Abcglobalsystems.com Review

Based on checking the website abcglobalsystems.com, which primarily offers business credit card processing, merchant cash advances, and POS systems, it’s clear they operate in a domain that requires careful scrutiny from an ethical standpoint, particularly concerning Islamic financial principles.

While the site presents itself as a solution for businesses to accept credit card payments, the inclusion of “Merchant Cash Advance” raises significant red flags.

Merchant cash advances often involve mechanisms that closely resemble interest riba, which is strictly forbidden in Islam due to its exploitative nature and the inherent uncertainty in its repayment structure.

Furthermore, the focus on leveraging credit card processing, while a common business practice, needs to be evaluated in light of the underlying financial models, especially regarding fees and potential for interest-based transactions, which could indirectly facilitate interest-bearing activities.

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• Business Model: Offers credit card processing, POS systems, and merchant cash advances.
• Key Concern: Merchant Cash Advance likely involves interest-like mechanisms, making it problematic from an Islamic finance perspective.
• Transparency: Provides a decent overview of services and products, but detailed terms for cash advances need deeper investigation.
• Compliance: No explicit mention of Sharia compliance or ethical finance standards.
• Ethical Recommendation: Not recommended for businesses seeking strict adherence to Islamic financial principles due to the nature of merchant cash advances and potential for riba-based transactions.

The detailed explanation reveals that abcglobalsystems.com positions itself as a “leader in the merchant bankcard business,” emphasizing “innovative and cost-effective solutions.” They highlight features like “Zero Pricing” for credit card processing, “Interchange Pricing” guarantees, and “Free Terminal” offers.

While these aspects might seem appealing to a conventional business, the presence of “Merchant Cash Advance” fundamentally clashes with ethical Islamic finance.

A merchant cash advance is typically a lump sum payment provided in exchange for a percentage of future credit card sales.

This structure, even if not explicitly termed “interest,” often functions in a way that generates predetermined returns on loaned capital, regardless of the business’s actual profitability, which aligns with the definition of riba.

This type of financing can lead businesses into debt cycles that are contrary to Islamic principles of fair exchange and risk-sharing.

For a Muslim business, it’s crucial to seek financing and payment solutions that are built on equity, partnership, or permissible trade, avoiding any direct or indirect involvement in interest-based transactions.

Best Alternatives for Ethical Business Operations:

For businesses seeking ethical and Sharia-compliant financial solutions for payment processing and capital, focusing on direct sales, ethical payment gateways, and asset-backed or partnership-based financing is key. Here are some alternatives to consider:

• Square

  

  • Key Features: Comprehensive POS hardware and software, mobile payment processing, inventory management, invoicing, e-commerce integration.
  • Average Price: Hardware varies e.g., Square Reader starts at $10, processing fees typically 2.6% + $0.10 per tap, dip, or swipe.
  • Pros: User-friendly, scalable for various business sizes, broad range of services, no long-term contracts.
  • Cons: Processing fees can accumulate for high-volume businesses, limited customization compared to some enterprise solutions.
  • Ethical Angle: Primarily a payment processor. businesses must ensure underlying transactions are Sharia-compliant and avoid using their lending products.

• Stripe

  • Key Features: Powerful API for custom payment solutions, online payment processing, subscription billing, fraud prevention, global reach.
  • Average Price: Typically 2.9% + $0.30 per successful online card charge.
  • Pros: Highly flexible and developer-friendly, robust security features, supports many currencies.
  • Cons: Requires technical expertise for full utilization, less geared towards physical POS hardware.
  • Ethical Angle: A payment gateway, making it permissible as long as the transactions it facilitates are for halal goods and services, and no interest-bearing features are utilized.

• Shopify POS

  • Key Features: Integrated e-commerce and in-person sales, inventory sync, customer management, staff management, powerful analytics.
  • Average Price: Shopify plans start from $29/month, POS hardware sold separately, transaction fees vary by plan.
  • Pros: Seamless omnichannel experience, robust e-commerce platform, user-friendly interface.
  • Cons: Monthly subscription fee can be a barrier for very small businesses, additional apps may incur costs.
  • Ethical Angle: Excellent for managing sales of halal goods and services. Businesses should ensure their operations and any financing obtained are Sharia-compliant.

• Clover Hardware only, purchased upfront

  • Key Features: Range of smart POS devices Station, Flex, Mini, intuitive interface, app marketplace for business tools, secure payment processing.
  • Average Price: Hardware purchased upfront e.g., Clover Station starts around $1,600+, processing fees vary by provider.
  • Pros: Modern, professional hardware, adaptable for various business types, strong app ecosystem.
  • Cons: High upfront hardware cost, often requires a specific merchant services provider, which must be chosen carefully to avoid riba.
  • Ethical Angle: The hardware itself is permissible. The key is to partner with a merchant service provider that offers Sharia-compliant processing without interest-based lending or fees.

• PayPal Zettle

  • Key Features: Portable card reader, integration with PayPal for online and in-person sales, quick setup, no monthly fees, flat transaction rates.
  • Average Price: Reader costs around $29, processing fees typically 2.29% + $0.09 per transaction.
  • Pros: Simplicity, portability, leveraging PayPal’s ecosystem, suitable for small and mobile businesses.
  • Cons: Less robust than full POS systems, limited advanced features.
  • Ethical Angle: As a direct payment facilitator, it’s generally permissible for halal transactions. Avoid using any credit or cash advance features from PayPal that involve interest.

