The 10 Worst Credit Card Processing Companies

If you run a business, accepting card payments is not optional anymore. Customers expect to tap, swipe, or pay online without friction. The problem is that not all payment processors treat merchants fairly. Some bury fees in fine print, some lock you into long contracts, and others make it painfully hard to cancel or get support when something goes wrong.

When people search for the worst credit card processing companies, they usually want one thing. They want to avoid costly mistakes before signing a merchant services agreement. I have looked closely at common complaints, contract structures, pricing models, and real merchant experiences to explain which providers tend to create the most frustration and why.

This article is not about scams. Every company listed here is a legitimate processor operating in the United States. The issue is how they handle pricing, transparency, customer service, and contract enforcement. If you understand these problems upfront, you can protect your cash flow and avoid months or years of unnecessary fees.

10 Poorly Rated Credit Card Processing Companies

Below is a snapshot of payment processors that consistently receive negative feedback from small and mid-sized businesses. The table highlights the main reasons merchants struggle with these providers.

Each company below is explained in detail, including why merchants often regret signing up and what types of businesses are most affected.

First Data (Fiserv)

First Data, now operating under Fiserv, is one of the largest merchant account providers in the world. Size is not always a benefit for small businesses, and this is where many problems begin.

A common issue merchants report is difficulty canceling service. Even after closing accounts, some business owners continue to see monthly fees deducted. These may include account maintenance fees, PCI compliance charges, or minimum processing fees that were not clearly explained at signup.

Another major complaint is the standard contract length. Many merchants are placed into three-year agreements with automatic renewals. If you miss the cancellation window, the contract can reset without warning.

Pricing is also a concern. First Data often uses tiered pricing, which means transactions fall into qualified, mid-qualified, or non-qualified buckets. For example, a rewards credit card processed online may be pushed into a higher tier with a much higher rate than advertised.

Customer support experiences vary widely. Larger merchants may get dedicated account managers, while small businesses often deal with call centers and long resolution times.

Global Payments

Global Payments serves hundreds of thousands of merchants worldwide, but many small businesses report confusion and frustration after onboarding.

One of the biggest issues is statement clarity. Monthly processing statements can be difficult to understand, even for experienced operators. Fees may appear under vague labels, making it hard to track true processing costs.

Contracts are another pain point. Many merchants report being locked into long agreements with early termination fees. In some cases, the cancellation fee only becomes clear when a business tries to leave.

Pricing structures tend to favor the processor. Tiered pricing, batch fees, and authorization charges can stack up quickly, especially for retail businesses with small average ticket sizes.

Support quality is inconsistent. Some merchants report helpful reps, while others struggle to get basic billing questions answered. This inconsistency makes it hard for business owners to feel confident about their payment setup.

Elavon

Elavon, a subsidiary of U.S. Bancorp, is a major player in the merchant services space. While the brand carries trust due to its banking background, merchant feedback often tells a different story.

Rigid contract enforcement is a recurring theme. Merchants who try to exit early frequently face termination fees, even if the service does not meet expectations. These fees can range from flat penalties to liquidated damages based on projected revenue.

Elavon also charges several account-level fees that catch business owners off guard. These may include monthly minimums, statement fees, and PCI non-compliance penalties.

Another issue involves underwriting policies. Some merchants report account holds or delayed deposits with little explanation, especially during seasonal sales spikes.

Customer support is often described as adequate but slow. For time-sensitive issues like chargebacks or deposit delays, this can seriously impact cash flow.

Worldpay

Worldpay processes a massive volume of global transactions, but scale has not translated into smooth experiences for many merchants.

One common complaint is poor communication. Merchants often report difficulty reaching knowledgeable representatives who understand their account history.

Worldpay contracts are typically long-term and include auto-renewal clauses. These agreements can be especially problematic for small businesses that outgrow the service or need more flexible terms.

Fees are another sticking point. Merchants often discover additional surcharges tied to cross-border transactions, currency conversion, or card-not-present payments. These charges may not be fully explained during the sales process.

When problems arise, resolution can take weeks rather than days. For businesses relying on daily deposits, this level of delay creates stress and uncertainty.

Heartland Payment Systems

Heartland Payment Systems markets itself as a merchant-friendly processor, but real-world feedback suggests mixed results.

Sales practices are a frequent source of frustration. Some merchants report being quoted one rate and billed another. This usually stems from verbal promises that do not match the written agreement.

Heartland also promotes equipment leasing, which can be costly over time. Leasing a terminal for several years often ends up costing far more than buying it outright. These leases are usually non-cancelable, even if you stop processing.

Contracts may include multi-year terms, depending on how the account is set up. Merchants who assume they are on month-to-month plans sometimes discover otherwise when they attempt to cancel.

Support quality is average. While the company does offer U.S.-based support, resolution times vary depending on the issue and account size.

Paysafe

Paysafe operates across multiple payment verticals, including card processing, digital wallets, and online gaming transactions. This diversity can make their merchant services harder to manage.

Pricing complexity is a major concern. Merchants often report difficulty understanding how rates are calculated, especially when processing international payments or online transactions.

