Beacon Payments Review

Overview

First Data Reseller

Beacon Payments (beaconpayments.com) is a merchant account provider that serves small, medium, and large businesses based in the United States. The company is a First Data reseller and a registered ISO/MSP of Wells Fargo Bank, N.A., Concord, California.

Headquartered in Boston, Massachusetts

Founded in 1998, Beacon Payments can be found at 25 Temple Place Suite 2L, Boston, Massachusetts 02111. David Selenow is listed as the Vice President of Beacon Payments and Gerald Kadish is listed as the company’s CEO.

Beacon Payments Review Table of Contents

  • Sales & Marketing: Beacon Payments hires independent sales agents and has received a few complaints about its sales practices.
  • Costs & Contract: Beacon Payments offers a three-year contract through First Data with an undisclosed early termination fee.
  • Complaints & Service: Beacon Payments has received fewer than 10 public complaints.
  • BBB Rating: Beacon Payments has an “A” rating with the Better Business Bureau and has received three complaints in the past three years.
  • Rates & Fees: How Merchants Got The Best Rates With Beacon Payments

Beacon Payments Products and Services

  • Debit and credit card processing
  • Mobile payment acceptance
  • Check processing
  • Merchant cash advance
  • POS equipment
  • Gift and loyalty programs

Industries

  • Retail
  • E-commerce
  • MOTO
  • Mobile
a

Sales & Marketing

Key Points - Sales & Marketing

Employs Independent Resellers Yes
Advertises Deceptive Rates No
Discloses All Important Terms No

Independent Sales Agents

Beacon Payments appears to hire independently contracted sales agents to market its services. As a general rule, this practice makes it difficult for any company to monitor and regulate its sales team’s behavior, which in turn tends to result in elevated complaint rates among merchants. Beacon Payments, however, does not appear to receive many complaints related to its sales force.

Sales Approach Complaints

We have located a few Beacon Payments complaints that criticize the company’s sales approach. In one complaint, a merchant was contacted by a sales representative, asked to sign a “merchant account application” that was actually a contract, and then was unable to reach the agent after that point. The merchant was surprised to see that they were being billed for a service they hadn’t received. Beacon Payments responded by issuing a full refund, and the merchant expressed satisfaction with the response and suggested that they had perhaps been too hasty filing a complaint. Some current and former sales agents with the company also state that Beacon Payments expects its agents to do a lot of door-to-door selling, which can be aggravating for both agents and merchants.

Transparent Pricing

The Beacon Payments website actively promotes Interchange-plus pricing, which is the most transparent rate structure available. This is a positive indicator that the company does not condone deceptive sales tactics, but the company’s overall rating does suffer from the few complaints available about its sales team. If you suspect that Beacon Payments is charging you undisclosed fees, we recommend seeking a third-party statement audit to find and eliminate hidden costs.

Response from Beacon Payments

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b

Costs & Contract

Key Points - Costs & Contract

Swiped Rate Variable
Keyed-in Rate Variable
Early Termination Fee Variable
PCI Compliance Fee Variable
Equipment Lease Terms Variable

Interchange-Plus Pricing

Beacon Payments is straightforward about its ability to offer Interchange-plus pricing to merchants, but it does not disclose the exact markup it offers above interchange. The transparency of the company’s pricing structure appears to have kept merchant complaints to a minimum, as there are only a few complaints about the company’s standard contract (which is available in part below). This document describes a three-year agreement through First Data with a variable early termination fee, but we have not found any merchant complaints that disclose the amount of this fee.

Beacon Payments Fees

The only negative reviews of Beacon’s contract terms mention the company’s monthly minimum fees, which is $30 if merchants do not process at least $1,500 in a given month. In addition, there is a $10 monthly fee that may be applied to some accounts regardless of processing volume. Beacon Payments’ pricing is not competitive with cheapest merchant accounts at this time. If you have any knowledge about the standard Beacon Payments contract, please leave that information in the comment section of this review. See the Beacon Payments Program Guide.

