Frontline Processing Review

Frontline Processing is a full-service payment processing company that has been helping businesses nationwide since 1997. Recognized for its variety of services such as credit and debit card processing, point of sale (POS) systems, and online payment solutions, the company strives to offer secure, dependable, and effective transaction processing for merchants of any size. Frontline Processing is known for its focus on customer service and its promise to provide clients with competitive rates and cutting-edge technology. Let’s delve deeper into the Frontline Processing Review.

Company Background

Established in 1997, Frontline Processing was created with the objective of making payment processing easier for businesses by simplifying the complexities involved. Throughout the years, the company has expanded to become an important competitor in the merchant services sector, broadening its range of payment solutions and improving its technological abilities to keep up with the changing market demands. The company’s focus on innovation and customer satisfaction has contributed to its long-lasting success.

Frontline Processing is headquartered in Bozeman, Montana. The choice of location in Montana reflects the company’s roots and commitment to maintaining a close-knit, community-oriented business environment. In addition to its headquarters, the company also has an expanding office in Henderson, Nevada, which supports its operations and serves its nationwide clientele.

The leadership team at Frontline Processing comprises experienced professionals dedicated to driving the company forward. Key personnel include:

Karen Goff, Operations Manager: In charge of managing daily activities and ensuring the smooth running of the company’s procedures.

Kori Marolf: Plays an essential role in overseeing customer relations and improving service delivery.

Katie Mansfield, Complaint Contact: Manages customer grievances and ensures prompt resolution of any problems.

Frontline Processing’s clear goal is to offer dependable, secure, and affordable payment processing solutions that aid in the success of businesses. The organization prioritizes transparency, customer happiness, and technological advancements. The goal is to establish enduring connections with customers through outstanding service and assistance. Frontline Processing aims to remain ahead of industry trends and offer innovative solutions to customers through consistent investments in technology and staff development.

Services Offered by Frontline Processing | Frontline Processing Review

Frontline Processing provides a variety of services to cater to the various requirements of its customers. These services aim to offer secure, effective, and user-friendly solutions for a range of businesses, including retail and online companies. A complete guide to the services provided by Frontline Processing is outlined below.

Credit and Debit Card Processing

Frontline Processing provides comprehensive credit and debit card processing services. Their EMV chip card-enabled terminals enhance security and reduce fraud risks. Terminals with PIN capability provide extra security by demanding a PIN in place of a signature. The company provides options for mobile and wireless payment solutions, enabling businesses to accept transactions using smartphones or tablets while on the move. This flexibility is particularly beneficial for businesses that operate outside traditional storefronts.

Point of Sale (POS) Systems

Frontline Processing features two main POS systems: HioPOS Plus and Clover Station. The HioPOS Plus is specifically created for retail and hospitality industries, providing a comprehensive solution for handling everyday transactions. Clover Station is highly customizable through its app store, providing a flexible and scalable POS system. Both systems support seamless setup processes and user-friendly interfaces, making it easy for businesses to manage inventory and transactions efficiently.

Online Payment Solutions

Frontline Processing integrates seamlessly with websites and apps to facilitate online payments. The company offers two pricing plans: Basic and Pro. The Basic plan has a fee of 2.90% plus $0.30 for each transaction, whereas the Pro plan has a rate of 1.89% plus $0.23 per transaction. Each plan comes with strong security features and follows PCI compliance for safe and secure online transactions.

Additional Services

Frontline Processing also offers a range of additional services to support business operations. These services, such as check conversion and check guarantee, support businesses in effectively handling checks. Cash advance services offer businesses rapid access to money secured by upcoming credit card transactions. The company provides tools for preventing fraud to protect transactions and customer data. Additionally, loyalty and gift card programs are available to help businesses increase customer retention and boost sales. These programs allow businesses to create customized gift cards and offer rewards to loyal customers, fostering long-term customer relationships.

Frontline Processing’s comprehensive service offerings make it a valuable partner for businesses looking to streamline their payment processing and enhance their operational efficiency.

Pricing and Fees for Frontline Processing

Before enrolling, merchants should take into account the variety of pricing models and fees offered by Frontline Processing. It is essential to understand these expenses in order to make a well-informed choice on whether Frontline Processing is suitable for your company.

Overview of Pricing Models: Frontline Processing provides two primary pricing models: tiered pricing and interchange plus pricing. The tiered pricing model divides transactions into tiers with different rates, whereas the interchange plus model adds a consistent markup to the interchange rates determined by credit card networks. Merchants typically find interchange plus pricing to be more transparent and cost-effective.

Detailed Breakdown of Fees:

PCI Compliance Fees: Merchants are charged a monthly PCI compliance fee of $4.95. If they fail to comply with PCI standards, a non-compliance fee of $19.95 per month is applied.

Monthly Minimum Fees: There is a required monthly payment of $25 that guarantees the merchant will pay this minimum amount in processing fees each month, no matter the transaction volume.