• Stax by Fattmerchant

  • Key Features: Subscription-based model for payment processing, zero markup on interchange fees, flat monthly fee, analytics, invoicing.
  • Average Price: Monthly subscription fees vary based on volume, often starting from $99/month, plus interchange fees.
  • Pros: Transparent pricing, can be cost-effective for high-volume businesses, good reporting.
  • Cons: Higher monthly fee may not suit small businesses, still requires careful review of terms to ensure no hidden interest elements.
  • Ethical Angle: The subscription model for processing can be more aligned with ethical finance if it truly removes interest-based markups. Requires diligent review of all terms.

• Izettle Reader 2

  • Key Features: Fast, reliable card reader for mobile payments, integrated with iZettle app, clear transaction overview, no fixed costs.
  • Average Price: Reader costs around $29, transaction fees typically 1.75% per transaction.
  • Pros: Easy to use, portable, good for small and occasional sales, quick payouts.
  • Cons: Limited to basic payment processing, not a full POS system.
  • Ethical Angle: Similar to PayPal Zettle, permissible for facilitating halal transactions, provided no interest-bearing features are utilized.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Abcglobalsystems.com Review & First Look

Based on looking at the website abcglobalsystems.com, it immediately presents itself as a contender in the merchant services arena, offering solutions ranging from credit card processing to point-of-sale POS systems. The initial impression is that of a business-to-business B2B service provider, aiming to streamline payment acceptance for merchants. They highlight their “experience in the industry since 1990” and claim to be “one of the fastest growing credit card merchant account acquirers in the nation.” This kind of industry longevity can signal stability, yet it’s crucial to look beyond the surface. The site’s primary offerings are laid out clearly: Merchant Services, Cash Advance, and POS Systems. While merchant services and POS systems are standard components of modern business operations, the inclusion of “Merchant Cash Advance” is where the ethical lens needs to sharpen.

Initial Impressions of the Website Structure

The website is laid out with a fairly standard navigation menu, listing services, products, help, and about us sections.

This structure provides a straightforward path for potential clients to explore their offerings.

The contact information, prominently displayed with a phone number, suggests accessibility.

However, for a service provider dealing with financial transactions, certain elements expected on a trustworthy platform are not immediately apparent or are underdeveloped. Bizzlibrary.com Review

• Contact Information: A prominent phone number 800 315 9306 is visible, which is good for immediate communication. However, the lack of a dedicated email address for inquiries on the main page or a live chat feature can be a minor drawback for some users.
• Trust Signals: While they mention their long-standing presence since 1990, the site lacks prominent client testimonials, case studies, or verifiable industry awards on the homepage that could build stronger trust. For businesses handling sensitive financial data, such signals are paramount.
• Transparency of Terms: They link to a “Privacy Policy” and “Terms and Conditions,” which is essential. However, the core details of the “Merchant Cash Advance”—specifically how it is structured to avoid interest riba or predatory practices—are not immediately transparent from the homepage alone, requiring deeper investigation into their specific terms for this product.

The Ethical Stance on Merchant Cash Advances

The inclusion of “Merchant Cash Advance” is a significant point of concern.

From an Islamic finance perspective, any transaction that involves interest riba is strictly forbidden.

Merchant cash advances, while sometimes framed as a “purchase of future receivables,” often function in a way that provides a predetermined return on capital, irrespective of the business’s actual profitability or the risk involved.

This structure typically mirrors interest, making it highly problematic.

• Riba Avoidance: Islamic finance emphasizes profit-sharing, risk-sharing, and asset-backed transactions. A merchant cash advance, which essentially pays a fixed amount for a future, often uncertain, revenue stream, does not align with these principles.
• Predatory Nature: Such advances can lead businesses into a cycle of debt, especially if sales decline, as the repayment is tied to a percentage of daily or weekly revenue, potentially leaving insufficient funds for operational costs.
• Alternatives: Ethical businesses should seek financing based on Musharakah partnership, Mudarabah profit-sharing, Murabaha cost-plus financing for specific assets, or Ijarah leasing, all of which are designed to avoid riba.

Abcglobalsystems.com Features: An In-Depth Look

Abcglobalsystems.com showcases a range of features designed to assist businesses in their payment processing needs. Verifiedhearing.com Review

While many of these features are standard in the industry, understanding their implications, especially from an ethical viewpoint, is crucial.

The website highlights “Zero Pricing,” “Interchange Pricing,” and offers “Free Terminal” options, alongside various POS hardware solutions.

Zero Pricing and its Ethical Implications

The “Zero Pricing” model advertised by ABC Global Systems promises to “Eliminate all your processing rates completely. 0% on Visa, MasterCard, Amex, and Debit Cards.

0% transaction fees, no locked-in contract, free state-of-the-art terminal.” This model, also known as cash discount or surcharge programs, typically works by adding a service fee to card transactions, which the customer then pays, effectively shifting the processing cost from the merchant to the cardholder.

While seemingly appealing, this model has specific considerations: Tradebitcapital.com Review

• Customer Perception: Customers might perceive the added fee as an inconvenience or an unfair burden, potentially leading to dissatisfaction or reduced spending.
• Transparency: For ethical compliance, the merchant must ensure complete transparency with the customer about this fee at the point of sale. Hiding it or making it unclear can be deceptive.
• Regulatory Compliance: Many states and card network rules have specific regulations regarding surcharging or cash discounts. Merchants must ensure full legal compliance to avoid penalties. As of 2023, surcharging is legal in all 50 U.S. states, but rules vary, particularly regarding disclosure. For instance, Visa and MasterCard require clear disclosure at the entrance and point of sale. According to a Forbes report, 80% of consumers prefer transparent pricing, and unexpected fees can significantly impact purchase decisions.

