Leaders Merchant Services, or LMS, is among the top processing agents in the United States. Based in Camarillo, California, this company started its operations in 2000 and deals with businesses of all ranges. The services include but are not limited to credit card processing and point-of-sale (POS) systems, plus online payment gateways. It furnishes this as a subsidiary of iPayment, further mentoring it in payment processing.
LMS specializes in end-to-end payment processing solutions designed and customized for businesses. Their company offers competitive rates with high-level support, which makes them stand out and preferred by many merchants prospecting for a perfect partner in this given arena. Their services include EMV-compatible terminals, mobile payments, and integration with top POS systems such as Clover. This versatility allows businesses at all scales to find feasible payment solutions to complement their operations.
Out of the many highly competitive payment processors, LMS stands out in terms of customer service and safety. It offers 24/7 technical support and promises full PCI compliance, so it robustly secures the merchant and their clients. Via the delivery of customized solutions and a very high merchant account approval rate, LMS helps businesses process their payments efficiently and thus has a stake in their growth and success. Lets check out Leaders Merchant Services Review in detail.
Company Background
Brandon and Sean Wolfe founded Leaders Merchant Services (LMS) in 2000. Ever since, it has been fast on its way to gaining prominence in the payment processing industry. In 2017, LMS was sold to eBay. However, it still holds the original brand name and continues to carry on the abovementioned mission, providing businesses of any size with robust and reliable payment processing solutions.
LMS is dedicated to business growth through its diversified merchant services, many of which meet all business requirements. Its mission is to provide clients with superior customer service and new payment methods that enhance operational efficiency. LMS’s vision is to be the industry leader in payment processing by continuously developing improved technology and services to assure customers of safety and reliability.
Leaders Merchant Services has a full suite of payment processing services available. They include merchant establishment, online credit card processing, POS systems, mobile credit card readers, and processing solutions for Apple Pay, Google Pay, and Samsung Pay. Other services will feature LMS’s merchant cash advances and business loans that directly compete to handle the total financial needs of businesses. It offers many other facility options of hardware and supports these with various payment methods, including Clover POS systems and terminals from Verifone and First Data.
Services Offered
Leaders Merchant Services, or LMS, offers all businesses an extensive suite of superior payment processing solutions.
Point-of-Sale (POS) Payments
From physical terminals to mobile card readers, LMS hosts an extensive collection of POS products from leading brands like Clover and First Data, ensuring firm and reliable payment solutions. These terminals support several payment methods: swipe, EMV chip cards, and contactless payments, such as digital wallets like Apple Pay and Google Pay, increasing the ease of use and security of merchants and their customers.
E-commerce Solutions
Regarding businesses that happen online, LMS offers robust Commerce solutions. These include enterprise-class payment gateways from Authorize.net that allow highly secure online transaction options. Shopping cart software like CartManager will provide an easy way for online shoppers to shop; this caters to sales tax calculations, languages in multiple numbers, and customer logins. All these are integrated with digital wallets so customers can easily shop using whatever methods they want.
Additional Services
Besides payment processing, LMS offers many value-added services. These range from subscription management tools and gift card solutions to loyalty programs, all aimed at providing businesses with the chance and skills to better satisfy customers and keep them coming back. Regarding food and beverages, LMS provides online menu solutions where restaurants can digitalize their menus, manage them, and display them digitally, which is often extremely useful for online ordering systems.
These comprehensive packages prove that LMS is seriously committed to helping businesses in different sectors grow and achieve efficiency with versatile, scalable payment solutions.
Features and Integrations | Leaders Merchant Services Review
LMS–Leaders Merchant Services–offers various hardware and software solutions suitable for any business.
Hardware Options
LMS offers many POS hardware options, primarily by reselling devices from industry leaders like Clover and First Data (now part of Fiserv). These will consist of traditional countertop terminals joined with mobile card readers and intelligent NFC terminals for contactless transactions. For example, the Clover POS systems are well known for their sleek, modern, and accessible design, making them perfect for different business situations, including store retailing and restaurants.