Regulatory and Statement Fees: The monthly regulatory fee is $4.95, and the statement fee is $10. These fees cover the administrative costs of maintaining the merchant account and providing monthly statements.

Early Termination Fee (ETF) Policies: The average ETF is $250, although it has the potential to increase depending on the contract terms. Certain traders have noted considerably elevated ETFs previously, but recent revisions indicate that these charges have decreased.

Comparison with Industry Standards: When compared to other merchant service providers, Frontline Processing’s fees are relatively average. While their PCI compliance and non-compliance fees are within the typical range, the monthly minimum and statement fees can add up, especially for small businesses with low transaction volumes. The ETF, although reportedly reduced, remains a concern for merchants who may want to switch providers.

Overall, Frontline Processing provides competitive pricing options, but merchants must be mindful of additional fees and take into account their transaction volumes and compliance status to prevent unexpected expenses. Always reviewing the contract details and comparing them with other providers can help ensure that you get the best deal for your payment processing needs.

Contract Terms

Potential clients should thoroughly examine Frontline Processing’s contract structure before entering into any agreements. It is crucial to understand the terms of the contract in order to prevent unexpected fees and responsibilities.

Length of Contract: Frontline Processing typically offers contracts that last for three years. This duration is fairly standard within the payment processing industry. It’s crucial for merchants to be aware of this term to plan their business commitments accordingly.

Early Termination Clauses: One of the critical aspects of Frontline Processing contracts is the early termination fee (ETF). Although the company has claimed to reduce these fees recently, they can still be substantial. The typical ETF is commonly $250, although it may increase based on the contract details and the timing of the termination. For instance, if the agreement contains a liquidated damages provision, the expenses may increase significantly. This clause usually calculates damages based on the average monthly processing fees multiplied by the remaining months of the contract.

Liquidated Damages Fee: Liquidated damages fees are a form of early termination fee that compensates the processor for the expected revenue loss due to early contract termination. These fees can be hidden in the fine print and may result in much higher costs than anticipated. Merchants have reported fees that can reach tens of thousands of dollars, making it vital to understand and negotiate these terms before signing.

Renewal Policies and Automatic Renewals: Contracts with Frontline Processing often include automatic renewal clauses. These clauses automatically prolong the agreement for further durations (usually one year) unless the seller gives notice of cancellation within a specific window, typically 30 to 60 days prior to the contract’s expiration. Failing to opt out of the automatic renewal can rebind merchants to the same terms, including any liquidated damages clauses.

Other Contractual Obligations and Restrictions: In addition to the ETF and liquidated damages fees, merchants should be aware of other potential obligations. These can include monthly minimum fees, PCI compliance fees, and various regulatory and statement fees. It is also common for contracts to contain clauses that survive termination, meaning certain obligations and liabilities continue even after the contract ends.

Careful review and negotiation of these terms can help merchants avoid unnecessary fees and ensure they are fully aware of their contractual obligations with Frontline Processing. It is advisable to always seek legal counsel to fully comprehend and possibly improve the terms of a contract before agreeing to it.

Customer Support and Sales Practices

Frontline Processing offers a range of customer support and sales practices designed to assist merchants, though some areas have room for improvement. The company offers customer service mainly via phone channels for merchants to voice their questions and concerns. Nevertheless, their customer service accessibility is limited due to the absence of email support or online chat options. This can be inconvenient for businesses that prefer digital communication methods.

Response Times and Effectiveness: The effectiveness and response times of Frontline Processing’s customer support have received mixed reviews. Certain merchants have shared positive experiences with prompt replies and valuable support. On the other hand, some individuals have experienced long waits and lack of communication, especially when trying to address problems or end services. The lack of multiple support channels further exacerbates these issues, as merchants cannot escalate their concerns through alternative means.

Sales Tactics and Practices: Frontline Processing employs a combination of in-house sales agents and third-party partnerships to market its services. This approach allows the company to reach a broad audience and offer personalized service. However, there have been reports of aggressive sales tactics and misguidance. Some merchants have complained about being pressured into signing contracts without fully understanding the terms and conditions, leading to dissatisfaction and disputes later on.

Use of In-House Sales Agents and Third-Party Partnerships: While the use of in-house sales agents can ensure better control over sales practices, the inclusion of third-party partnerships sometimes results in inconsistent sales experiences. The reliance on telemarketing and referral partnerships has also been a point of contention for some merchants, who feel that these methods can be overly aggressive.

Reports of Aggressive Sales Tactics and Misguidance: Several reviews have highlighted instances where merchants felt misled by sales representatives regarding fees and contract terms. For example, some merchants were surprised by unexpected fees and charges that were not clearly disclosed during the sales process. This lack of transparency can lead to mistrust and a negative perception of the company’s practices.

Transparency in Advertising and Disclosure of Terms: Frontline Processing strives to maintain transparency in its advertising by not promoting deceptive rates or guarantees. However, the company has been criticized for not disclosing all important terms clearly. Merchants are advised to carefully review all contract details and ask for written confirmation of any verbal agreements made by sales representatives to avoid misunderstandings.

