First American Payment Systems Review

FAPS, based in Fort Worth, Texas, is a major player in the payment processing sector. Established in 1990, the company has expanded to rank among the top 20 largest merchant acquirers in the United States. Offering a wide range of payment processing options, including in-store, online, and mobile services, it serves various business categories like retail, e-commerce, and mobile merchants.

In the financial services industry, Deluxe Corporation, a well-known name, purchased First American Payment Systems for $960 million in 2021. This purchase was a tactical decision made by Deluxe to improve its payment processing abilities and broaden its presence in the merchant services industry. First American’s omni-channel payments platform being integrated into Deluxe’s portfolio greatly increased Deluxe Payments’ revenue and strengthened its standing as a top provider in the payment processing sector. Lets read more about First American Payment Systems Review.

Company Background

First American Payment Systems was established in 1990 with an emphasis on providing creative payment options for companies of various sizes. Over time, the company has developed a strong range of offerings, such as POS systems, virtual terminals, and mobile payment processing options. Besides its main services, FAPS has consistently put money into cutting-edge technology to provide secure and effective payment processing choices.

The acquisition by Deluxe marked a new chapter for First American Payment Systems. Deluxe, known for its check processing and receivables management services, aimed to transform into a comprehensive payments technology company. The consolidation enabled Deluxe to utilize First American’s existing infrastructure and customer foundation, opening up fresh possibilities for expansion and advancement in the payments industry.

After the acquisition, Neil Randel, who was the CEO of First American Payment Systems, moved to become the Managing Director of Merchant Services at Deluxe. Continuing to be led by him, the company maintains its focus on increasing its range of services and improving customer satisfaction. The management team, made up of experienced professionals in the industry and technology, is committed to advancing the company’s goal of offering smooth and safe payment processing solutions.

Services and Features

First American Payment Systems (FAPS) offers a comprehensive range of payment processing services that cater to various business needs. These services include e-commerce payment processing, mobile payment processing, and in-store payment solutions, ensuring merchants can handle transactions efficiently and securely across different channels.

E-commerce Payment Processing

FAPS excels in e-commerce payment processing through its FirstPay.Net payment gateway. This gateway facilitates secure online transactions and provides merchants with tools to manage payments seamlessly. Features like fraud detection, recurring billing, and integration with shopping carts make it an ideal solution for online retailers. The gateway ensures that e-commerce businesses can operate smoothly with minimal risk.

Mobile Payment Processing

For companies that are constantly moving, First American Payment Systems provides strong options for processing payments on mobile devices. These options allow merchants to take payments from any location with a mobile device. The user-friendly mobile app comes equipped with functionalities like email receipts and signature capture. This feature is essential for businesses in need of adaptability, like temporary shops or service providers.

In-store Payment Solutions

In-store payment solutions are a cornerstone of FAPS’s offerings. The company provides state-of-the-art POS systems designed to streamline the checkout process and enhance transaction security. These systems support various payment methods, including credit and debit cards, and are equipped with the latest technology to ensure quick and secure transactions. The POS systems are essential for retail environments where speed and reliability are critical.

Specific Features Offered

First American Payment Systems offers several specific features that enhance its payment processing services:

FirstPay.Net Payment Gateway: A secure and versatile gateway for online transactions.

Virtual Terminals: Allow businesses to accept payments online without a physical POS system.

POS Systems: Advanced systems for efficient and secure in-store transactions.

ACH and E-check Processing: Enable electronic check processing for added convenience.

Gift and Loyalty Programs: Help businesses attract and retain customers through incentives.

Merchant Cash Advances: Provide financial support to businesses when needed.

Real-time Reporting: Offers insights into sales performance and transaction details.

Next-day Funding: Ensures quick access to funds for improved cash flow.

Data Breach Insurance: Adds a layer of security against potential cyber threats.

These features collectively position FAPS as a versatile and reliable payment processing provider, capable of meeting the diverse needs of businesses of all sizes. By offering comprehensive solutions and advanced features, FAPS helps businesses streamline their payment processes, enhance security, and improve overall operational efficiency.

Integrated Payment Solutions

First American Payment Systems provides strong integrated payment solutions that easily integrate with different business software. These integration features help businesses simplify their payment procedures, cutting down on manual input and decreasing errors. Companies can improve operational efficiency and enhance the overall customer experience by integrating payment processing with their current business systems.

