rates to its clients. This affiliation also supports FFMS’s ability to provide robust and secure payment solutions to businesses of all sizes.
In addition to its core services, FFMS is committed to supporting high-risk merchants who often face challenges in securing reliable payment processing services. Through providing customized solutions and upholding a high approval rate for these enterprises, FFMS shows its commitment to inclusivity and assistance for various business requirements.
Through its commitment to innovation, customer service, and strategic partnerships, FFMS has solidified its position as a reliable and forward-thinking provider of merchant services. The company’s consistent endeavors to improve its products and meet the changing demands of its customers highlight its importance as a major player in the financial services sector.
Features and Services
First Financial Merchant Services (FFMS) offers a wide range of features and services designed to meet the diverse needs of businesses. FFMS offers strong payment solutions and full support to guarantee smooth business operations, prioritizing innovation and customer satisfaction.
Payment Processing Services: FFMS offers comprehensive payment processing solutions for businesses of all sizes. Their services include credit and debit card processing, enabling businesses to handle customer payments efficiently and securely. FFMS offers EMV card readers and NFC capabilities for safe and fast transactions. Also, they provide online and mobile payment options to meet the increasing need for digital payment methods. These solutions help businesses streamline their payment processes and enhance customer convenience.
Point of Sale (POS) Systems: FFMS’s POS systems come with both hardware and software options tailored to meet various business needs. These systems include cash registers, barcode scanners, and debit/credit card readers. The POS systems are designed to integrate seamlessly with other business tools, such as inventory management and sales tracking software, providing a unified platform for business operations. The benefits of using FFMS POS systems include improved efficiency, accurate transaction processing, and comprehensive data analytics for better business insights.
Mobile Commerce: FFMS offers mobile payment processing services that allow businesses to accept payments via mobile devices. This service reduces overhead costs and enhances customer convenience by enabling payments on the go. However, it is crucial to implement robust security measures to protect customer data and prevent fraud. The benefits of mobile commerce for businesses include increased sales opportunities, improved customer satisfaction, and the ability to operate in various locations without being tethered to a traditional POS system.
Loyalty Programs: FFMS provides loyalty program services designed to increase customer retention and engagement. These programs offer incentives such as discounts and rewards for frequent purchases, helping businesses build a loyal customer base. While loyalty programs are beneficial, they also require robust security measures to protect customer data from potential breaches. The advantages of implementing loyalty programs include enhanced customer satisfaction, increased repeat business, and valuable insights into customer purchasing behaviors.
ATM Services: FFMS offers ATM services that include the installation and maintenance of ATM machines at business locations. These services help increase sales by providing customers with easy access to cash. FFMS ensures that ATMs are always operational and promptly addresses any technical issues. The benefits of ATM services include increased foot traffic, additional revenue from service fees, and improved customer convenience, particularly in industries such as retail, hospitality, and entertainment.
High-Risk Merchant Services: FFMS specializes in providing services to high-risk merchants, which include businesses in industries with higher-than-average chargeback rates or regulatory scrutiny. Examples of high-risk businesses include those selling software, subscription services, and products in international markets. FFMS provides customized solutions to cater to the specific requirements of these merchants, with a high approval rate for high-risk accounts. The Approval criteria mostly revolves around evaluating the business’s risk factors and financial stability. The advantages of high-risk merchant services consist of reliable payment processing, improved fraud protection, and assistance for global transactions.
Rates and Fees | First Financial Merchant Services Review
First Financial Merchant Services (FFMS) offers a variety of pricing models and fees associated with their services. Here’s a detailed breakdown of their rates and fees, including customer feedback and industry comparisons of First Financial Merchant Services Review.
Variable Processing Rates
FFMS employs variable processing rates for credit and debit card transactions. These rates can fluctuate based on several factors such as the volume of transactions and the type of business. For example, businesses processing up to $50,000 per month may see swiped rates around 2.69% plus $0.19 per transaction and keyed-in rates of 3.69% plus $0.19. For those exceeding $50,000, swiped rates may drop to 2.29% plus $0.19 and keyed-in rates to 3.29% plus $0.19. This variable rate structure can lead to unpredictable fees, which has resulted in negative feedback from some customers who experienced higher-than-expected costs.