Interchange Pricing and Savings Guarantees

ABC Global Systems also offers “Interchange Pricing,” guaranteeing “a saving of 30% to 75% on the interchange markup.” Interchange-plus pricing is generally considered more transparent than tiered pricing, as it separates the fixed interchange fee paid to the card-issuing bank from the processor’s markup.

• Transparency in Fees: This model allows merchants to see the actual interchange cost and the processor’s markup, offering better insight into their processing expenses. This transparency can be beneficial for ethical financial management, as it allows businesses to understand exactly where their money is going.
• Potential Savings: For businesses with high transaction volumes or specific card types, interchange-plus can indeed lead to significant savings compared to opaque tiered models. A study by TSG The Strawhecker Group indicated that businesses on interchange-plus pricing often see average savings of 15-20% compared to tiered models.
• Negotiation Power: Understanding interchange fees empowers merchants to negotiate better rates with their processors.

Free Terminal Offers and Hardware Solutions

The website promotes a “Free Terminal” for qualified merchants, including EMV, Apple Pay, and Android Pay compatibility, or an upgrade to a Smart Terminal for free.

They also list a variety of POS hardware from brands like Clover, Uniwell, ELO-PayPoint, Verifone, Dejavoo, PAX Technology, and Ingenico.

• Cost-Effectiveness: A free terminal can reduce initial startup costs for businesses, which is a practical benefit. However, businesses should always scrutinize the terms and conditions associated with “free” offers, as they often come with longer contracts or higher processing fees.
• Technology & Security: EMV compliance, Apple Pay, and Android Pay readiness are crucial for modern payment security and customer convenience. EMV chip cards have significantly reduced counterfeit card fraud, with data from EMVCo showing a 76% reduction in counterfeit fraud liability costs since 2015.
• Variety of Hardware: Offering a range of popular POS systems like Clover and PAX gives merchants flexibility to choose hardware that best fits their specific needs and industry. For instance, a quick-service restaurant might prefer a Clover Station, while a mobile vendor might opt for a Clover Go.

Merchant Cash Advance MCA – Deep Dive into Concern

While listed as a feature, the “Merchant Cash Advance” MCA requires a dedicated ethical assessment. An MCA is not a loan. Instead, a business sells a portion of its future credit and debit card sales receivables at a discount. For instance, if a business sells $10,000 worth of future receivables for $8,000 upfront, the $2,000 difference is the cost. This cost, when annualized, can translate to an extremely high annual percentage rate APR, often ranging from 50% to 200% or even higher, according to reports from the Small Business Administration SBA and financial watchdog groups.

• Factor Rates: MCAs use a “factor rate” e.g., 1.2x to 1.5x instead of an interest rate. If you borrow $10,000 with a factor rate of 1.3, you repay $13,000. This $3,000 “fee” or “discount” is conceptually very similar to interest, structured to bypass usury laws but performing the same function of generating a return on capital without risk-sharing in the business’s actual performance.
• Daily or Weekly Repayments: Repayments are typically deducted daily or weekly directly from the business’s credit card sales, which can severely impact cash flow during lean periods.
• Lack of Regulation: Unlike traditional loans, MCAs are less regulated, offering fewer consumer protections.
• Islamic Finance Viewpoint: This structure fundamentally violates the Islamic prohibition of riba interest. Riba is not merely excessive interest but any predetermined increase over the principal in a loan or debt. The fixed “factor rate” or “discount” in an MCA, regardless of the business’s profit or loss, falls squarely under this prohibition. Islamic finance requires risk and reward sharing, such as through Mudarabah profit-sharing partnership or Musharakah joint venture, where the financier shares in the business’s risks and rewards, rather than demanding a guaranteed return.

Abcglobalsystems.com Pros & Cons Focus on Cons for Ethical Reasons

When evaluating abcglobalsystems.com, it’s important to look at the practical advantages they offer alongside the significant ethical drawbacks, especially concerning certain financial products. Leadsly.com Review

While they aim to simplify payment processing, the specific nature of their “Merchant Cash Advance” necessitates a critical, Islamically informed assessment.

Identified Cons from an Ethical and Practical Standpoint

The primary and most significant con for abcglobalsystems.com, from an ethical Islamic finance perspective, is the Merchant Cash Advance offering. This product, despite its presentation, carries the inherent characteristics of riba interest, which is strictly prohibited.

• Riba-Based Financing Merchant Cash Advance:

  • Ethical Violation: The core structure of a merchant cash advance, where a fixed “factor rate” determines the repayment amount regardless of business performance, mirrors interest-based lending. This directly violates the Islamic prohibition of riba.
  • High Effective Cost: While not called interest, the effective Annual Percentage Rate APR on MCAs is notoriously high, often exceeding 100% or even 200%. According to a 2021 report by the Center for Responsible Lending, the average APR on MCAs can be 150%. This makes them incredibly expensive forms of financing.
  • Debt Trap Potential: The daily or weekly repayment structure, deducted directly from sales, can quickly deplete a business’s cash flow, especially during slow periods. This can lead to a reliance on subsequent advances, creating a dangerous debt spiral. Data from industry analysts suggests that over 30% of businesses that take out one MCA end up taking out a second or third within a year to manage cash flow.
  • Lack of Transparency in Cost: While factor rates are presented, the true cost as an annualized percentage rate is often obscured, making it difficult for merchants to compare it with conventional loans or understand the full financial burden.

