SpotOn Transact Credit Card Processing Reviews & Complaints
Company Overview
Founded in 2011, SpotOn Transact is a merchant account provider that serves most standard-risk business types with an emphasis on those in the restaurant and hospitality industries. The company is the latest venture from Matthew and Zachary Hyman, the co-founders of Central Payment Corporation (CPAY). CPAY was gradually acquired by TSYS from 2012 to 2017, and it appears that the Hymans made the permanent transition to SpotOn in the wake of CPAY's final acquisition phase.
SpotOn Transact has made a number of acquisitions, including Lifeyo, Seatninja, Appetize, and EmaginePOS.
Burgeoning Business Model Boasted by Outside Investment
As part of raising capital for its emerging business, SpotOn Transact closed a $50 million Series B financing deal with 01 Advisors. The investment firm was founded by former Twitter CEO Dick Costolo as well as other executives from the social media company including Adam Bain and David Rivinus. Investors from Dragoneer Investment Group, Franklin Templeton and EPIQ Capital Group also contributed to the Series B financing. This venture capital fundraising adds to SpotOn's revenue following a fiscal year in which it increased its revenue by 150%. With this investment at its disposal, SpotOn looks to enhance its stake in the POS and merchant account markets.
Point of Sale
SpotOn offers its own proprietary point-of-sale system called SpotOn Terminal. Their website boasts that it is Apple Pay, Google Pay, and NFC enabled, features Wi-Fi and 4G connectivity, is cash discount and surcharge ready, and offers real-time data and sales reporting. It also utilizes customer data capture, built-in marketing tools, next-day funding & transparent pricing, and 24/7/365 customer support.
SpotOn's E-Commerce Solutions
Recognizing the rapid growth of online business, SpotOn offers robust e-commerce solutions. This service allows businesses to handle online transactions securely and efficiently. With customizable online storefronts and secure online payment processing, businesses can offer a seamless online shopping experience to their customers.
Mobile Payment Processing by SpotOn
To cater to the increasing need for mobility and convenience in transactions, SpotOn offers mobile payment processing services. This feature allows businesses to process card payments from mobile devices, offering increased flexibility for on-the-go transactions.
Customer Engagement Tools from SpotOn
In addition to their payment processing services, SpotOn offers customer engagement tools. These tools help businesses connect with their customers through marketing automation, customer reviews, and loyalty programs. This service is designed to improve customer satisfaction and drive business growth.
SpotOn's Security and Fraud Protection
Understanding the critical importance of security in maintaining trust, SpotOn provides advanced security measures and fraud protection. These features include encryption, tokenization, and comprehensive fraud monitoring tools to protect businesses and their customers from potential security threats.
Location & Ownership
SpotOn Transact is headquartered at 100 California St 9th floor, San Francisco, CA 94111, and is a registered ISO/MSP of Merrick Bank, South Jordan, UT. Zachary and Matthew Hyman are the co-founders of SpotOn Transact.
Video Summary
| Pros: | Cons: |
|---|---|
| Excellent customer support | Additional costs for certain features |
| Low complaint rate | Nontransparent pricing |
| Intuitive interface | Potentially high monthly cost |
| Multiple features | No free plan or demo |
| Easy to use | Internet dependency issues |
| Effective inventory management | No free trial available |
SpotOn Transact Customer Reviews
Here's What Their Clients Say
| Total Online Complaints | 20+ |
|---|---|
| Live Customer Support | No |
| Most Common Complaint | Poor Service |
| Recent Lawsuits | No |
Moderate Complaint Total for SpotOn
Our research has identified over 20 negative reviews of SpotOn, with some customers labeling the company as a ripoff or a scam. The primary complaints center around aggressive sales tactics, subpar customer service, product issues, and billing concerns. While SpotOn’s complaint volume is comparatively lower than some competitors like CPAY, it is still a moderate amount considering the company’s size and duration of operation. Your insights and reviews on SpotOn are highly valued; please feel free to share your experiences in the comments below.
SpotOn Lawsuits
In 2020, point-of-sale competitor Toast initiated a lawsuit against SpotOn, alleging that SpotOn had hired employees in violation of their non-compete agreements. The lawsuit was voluntarily dismissed by Toast later in the same year, although the reasons for this dismissal were not made public. Clients who wish to address grievances with SpotOn through non-litigious means are encouraged to report their issues to appropriate supervisory bodies.
SpotOn Customer Support Options
SpotOn offers customer support through email and a dedicated phone line. These options provide a solid foundation for customer assistance, but do not yet elevate SpotOn to the rank of a premier customer service processor. Based on this evaluation, we have assigned SpotOn a “B” rating in terms of customer support quality.
SpotOn Customer Service Number
For general support, SpotOn can be reached at (877) 814-4102.
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SpotOn Transact Online Ratings
Here's How They Rate Online
| BBB Reports | 43 |
|---|
Under 10 Complaints
SpotOn Transact has an “A+” rating with the Better Business Bureau and has been BBB accredited since 2018. The company has received 27 complaints in the past 36 months. Only 11 of these 27 complaints were resolved by the company to the satisfaction of the merchant. The remaining 16 were resolved to the dissatisfaction of the merchant or received no final response.