Response from Beacon Payments

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a

Complaints & Service

Key Points - Complaints & Service

Total Online Complaints <10
Live Customer Support Yes
Most Common Complaint N/A

Low Complaint Volume

At the time of this update, there are only a few negative Beacon Payments reviews outside of the BBB, indicating that the company is not a ripoff or a scam. The available complaints describe difficulty cancelling service, aggressive sales tactics, and dissatisfaction with the company’s monthly fees.

Customer Support Options

Beacon Payments offers a dedicated 24/7 phone support number on its website, although it’s unclear whether this number is serviced by Beacon Payments or by First Data. Although Beacon Payments is not considered to be one of the top-rated customer service providers, the company’s overall complaint rate is low enough to warrant an “A” rating for the purposes of this review.

Response from Beacon Payments

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a

BBB

Key Points - BBB

Product & Service Complaints 1
Billing & Collection Complaints 2
Advertising & Sales Complaints 0
Guarantee & Warranty Complaints 0
Delivery Complaints 0

Under 10 Complaints

Beacon has been an accredited business of the Better Business Bureau since 2011 and currently holds an “A+” rating. At this time of review, Beacon Payments is showing three BBB complaints in the last 36 months, two of which were related to billing and collection and one of which was related to problems with product or services. The merchants were satisfied with the company’s response in one case but were either dissatisfied or did not provide a final review in the other two.

What Merchants Say

One merchant complaint cites continued charges after account cancellation:

Although by signing a contract for Credit Card processing we were told No FEES at all except one flat 2.7% fee we were charged a $ 49.00. We decided to let it go this fee. But after we in writing closed the account they continue charging, our request to speak with the manager were never honored, the agent promised twice to refund our money and nothing happen. Because we already suffered an scam from ******** **** ******** phone **** *** ** ** we do not want to suffer another scam by a company that is under the umbrella of the BBB

Merchants who find themselves in this situation may benefit from taking the proper steps to cancel their merchant account without paying a fee.

An “A” Performance Overall

There are also three informal negative reviews posted to the company’s profile, all of which the company responded to in an attempt to resolve. Due to Beacon Payments’ low complaint volume and diligence in responding to all complaints it receives, we agree with the BBB’s overall rating.

Response from Beacon Payments

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Beacon Payments Logo

Beacon Payments Bottom Line

Solid Option for Most Standard-Risk Merchants

Beacon Payments rates as a reliable merchant services provider by our standards. The company appears to actively promote Interchange-plus pricing, and its low complaint rate is indicative of forthright sales tactics and competitive contract terms. Factors that lowered the company’s rating are its use of independent sales agents and complaints regarding its monthly fees. Even when dealing with credit card processors that rate highly by our standards, we encourage merchants to carefully examine the terms of any contract they are given and to compare its pricing to the top overall providers.

Phillip Parker is a former merchant services sales agent who believes the industry has been overrun by people who engage in fraud and deception in order to steal from hard working business owners. He created this website to help you avoid the bad players, save money on fees, and to get peace of mind with your merchant account. If you would like to help support his work, learn more about our cost reduction service. We can evaluate your statement, tell you exactly how much you're overpaying, and then help you dramatically reduce your fees with your current credit card processor. Looking to switch instead? See our list of the best merchant account providers.

Schedule a Consultation with Phillip

2 Reviews Leave Your Review for Beacon Payments Below

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  1. I signed up with this company this year because of lower fees. Receiving any help or getting replies after signing up from my rep Kevin Pheley is a struggle. It’s really not worth it in my opinion and I wouldn’t recommend them to other businesses. Getting my cancel fee from my previous company is like pulling teeth. AVOID

  2. Steven Lojko says:

    The way the minimum fee is described is wrong. There is a 10 dollar monthly fee which is variable and a 30 dollar minimum fee. The minimum one must process is 1,500 dollars per month, if a client does over this only the 10 dollar monthly fee is charged.

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