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  • Reviews new   1 web reviews new   0 verified reviews
  • Number of Employees51-250
  • Number of Customers10001-50000
  • Acquiring Bank(s)Deutsche Bank
  • Processor(s)Global Payments, TransFirst
  • Company Structure(s)Independent Sales Organization (ISO)

Federated Payment Systems
2 Huntington Quadrangle, 3rd Floor North Wing
Melville, New York 11747

Sales #8: 800-217-8711
Support #4: 800-217-8711
Fax: 631-390-1247

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Federated Payment Systems

Federated Payment Systems is a payment processing company that provides a range of services targeted at small to mid-size businesses. Founded in 1999, the company is headquartered in NY and has over 25,000 clients in both the US and CA.  In this Federated Payment Systems review and profile, we will look at what the company offers for processing, equipment, and other services like its cash advance program. We will also explore what has been reported and what people like you are saying about working with the company.


Federated Payment Systems and its Payment Services

Federated Payments offers a lot of options for how a business can take payments. This includes card processing in-person, e-commerce, mobile processing, check processing, and gift and loyalty cards. It also has a cash advance program for those who are interested.

Card Processing
Federated Payments processes all major credit and debit cards, including Visa, MasterCard, American Express, Discover, Diners' Club, and JCB. It also handles EBT. Federated Payments offers SafePay as an option for reoccurring billing. It’s handled with a one-time set up then your billing can be put on auto-pilot with scheduling on a daily, weekly, or monthly basis. 

E-Commerce
SafePay, as mentioned above, also allows for credit card payments via the web. You can set up a shopping cart for free or, if you already have one, SafePay can integrate with over 80 popular shopping carts.  It can also accept electronic checks over the internet.

SafePay is PCI certified, and features iSpyFraud protection to identify potentially fraudulent transactions. It works with MasterCard SecureCode and Verified by Visa.

Mobile Processing
If you run a business on the go, mobile processing is a must. Federated Payments has wireless terminal options that are small enough to be carried, or the SafePay gateway to allow you to use a mobile device (such as a smartphone or tablet) as a payment processor. As long as you have internet access, SafePay lets your customer pay with credit cards or checks. You can also access orders and view transactions.

Check Processing
Federated Payments has its own Gold check conversion process that processes your checks as electronic payments then deposits them directly into your account. The process involves swiping the check through a compatible check reader to obtain instant authentication and certification. Federated Payments also offers a range of compatible check readers, which will be discussed in the section about equipment.

Gift and Loyalty Cards
Federated Payments offers gift cards that can be customized with your business logo and name. The company helps set up and maintain gift card programs from activation through use, including updating card balances or processing gift card cancellations. With Federated Payments gift card options you can also track customers' buying habits, offer loyalty rewards, and provide loyalty cards.

Cash Advances
The cash advance program is for businesses that need working capital. Funds are available from $5,000 - $150,000. The program features no set time frame to pay the advance back, no fixed monthly payments, and no effect on merchants' personal credit ratings. Payments will be made by a percentage of your daily credit card transaction amount. Federated Payments boasts competitive rates, an easy application, high approval rates, and quick funding.

Keep in mind that while cash advances may be a quicker way to get funds than traditional loans, they also may be more expensive. Check out our article Should You Get a Merchant Cash Advance? for more information.

 

What does Federation Payments System offer for security?

Federation Payment does not have any added security features to speak of, but its proprietary SafePay software does have built in security features. It is CISP and PCI certified, you can use iSpyFraud protection, and works with the cardholder authentication card programs MasterCard SecureCode and Verified by Visa.

 

Federation Payment’s equipment and software options

Federated Payments offers a range of equipment, including card processing terminals, wireless terminals, check readers, mobile, and virtual terminals. Federated Payments' equipment is PCI compliant, and the company helps businesses with free training and setup for new merchant accounts.

Federated Payments offers terminals from popular brands including Verifone, Hypercom, and Nurit. Features vary by model, but may include options such as backlit keys, LCD screens, integrated PIN pads, built-in printers, and EMV capability

The company also offers check readers and other peripherals from brands like Magtek and RDM.  

 

Federated Payment Systems Rates and Fees

Federated Payment does not mention anything about its rates, fees, or contracts on its website. This is most likely because they fluctuate depending on the client. If you want to make sure you get the best pricing possible request a quote through CardFellow.

CardFellow allows you to privately request quotes from multiple companies, so that you can avoid being hassled by sales people. There is no charge for using Cardfellow, so for more information about who we are and what we do check out our about us section.

 

Federated Payment Systems Review and Online Reputation

Federated Payments Systems was accredited with the Better Business Bureau in early 2016. The company currently has an A+ rating. Federated Payments has had 10 complaints lodged with the BBB in the past 3 years, with 2 in the past 12 months. 4 complaints are listed in the "Problems with Product/Service" category, 5 are listed in the "Billing/Collection Issues" category, and 1 complaint is in the "Advertising/Sales Issues" category.

Some of the reviews are not viewable but the ones that are claim large cancellation fees that were put in the contact post agreeing to it, rates that triple the expected amount, excessive fees and dishonest, aggressive sales tactics.

The 31 reviews on Ripoff Report are buried under generic and lengthy company rebuttals. If you scroll long enough you will see the root of the problem though. The complaints range from high rates and low quality of service, not adhering to agreements made in the contract, terrible machine repair service, dishonest sales and billing methods, and even a sales employees claiming they have too aggressive sales tactics with little employee benefits.  

Federated Payments have a 3.7 star rating on Google reviews, but don’t be misled. Only 2 of the 5 star ratings keeping it afloat claim to be customers, the rest are employees saying it is a great place to work for. Out of the 10 reviews, 5 only have 1 star and allege dishonest and rude business tactics that have resulted in loss of money and need of reaching out to the BBB for resolution.

VERIFIED REVIEWS

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Federated Payment Systems has not received any verified reviews.

Web Reviews

Unlike verified reviews which are validated by CardFellow, web reviews can be submitted by anyone viewing this profile. While we validate these reviews as best we can, CardFellow does not verify that a reviewer is using or has used a processor's service.

Federated Payment Systems Web Reviews

Large reseller network

new   Posted By: CardFellow on 03/04/16

Federated Payment Systems got its start in 1999 at the peak of the credit card processing free-for-all. Since then, it’s relied on a large network of independent sales offices, agents, and financial institutions to acquire clients and resell its processing services. For this reason, there is no telling what kind of pricing and service you will receive from Federated – it all depends on the reseller you use to get its processing services.

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