• Transparency of Terms Beyond Homepage:

  • While the site links to “Privacy Policy” and “Terms and Conditions,” the specifics of the “Zero Pricing” model e.g., surcharging disclosures, state regulations and the full implications of the “Merchant Cash Advance” are not immediately transparent or easily digestible on the main pages. Businesses need to delve deep into the fine print. According to a study by the National Bureau of Economic Research, consumers spend 70% less time reviewing terms and conditions than they should, often leading to misunderstandings.

• Lack of Explicit Sharia Compliance: Smartbabyboard.com Review

  • There is no mention or indication that any of their services, especially financial advances, are structured to be compliant with Islamic finance principles. For a Muslim business, this is a critical missing piece of information.

• Potential for High Processing Fees Hidden:

  • While “Zero Pricing” promises 0% rates, the cost is simply shifted to the customer. For “Interchange Pricing,” while more transparent, the actual markup applied by ABC Global Systems would need careful scrutiny against industry averages to ensure competitiveness and fairness. Reports from NerdWallet indicate that merchant service fees can range from 1% to 3.5% of transaction value, depending on the service provider and business type.

• Contractual Commitments with “Free” Offers:

  • Offers like a “Free Terminal” often come with implicit contractual obligations, such as minimum processing volumes or extended service agreements. Breaking these contracts can incur significant early termination fees, which might not be immediately obvious.

Potential Practical Pros with Caveats

While the ethical concerns are primary, for a business not prioritizing Islamic finance, some aspects might seem appealing:

• Convenience of Services: Offers a one-stop shop for payment processing and POS systems, which can simplify operations for some businesses.
• Industry Experience: Claiming experience since 1990 suggests a degree of stability and understanding of the market.
• Variety of Hardware: Provides access to popular POS hardware brands, giving merchants choices.
• “Zero Pricing” from a conventional business perspective: For businesses willing to pass the processing fee to customers, this can effectively eliminate direct processing costs from their profit margins, assuming customers accept the surcharge.

It’s clear that while abcglobalsystems.com offers practical solutions for payment processing, the core offering of “Merchant Cash Advance” makes it an unsuitable choice for businesses committed to ethical Islamic financial practices.

The inherent nature of these advances conflicts directly with the prohibition of riba, making it a product to be avoided. Followersearch.com Review

Abcglobalsystems.com Alternatives for Ethical Businesses

For businesses seeking payment processing and financial solutions that align with Islamic ethical principles, bypassing services that offer interest-based products like merchant cash advances is paramount.

The focus should be on transparent payment gateways, ethical hardware providers, and alternative financing models based on genuine risk-sharing and profit-loss participation.

Here are several strong alternatives, emphasizing their ethical alignment:

1. Square for Retail Businesses

• Ethical Alignment: Square provides a clear, transaction-based payment processing service. As long as the underlying sales are for permissible goods and services, and no interest-bearing lending products like Square Capital are utilized, Square’s core payment processing is ethically sound. The fees are transparent per transaction.
• Key Features:
  • Integrated POS System: Robust hardware and software for retail, restaurants, and appointments.
  • Mobile Payment Processing: Accepts tap, dip, and swipe payments on the go.
  • Inventory Management: Real-time tracking and alerts.
  • Online Store Integration: Syncs in-person and online sales.
  • Customer Relationship Management CRM: Tools to manage customer data and loyalty programs.
  • Transparent Pricing: Typically 2.6% + $0.10 for in-person transactions.
• Benefits: User-friendly interface, quick setup, diverse hardware options, and scalability for small to medium-sized businesses. Square processed over $190 billion in gross payment volume in 2023, indicating its widespread adoption and reliability.

2. Stripe for Online & Custom Solutions

• Ethical Alignment: Stripe is a payment gateway and API primarily for online businesses. It facilitates transactions without engaging in lending, making it a permissible tool for collecting payments for halal goods and services. Its transparency in fees and focus on technology align well.
  • Developer-Friendly API: Highly customizable for various business models.
  • Global Payments: Supports over 135 currencies and payment methods.
  • Subscription Billing: Robust tools for recurring payments.
  • Fraud Prevention: Advanced machine learning for fraud detection.
  • Reporting & Analytics: Comprehensive financial reporting.
• Benefits: Excellent for e-commerce, software-as-a-service SaaS businesses, and platforms requiring intricate payment flows. Stripe handles billions of dollars in transactions annually, processing payments for over 1 million businesses worldwide.

3. Shopify POS for Omnichannel Retail

• Ethical Alignment: Shopify POS is an extension of the Shopify e-commerce platform, facilitating in-person sales. Its core function is to manage sales and inventory across multiple channels. As long as the business sells halal products and services and avoids any interest-based financing options within Shopify’s ecosystem e.g., Shopify Capital, unless structured compliantly, it’s an ethical choice.
  • Unified Inventory: Syncs online and in-store stock.
  • Customer Profiles: Centralized customer data for personalized experiences.
  • Staff Management: Permissions and performance tracking.
  • Built-in Analytics: Sales and performance insights.
  • Hardware Compatibility: Works with various card readers and POS equipment.
• Benefits: Seamless integration between online and offline sales channels, making it ideal for businesses with both a physical storefront and an e-commerce presence. Shopify powers over 1.7 million businesses globally.

