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Should You Choose Xenex Merchant Services? Full Review and Analysis

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Xenex Payment Systems

Rating
C
3/5
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Pros and Cons of Xenex Payment Systems

Pros

Diverse payment options
Accepts multiple payment methods.
E-commerce solutions

Cons

Lengthy equipment leases
Variable processing rates
Additional fees possible
Undisclosed fees possible
Contract Complexity

Overview

In this review of Xenex Payment Systems, we’ll provide a detailed look at the company’s services, reputation, and industry standing. Their offerings include support for major credit and debit card processing, a Zero Cost Program that shifts card fees to customers, a Gift & Loyalty Program, and funding options such as merchant cash advances and business financing. We’ll cover key details like rates, fees, contract terms, and potential issues such as cancellation penalties and equipment leasing costs, while also sharing background on the company’s history, ownership, and headquarters. Customer and employee feedback will be highlighted, focusing on common complaints such as hidden fees and the impact of independent resellers on client satisfaction. Finally, we’ll evaluate Xenex’s marketing and sales practices, industry ratings, and overall pros and cons to help businesses decide whether Xenex Payment Systems is a suitable payment processing partner.

About Xenex Payment Systems

Xenex Payment Systems Homepage

Xenex Payment Systems is a New York-based merchant account provider. There is some indication that Xenex is a reseller of Global Payments contracts. Alternatively, there is also evidence that Xenex offers contracts through EVO Payments International.

Products & Merchant Services

Payment Processing

Xenex Payment Systems provides payment processing for all major debit and credit cards across various business types. Their services include EMV card readers and swipers, POS systems, e-commerce solutions, gift and loyalty programs, ACH and check services, cash advances, and options for next-day and same-day funding.

Zero Cost Program

Xenex’s Zero Cost program allows businesses to transfer credit card processing fees to customers, who can then choose to pay with cash, debit, or credit.

Gift & Loyalty Program

Xenex offers customizable gift and loyalty cards designed to increase future sales and improve customer retention.

Check Services

Xenex’s check acceptance services include paper guarantee, point-of-sale conversion, and ACH debit. They also provide EBT card processing for customers using government benefit programs.

Business Financing

In collaboration with leading capital providers, Xenex offers up to $500,000 in business financing.

Merchant Cash Advance

Xenex provides Merchant Cash Advances (MCA), which are based on a business’s credit card sales rather than traditional loans. Approved businesses can potentially receive funds in their account within 24 hours.

Funding Options

Xenex offers several funding options, including Standard ACH, next-day, and same-day funding, to help businesses maintain smooth operations without financial disruptions.

Customer Reviews & Sentiment

Hidden Fees and Service Concerns

Our investigation uncovered over 10 Xenex Payment Systems reviews across several consumer protection platforms. A number of these reviews, primarily from individuals identifying as former employees, label Xenex as a scam or ripoff. The core complaints frequently highlight undisclosed fees, unresponsive customer service representatives, and issues regarding compensation for the company’s sales agents. It’s important to note that 3 complaints appear to originate from a single individual based on a singular incident with a sales agent; thus, for clarity, these will be consolidated into a single Xenex Payment Systems complaint. Responses from company representatives to some accusations have ranged from disputing the claims as character assassination to suggesting that the complainants might be competitors. We invite you to share your personal Xenex Payment Systems review or experiences in the comments section below.

Xenex Payment Systems Customer Support

While there is speculation that Xenex may partner with Global Payments or EVO for some customer support functions, the company does assertively provide direct live phone and email support to its merchants. This commitment to accessible support aims to ensure prompt and efficient service resolution.

Industry Scores & User Ratings

Online Ratings Summary
PaymentPop5
BBB RatingN/A
Google Maps4.3
Average Rating4.3

PaymentPop Rating for Xenex Payment Systems

Negative Feedback

There are no positive reviews published about Xenex Payment Systems on the PaymentPop website.

Positive Feedback

I’ve had an account with them since 2009 and appreciate working with a small company where I can call and get the support I need for my business financial transactions.

Xenex Payment Systems BBB Rating

An accredited business of the BBB since 2011, Xenex Payment Systems receives an “A+” at the BBB at this time of review. The company has received 0 complaints to its profile in the past three years. It also has not received any informal reviews.

An “A” Performance Overall

Readers should always be aware that there is reason to be skeptical of the BBB’s reviews. Given the company’s clean complaint record, we will not adjust the BBB’s rating at this time.

Google Maps Rating for Xenex Payment Systems

Xenex Payment Systems has a 4.3 out of 5 star rating based on 11 user reviews on Google Maps.

Positive Feedback

Amazing customer service and a great team at the hewlett location. The zero cost has saved me so much money! I highly recommend doing business with them.

