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Xenex Payment Systems: Card Processing Reviews & Complaints
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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.
Before we dive in, here’s a short summary of what we’ll cover:
- Xenex Payment Systems’ various payment processing services.
- The company has received a few complaints, but not many in recent years. Most of these complaints center around contract terms.
- Xenex’s contract contains a number of expensive fees.
Xenex Payment Systems Payment Processing
Xenex Payment Systems processes all major debit and credit cards for most business types. Their services include EMV card readers/swipers, POS systems, e-commerce solutions, gift and loyalty programs, ACH and check services, cash advances, and next-day and same-day funding.
Zero Cost Program
The Xenex Zero Cost program allows clients to pass on credit card processing fees to customers. Customers are given the choice to use cash, debit, or credit.
Gift & Loyalty Program
Xenex offers customizable gift and loyalty cards to boost future sales and improve customer retention.
The company’s check acceptance services include paper guarantee, point-of-sale conversion, and ACH debit. Additionally, EBT Card Processing caters to customers using government benefit programs.
Xenex collaborates with leading capital providers to offer up to $500,000 in business financing, aiming to support growth with a straightforward application process and rapid access to funds.
Merchant Cash Advance
The Merchant Cash Advance (MCA) provided by Xenex is an advance based on a business’s credit card sales, not a loan. Businesses can apply for an MCA and potentially receive funds in their account within 24 hours post-approval.
Xenex offers various funding options, including Standard ACH, next-day, and same-day funding to ensure business operations are not disrupted.
Location & Ownership
Founded in 1993, Xenex Inc./Xenex Payment Systems is a registered ISO/MSP of Deutsche Bank Trust Company Americas, New York, NY. The company’s headquarters was formerly listed at 1539 Broadway, Hewlett, NY 11517. The Better Business Bureau no longer lists a president or CEO, but Winston Sylvester was the last listed president and chairman of Xenex.
Table of Contents
- Costs & Contract: Offers a three-year contract with…
- Complaints & Service: Complaints number approximately 10 on…
- BBB Rating: Has an “A+” with the BBB and has…
- Sales & Marketing: Hires independent sales representatives and has…
Xenex Payment Systems Customer Reviews
Here's What Their Clients Say
|Total Online Complaints||10+|
|Live Customer Support||Yes|
|Most Common Complaint||Hidden Fees|
We are able to locate more than 10 Xenex Payment Systems reviews on various consumer protection websites. Several complainants (mostly the former employees) describe Xenex as a scam or a ripoff. The complaints generally describe undisclosed fees, unhelpful customer service representatives, and withheld income from the company’s sales agents. It appears that 3 of these Xenex Payment Systems complaints may have been filed by the same person regarding the same run-in with a sales agent, so they will be counted as one Xenex Payment Systems complaint. Some of these complaints received rebuttals from company representatives, who either alleged unfair character assassination or accused the complainant of being a competitor. If you have your own Xenex Payment Systems review to make, please do so in the comments below.
Xenex Payment Systems Lawsuits and Fines
We have not found any outstanding class-action lawsuits or FTC complaints filed against Xenex Payment Systems. Dissatisfied clients who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
Xenex Payment Systems Customer Support Options
It seems likely that Xenex outsources its customer support to Global Payments or EVO, but the company does offer live phone support as well as email support to merchants.
Xenex Payment Systems Customer Service Numbers
- (888) 918-4409 – Toll-Free Customer Support
- (516) 295-8851 – Fax
- (800) 999-8674 – Chargeback Center
- (800) 944-1111 – Emergency Authorization (Enter Bank ID: 067600)
Other Support Options
Xenex Payment Systems Online Ratings
Here's How They Rate Online
No Complaints Filed
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.
Xenex Payment Systems Fees, Rates & Costs
A Closer Look at The Contract
|Monthly & Annual Fees||Yes|
|Processing Rates||1.00% - 4.99%|
The standard Xenex contract details a three-year agreement through EVO Payments International with a $595 cancellation fee, a $99 annual fee, a $20 monthly minimum fee, and tiered pricing. Complainants report varying amounts for these Xenex Payment Systems fees, so it’s likely that the terms of the contract vary from agent to agent.
Virtual Terminal and Payment Gateway Pricing
In addition to its storefront payment processing services, Xenex Payment System also dedicates a portion of its website to advertising its virtual terminal and payment gateway services. The company lists Authorize.Net, eProcessing Network, and NMI as its gateway providers. However, pricing will depend on which gateway provider it utilizes. Additional Xenex Payment Systems rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates typically apply to these e-commerce services.
Beware Equipment Leases
We have also found several Xenex Payment Systems reviews that describe non-cancellable, 48-month equipment leases through Northern Leasing Systems. These leases can cost $50-$60 per month, which in most cases will far exceed the purchase cost of the equipment over the life of the lease. We encourage business owners to check out our list of the providers of the best merchant services.
Not Competitively Priced
Xenex Payment Systems’ contract terms are slightly more expensive than industry averages and are far from competitive with the cheapest merchant accounts. Businesses are encouraged to read all contract terms carefully and negotiate to receive the best rates.
Xenex Payment Systems Employee Reviews & Sales Tacitcs
Should You Work For Them?
|Uses Independent Resellers||Yes|
|Discloses All Important Terms||No|
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.
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