4. Clover Hardware Only, with Ethical Processing Partner

• Ethical Alignment: Clover offers popular, modern POS hardware. The hardware itself is neutral. The ethical consideration comes from the merchant service provider chosen to process payments through it. By purchasing Clover hardware outright and partnering with a payment processor that explicitly offers Sharia-compliant terms avoiding interest-based fees, contracts, or lending, businesses can ethically use Clover systems.
  • Diverse Hardware: From Clover Station full POS to Clover Go mobile card reader.
  • Intuitive Interface: Easy for staff to learn and use.
  • App Market: Access to various business management apps.
  • Robust Reporting: Sales data and insights.
• Benefits: Professional appearance, advanced features, and a wide ecosystem of compatible apps. Clover devices are widely used, processing billions of transactions annually.
• Clover POS hardware

5. PayPal Zettle for Mobile & Small Businesses

• Ethical Alignment: PayPal Zettle formerly iZettle offers simple, mobile card readers for in-person payments. Similar to Square, its primary function is transaction processing. As long as the business strictly uses it for processing permissible transactions and avoids any of PayPal’s lending features that involve interest, it remains an ethically sound option.
  • Compact Card Reader: Accepts chip, tap, and swipe payments.
  • Quick Setup: Get started with minimal hassle.
  • Integration with PayPal: Easy fund transfers to PayPal accounts.
  • No Monthly Fees: Pay only per transaction.
• Benefits: Highly portable, cost-effective for small businesses or those with infrequent card transactions, and leveraging the trusted PayPal brand. iZettle processes billions of payments for small businesses globally.
• PayPal Zettle card reader

6. Stax by Fattmerchant Subscription-Based Processing

• Ethical Alignment: Stax offers a subscription-based model where businesses pay a flat monthly fee and then get direct interchange rates without markup. This model, by theoretically eliminating percentage-based markups which can sometimes mask hidden fees or be seen as indirect interest on transaction value, can be considered more transparent and potentially ethical, provided the subscription fee itself is a fair service charge and no other interest-bearing elements are present.
  • Subscription Model: Flat monthly fee for unlimited processing.
  • Interchange Plus Pricing: Direct interchange rates for transparency.
  • Analytics & Reporting: Detailed insights into sales.
  • Omnichannel Solutions: Supports in-person, online, and mobile payments.
• Benefits: Can be significantly more cost-effective for high-volume businesses by eliminating percentage-based processing fees. Stax serves over 20,000 businesses with its unique pricing model.
• Stax payment processing

7. Wise formerly TransferWise for International Payments

• Ethical Alignment: While not a direct POS system, Wise is an excellent alternative for businesses dealing with international payments, offering transparent, low-cost currency exchange and transfers. It operates on a transparent fee model, avoiding hidden markups and often providing the real mid-market exchange rate, making it an ethically sound choice for cross-border transactions and remittances for businesses dealing with international clients or suppliers.
  • Multi-currency Accounts: Hold and manage money in over 50 currencies.
  • Low-Cost International Transfers: Significantly cheaper than traditional banks.
  • Transparent Fees: All fees are upfront and clear.
  • Debit Card: Spend directly from multi-currency balances.
• Benefits: Essential for businesses with international operations, saving significant amounts on currency exchange and transfer fees. Wise processes over £10 billion in cross-border payments monthly, serving millions of individuals and businesses.
• Wise multi-currency account

How to Cancel Abcglobalsystems.com Subscription if applicable

While abcglobalsystems.com doesn’t explicitly advertise a “subscription” service in the typical sense like a monthly SaaS fee for their core payment processing, their offerings, especially for terminals and certain pricing models, might come with contractual obligations that resemble a subscription or long-term agreement. Ebcbrakes.com Review

The website states, “NO Locked in contract condition with our Service Satisfaction Guaranteed Addendum applied.” This suggests a commitment to flexibility, but it’s crucial to understand the specifics of this “Addendum.”

Understanding the “No Locked-In Contract” Claim

The claim of “NO Locked in contract condition with our Service Satisfaction Guaranteed Addendum applied” is a significant marketing point for abcglobalsystems.com.

In the merchant services industry, long-term contracts often 3-5 years with hefty early termination fees are common.

This claim suggests that businesses might have more flexibility to leave their service if dissatisfied.

• Review the Addendum: It is absolutely critical for any business considering ABC Global Systems to request and thoroughly review this “Service Satisfaction Guaranteed Addendum” BEFORE signing any agreement. The devil is always in the details. What constitutes “satisfaction”? Are there specific conditions under which a business can terminate without penalty? Does it apply to all services, including terminal leases or cash advances?
• Potential for Hidden Fees: Even if there’s no “locked-in contract,” there might be other fees associated with cancellation, such as equipment return fees, deactivation fees, or remaining balance on leased terminals. Businesses should clarify all potential exit costs.

General Steps for Cancelling Merchant Services

If a business decides to terminate services with ABC Global Systems or any merchant service provider, these general steps are typically involved: Onebitco.com Review

• Review Your Contract: The first and most important step is to read your full merchant service agreement MSA. Look for:
  • Term Length: Is there a minimum service period?
  • Termination Clause: How much notice is required for cancellation e.g., 30, 60, or 90 days?
  • Early Termination Fees ETFs: What are the penalties for canceling before the contract ends?
  • Equipment Clause: What are the requirements for returning leased or “free” equipment? Are there non-return fees?
  • Deactivation Fees: Are there any final administrative fees for closing the account?
• Provide Written Notice: Always provide written notice of your intent to cancel. This creates a paper trail and is often a contractual requirement. Send it via certified mail with a return receipt requested, or via email with a read receipt.
• Confirm Account Closure: After the notice period, follow up to confirm the account has been fully closed and there are no outstanding balances or pending charges. Request a written confirmation of account closure.
• Return Equipment: If you leased equipment, ensure it is returned according to the provider’s instructions and within the specified timeframe to avoid non-return fees. Document the return with tracking numbers or receipts.
• Monitor Bank Statements: For several months after cancellation, diligently monitor your bank statements for any unauthorized debits or recurring charges.

