Paysafe Group Review: Rates, Fees, Complaints and Lawsuits
In 2015, Optimal Payments, a global merchant account provider, was rebranded to establish a payment facilitator that attained multiple well-grounded companies as subsidiaries in a few years. Headquartered in London, UK, Paysafe Group made its name through substantial partnerships and mergers with MeritCard Solutions, iPayment, Meritus Payment Solutions, Merchants’ Choice Payment Solutions, and Skrill. The provider expanded its cryptocurrency processing services in 2021 and acquired SafteyPay in 2022. Other noteworthy partnerships include FOX Bet, HotelKey, andGreyhound.
PaySafe is a registered ISO/MSP of BMO Harris Bank, Wells Fargo Bank, BBVA USA, Merrick Bank of Woodbury, and Woodforest National Bank. It caters to the U.S., UK, Europe, and Canada-based businesses. However, most of its services are restricted to European merchants. The provider, suitable for small to mid-sized companies, serves most risk-type retail and online businesses, including gaming, adult entertainment, health & elderly care, gambling, SEO & SEM services, Travel, and SAAS.
The company promises to support every worthy ambition and provide secure, convenient, and seamless payment processing services to fuel its evolution. Be it a small startup or a big-scale global business, Paysafe commits to valuing the needs of all its clients. It aims to create a diverse community, focusing on uniting human creativity with tech-savvy solutions to ensure constant growth. It delivers cost-effective solutions and thrives on enhancing productivity and job satisfaction.
Paysafe prides itself on actively participating in community-based charities. It encourages its employees to help people grow beyond office walls. The provider launched a unique initiative to gain funds to secure the future of young generations. These local charities are collected to support educational, health, and social mobility causes for the community. Here is a Paysafe Group review to give merchants an idea of what the company has to offer as a payment service provider;
Paysafe Group Features and Services
The provider is equipped to facilitate online, in-person, and mobile payment processing by offering suitable hardware and software for the job. Merchants can accept all major card brands, including Discover, Visa, American Express, MasterCard, Carte Blanc, Diner’s Club, JCB, Wright Express, EBT, and most Debit cards. They are offered cash advances to gain working capital and gift programs to incentive their customers and increase footfall.
The provider offers ACH acceptance, recurring billing options, payment integration, an efficient POS system, and mobile payment apps. It purveys advanced security features to help businesses comply with the latest authentication requirements and offers an additional layer of security to process card-not-present payments.
Digital Wallet
Paysafe Group reviews indicate its keenness to offer alternate payment methods to ensure convenience and accessibility in unconventional circumstances. Neteller and Skrill are the two subsidiaries facilitating the company’s digital wallet services. Compatible with Apple Pay, Google Pay, Samsung Pay, and Venmo, among others, it allows users to make and accept payments anywhere without carrying cash. Digital wallets provide hassle-free contactless payment experiences, enabling consumers to connect multiple accounts and store all information in one place, accessible from various devices.
Multiple Payment Acceptance
With Paysafe’s advanced API support, merchants can customize the checkout experience and add multiple payment acceptance types. This way, they can provide their customers the flexibility to pay however they like. According to the Paysafe Group reviews, the company’s payment integration and quick onboarding solutions enable businesses to quickly set up customer accounts and integrate their software with the client’s system.
Crypto businesses particularly benefit from Paysafe payment integration. They can accept credit cards, cash, digital wallets, and bank transactions through a single integration. However, most of the company’s alternative payment methods are exclusively available for European clients.
eCash Payment Solutions
Merchants can use Paysafe eCash solutions to accept cash payments online without the risk of chargebacks. With 1M payment stores across several countries, the provider enables users to pay for online purchases, loans, bills, or rent, without having a bank account. With Paysafecash, merchants can increase their online sales by reaching out to customers who don’t have credit cards. Since cash transactions are fast and do not demand sensitive data for processing, it is preferred by most clients.