Customer Reviews and Complaints

Customer reviews and complaints about Frontline Processing reveal a mixed bag of experiences. Positive reviews often highlight the ease of use and straightforward setup process. Many customers appreciate the seamless integration of their payment systems and the initial support provided during the onboarding phase. Effective customer support instances are also noted, with some merchants finding the phone support helpful for resolving immediate issues.

However, there are several common complaints. A significant number of customers have reported hidden and unexpected fees that were not clearly disclosed during the sales process. These include monthly minimum fees, PCI compliance fees, and other regulatory charges that can add up unexpectedly. Additionally, some merchants have faced account terminations without prior notice, which can disrupt business operations.

Difficulties in closing accounts are another recurring issue. Merchants have described the process as cumbersome and time-consuming, with numerous follow-ups required to ensure the closure is completed. This has led to frustration among users who expected a more straightforward termination process.

Analysis of customer feedback on platforms like the Better Business Bureau (BBB) and Revdex indicates a range of issues. On the BBB, Frontline Processing has received complaints about billing and collection issues, hidden fees, and poor customer service. Despite these complaints, the company holds an “A+” rating, suggesting that it has been somewhat responsive to resolving issues raised by customers. On Revdex, similar themes of dissatisfaction with hidden fees and account management issues are prevalent.

Overall, while Frontline Processing has its share of satisfied customers who find the services efficient and user-friendly, the recurring complaints about hidden fees and account management issues highlight areas where the company could improve its transparency and customer service practices.

Legal and Regulatory Issues

Frontline Processing has encountered several legal and regulatory challenges over the years. One notable legal dispute involved a lawsuit filed by Global Payments against Frontline Processing, which stemmed from disagreements over contract terms and financial liabilities. In 2021, a Georgia court ruled in favor of Frontline Processing, awarding them significant damages due to breaches by Global Payments, which withheld funds during an earlier legal conflict with the Consumer Financial Protection Bureau (CFPB). This case underscored the complex legal landscape within the payment processing industry and highlighted issues of contract enforcement and financial responsibility (Digital Transactions).

Additionally, Frontline Processing was implicated in a lawsuit by Gucci America, Inc. for contributory trademark infringement. Gucci accused Frontline of providing payment processing services to websites selling counterfeit goods. The court found that while there was insufficient evidence for direct infringement, Gucci had a valid claim for contributory infringement, indicating that Frontline had knowingly facilitated transactions for counterfeit goods (Loeb & Loeb LLP).

Regarding regulatory compliance, Frontline Processing maintains adherence to industry standards, including PCI compliance, which is critical for safeguarding payment card information. The company charges merchants a monthly fee to ensure PCI compliance, reflecting its commitment to maintaining secure and reliable transaction processes (Merchant Services Update).

Frontline Processing has an A+ rating from the Better Business Bureau (BBB), showing good handling of customer complaints and upholding satisfactory business practices. Nevertheless, the company does not have BBB accreditation, indicating that it has not actively pursued or fulfilled the BBB’s accreditation criteria. Even with this, Frontline Processing’s rating indicates that they typically handle customer complaints successfully according to the BBB.

Overall, while Frontline Processing has faced legal challenges, its commitment to regulatory compliance and effective resolution of customer complaints help maintain its reputation in the payment processing industry.

Pros and Cons

Pros

Wide Range of Services:

Frontline Processing offers extensive services, including credit and debit card processing, POS systems, online payment solutions, and mobile payment options, catering to diverse business needs.

Security and Compliance:

The company adheres to industry standards, ensuring secure transactions and PCI compliance, which helps in protecting sensitive data and preventing fraud.

Positive Customer Service Feedback:

Some customers have reported effective and timely support through dedicated phone lines, highlighting good experiences with the company’s customer service.

Flexible Payment Solutions:

Supports various payment methods, including mobile, online, and in-store transactions, providing flexibility for businesses to process payments seamlessly across different platforms.

Cons

Hidden Fees and Aggressive Sales Tactics:

There are reports of hidden fees not clearly disclosed during the sales process, leading to unexpected charges for merchants. Some customers have also experienced aggressive sales tactics.

Customer Service Limitations:

The lack of email support is a significant drawback, limiting communication options. Additionally, customer reviews have noted mixed experiences regarding responsiveness and issue resolution.

Account Termination and Fee Disclosures:

Merchants have reported abrupt account closures without prior notice and difficulties in closing accounts, which can disrupt business operations.

High Early Termination Fees:

The company imposes substantial early termination fees, which can deter businesses from switching providers due to the high costs involved.

Conclusion

In general, Frontline Processing provides a variety of secure and compliant services. Nevertheless, it’s important for potential clients to know about the undisclosed charges, pushy sales techniques, and limited customer support. Although there is some praise, the presence of steep early termination charges and difficulties in managing accounts might discourage certain companies. Thoroughly examine the contract terms before agreeing.