What Merchants Say
SpotOn has also received 16 informal reviews on its BBB profile. 4 of those reviews were positive, meaning 12 were negative. The most recent negative review describes issues with double charges:
I just received an email today on 01-06-2022 from Spoton about a $25 Charge that will be debited from my business account. I called spoton to adress my concern with a representative. The Rep told me that it is a “Software Platform Fee” and that it will be debited on the next business day. I got very angry and told the Rep that am I already paying for “one platform fee” every month. Turns out, I was being billed for 2 separate fees in the amount of $25 every month the entire time I have been with Spoton. The Rep at this point didn’t know what to say so he hung up on my face. **** – SPOTON SOFTWARE $25.42 SPOTON SOFTWARE/PLATFORM $25.00 More importantly, I am reaching my deadline on 01-13-2023 as a merchant with Spoton. I have given them a 30 day notice in advance that I am leaving them. In return, the lady in their Fraud prevention sent a letter stating that if I do not remove a photo that contains a small portion of our CBD and Kratom products, she will place *********** in a reserve account to make up for loss and damages Spoton is entitled to. Spoton, You made your money by putting me on a flat rate model and all those extra fees you have thrown in there. You do not have sufficient technology to keep businesses up and running. You have been dishonest and not very Transparent. I do not recommend you or your services to anyone. I have had it with you, your technology, and your dishonesty. Not anymore!
Clients who find themselves in this position may benefit from taking the steps to cancel their merchant account without paying a fee.
An “A” Performance
Given the company’s low complaint total, we agree with the BBB’s rating at this time. However, it is on the verge of being reduced to a “B”.
SpotOn Transact Fees, Rates & Costs
A Closer Look at The Contract
| Cancellation Penalties | No |
|---|---|
| Monthly & Annual Fees | Yes |
| Processing Rates | Processing Rates |
| Equipment Leasing | Yes |
SpotOn Contract Terms
SpotOn promotes a policy of “no long-term contract,” suggesting its agreements are structured on a month-to-month basis. On the Pricing page, SpotOn advertises a “Preferred Payment Processing Rate Program” with fees of 1.99% plus $0.20 per swiped transaction and 2.99% plus $0.20 per keyed-in transaction. Note, these rates may not cover all potential fees.
SpotOn Pricing Plans
SpotOn introduces two main pricing structures: SpotOn with Payments and SpotOn Software Only. The SpotOn with Payments plan is available for $25 monthly, plus payment processing fees, and includes optional features such as a loyalty program ($25/month), appointment scheduling ($25/user after the first), and a website service ($25/month). Payment processing hardware options include a Poynt terminal at $15 monthly, a SpotOn Register for $65 monthly, and SpotOn Restaurant also at $65 monthly. The Software Only plan is priced at $195 monthly, offering all mentioned services excluding payment processing and hardware.
Custom Pricing Options
SpotOn permits its agents some flexibility in setting rates and fees within specified parameters. This flexibility suggests that rates and fees could vary based on merchant negotiations. However, it’s noted that SpotOn may incentivize agents to propose higher rates and fees for larger commissions. Consequently, it’s improbable that SpotOn’s pricing will match or undercut the most competitive merchant account offerings.
SpotOn Transact Employee Reviews & Sales Tacitcs
Should You Work For Them?
| Uses Independent Resellers | Yes |
|---|---|
| Telemarketing | Previously |
| Misleading Marketing | No |
| Discloses All Important Terms | No |
No More Use of Outside Sales Agents
SpotOn does not appear to use any deceptive advertising or rate quoting in its official materials. However, we have found numerous SpotOn review that mention aggressive sales tactics and incompetent sales agents. These complaints are consistent with the negative reports we received about CPAY. In an effort to distance itself from the effects of that practice, SpotOn Transact no longer relies on outside sales agents, according to a company representative. Now, SpotOn relies entirely on an in-house sales team.
An Improved Grade for Initiatives Taken Against Sales Complaints
Given its willingness to reshape its sales approach, SpotOn Transact receives a “B” overall in this category. In addition to ridding its business of outside agents, a company representative informed us that its in-house sales team is paid by salary along with full benefits and a 401k. That improved employment practice for its sales agents ostensibly will provide merchants with a much better experience with the company. If you suspect that a SpotOn sales agent has added undisclosed fees to your account, we recommend seeking a third-party statement audit.
Our SpotOn Transact Review Summary
Our Final Thoughts
SpotOn rates as an average credit card processing provider according to our rating criteria. However, given the recent investment capital, changes to sales practices, and the positive growth of its business, SpotOn is positioned to become a major merchant account provider. We will continue to monitor merchant feedback about SpotOn and adjust our rating accordingly. For now, businesses can obtain the best deal by comparing SpotOn’s pricing and contract terms to those offered by top-rated merchant account providers.
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Brittany
I have had nothing but horrible experience with this company. I have been waiting on a refund for 2 months now. I have changes on my account due to illegally drafting my business bank account. I am getting nsf fees due to this issue you all have created an have not taken accountable for. I am going to continue to report this business. You all are acting illegal and I am gathering others who this company have scammed and taking action.
Zion Anita
SpotOn Transact has been a game-changer for our business! We’ve been using it for a few months now, and we couldn’t be happier with the results. The seamless payment processing and user-friendly interface make transactions a breeze for both our team and customers. No more hiccups at the checkout!
The reporting and analytics features have also given us valuable insights into our sales trends, helping us make better-informed decisions. Plus, the loyalty program has been a hit with our regulars, keeping them coming back for more.
Their customer support team has been top-notch too, always ready to assist whenever we had questions or needed help. SpotOn Transact has truly exceeded our expectations, and we highly recommend it to any business looking to streamline their payment process and boost customer satisfaction. It’s a win-win!