Merchant Cash Advances
The provider has partnered with Rapid Finance, a tech-savvy financial service company, to provide business loans and cash advances. It helps merchants gain fast working capital to meet future needs and fulfill current obligations. Paysafe Group reviews portray that it lends customers an amount of $10,000 to $2000,000 as a cash advance. However, these merchant loans and cash advances are offered with strict variable terms and (in the long run) cost more than most small businesses can afford.
Security Features
Each account is secured with customized fraud protection tools to ensure safe transactions and scam elimination. Merchants are facilitated with real-time reporting tools and chargeback management features. They are offered PCI compliance assistance to help them through the process, making it easier for them to surpass the compliance standard and get PCI DSS validated.
When reviewed, Paysafe Group aims to prepare merchants for the changing security protocols and authentication requirements. It Provides 3D Secure 2.0 to help businesses comply with the updated security standards and ensure that none of its clients are left behind. This payment processing system comes with high-end features, including biometric verification, native mobile integration, and one-time authentication.
MOTO Payments
Deduced from the Paysafe Group reviews, the company entertains MOTO (Mail Order Telephone Order) by partnering with Meritus and Payment XP. Merchants can transform their internet-enabled smartphones or computers into payment-accepting devices with the provider’s virtual terminal and payment gateway. This way, businesses can accept checks and credit card payments without the card being physically present. This service is cost-effective and best for small-scale companies remotely selling their services.
Rates and Contract Details
Paysafe does not offer price transparency, and there is hardly any factual information regarding its rate on the website. Typically, higher transaction volume costs lower processing rates. However, there is no way of knowing how it works at Paysafe. The company’s pricing cannot compete with the cheapest merchant service providers offering industry-leading services. It can be expensive for most small to medium-sized businesses.
Quote-Based Pricing
Guessing from the Paysafe Group reviews, the provider offers variable rates customized after considering a merchant’s processing volume, the services they require, and the equipment they use. Merchants are provided with tailored quotes that vary from business to business. Moreover, Paysafe has multiple subsidiaries forcing their own rates on the clients. Their prices also vary depending on which sub-brand you sign up with.
Even though this quote-based pricing can facilitate competitive rates for big enterprises, it barricades merchants from determining if the provider is affordable for their business. Specifically, small businesses cannot sign up without knowing beforehand if they can get a good deal from a service provider.
Variable Contract Terms
Depending on the subsidiary, the provider offers variable contract terms. The company claims to bind merchants to a one-year contract, but the reviews contradict this statement. An average Paysafe agreement binds clients to a three-year contract with a non-cancellable, long-term equipment lease. The company’s equipment lease terms are undisclosed, but merchants should carefully decide if they want to lease or buy the equipment, as purchasing the terminal is cheaper and more convenient.
A contract displaying a liquidated damages clause can be a sign of trouble. Merchants must go through the indenture carefully and negotiate the unnecessary terms before signing up.
Early Cancelation Policy
The lowest early termination fee charged by Paysafe is $495. However, with a liquidated damages clause, the ETF is generally higher and can rise to $25,000 in some cases. Even though large-scale businesses with a higher processing volume are charged a higher cancelation fee based on this clause, small-sized companies also suffer because of it. Usually, a business is better off signing up with a payment facilitator that offers competitive rates without charging an ETF.
Fee Structure
According to Paysafe Group reviews, the company’s average credit card processing rate is 1.00% to 4.99%. However, this is just a basic estimate. The sum of the fees a business pays to the provider is expected to be much higher. Merchants are subjected to an interchange pricing model and charged a $14.99 monthly minimum payment. Paysafe also demands a list of other fees, including PCI compliance, application, statement, annual, and address verification fees. The provider does not reveal any of these charges.
Online Payment Processing Fees
When reviewed, Paysafe Group also markets its online payment processing services on the official website. Merchants accessing the company’s virtual terminals and payment gateway should expect additional charges such as batch, gateway, and technical support fees. Yet, these rates are concealed and vary based on the partner company facilitating the gateway services.
