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SpotOn Transact Review
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From The People Behind Central Payment Corporation
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.
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.
SpotOn Transact Location and Ownership
SpotOn Transact is headquartered at 300 California St, San Francisco, CA, and is a registered ISO/MSP of Merrick Bank, South Jordan, UT. Zachary and Matthew Hyman are the co-founders of SpotOn Transact.
SpotOn Transact Review Table of Contents
- Costs & Contract: SpotOn Transact offers a month-to-month contract with variable rates and additional monthly fees.
- Complaints & Service: SpotOn Transact has received more than 20 public complaints.
- BBB Rating: SpotOn Transact currently has an “A+” rating and has received 12 complaints and 13 reviews in the last 3 years. The company has been accredited by the Better Business Bureau since 2018.
- Sales & Marketing: SpotOn Transact does not hire independent sales agents.
- Rates & Fees: How Merchants Got The Best Rates With SpotOn Transact
SpotOn Transact Customer Reviews
Here's What Their Clients Say
|Total Online Complaints||20+|
|Live Customer Support||No|
|Most Common Complaint||Poor Service|
Moderate Complaint Total
We are currently able to locate over 20 negative SpotOn reviews, some of which accuse the company of being a ripoff or a scam. Complainants primarily mention pushy sales tactics, poor customer service, dysfunctional products, and billing issues. SpotOn’s complaint rate is lower than CPAY’s, but the company still has a moderate complaint volume for its size and time in business.
We have not found any outstanding class-action lawsuits or FTC complaints filed against SpotOn. Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
SpotOn Customer Support Options
The SpotOn website provides email support contact information but does not list a dedicated customer support number. This level of support does not qualify it as a top-rated customer service processor, and we have accordingly assigned the company a “B” rating.
SpotOn Transact Online Ratings
Here's How They Rate Online
|Product & Service Complaints||6|
|Billing & Collection Complaints||5|
|Advertising & Sales Complaints||1|
|Guarantee & Warranty Complaints||0|
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 12 complaints in the past 36 months. 4 complaints were related to product or service problems, while 3 had to do with billing or collection disputes. SpotOn successfully resolved 7 of these complaints. While the company answered all 12 of the complaints made against it, merchants did not reply to their responses in 5 of those instances.
What Merchants Say
SpotOn has also received 13 negative informal reviews on its BBB profile. 10 of those reviews were positive, meaning just 3 were negative in tone. The most recent negative review describes billing difficulties:
Rip off. Never signed a agreement with them and we have been charged several times and are STILL trying to get our money back. DO NOT DO BUSINESS WITH THEM!!!
Merchants 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
|Swiped Rate||1.99% + $0.20|
|Keyed-In Rate||2.99% + $0.20|
|Loyalty Program Fee||$25 Per Month|
|Appointment Fee||$25 Per Month|
|Website Fee||$25 Per Month|
|Poynt Terminal Cost||$15 Per Month|
|SpotOn Register Cost||$65 Per Month|
|SpotOn Restaurant Cost||$65 Per Month|
SpotOn Contract Terms
SpotOn claims to offer “no long-term contract”, which may indicate that its standard contract is a month-to-month agreement. The company’s Pricing page lists a “Preferred Payment Processing Rate Program” that charges 1.99% plus $0.20 per swiped transaction and 2.99% plus $0.20 per keyed-in transaction, although these rates are not inclusive.
SpotOn Pricing Plans
SpotOn offers two basic pricing plans: SpotOn with Payments and SpotOn Software Only. The SpotOn with Payments plan costs $25 per month plus associated payment processing fees and an optional loyalty program ($25 per month), appointment scheduling tool ($25 per each user after the first), and website ($25 per month). The company’s payment processing hardware includes a Poynt terminal ($15 per month), a SpotOn Register ($65 per month), and SpotOn Restaurant ($65 per month). The SpotOn Software Only plan costs $195 per month and includes all of the above services except for payment processing and its related equipment.
Custom Pricing Options
SpotOn agents appear to be able to set rates and pricing within certain guidelines as set by the company, so rates and fees may vary upon merchant request. With that said, it appears that SpotOn encourages agents to set high pricing and rates in exchange for large commissions. It is therefore highly unlikely that SpotOn’s terms will compete with pricing offered by the cheapest merchant accounts.
SpotOn Transact Employee Reviews & Sales Tacitcs
Should You Work For Them?
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||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. Numerous SpotOn complaints about 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 as 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.
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