Why Ethical Cancellation is Important

For businesses operating under Islamic principles, ensuring a clear and fair exit from any contract is crucial.

If the initial contract contained elements of riba e.g., in a merchant cash advance, the immediate ethical imperative is to cease involvement.

However, the method of disentanglement should also be just, ensuring all permissible obligations are met without incurring further undue or exploitative costs.

This reinforces the principle of fulfilling contracts where they are not fundamentally haram from the outset.

Abcglobalsystems.com Pricing

Understanding the pricing structure of any merchant service provider is paramount for a business’s financial health. Dantainvest.com Review

Abcglobalsystems.com presents two main pricing models on its homepage: “Zero Pricing” and “Interchange Pricing,” along with mentions of free terminals.

However, as is common in the industry, the full pricing transparency for specific services and the infamous “Merchant Cash Advance” are likely hidden behind direct consultation.

1. Zero Pricing Model

• Concept: This model aims to eliminate processing fees for the merchant. As per their website, it offers “0% on Visa, MasterCard, Amex, and Debit Cards. 0% transaction fees, no locked-in contract, free state of the art terminal. No more annual rate increases and No hidden fees.”
• How it Works Generally: This is a cash discount or surcharge program. The merchant adds a small service fee often around 3-4% to each card transaction, which the customer pays. Customers paying with cash or gift cards are not charged this fee.
• Ethical Considerations:
  • Transparency to Customers: The merchant must ensure clear and upfront disclosure to the customer about the added service fee. Any ambiguity or attempt to hide this fee would be ethically problematic deception.
  • Fairness to Customers: While legally permissible in most U.S. states with specific rules, some customers may perceive this as unfair. Businesses should weigh this against potential cost savings.
• Practical Implications: For businesses with high card transaction volumes, this can significantly reduce or eliminate direct processing costs, potentially boosting profit margins by 3-4% of card sales. However, it might deter some card-preferring customers. A 2022 survey found that 58% of consumers are willing to pay a small surcharge for card payments if clearly disclosed, but 35% would switch to cash or a different business.

2. Interchange Pricing Model

• Concept: ABC Global Systems guarantees “a saving of 30% to 75% on the interchange markup.” This refers to an interchange-plus pricing model.
• How it Works Generally: Merchants pay the direct interchange fee a non-negotiable fee set by card networks and issuing banks plus a fixed markup set by the processor. This is generally considered the most transparent pricing model.
• Components of Cost:
  • Interchange Fee: Varies by card type e.g., consumer, rewards, business, transaction type e.g., swiped, keyed-in, and industry. This typically ranges from 0.5% to 2.5% for common card types.
  • Assessment Fees: Small fees charged by card networks Visa, Mastercard, Amex, Discover, typically around 0.10% to 0.15% per transaction.
  • Processor Markup: This is what ABC Global Systems would add. It’s usually a small percentage e.g., 0.10% – 0.50% plus a per-transaction fee e.g., $0.05 – $0.15.
• Ethical Implications: This model’s transparency makes it ethically preferable to tiered pricing, as businesses can clearly see the costs involved. It allows for better financial planning and negotiation.
• Practical Implications: Can lead to significant savings for businesses with large transaction volumes, especially if they have a good mix of card types. However, understanding the intricate interchange fee schedules can be complex.

Free Terminal Offers

• Concept: “Qualified Merchants Get a Free EMV Apple Pay and Android Pay Terminal or upgrade to a Smart Terminal for Free.”
• Ethical & Practical Considerations: “Free” often means the cost is recouped elsewhere. This could be through:
  • Higher Processing Rates: Slightly inflated percentage rates or per-transaction fees.
  • Long-Term Contracts: A minimum contract duration, potentially with early termination fees.
  • Leasing Agreements: The terminal might be a lease rather than an outright purchase, with high monthly lease fees that far exceed the terminal’s actual value over time. Lease agreements for terminals are notorious in the industry for being costly. A typical terminal costing $300-$500 outright might be leased for $50-$100/month over 48 months, leading to a total cost of $2,400-$4,800.
  • Hidden Fees: Potential setup fees, annual fees, PCI compliance fees, or non-return fees if the terminal is not returned correctly upon cancellation.

Merchant Cash Advance Pricing Ethical Warning

• No Transparent Pricing on Homepage: The website does not provide specific pricing for its Merchant Cash Advance. This is typical for MCAs, as their “cost” is not presented as an interest rate.
• Factor Rate: Instead of an interest rate, MCAs use a “factor rate” e.g., 1.2 or 1.4. If a business receives $10,000 and the factor rate is 1.3, it repays $13,000. The $3,000 difference is the cost.
• Effective APR: When annualized, the effective APR on MCAs is extremely high, often between 50% and 200% or more. This is a direct violation of the prohibition of riba interest in Islam.
• Avoidance: For any business committed to Islamic principles, this product must be entirely avoided due to its direct conflict with riba.

Abcglobalsystems.com vs. Competitors

When evaluating abcglobalsystems.com against its competitors in the merchant services and payment processing space, the comparison often boils down to pricing models, transparency, feature sets, and crucially, ethical considerations.

