newtek merchant solutions

Newtek Merchant Solutions Review 2022 – Customer Service, Complaints, and Ratings

Newtek Merchant Solutions Overview:

Newtek Merchant Solutions is a provider of payroll services, business funding, and other web-based services for small businesses. As stated in its slogan, “Small Business Authority,” the company offers helpful services to small businesses.

Are the services beneficial to small business owners in terms of growing their companies and increasing their market value? Newtek Merchant Solutions claims to be beneficial for its customers’ businesses. In addition, the company offers POS tools with rewards processing, appealing packages and 24-hour customer service.

Newtek Merchant Solutions was launched in 1998 and claimed to help almost 100,000 small businesses to process over 4.5 billion dollars annually.

The Newtek payment solution provides level 1 PCI compliance. Moreover, it has an applicable anti-fraud policy that enables the company to take necessary actions to solve customers’ issues. Besides that, Newtek Merchant Solutions provides:

  • A POS system.
  • Full-time customers’ live support.
  • User management tools.
  • A built-in user database.

According to the official website of Newtek Merchant Solutions, their company is specialized in the retail sector. As of 2019, they managed to generate a profit of $5.8 billion, making them the world’s most significant player in merchant payments, sales, and transactions.

However, we cannot deny instances where customers complained about the company. The FTC is also currently suing the company.

This Newtek Merchant Solutions review will highlight its essential services and solutions for its users. In addition, the available options of working with them and downsides are also listed.

Location and Ownership of Newtek Merchant Solutions:

Founded in 1998, the headquarters of the company are located at 130 New Hyde Park, 1981 Marcus Ave, New York. According to officials, the president and CEO of the company, Mr Barry Sloane, is currently leading the company. In accordance with its official website, NMS is registered with Utah’s ISO/MSP, Westamerica Bank in Santa Rosa, and Merrick Bank of South Jordan.

Newtek Merchant Solutions Fee, Contract Terms, Pricing and Transaction Charges:

NMS rates are;

Swiped Rate: 1.00% – 4.99%

Keyed-in Rate: 1.00% – 4.99%

Early Termination Fee: $295

PCI Compliance Fee: $89.95

Equipment Lease Terms: Undisclosed

To purchase mobile services or e-commerce transactions, the merchants should be aware that gateway charges, batch fees, technical support charges and terminal charges are also involved. However, we were unable to find specific costs for these services.

Apart from the rates and fee methods, the contract terms NMS offers are based on a two-year program. Newtek Merchant Solutions are a reseller of Redwood Merchant Services, so all the agreements it carries out are through Redwood Merchant Services.

There is a one-year renewal offered and a $295 early transmission fee. Moreover, there is a procedure for monthly and annual payments. The charges include PCI Compliance, expenses of the carried out transactions, and monthly minimums.

Newtek Merchant Solutions Reviews, Complaints, and Ratings:

Complaints Regarding Fund Holds:

Newtek has received most complaints because of its fund holdings. The main reason may be the fundraising in the reserve account, to which NMS is entitled. Newtek may set up a reserve account in the case of excessive chargebacks. It is a standard practice among industries.

Newtek is not abusing this policy. However, they are attempting to hold up their funds. You can find the Newtek/Redwood Merchant Services Merchant Agreement online if you still have questions. 

Online Complaints are Low Overall:

There have been more than ten complaints registered by small businesses that claim the company is a fraud. The reason could be the affiliation of NMS with the TYS telemarketing scam.

In addition to NMS undisclosed rates, its uncooperative customer service is one of the major reasons for customers’ dissatisfaction with this company.

Complaints against the company in Better Business Bureau (BBB) are a matter of concern for most of the customers. However, as a Merchant Accounts and Funds Management expert, I find the number of complaints under the Better Business Bureau, with three complaints in the past two years and none in the last 12 months, to be quite low for a company worth $6 billion in annual transactions.

BBB Lawsuit Against Newtek:

A lawsuit filed by the FTC (Federal Trade Commission) is particularly highlighted by the Better Business Bureau (BBB). The lawsuit is about a telemarketer caught red-handed in a fraud related to a telemarketing credit card called the “Telemarketing Credit Card Scam” or “TYS” (Treasure Your Success).

The Better Business Bureau stated that Newtek is responsible for this because it failed to follow its procedures and rules and did not verify telemarketing scripts and due diligence of its clients.

As reported in the news, Newtek did the payment processing for the TYS but did not take on the formal tasks of getting telemarketing scripts.

The case resulted in Newtek permanently restricting some clients’ payments from processing if they fall into specific categories outlined by the FTC act.

Is Newtek Merchant Solutions Worth Your Business? 

Following our rating procedure and regulations, we give Newtek Merchant Solutions an average merchant provider rating in the industry. Based on our database, the company receives a low-to-moderate complaints ratio, and the FTC’s action subject links the company to telemarketing fraud and user scams.

Ratings and complaint ratios for Newtek have fluctuated over time. Among other things, BBB examines the company’s payment procedures, rates, and transaction fees. Furthermore, it compares Newtek Merchant Solutions’ payment gateway services to those provided by other top-rated businesses.

When deciding to associate their business with Newtek Merchant Solutions, merchants should also keep in mind the algorithms and market value of the company, weigh the pros and cons, and compare it to other top-notch transaction service providers for small businesses.