Integration Capabilities with Business Software

FAPS’s integrated payment solutions are designed to work with a wide range of business software, including accounting systems, e-commerce platforms, and customer relationship management (CRM) tools. This compatibility ensures that payment data flows smoothly between different systems, providing real-time updates and accurate financial records.

Benefits of Integrated Payment Solutions

The primary benefits of integrated payment solutions include increased efficiency, reduced errors, and enhanced security. By automating payment processing and data entry, businesses can save time and resources, allowing staff to focus on more strategic tasks. Additionally, integrated systems help prevent data discrepancies and reduce the risk of human error, ensuring accurate and reliable financial information.

Examples of Integrations and Use Cases

First American Payment Systems has effectively combined its payment solutions with diverse software applications, providing customized solutions for various industries. As an example, retail companies can incorporate FAPS’s payment gateway into their POS systems for smooth transaction handling. Online stores can integrate the FirstPay.Net payment gateway to securely and effectively process payments for their customers. Moreover, service-oriented companies have the option to incorporate payment services into their CRM platforms in order to simplify invoicing and improve client care.

FAPS’s commitment is shown through these payment solutions, which offer versatile and efficient processing options for diverse business needs, leading to improved operations and financial management.

Cost and Contract Terms

First American Payment Systems (FAPS) presents a detailed and often complex pricing structure, which includes various fees and contract terms. Businesses considering FAPS should carefully review these details to understand the financial commitments involved.

Detailed Analysis of Pricing and Fees

FAPS’s pricing and fees can vary significantly depending on the type of business and the specific agreement negotiated. Key components include monthly and annual fees, processing rates, PCI compliance fees, and early termination fees.

Monthly and Annual Fees

Merchants commonly face monthly and yearly charges for upkeep of their accounts. These charges include fundamental account services and assistance. For instance, there is frequently a minimum monthly fee of $25 and an extra $20 monthly fee for statements.

Processing Rates

Processing rates with First American Payment Systems range from 1.00% to 4.99%, depending on the transaction type and the specific terms of the merchant’s contract. These rates apply to both swiped and keyed-in transactions, with the exact rate determined by the merchant’s industry and transaction volume.

PCI Compliance Fee

FAPS charges an annual PCI compliance fee, which is typically around $120. This fee ensures that merchants adhere to the Payment Card Industry Data Security Standard (PCI DSS), which is essential for maintaining secure transaction processing.

Early Termination Fee

Contracts with First American Payment Systems often include an early termination fee, which can range from $300 to $495. This fee applies if a merchant decides to terminate the contract before the agreed term ends.

Contract Terms and Conditions

FAPS generally provides three-year contracts that have clauses for automatic renewal, leading to the contract being renewed for one-year terms unless canceled within a specific timeframe before the end of the term.

Equipment Leasing Terms

Merchants may also engage in long-term equipment leases through FAPS, often via their leasing partner, Merimac Capital. These leases are generally non-cancellable and can be costly over time, so purchasing equipment outright may be more economical.

In summary, while FAPS provides comprehensive payment processing solutions, potential clients should thoroughly understand the cost and contract terms to make an informed decision.

Sales and Marketing Practices

First American Payment Systems (FAPS) employs various sales and marketing strategies to reach potential clients and promote its services. These strategies include the use of independent sales agents and telemarketing practices, which have led to a mix of customer experiences and feedback.

Overview of Sales Strategies

First American Payment Systems heavily depends on independent sales agents and external sales organizations to promote its payment processing solutions. This method enables the company to broaden its outreach and access various market segments. Nevertheless, this also implies that the sales strategies may differ greatly based on the specific agent or company handling them.

Use of Independent Sales Agents

The use of independent sales agents is a common practice in the payment processing industry. These agents work on a commission basis and are incentivized to sign up as many merchants as possible. While this can lead to aggressive sales tactics, it also enables FAPS to cover a broader geographic area without maintaining a large in-house sales force.

Telemarketing Practices

FAPS also employs telemarketing practices to generate leads and secure new clients. Telemarketing allows the company to quickly reach potential customers and provide information about their services. However, this method can sometimes result in high-pressure sales tactics, which may not always be well received by potential clients.

Common Complaints and Issues

There have been numerous complaints about FAPS’s sales and marketing practices. These consist of charging undisclosed fees, deceptive selling strategies, and insufficient disclosure of crucial contract details. Merchants have documented unanticipated costs and expenses that were not clearly outlined during the purchasing procedure.