Software Compatibility and Integrations
It integrates with various software solutions to increase its value to any business. One significant integrating tool is Authorize.Net, which integrates payment gateways, secure online transactions, and virtual terminals for phone payments. Through Instant Accept, the LMS integrates with QuickBooks, helping corporations in bookkeeping since it synchronizes transaction data from non-QuickBooks devices.
Customizable Features Based on Business Needs
LMS offers flexible options to meet any business requirement, with subscription management tools, gift cards, and loyalty programs that help in customer retention. For restaurants, LMS provides online menu solutions for digital ordering, making operations more straightforward. These features can be negotiated with the set-up process or added later as your business needs change.
By offering a robust combination of hardware options, software integrations, and customizable features, Leaders Merchant Services aims to provide comprehensive and adaptable payment processing solutions for businesses of all sizes.
Pricing Structure
Leaders Merchant Services (LMS) has a somewhat complex and often criticized pricing structure, which includes various fees and charges.
Overview of Fees
LMS uses multi-tiered pricing, resulting in disparate transactions. Their advertised transaction fee is as low as 0.15% plus $0.18 per transaction. Actual rates, though, are way above that, depending on the form of transaction and other factors.
Transaction Fees
The lowest debit card transaction fees are 1.58%; those who use reward cards have an added surcharge of 2.39%. Other plans are interchange-plus pricing plans where the markup could be between 0.30% and 0.50% over the interchange rates.
Monthly and Annual Fees
LMS charges different types of monthly and annual fees. The costs include a monthly account fee, which typically runs at $10, and a yearly fee, which usually goes to $99. A monthly minimum should also be met, generally around $25.
PCI Compliance Fees
The merchant is charged a PCI compliance fee of about $129 annually. If a merchant’s account falls out of compliance, a $40 monthly penalty will be added until the compliance is updated.
Hidden Fees and Surcharges
Many merchants who use their services report hidden fees and unexpected surcharges, including gateway fees of approximately $25 monthly, chargeback fees of $35 per incident, and additional non-compliance fees related to PCI standards. Not being upfront about these fees has been one of the immense customer complaints.
Comparison with Industry Standards
LMS’s fees are often higher and less transparent compared to industry standards. Many competitors, such as Square and Chase Payment Solutions, offer more straightforward and transparent pricing structures without the extensive hidden fees and lengthy contracts that LMS requires.
Tips for Negotiating Better Rates
To negotiate better rates with LMS, it’s advisable to:
- Request Detailed Fee Breakdown: Before signing any agreement, ask for a complete list of all possible fees and charges.
- Compare Offers: Use offers from other providers as leverage during negotiations.
- Seek Interchange-Plus Pricing: This model is generally more transparent and can be more cost-effective than tiered pricing.
- Negotiate the Contract Terms: If possible, negotiate the length of the contract and the early termination fees.
By being well-informed and proactive, merchants can potentially secure more favorable terms and avoid unexpected costs.
Contract Details
Leaders Merchant Services (LMS) requires a standard three-year contract for their merchant services. This long-term commitment can be challenging for some businesses, especially given the flexibility and shorter terms offered by some competitors.
Early Termination Fees
If a merchant decides to terminate the contract before the end of the three-year term, LMS imposes an early termination fee (ETF). The ETF ranges from $250 to $350, depending on the timing and specific terms of the cancellation. These fees can be a significant burden for businesses seeking to switch providers due to dissatisfaction or changes in their operational needs.
Flexibility and Negotiation Options
While the standard contract terms may seem rigid, there are opportunities for negotiation. Merchants are advised to negotiate the contract terms, including the possibility of reducing or waiving the early termination fees before signing. This can sometimes be achieved by highlighting competitive offers or discussing potential long-term business value with LMS representatives.
For those already under contract, maintaining clear communication and documenting any service issues can provide leverage in negotiating a reduced termination fee. Exploring contract exceptions for specific circumstances, such as business closure or unsatisfactory service, may also offer a way to mitigate these fees.
Understanding these contract details and exploring negotiation options can help businesses better manage their agreements with LMS and avoid unexpected costs.
