Redstone Payment Solutions Review

8 Replies

Credit Card Processors
Redstone Payment Solutions Logo
Category Breakdown
Sales & Marketing rated B
Costs & Contract rated D
Complaints & Service rated B minus
BBB Rating rated B minus

Overall Rating

"C" Credit Card Processor Rating


Overview

Redstone Payment Solutions Logo

Redstone Payment Solutions Logo

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:

  • Retail
  • MOTO
  • Mobile
  • E-commerce
  • Gas station

Related: Find The Best Processor For Your Business Type

Sales & Marketing | B

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

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Costs & Contract | D

Key Points – Costs & Contract Terms
Swiped rate: Variable
Keyed-in rate: Variable
Termination fee: $495+
PCI compliance fee: Variable
Equipment lease: 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.

See the Redstone Payment Solutions Program Guide

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Complaints & Service | B-

Key Points – Complaints & Service
Total complaints: 10+
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.

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BBB Report | B-*

Key Points – BBB Report
Product/service: 9
Billing/collection: 15
Advertising/sales: 0
Guarantee/warranty: 0
Delivery: 0

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 BBB’s grade to a “B-.”

* Denotes CPO-adjusted BBB score

Related: Best Processors For E-Commerce

Bottom Line


Redstone Payment Solutions Review

Rated 2.6 out of 5 Stars
Reviewed by Phillip Parker
Reviewed on 2015-04-08

Redstone Payment Solutions rates as an average merchant account provider according to our rating system. The company has a low complaint rate that is roughly proportionate to its size and time in business, but the content of these complaints seems to indicate a very high early termination fee. Additionally, the company has seen an increase in complaints in the last year or two, which is a negative trend. Redstone Payment’s overall rating may improve or diminish as more information is confirmed about its contract terms.

This review was originally published on 10/9/12 and was last updated on 4/8/15.

Leave your review of Redstone Payment Solutions in the comment section below:

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8 comments

  1. Max Mitchell

    My business has used Redstone Payment Solutions for years and we have always received consistently stellar customer service. Every department from their technical support team to their merchant funding program has been practically effortless to work with. We get regular solicitations from other processors promising to save us money. I have used several processors in the past and the customer service has usually been a nightmare until we switched to RPS. I have absolutely no intention to ever switch again!

  2. Roberta

    Higher rates than competitors prompted me to contact Redstone. They reduced my rates but not enough to make a difference. Then I received a letter telling me my rates would be going up and if I disagreed that I could terminate their service contract. I got what I hope is a better company but Redstone won’t let go. Rude, aggressive acct manager has called me several times because I let them charge me the minimum of $40. Now they have charged my acct $700 for acct closure. This is a low class company with low class tactics.

  3. Matt

    This Company is to be avoided- as customers for several loyal years- they use every means
    to try and hold back payments for monthes and tie up your money of which you have no
    recourse – you will be imprisoned –

  4. The Blind Guy

    An absolute rip off. Do not do business with these guys seemed very helpful at first but once I told them I was going somewhere else for my processing they billed me $495 for cancellation fees I had not received any equipment nor had I processed even 1 transaction. I told them not to send me any equipment they did anyway (which I refused) to try to justify the cancellation fees.

  5. Rich

    Redstone Payment solutions is quite the scam. Our original contract was with Woodforest whom Redstone acquired. When the switch took place our business account was a nighmare. Deposits werent matching, debit cards werent being credited. If you call them, they say they will look into it and call you back. They never call back. We were losing hundreds of dollars every month. We finally switched companies only to find out that Redstone had deducted 4995.00 out of our bank account as a termination fee. We never signed a contract with Redstone. Woodforest said their termination fee was $495.00. These people need to be looked in to.

  6. Joe Mullinax

    I signed up with Red Stone in January of 2010. I must say I have switched merchants before but this was the smoothest, easiest , convenient and pleasant experience I have had. The agent was punctual, professional, she did not try to sell me new equipment I did not need but saved me 1500 $$ a year. I stayed with this company in spite of other merchants wanting my business because I had NO problems and if I had a question I called my agent and she always returned my phone call promptly. I would recommend Redstone for any new or existing business needing these services.

    A Satisfied Customer

    Joe Mullinax

  7. Debbie Davis

    Our RV dealership had signed on with Redstone Payment Solutions of Houston, Texas for our credit card processing in April of 2009 for a three year contract which ended in April 2012. In August 2012 our business had decided to change our credit card processing to another company whose fees and cost of doing business with were less than those of Redstone’s. The new credit card processing company would reimburse us for the usual and customary termination fee of up to $295. On November 9, 2012, our accountant was reconciling our monthly business for September and found that the amount of $3365.00 had been withdrawn from our account by Redstone Payment Solutions. The last credit card transaction through Redstone was on August 28, 2012. I contacted Redstone Payment Solutions and initially spoke with Sarah Feurguson who referred me to a man by the name of Jason, who is in charge of determining termination fees. Jason indicated to me that our account automatically renewed for an additional 3 years. There was no indication that an automatic renewal was pending as of April 2012 in any statements from December 2011 through April 2012, only that there were new upcoming fees that would be implemented soon. Evidently it is not a business practice of Redstone Payment Solutions to advise their customers of additional 3 year contract renewal. In talking to Sekurecard Services, in their credit card process experience they have never seen such extremely excessive termination fees slammed on a business for “liquidated damages” or a contract renewal without advance notification. Good Times Unlimited requests a settlement to address the formal complaints with a return of funds to our account in the amount of $3070 resulting in a termination fee paid to Redstone Payment Solutions of $295.

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