Consumer Support
The provider has reserved a small portion of its website to sing the praises of its customer service. However, it does not mention a dedicated phone support number or email address for merchants to address their complaints. Multiple Paysafe Group reviews indicate that the provider’s subsidiaries provide their own consumer support options piling up several public complaints. Overall, the company fails to offer satisfactory customer service to its clients.
Sales and Marketing
Paysafe utilizes a combination of independent sales agents, ISOs, resellers, and telemarketing to promote its services. It does not train a specialized sales team for the cause. To market its e-commerce payment processing services, the provider depends on online marketing and strategic partnerships. Paysafe also advertises its live training sessions and integration specialists on the website. However, the provider does not disclose all the necessary information, and its sales practices have attracted multiple complaints.
Lawsuits and Fines
The provider has multiple lawsuits, most of them against its violations of security standards. Two class-action lawsuits were filed against the provider in 2021 and 2022. One of the suits by Kessler Topaz Meltzer & Check LLC accused Paysafe of breaching federal security acts.
According to the Paysafe Group reviews, the company was accused of misguiding its clients, making false financial statements, and keeping clients in the dark regarding the effects of a merger with a Special Purpose Acquisition Company. As Gathered from the lawsuit, the provider’s false claims led to stock price inflation, causing significant damage to the investors. The legal actions are still pending justice.
It is not uncommon for a company with multiple subsidiaries to be involved in some legal issues and litigation. Paysafe has a large clientele and is bound to have at least one ongoing lawsuit against it. However, the nature of these lawsuits suggests that the provider regularly practices misleading tactics and fails to conform to security regulations.
Such accusations cannot be ignored since they directly affect every business involved with the provider. Merchants are advised to ensure they are not being misled with false promises.
Paysafe Group Reviews and Complaints
Even though the provider has very few formal negative reviews, it has over a hundred online complaints posted against it. Most of the complaints revolve around Paysafe’s many subsidiaries and sub-brands. The commonly cited reasons for the negative remarks against the payment service provider include unavailable customer service, high early cancelation fees, undisclosed prices, hidden charges, and deceptive sales tactics. Consumers have shown severe displeasure about unwarned account closing, withholding of funds, poor user interface, and objectionable equipment leases.
Paysafe has the lowest possible rating on Google and displays similar complaints regarding incompetent customer support service and fund holds. The provider claims to hear consumer complaints and has dedicated members of its team to resolve the frequently cited issues, but the evidence says otherwise. The company fails to provide transparency to its clients. Here is an overview of the negative feedback received by Paysafe;
Unreasonable Cancelation Penalties
The provider has received numerous complaints against its account cancelation policies. Merchants have accused Paysafe of deliberately selling month-to-month contracts so that at the time of termination, it can charge ETF in addition to a monthly fee for all the remaining months left in the agreement. Moreover, the company forces a list of hidden charges at the time of cancelation, postponing the termination process for months and making it difficult for consumers to sign up with a new service provider.
Unwarned Account Closing
As multiple Paysafe Group reviews suggest, the company has a habit of closing merchant accounts without notifying the clients. On being questioned, the provider does not offer a reasonable explanation and makes up an illogical excuse, stalling the client until they give up. In some cases, consumers were forced to pay unexpected fees to resolve an issue that did not exist, only to close their account after a few months.
Poor Customer Service
Paysafe does not offer dependable customer service, and each business is dealt with by a separate customer support team from the subsidiary it is appointed to. The provider itself does not offer any phone support. The only email address reserved for customers is useless, which explains the highest number of consumer complaints directed towards this department.
Merchants have stated that after signing the agreement, they are passed around to different companies and cannot log in to the dashboard to see the statement. After several calls and unanswered emails, the provider fails to provide a legitimate answer. According to most complaints, consumers are kept on long holds while customer service figures out the company associated with the particular merchant account.
The company’s online support has received similar complaints. Paysafe’s consumer support is beyond subpar and needs significant improvement for it to come anywhere near being called a decent service provider for its customer service.