Many competitors, particularly larger, more established players, offer similar core services but differ significantly in their approach to contracts, fees, and additional financing options.

Abcglobalsystems.com vs. Square

• Abcglobalsystems.com: Focuses on traditional merchant accounts, “Zero Pricing” surcharging, “Interchange Pricing,” and offers “Merchant Cash Advances.” Emphasizes relationship-based service and potential cost savings through specific pricing models.
• Square: Known for its user-friendly, flat-rate pricing model e.g., 2.6% + $0.10 for in-person transactions, making it highly transparent and predictable for small businesses. Offers an integrated POS system, mobile payments, and e-commerce tools. Square does have a lending arm Square Capital, which also requires careful ethical scrutiny for interest-based lending.
• Key Differences:
  • Pricing Transparency: Square’s flat-rate is generally easier to understand upfront than Abcglobalsystems.com’s “Interchange Pricing” which, while transparent in its components, requires understanding of interchange fees. “Zero Pricing” has its own complexities with customer perception.
  • Ease of Setup: Square is renowned for its plug-and-play simplicity, appealing to new or very small businesses. Abcglobalsystems.com likely involves a more traditional setup process with an application and onboarding.
  • Lending: Both offer lending products. Square Capital offers small business loans which can be interest-based and thus problematic, while Abcglobalsystems.com offers Merchant Cash Advances which are highly problematic due to riba.
  • Ethical Stance: From an ethical perspective, both require careful due diligence to ensure avoidance of interest-based financial products. For core payment processing excluding lending, both can be permissible if transactions are for halal goods/services.

Abcglobalsystems.com vs. Stripe

• Abcglobalsystems.com: More focused on brick-and-mortar and traditional payment terminals, with direct merchant accounts.
• Stripe: Predominantly an online payment gateway and developer-focused platform, offering highly customizable APIs for e-commerce, SaaS, and marketplaces. Its pricing is typically a flat rate per transaction e.g., 2.9% + $0.30 for online card charges, with volume discounts available. Stripe does not traditionally offer merchant cash advances or direct business loans.
  • Target Audience: Abcglobalsystems.com seems more geared towards physical retail and service businesses needing a traditional merchant account. Stripe is the go-to for online-first businesses, developers, and platforms.
  • Flexibility: Stripe’s API offers unparalleled flexibility for custom integrations. Abcglobalsystems.com appears to offer more off-the-shelf POS hardware solutions.
  • Lending: Stripe primarily facilitates payments and does not have a general lending product like a Merchant Cash Advance, making its core service ethically cleaner in this aspect compared to Abcglobalsystems.com.
  • Global Reach: Stripe has a stronger global presence and multi-currency support compared to what’s apparent on Abcglobalsystems.com. Stripe serves businesses in over 40 countries.

Abcglobalsystems.com vs. Helcim

• Abcglobalsystems.com: Offers “Zero Pricing” and “Interchange Pricing,” with a focus on traditional merchant services.
• Helcim: Known for its transparent, low-cost interchange-plus pricing model with declining rates based on sales volume. It also offers merchant accounts, POS solutions, and online payment tools. Helcim prides itself on transparency and customer support. It generally avoids direct lending products.
  • Pricing Model: Both offer interchange-plus, but Helcim’s tiered volume discounts can be very attractive for growing businesses. Helcim’s transparency is a core part of its brand identity.
  • Contract Terms: Helcim is known for its no-contract approach, similar to Abcglobalsystems.com’s “no locked-in contract” claim. However, the exact terms of Abcglobalsystems.com’s addendum would need scrutinizing against Helcim’s clear no-contract policy.
  • Lending: Helcim doesn’t engage in merchant cash advances or direct lending, which makes it a more ethically preferable choice in this regard.
  • Customer Service: Reviews often highlight Helcim’s strong customer service and educational resources.

Abcglobalsystems.com vs. Traditional Banks e.g., Chase Merchant Services

• Abcglobalsystems.com: A third-party payment processor potentially offering more tailored, competitive rates outside of general bank offerings.
• Traditional Banks: Often offer merchant services as part of a broader banking relationship. They might use tiered pricing or interchange-plus, and often require businesses to have an existing bank account with them. Banks also offer traditional loans and lines of credit, which can also be interest-based and thus problematic.
  • Bundling: Banks often bundle merchant services with other banking products, which can be convenient but might not always offer the best rates.
  • Service Level: Third-party processors like Abcglobalsystems.com might offer more specialized support for payment processing issues compared to a general bank.
  • Lending Options: Banks offer a wider array of traditional, interest-based loans, whereas Abcglobalsystems.com focuses on Merchant Cash Advances for quick capital, both of which are ethically problematic.
  • Ethical Scrutiny: All conventional financial institutions, including banks, offer interest-based products. A Muslim business must be extremely diligent to ensure that only the permissible payment processing services are utilized, and all interest-bearing loans or advances are strictly avoided.

In summary, while abcglobalsystems.com attempts to be competitive in the merchant services space, its offering of “Merchant Cash Advance” is a significant ethical barrier for businesses adhering to Islamic financial principles. Ivahost.com Review

Competitors like Square, Stripe, and Helcim can offer clearer, more transparent, and, in some cases, less ethically problematic core payment processing services, though diligence is still required to avoid their respective interest-based lending arms where they exist.

FAQ

What is Abcglobalsystems.com?

Abcglobalsystems.com is a merchant services provider based in New York that offers business credit card processing, point-of-sale POS systems, and merchant cash advances to businesses looking to accept credit card payments for their goods and services.

