PaySimple Accused of unethical behavior by Wells Fargo, a warning to Small Business

Tuesday, June 03, 2014

It is rare that an industry peer accuses a competitor of unethical behavior, on the border line of fraud; but that is exactly what happened this week. PaySimple (www.paysimple.com), established in 2005, was called out by Wells Fargo Bank executives for its questionable business practices towards Small Businesses in the processing and remittance of credit payments. It seems the company makes a practice of:

  1. debiting Smalls bank accounts without notice and sending invoices weeks later,
  2. charging and escalating fees without notice, and
  3. holding customer credit-card remittances in order to make money on the Federal Reserve overnight rate.

Wells Fargo has stated that it does not use nor recommend this company and its affiliates (discussed below).

PaySimple, whose competitors are PayPal™ and Authorize.net®, is a Denver, Colorado-based financial services provider that supplies merchant accounts along with several other services. The company specializes in providing merchants an integrated system that allows them to send electronic invoices and collect payments via credit/debit card, e-checks, and ACH transfers through customizable payment pages. In short, the company is a software company, NOT a credit card processor.

It would appear that PaySimple is a glorified software developer “front” for the credit card processor, North American Bancard or “NAB” (www.nabancard.com) a large merchant account provider based in Troy, Michigan that has an unusually high number of complaints filed against it by Small Businesses. At the recommendation of some in our group membership, we used the services and software interface of PaySimple with controversial results.

Although the software is very intuitive and user friendly, this did not mask the less than scrupulous business practices of NAB, its credit card processor. NAB has a long history, upon cancellation attempts, of trying to take money out of Small Business customer accounts with claims that they “never received” a request to cancel and putting extended holds, sometimes up to 21-days, on credit card payments for no apparent reason whatsoever.

Furthermore, our research has shown NAB has extensive complaints filed against it at the Federal Trade Commission by Small Businesses and a multiple of Attorneys General across the country. Because of this fact, we fully understand why the company needed a front like PaySimple to mask its poor business practices. This stated, and while PaySimple may be a very attractive and intuitive front-facing interface, we strongly encourage our membership to consider its competitors, PayPal™ and Authorize.net®.

We sincerely hope that PaySimple and NAB recognize the simple fact that, no matter how much lipstick you put on a pig, at the end of the day – it’s still a pig.

Change your business practices or face certain extinction.

One Voice…

R. Sutherland | http://linkd.in/OneVoice 

1 comment
  1. Andrew said:

    Do you have a link to support your reference that Wells has called out Paysimple?

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