Equipment Leasing
FFMS offers leasing options for point of sale (POS) and payment processing equipment. These leases can be long-term and non-cancellable, which can be expensive over time. Although FFMS’s affiliation with First Data (Fiserv) provides access to a range of equipment, customers have reported dissatisfaction with the high monthly payments and the inability to terminate leases early. This has led to budget constraints for some businesses, especially small ones.
Monthly and Annual Fees
FFMS levies different monthly and yearly fees, such as subscription fees, maintenance fees, and PCI compliance fees. These expenses can add up, greatly affecting small enterprises. As an example, the typical contract features a yearly cost of $89 along with a PCI compliance fee that is over $100. Clients have raised issues about the clarity and equity of these charges, frequently feeling they were not properly revealed in advance.
Tiered Pricing Structure
The tiered pricing structure used by FFMS is another point of contention among customers. This model categorizes transactions into different tiers, each with its own rate, making it complex to understand and manage. While this can potentially offer lower rates for certain transaction types, many businesses find it difficult to predict their processing costs accurately. Customer reviews frequently highlight confusion and frustration with the hidden fees and unexpected surcharges that can arise from this pricing model.
In general, although FFMS provides competitive rates and various services, businesses should thoroughly examine and comprehend the contract terms to prevent unforeseen expenses. It is advised to conduct thorough research and consult with FFMS representatives for a comprehensive understanding of the fees and pricing structures.
Contract Terms
Understanding the contract terms of any merchant service provider is crucial to avoid unexpected costs and complications. First Financial Merchant Services (FFMS) has specific contract conditions that businesses should be aware of before signing up.
Contract Length
FFMS typically offers contracts with a standard duration of three years. This industry-standard term provides stability for businesses but includes early termination fees that can be as high as $695. These fees are designed to discourage early contract exits and can be a significant financial burden for businesses that need to cancel their services prematurely. The contract also outlines conditions for automatic renewal, which can extend the agreement unless a notice is provided within a specified period.
Cancellation Policies
Cancelling a service with FFMS requires following specific procedures. Businesses must provide written notice within a designated time frame to avoid penalties. Customer feedback indicates that the cancellation process can be cumbersome, with some reporting difficulties and additional charges when attempting to terminate their contracts.
Hidden Fees
FFMS has been noted for potential hidden fees, such as PCI compliance and annual fees. These undisclosed charges can surprise businesses and significantly impact their budgeting. It is essential for businesses to thoroughly review all contract terms and seek clarification on any fees that are not immediately clear to avoid unexpected costs.
Equipment Lease Terms
Leasing equipment from FFMS can involve long-term, non-cancellable agreements. These leases may be more expensive over time compared to purchasing the equipment outright. Businesses should carefully consider the financial implications of leasing versus buying, as long-term leases can add substantial costs.
Dispute Resolution
FFMS includes specific methods for resolving disputes within their contracts. Typically, this involves mandatory arbitration before any legal action can be taken. This clause aims to handle conflicts efficiently but may limit businesses’ options for recourse. Customer feedback on the resolution process is mixed, with some finding it helpful and others reporting dissatisfaction with the outcomes.
By thoroughly understanding these contract terms, businesses can make informed decisions and avoid potential pitfalls when engaging with FFMS.
Employee Reviews and Sales Practices
First Financial Merchant Services (FFMS) employs a large number of independent sales agents, who operate as independent contractors. This model has led to a range of customer service experiences, as independent agents often lack the comprehensive training and oversight given to full-time employees. This has resulted in a higher volume of customer complaints regarding inconsistent service and satisfaction. Common employee complaints include exaggerated promises of earnings, aggressive recruiting practices, and issues with residual payments.
Training and Support
The training provided to sales agents and customer support teams at FFMS has received mixed reviews. While certain employees value the training programs, others believe they are insufficient and fail to adequately ready them for the intricacies of the position. The variability in training effectiveness affects the quality of customer support provided. Customer experiences with support quality vary, with some praising the assistance received and others expressing frustration over poor service and lack of knowledge from support staff.
Sales Tactics
FFMS has faced criticism for its marketing and sales strategies. Customers have reported issues with transparency and honesty in sales practices, citing misleading guarantees and non-disclosure of essential terms. These practices have led to dissatisfaction and distrust among some clients. Ensuring full disclosure and ethical sales tactics is crucial for maintaining customer trust and long-term business relationships.