Hidden Fees

One of the most frequent complaints involves hidden fees. Merchants have expressed frustration over fees that were not disclosed upfront, such as additional transaction fees, monthly minimum fees, and PCI compliance fees.

Misleading Sales Tactics

Misleading sales tactics have also been a significant issue. Some merchants have reported that sales agents provided inaccurate information about the terms and conditions of the contract, leading to unexpected costs and complications.

Customer Feedback on Sales Experiences

Customer feedback on sales experiences with FAPS is mixed. While some merchants appreciate the company’s comprehensive service offerings, others have criticized the lack of transparency and consistency in the sales process. Overall, potential clients are advised to thoroughly review contract terms and ask detailed questions to avoid any misunderstandings.

Customer Support

First American Payment Systems provides customer service solutions aimed at helping merchants with their payment processing requirements. Having reliable and effective customer support is essential for businesses that depend on seamless and dependable payment processing.

Availability and Quality of Customer Support

FAPS provides 24/7 customer support to ensure that merchants can get assistance whenever they need it. This round-the-clock availability is particularly beneficial for businesses that operate outside of standard business hours or those that may experience technical issues during peak times. The quality of customer support, however, has received mixed reviews, with some customers praising the helpfulness of the support staff, while others have reported difficulties in resolving their issues.

Channels of Support

FAPS provides various support channels to cater to diverse preferences and requirements. Merchants can seek help through phone, email, and online customer support. Phone assistance is accessible 24/7, providing quick aid in emergency circumstances. Having email support allows for a documented history of conversations, helpful for managing and solving intricate problems. Online support, such as chat and helpdesk services, provides another convenient choice for obtaining rapid responses to frequently asked questions.

Analysis of Customer Support Reviews and Ratings

Customer reviews and ratings of FAPS’s customer support vary widely. Positive reviews often highlight the responsiveness and professionalism of the support team, noting that issues are resolved efficiently. On the other hand, negative reviews frequently mention long wait times, unhelpful responses, and difficulties in getting problems fully resolved. Some merchants have expressed frustration over the lack of consistency in the support experience, suggesting that the quality of service can depend on the individual support representative.

Overall, while FAPS provides comprehensive customer support services, the mixed feedback indicates that there is room for improvement in ensuring a consistently high-quality experience for all merchants. Businesses considering FAPS should weigh these factors and may want to reach out to customer support during their decision-making process to gauge the level of service firsthand.

Online Reputation and Reviews

First American Payment Systems’ online reputation is a combination of both positive and negative reviews, showcasing varied customer experiences through ratings. This part provides an overview of the usual customer feedback and assesses the company’s BBB rating and how they handle complaints.

Summary of Online Reviews and Ratings

Online reviews for FAPS are varied, with some customers praising the company’s services and others expressing dissatisfaction. The company has received numerous reviews across different platforms, resulting in an overall mixed rating. Positive reviews often highlight the reliability of the payment processing services and the effectiveness of customer support in resolving issues. Conversely, negative reviews focus on unexpected fees, long-term contracts, and difficulties with the termination process.

Common Positive and Negative Feedback from Customers

Positive Feedback:

Customers appreciate the comprehensive range of payment processing services offered by FAPS.

Some users commend the responsive and professional customer support team.

The ease of integration with various business software is frequently mentioned as a benefit.

Negative Feedback:

A significant number of complaints revolve around hidden fees that were not disclosed during the sales process.

Many customers are frustrated with the lengthy contract terms and the high early termination fees.

There are frequent mentions of misleading sales tactics and inadequate disclosure of contract details by sales agents.

Analysis of BBB Rating and Complaint Resolution

FAPS has received an A+ rating from the Better Business Bureau (BBB) even though there are many complaints. This strong rating indicates that the company is typically attentive to complaints and puts effort into addressing them. Nevertheless, the complaints suggest that transparency and sales practices continue to be problematic. Resolving complaints frequently entails clarifying fees and contract terms that were not properly understood or fully revealed at the beginning.

Overall, while FAPS has a strong infrastructure for payment processing, potential customers should be aware of the mixed reviews and ensure they fully understand the terms and conditions before entering into a contract.

Legal Issues and Controversies

First American Payment Systems (FAPS) has faced several legal issues and controversies that have impacted its reputation. These legal challenges often stem from disputes over hidden fees, misleading sales practices, and the enforcement of contract terms.