Is Abcglobalsystems.com a legitimate company?

Based on the website’s claims of operating since 1990 and offering standard payment processing services, it appears to be an operational business.

However, “legitimate” also encompasses ethical adherence, which requires deeper scrutiny, especially concerning their merchant cash advance product.

Does Abcglobalsystems.com offer interest-free financing?

Abcglobalsystems.com offers “Merchant Cash Advance.” While they do not explicitly use the term “interest,” merchant cash advances typically involve a “factor rate” where a larger sum is repaid for a smaller upfront advance, which functions very similarly to interest riba and is not considered interest-free from an Islamic financial perspective. Bit-magic.ltd Review

What is “Zero Pricing” offered by Abcglobalsystems.com?

“Zero Pricing” is a model where Abcglobalsystems.com aims to eliminate processing rates for the merchant by adding a service fee typically a small percentage to card transactions, which is then paid by the customer. Cash or gift card payments do not incur this fee.

How does “Interchange Pricing” work with Abcglobalsystems.com?

Interchange Pricing, also known as Interchange-plus pricing, means businesses pay the direct interchange fee set by card networks and issuing banks plus a fixed markup per transaction charged by Abcglobalsystems.com.

This model is generally considered more transparent than tiered pricing.

Can I get a free terminal from Abcglobalsystems.com?

Yes, Abcglobalsystems.com advertises offering “Free EMV Apple Pay and Android Pay Terminals” or a free upgrade to a smart terminal for qualified merchants.

It’s important to review the terms and conditions associated with these “free” offers for any hidden fees or contractual obligations. Qpsnj.com Review

Does Abcglobalsystems.com have locked-in contracts?

The website states, “NO Locked in contract condition with our Service Satisfaction Guaranteed Addendum applied.” This suggests flexibility, but it’s crucial for businesses to thoroughly review this specific addendum to understand the exact terms, conditions, and any potential fees related to cancellation.

What POS systems does Abcglobalsystems.com support?

Abcglobalsystems.com supports various POS hardware systems including Uniwell, ELO-PayPoint, Clover Station, Clover Flex, Clover Mini, Clover Mobile, Clover Go, UP-Solution, POYNT Smart Terminal, AprivaPay Mobile, Verifone, Dejavoo, PAX Technology, and Ingenico products.

Is Merchant Cash Advance MCA permissible in Islam?

No, a Merchant Cash Advance MCA is generally not permissible in Islam.

Although it’s structured as a “purchase of future receivables” and not a traditional loan, its fixed “factor rate” or predetermined return on capital, regardless of the business’s actual performance, functions as riba interest, which is strictly forbidden.

What are ethical alternatives to Merchant Cash Advances?

Ethical alternatives for business financing, permissible in Islam, include Musharakah partnership, Mudarabah profit-sharing, Murabaha cost-plus financing for specific assets, or Ijarah leasing, all of which involve risk-sharing and avoid predetermined returns on money. Heirloomhourglass.com Review

How transparent is Abcglobalsystems.com’s pricing?

Abcglobalsystems.com displays “Zero Pricing” and “Interchange Pricing” models on its homepage, which offer some transparency.

However, detailed pricing for all services and the specifics of their “Merchant Cash Advance” are likely only available through direct consultation, which is common in the industry.

What are the main services offered by Abcglobalsystems.com?

The main services offered by Abcglobalsystems.com include merchant credit card processing, merchant cash advances, and various point-of-sale POS systems and hardware.

Does Abcglobalsystems.com offer e-commerce payment solutions?

Yes, under their “Services” menu, they list “Mail, Phone, Web Processing,” indicating they likely offer solutions for online transactions in addition to in-person payments.

How do I contact Abcglobalsystems.com for support?

Abcglobalsystems.com provides a phone number, 800 315 9306, prominently displayed on their website for contact and support. Ses-ltd.uk Review

They also have a “Contact Us” page and a “Knowledge Base” for self-help.

Does Abcglobalsystems.com have good customer reviews?

The provided homepage text does not include customer reviews or testimonials, so an assessment of their customer service or satisfaction based on that information is not possible.

External review sites would need to be consulted for customer feedback.

Is Abcglobalsystems.com suitable for a small business?

Abcglobalsystems.com offers solutions that could cater to small businesses, such as their “Zero Pricing” model and free terminal offers.

However, small businesses should be particularly cautious about the Merchant Cash Advance and understand all contractual terms. Frazeproductions.com Review

What is the difference between “Zero Pricing” and “Interchange Pricing”?

“Zero Pricing” shifts the card processing fee to the customer, so the merchant pays 0% on card transactions.

“Interchange Pricing” means the merchant pays the direct interchange fee plus a markup from the processor, offering transparency on the processor’s profit.

What is EMV compatibility, and does Abcglobalsystems.com support it?

EMV Europay, MasterCard, and Visa compatibility refers to payment terminals that can read chip cards, offering enhanced security against fraud.

Abcglobalsystems.com states their free terminals are EMV compatible.

Can I integrate Abcglobalsystems.com with my existing business software?

While the website mentions various POS hardware, it doesn’t explicitly detail integrations with third-party business management software like accounting or CRM. Compatibility would need to be confirmed directly with Abcglobalsystems.com.

What should I look for when reviewing a merchant services contract?

When reviewing any merchant services contract, look for the contract term length, early termination fees, equipment lease vs. purchase terms, cancellation notice requirements, processing rates interchange, assessment, and markup fees, PCI compliance fees, and any other recurring or one-time charges.