Contracts frequently include long commitments and layered fee structures. These may involve gateway fees, monthly platform charges, and per-transaction costs that add up quickly.

Another issue involves risk management. Paysafe is known to place reserves or holds on accounts it deems high risk. While risk controls are standard in the industry, merchants often complain about limited communication during these events.

Customer support tends to focus on larger enterprise clients, leaving small businesses waiting longer for help.

TSYS

TSYS is a behind-the-scenes processor powering many reseller merchant accounts. While businesses may not sign directly with TSYS, they still feel the impact of its systems and policies.

Billing errors are one of the most common complaints. Merchants report duplicate charges, incorrect rates, or unexplained fee increases.

Contract rollovers also cause frustration. Many merchants believe their agreement has ended, only to find it automatically renewed.

Statements generated through TSYS platforms are often described as confusing. For example, interchange fees, processor markups, and assessments may be lumped together in ways that obscure true costs.

Support experiences vary depending on the reseller involved, which adds another layer of complexity when trying to resolve issues.

National Processing

National Processing positions itself as a cost-effective option for small businesses, but merchant reviews suggest caution.

Upselling is a frequent complaint. Merchants report being pushed into add-ons they do not need, such as premium gateways or compliance packages.

Cancellation hurdles are another issue. Some business owners say it takes multiple calls and written notices to close an account successfully.

Rate transparency can be inconsistent. While some plans appear competitive, others include variable pricing that increases over time without clear explanation.

Support quality is often described as below average, especially for billing-related concerns. For a small business owner juggling daily operations, this adds unnecessary friction.

Dharma Merchant Services

Dharma Merchant Services has a reputation for ethical pricing, but it still appears on this list due to specific operational challenges.

The most common issue involves account freezes and fund holds. Dharma applies strict underwriting standards, which can result in sudden interruptions for certain industries.

For example, an online business experiencing a sudden increase in volume may trigger a review. During this time, deposits can be delayed, affecting payroll and vendor payments.

While pricing is generally transparent, merchants in higher-risk categories may find the restrictions difficult to manage.

Support response times during account reviews are often slower than merchants expect, adding to the stress of already tense situations.

BluePay

BluePay was once praised for its payment gateway and integrations, but merchant sentiment has declined over time, especially after acquisitions and platform changes.

One recurring complaint is fee changes without clear notice. Merchants report seeing new charges appear on statements months after signup.

Legacy contracts are another issue. Businesses that signed up years ago may still be bound by outdated terms that no longer match current offerings.

Support quality has reportedly declined, with longer wait times and fewer dedicated account contacts.

For businesses relying on stable integrations and predictable billing, these issues can become deal-breakers.

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Conclusion

Choosing a payment processor is not just about rates. It is about trust, clarity, and long-term flexibility. The companies listed here are not illegal or fraudulent, but they have patterns that consistently frustrate merchants.

The biggest red flags tend to be long contracts, unclear pricing, equipment leases, and slow support. Real-life examples show how a few extra basis points or hidden fees can cost thousands of dollars over time.

If you are evaluating merchant services, read every page of the agreement, ask for all fees in writing, and avoid verbal promises. Payment processing should support your business, not drain it. Knowing which providers cause the most problems helps you make smarter decisions and protect your bottom line.

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Frequently Asked Questions

How can I spot hidden fees before signing a merchant services agreement?

Hidden fees usually show up in the fine print, not the sales pitch. Before signing anything, ask for a full fee schedule in writing and review it line by line. Look for monthly account fees, PCI compliance charges, batch fees, statement fees, and minimum processing fees. A real-world example is a small retail store that agreed to a low swipe rate but later discovered a monthly minimum fee that applied during slow seasons, increasing their effective costs.

Why do some processors make cancellation so difficult?

Many payment processors rely on long-term contracts with auto-renewal clauses to reduce customer churn. These contracts often require written notice within a narrow cancellation window, sometimes 30 to 90 days before renewal. If that window is missed, the agreement may reset automatically. This structure benefits the processor but traps merchants who want flexibility as their business changes.

Are tiered pricing models always a bad option for small businesses?

Tiered pricing is not always bad, but it often works against small and mid-sized merchants. Transactions that fall outside the “qualified” tier, such as rewards cards or online payments, are charged at much higher rates. For example, an ecommerce seller may find most of their sales categorized as non-qualified, making the advertised rate irrelevant. Interchange-plus pricing is usually easier to track and audit.

What should I do if my processor freezes my funds without warning?

If funds are held, contact the processor immediately and request a clear explanation in writing. Ask what documents are needed to release the funds and how long the review will take. In many cases, processors flag sudden increases in volume or chargeback activity. Keeping detailed invoices, proof of delivery, and refund policies ready can speed up resolution and reduce future risk reviews.

Is buying payment equipment better than leasing it?

In most cases, buying equipment outright is far cheaper than leasing. Equipment leases often run for several years and remain active even if you close your merchant account. A terminal that costs a few hundred dollars to purchase can end up costing several thousand through a lease. For small businesses, purchasing compatible hardware or using mobile card readers usually offers more control and lower long-term costs.