High ETF
The company claims to charge a $495 early cancelation fee, but several Paysafe Group reviews indicate a much higher ETF. In one instance, the provider canceled a merchant’s contract and imposed $20,000 termination charges on them when they did not even request an early cancelation. Paysafe also implements a liquidated damages clause, forcing unexpected fees on its clients to cancel an unwanted agreement.
An unreasonably high ETF combined with a liquidated damages clause can cause merchants to lose a hefty amount from their savings and damage the possibility of a smooth new start.
Telemarketing and Robocalling
Telemarketing has received rebuking remarks over the years as it carries a negative reputation among merchants. The provider not only irritates clients with unwanted calls, it also delivers pre-recorded voice messages through an autodialer. These kinds of sales pitch calls are only a waste of time and are done to trick consumers into handing out their processing information for rate comparison.
As indicated by Paysafe Group reviews, consumers are promised lower rates on the condition of switching their payment processing company. Only after the agreement is signed that they realize being stuck with a worse deal. Merchants are advised to request a written quote before giving away their monthly statements to the salesperson.
Concealed Information
The provider hardly mentions its pricing or contact details on the website and keeps its contract terms undisclosed. As the Paysafe Group reviews portray, merchants are left with robocalls that do not offer tangible information, and there is no competent salesperson to deliver the necessary information. Paysafe has structured everything merely for publicity and attracting new clients. From the marketing department to the official website, the provider does not deliver factual details anywhere about the services, rates, and contract terms.
Employee Complaints
Even though the provider has received some positive remarks from its staff, calling it a decent workplace, it also displays some negative feedback from former employees. When reviewed, Paysafe Group does not incentivize its workers (offering bonuses, overtime compensations, or reward points) to motivate them. They are forced to overwork for a low salary without any health insurance and sick leaves.
The company has poor management. Failing to appreciate constructive criticism, Paysafe does not put any effort into making small changes for the better. The HR never responds to employee complaints and fails to satisfy their requests. Moreover, a lack of leadership and professional growth are commonly cited complaints.
BBB Report
BBB only reviews U.S.-based companies. Since Paysafe is a UK-based business, the review platform only shows the profile of Paysafe’s U.S. branch. The company’s subsidiaries have separate BBB profiles. This part of the review will cover the complaints received by the U.S. branch.
The provider was accredited in 2011, displaying an A+ rating despite the 219 complaints and 26 informal negative reviews posted against it. Not even half of these complaints were resolved. In addition to poor customer service, billing issues, unauthorized withdrawals, and product issues, here are some other complaints cited on BBB;
Deceptive Tactics
Countless Paysafe Group reviews accuse the company of scamming its clients and promoting deceptive sales practices. The provider promises an appealing package, low rates, and additional bonuses but disappears after merchants have signed up.
The sales agents provide misleading rate quotes and promise unrealistic savings. They hardly know the contract terms and make up false stories to convince clients. When a client addresses an issue, the company wastes its time until they try to get rid of the agreement. Then it forces high cancelation charges on them.
High Fund-Holds
BBB reviews for Paysafe Group indicate that the company regularly withholds funds over a long period without a factual cause. Consumers have faced sudden account cancelation, their money being held, and no one to answer their questions. In other cases, a merchant calls regarding an issue, and instead of resolving the issue, Paysafe shuts them out without an explanation and keeps their money. Mostly, the consumers get tired and give up.
Unauthorized Account Activation
Several users have complained about getting a large sum deducted from their account for a second account they did not request opening. In some cases, merchants who have not even heard of Paysafe are notified of an account activated on their behalf. The provider always excuses itself, calling it a mistake but never refunds money or closes the account.
Conclusion
Deduced from this Paysafe Group review, the provider cannot be called an actual payment facilitator. It is controlled by multiple equity firms establishing their rates and policies. A merchant signing up with the provider will not know about the subsidiary handling their business. Consequently, whenever an issue arises, a client will be passed on from company to company without a real solution.
Merchants are advised to find a trustworthy payment processing company that offers complete disclosure and practices honest sales strategies instead of scams.
