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.
- Sales & Marketing: Redstone Payment Solutions appears to hire independent sales representatives and has received some complaints about its sales practices.
- Costs & Contract: Redstone Payment Solutions offers a three-year contract with a liquidated damages early termination fee.
- Complaints & Service: Redstone Payment Solutions has received more than 30 public complaints.
- BBB Rating: Redstone Payment Solutions has an “A+” rating with the Better Business Bureau and has received 18 complaints in the past three years.
- Rates & Fees: How Merchants Got The Best Rates With Redstone Payment Solutions
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Sales & Marketing
Key Points - Sales & Marketing
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||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 multiple Redstone Payment Solutions that mention persistent sales calls and 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 these issues may stem from the conduct of independent sales agents, as the company itself 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
Costs & Contract
Key Points - Costs & Contract
|Early Termination Fee||$495+|
|PCI Compliance Fee||Variable|
|Equipment Lease Terms||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 have taken to online forums to 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 $295 termination fee rather than the one in the contract.
Some complaints also mention a monthly minimum fee of $40, but we have not found any specific details regarding the company’s 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.
Complaints & Service
Key Points - Complaints & Service
|Total Online Complaints||30+|
|Live Customer Support||Yes|
|Most Common Complaint||Termination Fees|
We are currently able to locate approximately 30 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 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
|Product & Service Complaints||5|
|Billing & Collection Complaints||10|
|Advertising & Sales Complaints||1|
|Guarantee & Warranty Complaints||0|
Note: We have adjusted this company’s BBB rating according to our own standards. To better understand why we adjust BBB ratings, please see our Rating Criteria.
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 its 18 merchant complaints, 10 are regarding billing and collection disputes, five have to do with product and service problems, two are related to delivery issues, and one is categorized as an advertising or sales issue. Eight complaints have been resolved to the merchants’ satisfaction, while the remaining 10 either were resolved to the dissatisfaction of the merchant or did not receive a final response from the merchant. 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.”
About Phillip Parker
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Related: Phillip’s Top All-Purpose Merchant Account Picks
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