Customer Complaints and Legal Issues
Evaluating the reliability of a merchant service provider is essential by taking into account customer complaints and legal matters. Over time, First Financial Merchant Services (FFMS) has dealt with a variety of complaints and legal disputes.
Common Complaints
FFMS has received numerous complaints about hidden fees and cancellation difficulties. Customers frequently report undisclosed charges such as high PCI compliance fees, annual fees, and various monthly fees not clearly communicated during the sales process. For example, some clients have been surprised by an annual fee of $89 and a PCI compliance fee exceeding $100. These unexpected costs can significantly impact a business’s budget. Specific testimonials include businesses struggling with cancellation processes and encountering early termination fees as high as $695.
While FFMS promises competitive rates, the reality of hidden costs has led to dissatisfaction among many clients. The company has responded by maintaining transparency and revising some terms, but customer feedback suggests ongoing issues with fee disclosures and contract clarity.
Lawsuits and Fines
FFMS has also been involved in several significant legal issues. One notable case is a class action lawsuit in 2016 for violations of the Telephone Consumer Protection Act (TCPA), resulting in substantial fines and a settlement. Additionally, the company’s affiliation with First Data (now Fiserv) has brought further scrutiny. For instance, Fiserv faced a major lawsuit in 2022 by Municipal Credit Union for negligent practices leading to a data breach. This incident highlighted the importance of robust data security measures in financial services.
These legal challenges have impacted FFMS’s reputation, raising concerns about its commitment to compliance and ethical conduct. Despite maintaining an “A+” rating with the Better Business Bureau, the recurring legal and customer issues emphasize the need for prospective clients to conduct thorough research before engaging with FFMS.
Data Security and Privacy
First Financial Merchant Services (FFMS) takes various measures to ensure the security and privacy of customer data. In order to meet industry regulations, FFMS follows the guidelines of the Payment Card Industry Data Security Standard (PCI DSS), incorporating administrative, technical, and physical protections. These measures are designed to protect against unauthorized access and data breaches, ensuring the integrity and confidentiality of cardholder and merchant information.
Despite these precautions, FFMS has experienced data security incidents. In a notable case, a data breach at FFMS, operating under the name Payscape or Payroc, compromised sensitive information, including names and card numbers. The company reacted by informing impacted individuals and offering advice on reducing possible dangers, like keeping an eye on credit reports and updating passwords.
Customer concerns regarding data privacy and protection are significant, especially in light of such breaches. The incident highlighted vulnerabilities in FFMS’s data security systems, raising questions about the effectiveness of their protective measures. While FFMS has taken steps to address these issues, ongoing vigilance and improvements are necessary to regain customer trust and ensure robust data protection.
These events highlight the need for companies to carefully assess the data security methods of their service providers in order to protect their confidential information efficiently.
BBB Rating and Customer Reviews
FFMS has received accreditation from BBB and maintains an “A+” rating. The company’s dedication to addressing customer complaints and upholding a positive business reputation is demonstrated by this impressive rating. Nevertheless, it is crucial to understand that the BBB rating may not always indicate customer satisfaction levels, as it primarily considers the company’s handling of complaints.
Customer reviews on BBB and other platforms like Birdeye and Card Payment Options reveal mixed experiences. According to two customer reviews on BBB, FFMS has a rating of 1 out of 5 stars on average. The complaints primarily focus on issues such as undisclosed fees and difficulties with canceling services. Customers have expressed frustration over long hold times and unresponsive customer service representatives.
Positive feedback is relatively scarce, but some customers appreciate the wide range of services FFMS offers and its capability to handle high-risk merchant accounts. Conversely, there is an increase in negative feedback which raises issues regarding transparency, as numerous customers believe they are being deceived about the terms and conditions within their agreements.
Overall, while FFMS maintains a strong BBB rating, prospective clients should carefully review customer feedback and consider both the positive and negative aspects of the company’s service delivery and contractual terms before making a decision.
Conclusion
First Financial Merchant Services (FFMS) provides a wide variety of services through robust industry partnerships, although it has been criticized for its undisclosed fees and difficult cancellation procedures. Companies should carefully evaluate the pros and cons of FFMS and carry out comprehensive research before deciding. It is important to understand all contract terms and customer feedback prior to selecting a merchant services provider.