Overview of Any Legal Actions or Controversies

One significant legal problem was allegations of misleading sales tactics and hidden charges. Customers claimed that FAPS failed to fully disclose the terms and conditions of their contracts, resulting in unanticipated fees. Furthermore, there have been legal cases concerning the application of extended, non-cancelable equipment leases that merchants have deemed excessively limiting and financially challenging.

In response to these complaints, there have been legal settlements where FAPS agreed to address some of these issues. For example, there have been cases where merchants successfully disputed early termination fees or other hidden charges, resulting in refunds or revised contract terms.

Analysis of the Impact on the Company’s Reputation

The legal issues and controversies have significantly impacted FAPS’s reputation. While the company maintains a high rating with the Better Business Bureau (BBB), the volume of complaints and the nature of the legal disputes have led to a perception of distrust among some merchants. The repeated allegations of hidden fees and misleading sales tactics have been particularly damaging, causing potential customers to be wary of entering into contracts with FAPS.

In spite of these obstacles, FAPS has persevered in its operations and is still offering payment processing services to numerous merchants. The company’s dedication to resolving numerous complaints and legal issues shows a commitment to enhancing its methods and upholding customer connections. Nevertheless, it is recommended for potential clients to carefully examine contract terms and obtain clarification on all fees and conditions to prevent possible problems.

Pros and Cons

First American Payment Systems (FAPS) offers a range of benefits and drawbacks that potential customers should consider. This section provides a detailed list of the advantages and disadvantages of using FAPS and compares it with its competitors.

Advantages

Comprehensive Service Offering: FAPS provides a wide array of payment processing solutions, including in-store, online, and mobile payments. This versatility makes it suitable for various business types.

Integration Capabilities: The company’s solutions integrate well with various business software, enhancing operational efficiency and reducing manual entry errors.

24/7 Customer Support: FAPS offers round-the-clock customer support, ensuring businesses can get help whenever needed.

Advanced Security Features: The inclusion of features like data breach insurance and PCI compliance helps protect businesses from cyber threats and ensures secure transactions.

Real-time Reporting: This feature allows businesses to monitor their transactions and sales performance in real-time, aiding in better financial management.

Disadvantages

Hidden Fees: One of the most frequent complaints involves undisclosed fees that can add up over time, leading to higher-than-expected costs.

Long-term Contracts: FAPS often requires merchants to sign long-term contracts, which can be difficult to exit without incurring substantial early termination fees.

Misleading Sales Tactics: There have been reports of sales agents not fully disclosing contract terms, leading to misunderstandings and dissatisfaction among customers.

Expensive Equipment Leasing: The equipment leasing terms can be costly, with long-term non-cancellable leases that might not be financially advantageous for all businesses.

Mixed Customer Support Reviews: While some customers praise the support team, others report long wait times and unhelpful responses, indicating inconsistency in service quality.

Comparison with Competitors

In contrast to Square, Stripe, and PayPal, FAPS provides a more conventional method with thorough customer assistance and a wider array of offerings. Yet, rival companies frequently offer pricing that is easier to understand, contracts with shorter durations, and solutions that can be customized for small businesses or startups. Square and PayPal, such as, are recognized for their simple pricing models and easy-to-use interfaces, which attract small and medium-sized businesses seeking ease and adaptability.

Frequently Asked Questions (FAQs)

What are the primary services offered by First American Payment Systems?

First American Payment Systems offers a comprehensive range of payment processing services, including in-store payment solutions, e-commerce payment processing, mobile payment processing, virtual terminals, ACH and e-check processing, gift and loyalty programs, merchant cash advances, real-time reporting, next-day funding, and data breach insurance.

How does FAPS compare to other payment processors in terms of fees and contract terms?

FAPS typically features more intricate fee systems and lengthier contract durations in comparison to rival companies. Common problems include hidden charges, lengthy contracts with automatic renewal clauses, and high fees for canceling early. Square and PayPal competitors usually provide pricing that is easier to understand and contract terms that are more flexible.

What should businesses consider before signing up with First American Payment Systems?

Businesses should thoroughly review all contract terms, including fees and conditions, to avoid unexpected costs. It’s essential to understand the implications of long-term contracts and potential early termination fees. Comparing FAPS with other payment processors can help in making an informed decision based on specific business needs.

Final Verdict

First American Payment Systems provides thorough payment solutions, however, their fee structures are intricate and they require long-term contracts. Before utilizing its services, potential users must carefully assess all terms and explore alternative options. In general, FAPS is dependable but needs careful examination to ensure it meets particular business requirements.