Redstone Payment Solutions
Last Updated: January 30, 2014
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Redstone Payment Solutions Overview
Redstone Payment Solutions Logo
Redstone Payment Solutions (redstonepaymentsolutions.com) is a merchant account provider serving most business types. The company specializes in providing credit card processing, debit card acceptance, check services, Electronic Benefits Transfer (EBT), and gift/loyalty card programs. Redstone also sells and leases an array of equipment for most processing needs such as PIN pads and countertop terminals (Verifone, Hypercom). 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.
Redstone Payments & Marketing Tactics | B
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.
Redstone Payments Costs & Contract Terms | D
According to the company’s program guide (available through the Redstone website here), 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.
Redstone Payments Complaints & Service | B-
We are currently able to locate approximately five Redstone Payment Solutions complaints on this and other non-BBB consumer protection websites, some of which 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, 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.
Redstone Payments BBB Report | C+ (CPO Adjusted)
Redstone Payment Solutions has been an accredited business of the Better Business Bureau (BBB) since 2011 and holds a “A-” rating at the time of this review. Of the 24 merchant complaints (up from 20 as of our last update), twelve are regarding billing and collection disputes, and twelve are with product and service problems. All complaints have been resolved to the merchants’ satisfaction. Given the increase in complaints over the last year and the company’s persistent issues with its early termination fee, we have adjusted the BBB’s grade to a “C+.” For more on why we adjust BBB scores, please see our rating criteria.
Bottom Line
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.
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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.
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 -
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.
Redstone got me for $4300 dollars. I don’t know if I’ll be able to recoup it or not as it just happened yesterday
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.
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
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.