Negative Feedback

They hold your money and they dont care about the customer……They keep the money longer then they have to… for interest and could care less about the business..They should be put out of business, scam is an understatement. We wait weeks till our money is put into our account and have had numerous arguments with them. I am calling the BBB this week….THEY ARE LIARS !!!!!!

Processing Rates & Fees

Three-Year Agreement

The standard Xenex contract outlines a three-year agreement facilitated by EVO Payments International, including a $595 cancellation fee, a $99 annual fee, a $20 monthly minimum fee, and tiered pricing. While the contract specifies these fees, complainants have reported varying amounts, suggesting potential differences in contract terms between agents.

Virtual Terminal and Payment Gateway Pricing

Aside from its in-store payment processing services, Xenex Payment System also promotes its virtual terminal and payment gateway services. The company partners with Authorize.Net, eProcessing Network, and NMI as its gateway providers, with pricing contingent on the chosen provider. Additional Xenex Payment Systems fees, such as gateway fees, technical support fees, batch fees, and transaction rates, typically apply to these e-commerce services.

Be Wary of Equipment Leases

Several Xenex Payment Systems reviews highlight non-cancellable, 48-month equipment leases through Northern Leasing Systems, costing $50-$60 per month. This long-term expense often surpasses the equipment’s purchase cost over the lease period. Business owners should exercise caution and explore alternatives. We recommend consulting our list of the top merchant services providers.

Not Competitively Priced

Xenex Payment Systems’ contract terms slightly exceed industry averages and do not align with the rates of the cheapest merchant accounts. Businesses should meticulously review all contract terms and negotiate for favorable rates.

Xenex Payment Systems point of sale
Xenex Payment Systems offers leases on a variety of point-of-sale systems

Lawsuits & Legal History

Our search did not reveal any ongoing class-action lawsuits or Federal Trade Commission (FTC) complaints against Xenex Payment Systems. For those seeking resolution without litigation, we recommend considering reporting any grievances to relevant oversight bodies, which can provide a constructive avenue for dispute resolution.

Employee Reviews & Sales Practices

Outside Sales Agents

Xenex appears to hire independently contracted sales agents to market its services. This is a standard practice in the industry that often results in a higher complaint rate for a company, as it is difficult for any business to monitor and regulate the activity of independent agents. This hiring practice appears to be the cause of multiple negative Xenex Payment Systems reviews, with clients reporting nondisclosure of contract terms and former agents accusing their employers of withholding compensation.

Motivated by Commission

Xenex compensates its independent agents on a 100% commission basis, which may motivate them to lock businesses into long-term equipment leases or processing agreements. While Xenex does not require agents to meet a sales quota, it only provides leads based on performance, encouraging agents to close sales in any manner possible. This does not compare favorably to our list of best credit card processors.

No Deceptive Advertising

To its credit, the company does not appear to engage in any deceptive marketing strategies in its official materials. However, the nature of Xenex Payment Systems complaints prompts us to award the company a “B” at this time.  If you suspect that you have had undisclosed charges added to your Xenex Payment Systems contract, we recommend seeking a third-party statement audit to eliminate hidden fees.

Xenex Payment Systems Competitors

Compare Xenex Payment Systems to competitors that earned top marks.

Bottom Line

Xenex Payment Systems is evaluated as an average provider in the credit card processing industry based on our established rating criteria. The company has demonstrated an average rate of complaints given its market presence and operational history, which aligns with industry norms but does not particularly stand out in either a positive or negative light. Furthermore, the contract terms that we have managed to review do not present Xenex as a highly competitive choice within the field; these terms are not particularly advantageous when compared to the offerings of leading companies in the sector.

To enhance its standing and potentially elevate its rating, Xenex Payment Systems could benefit significantly from refining its hiring practices and implementing more stringent oversight of its sales agents. Such improvements could help reduce the frequency and severity of customer complaints, shifting the company’s reputation towards a more positive trajectory. As we continue to observe and evaluate Xenex’s performance and customer feedback, it remains to be seen whether the company will descend towards becoming one of the worst-rated entities or ascend to rival the stature of top-rated providers. The future of Xenex Payment Systems hinges on its ability to address these critical areas effectively and to adapt its strategies to foster greater client satisfaction and loyalty.

Read Actual User Reviews

All user reviews have been moved to our partner, PaymentPop.com

Contact Xenex Payment Systems

Contact & Customer Support
President and ChairmanWinston Sylvester
Headquarters539 Broadway, Hewlett, NY 11517
Toll-Free Customer Support(888) 918-4409
Fax(516) 295-8851
Chargeback Center(800) 999-8674
Emergency Authorization (Enter Bank ID: 067600)(800) 944-1111
Websitexenexpayments.com