|Sales & Marketing|
|Costs & Contract|
|Complaints & Service|
Redstone Payment Solutions (redstonepaymentsolutions.com) is a merchant account provider serving most standard risk business types. Redstone appears to be a reseller of First Data‘s merchant services. Founded in 2009, the company is headquartered at 10406 Lake Rd., Suite 200, Houston, Texas 77070. Redstone Payment Solutions, LLC, is a registered ISO/MSP of Wells Fargo Bank, N.A., Walnut Creek, California. Larry Petru is listed as the president and CEO of Redstone Payment Solutions.
|Redstone Products and Services||Industries Served|
|Key Points – Sales & Marketing|
|Uses independent resellers?||Yes|
|Promotes deceptive rate quotes?||No|
|Discloses all important terms?||No|
Redstone Payment Solutions appears to utilize telemarketing and independent sales agents to market its services. This hiring practice can often produce an untrained, unregulated sales team, which is in turn linked to elevated complaint rates among merchants. In this case, we are able to locate several Redstone Payment Solutions that mention nondisclosure of contract terms by the company’s sales agents, specifically with regard to the company’s contract length and early termination fee. It appears that this issue may be the result of poor conduct by only a handful of agents, as the company does not engage in deceptive advertising strategies in its official materials and even provides its program guide online for anyone to view.
Redstone Payment Solutions Marketing Example
|Key Points – Costs & Contract Terms|
|PCI compliance fee:||Variable|
According to the company’s program guide (available below), the standard Redstone Payment Solutions contract is a three-year agreement with automatic renewal for one to three years after the initial term and a Liquidated Damages early termination fee. This fee is equal to either $495 or a merchant’s average monthly costs multiplied by the number of remaining months in the contract, whichever is greater. Multiple merchants report being charged thousands of dollars upon cancellation, confirming that the company does enforce this fee. Interestingly, some complainants simply request the right to “only” pay a standard early termination fee of $295 or less. It is a bad sign for a company’s contract terms when merchants are requesting to pay a higher-than-average termination fee rather than the one in the contract.
We have not found any specific details regarding the company’s monthly fees and transaction rates. If you have any knowledge of these costs, please share that information in the comment section below this review.
|Key Points – Complaints & Service|
|Live customer support:||Yes|
|Most common complaint:||Hidden fees|
We are currently able to locate approximately ten Redstone Payment Solutions complaints on this and other non-BBB consumer protection websites, and some of these complaints describe the company as a scam or a ripoff. Common themes among complainants include high early termination fees of $3,000-$5,000, nondisclosure of contract length, fund holds, and unavailable customer service. The company’s complaint volume is actually lower than expected for its time in business, but the content of these complaints has lowered the company’s grade more so than the number of complaints. The Redstone Payment Solutions website lists a dedicated phone number for customer support.
|Key Points – BBB Report|
Redstone Payment Solutions has been an accredited business of the Better Business Bureau since 2011 and holds a “A+” rating at the time of this review. Of the 24 merchant complaints, 15 are regarding billing and collection disputes, and nine have to do with product and service problems. All complaints have been resolved to the merchants’ satisfaction. Given the content of the complaints, the volume of complaints, and the company’s resolution ratio, we have adjusted the class=”goto-anchor”‘s grade to a “B-.”
* Denotes CPO-adjusted BBB score
Related: Best Processors For E-Commerce
This review was originally published on 10/9/12 and was last updated on 4/8/15.
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