Customer Support
Leaders Merchant Services (LMS) offers 24/7 customer support through multiple phone, live chat, and email channels. This continuous availability ensures that merchants can get assistance whenever needed, which is crucial for businesses that operate outside standard business hours.
The quality of LMS’s support services has been a mixed experience for customers. While some users praise the knowledge and helpfulness of customer service representatives, others have reported issues with the responsiveness and effectiveness of the support they received. There are complaints about long wait times and difficulty in resolving technical problems.
LMS assigns dedicated account representatives to each merchant account, providing personalized service and support tailored to each business’s specific needs. This approach ensures that clients receive consistent and focused assistance to manage their payment processing effectively.
In summary, while LMS offers robust support options and dedicated account representatives, the quality of service can vary, highlighting the importance of evaluating customer feedback and support reliability when considering their services.
Customer Reviews
Customer feedback for Leaders Merchant Services (LMS) is mixed, with significant criticism and some praise. On the positive side, customers appreciate the low rates and professional customer service. Some users have highlighted smoother transactions, fewer billing disputes, and prompt responses from support staff as reasons for their satisfaction.
However, LMS has faced substantial negative feedback. Common complaints include deceptive sales tactics, surprise fees, and poor customer service. Many customers have reported issues with account management, including sudden holds on funds and uncommunicated account reviews, leading to operational disruptions.
Aggregate review scores for LMS are generally low. For example, the company has an average rating of 1.6 out of 5 stars on Trustpilot, reflecting widespread user dissatisfaction. While there have been positive experiences, the overall customer sentiment suggests that potential clients should proceed cautiously and thoroughly review contract terms before signing up.
Customer Complaints
Leaders Merchant Services (LMS) has faced numerous customer complaints highlighting several common issues. Many users report undisclosed fees that were not communicated during the sales process, leading to unexpected costs. Customers also frequently mention difficulties in canceling services, often facing challenges with returning equipment and unexpected charges during the termination process. The quality of customer support is another major concern, with reports of unresponsiveness and inadequate assistance in resolving issues. Additionally, LMS has been involved in notable legal actions and settlements due to allegations of deceptive sales practices and poor service, further tarnishing its reputation.
Compliance and Security
PCI Compliance Details
Leaders Merchant Services (LMS) adheres to the Payment Card Industry Data Security Standard (PCI DSS), ensuring it meets stringent security requirements to protect cardholder data. It charges an annual PCI compliance fee, typically around $129, and merchants face a monthly non-compliance fee of $40 if they fail to maintain compliance.
Security Features of Hardware and Software
LMS provides robust security features across its hardware and software solutions. Their point-of-sale (POS) systems, like those from Clover and First Data, include end-to-end encryption and secure socket layer (SSL) encryption. These systems also support advanced verification methods like address verification services (AVS) and card verification value (CVV2) authentication to prevent fraudulent transactions.
Data Protection Measures
To ensure comprehensive data protection, LMS implements multiple layers of security. This includes regular security updates and compliance checks to prevent data breaches. They also offer tools like tokenization and encryption to protect sensitive customer information during transactions. Additionally, LMS provides secure payment gateways like Authorize.Net, which come with their own integrated security measures.
These stringent compliance and security measures help protect merchants and their customers, ensuring safe and reliable payment processing.
Pros and Cons
PROS
- Wide range of services and integrations : Additionally, LMS supports a wide range of services and integrations, such as point-of-sale systems, e-commerce solutions, and compatibility with digital wallets like Apple Pay and Google Pay. These features make LMS a versatile choice for businesses needing comprehensive payment processing solutions.
- They provide low processing rates
CONS
- Lengthy contracts with early termination fees: Additionally, their contracts are typically lengthy, spanning three years, and include early termination fees ranging from $250 to $350, making it challenging for businesses to switch providers without incurring significant costs.
- One major issue is the lack of transparency in their pricing, which often leads to unexpected customer fees.
Conclusion
Leaders Merchant Services offers competitive, low processing rates and a wide range of services and integrations. However, it struggles with a lack of transparency in pricing and lengthy contracts that include early termination fees. Businesses should carefully review their options and consider these factors before committing to LMS.
