SpotOn Transact Review

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 provides a proprietary point-of-sale system called SpotOn Terminal. It supports Apple Pay, Google Pay, and NFC, and offers Wi-Fi and 4G connectivity. The system is designed for cash discounts and surcharges and includes features such as real-time data and sales reporting, customer data capture, built-in marketing tools, next-day funding, transparent pricing, and round-the-clock customer support.

E-Commerce Solutions

SpotOn offers comprehensive e-commerce solutions to support the growth of online businesses. These services enable secure and efficient online transactions, with customizable storefronts and secure payment processing.

Mobile Payment Processing

SpotOn provides mobile payment processing to meet the demand for transaction mobility and convenience. This service allows businesses to accept card payments via mobile devices.

Customer Engagement Tools

SpotOn includes customer engagement tools alongside its payment processing services. These tools help businesses connect with customers through marketing automation, customer reviews, and loyalty programs.

Security and Fraud Protection

SpotOn prioritizes security with advanced measures and fraud protection, including encryption, tokenization, and comprehensive fraud monitoring tools.

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.

PaymentPop Rating for SpotOn Transact

SpotOn Transact BBB Rating

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. SpotOn Transact has a 1.35 out of 5 star rating based on 23 user reviews on the Better Business Bureau website.

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:

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 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.

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.

SpotOn rates as an average credit card processing provider according to our rating criteria. However, the company is currently undergoing significant changes that could positively impact its standing. With a recent influx of investment capital and improvements to its sales practices, SpotOn is showing potential for substantial growth in the merchant services industry. These developments suggest that SpotOn could become a major player among merchant account providers in the near future.

Businesses are advised to carefully compare SpotOn’s pricing and contract terms with those of top-rated merchant account providers to ensure they are getting the best possible deal. By staying informed and vigilant, business owners can make well-informed decisions that align with their financial goals and operational needs.