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Xenex Payment Systems Review: Fees, Complaints & Lawsuits

  • January 21, 2022
  • By Payments Industry Analyst, Phillip Parker
  • 9 User Reviews
see which processors will offer you the lowest pricing and best service
see who will offer you the lowest pricing and best service

Rating

 3/5
Xenex Payment Systems Logo
Website
see who will offer you the lowest pricing and best service
(888) 918-4409

Most Recent Comment

  • Kiana: says:
    May 4, 2021
    "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 busin..." Read More
See All User Comments

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Rating:
 3/5

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Xenex Payment Systems Logo
View Pricing
(888) 918-4409

Most Recent Comment

  • Kiana: says:
    May 4, 2021
    "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 busin..." Read More
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A Global Payments Reseller

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.

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.

Xenex Payment Systems 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.

Xenex Payment Systems Review Table of Contents

  • Costs & Contract: Xenex Payment Systems offers a three-year contract through EVO Payments International with an early termination fee of $595. The company also offers payment gateways through Authorize.Net, NMI, and eProcessing Network.
  • Complaints & Service: Xenex Payment Systems has received approximately 10 public complaints.
  • BBB Rating: Xenex Payment Systems has an “A+” with and has received 0 complaints and 0 reviews in the past 3 years. The company has been accredited by the Better Business Bureau since 2011.
  • Sales & Marketing: Xenex Payment Systems hires independent sales representatives and has received a few merchant complaints about its sales practices.
Xenex Payment Systems payment processing
Xenex Payment Systems offers a variety of payment processing services

Should You Trust Xenex Payment Systems?

Lawsuits, Reviews & Complaints

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Complaint Summary

Total Online Complaints 10+
Live Customer Support Yes
Most Common Complaint Hidden Fees

Hidden Fees

We are able to locate more than 10 complaints about Xenex on various consumer protection websites. 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 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 complaint. Some of these complaints received rebuttals from company representatives, who either alleged unfair character assassination or accused the complainant of being a competitor.

Xenex Payment Systems Lawsuits and Fines

We have not found any outstanding class-action lawsuits or FTC complaints filed against Xenex Payment Systems. Dissatisfied merchants 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 Service Options

It is our belief that this type of response does not qualify the company as a top-rated processor for customer service at this time. Several complainants (mostly the former employees) describe Xenex as a scam or a ripoff. 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.

We have located multiple Xenex Payment Systems customer service phone 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)

Xenex Payment Systems also offers a customer support form on its website and a number of customer service emails:

[email protected] – Customer Service/Technical Support
[email protected] – Sales

Is the BBB Rating for Xenex Payment Systems Accurate?

Better Business Bureau Profile

see which processors will offer you the lowest pricing and best service
see who will offer you the lowest pricing and best service

BBB Summary

Product & Service Complaints 0
Billing & Collection Complaints 0
Advertising & Sales Complaints 0
Guarantee & Warranty Complaints 0
Delivery Complaints 0

No Complaints Filed

An accredited business of the 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 negative reviews.

An “A” Performance Overall

Merchants 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.

How Expensive is Xenex Payment Systems?

Rates, Fees, and Contract Terms

This processor offers the lowest rates and best service we've seen

Cost Summary

Swiped Rate 1.00% - 4.99%
Keyed-in Rate 1.00% - 4.99%
Virtual Terminal Rate 1.00% - 4.99%
Payment Gateway Fee Undisclosed
Monthly Minimum Fee $20
Early Termination Fee $595
PCI Compliance Fee $99 Per Year
Equipment Lease Cost $60 Per Month
Equipment Lease Terms 48 Month (locked)

Three-Year Contract

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 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 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 complaints 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 merchants 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. Merchants are encouraged to read all contract terms carefully and negotiate to receive the best rates (see: “Fee Sweep”).

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

Does Xenex Payment Systems Use Deceptive Marketing?

Advertising & Sales Strategy

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Key Points

Employs Independent Resellers Yes
Advertises Deceptive Rates No
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 complaints about Xenex, with merchants 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 merchants 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.

Does Xenex Payment Systems Deserve Your Business?

Review Summary & Our Thoughts

An Average Rating

Xenex Payment Systems rates as an average merchant services provider according our rating system. The company is showing an average complaint rate for its size and time in business, and the contract details we were able to obtain are not especially competitive. This credit card processor can improve its overall rating by improving its hiring practices and more closely monitoring the behavior of its agents in an attempt to limit complaints. We will continue to monitor the company’s reputation to determine whether it will become one of the worst-rated providers or a worthy competitor to the top-rated providers.

5-Star Rated Xenex Payment Systems Competitors

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About The Author

Phillip Parker is a Payments Industry Analyst and creator of this blog, CardPaymentOptions.com. Phillip is passionate about researching merchant service providers and payment industry trends. He is often quoted as an expert source in national publications such as INC Magazine, The Los Angeles Times, Entrepreneur, and many others.

“I started this blog because I was disgusted by the business practices of the merchant services industry. I wanted to empower business owners by providing insight on how to avoid shady merchant account providers and costly credit card processing mistakes.” 

Phillip’s Processor Comparisons

Picking a credit card processor can be a headache, but we’ve made it easy. Phillip recommends comparing the best merchant services providers we’ve researched.

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What Others Are Saying About Xenex Payment Systems

Customer & Employee Reviews

9 Responses

  1. Kiana says:
    May 4, 2021 at 2:32 pm

    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.

    Reply
  2. James michel says:
    November 7, 2018 at 8:14 pm

    total scumbags! ripoff and complete lies! stay far away from this chop shop. just google there address and you will see no corporate headquarters just a chop shop in a strip mall in the attic.

    From The Editor
    This Post Might Help: Best All-Purpose Merchant Accounts

    Reply
  3. Barry N Company says:
    January 21, 2016 at 2:06 pm

    Be aware that Xenex Payment Systems customer service is less than adequate when it comes to their long term customers and providing the necessary information to make sound business decisions regarding their services. Over the past 6 years of being one of their good standing customers, we were not given notice to a termination fee that would be deducted from our account due to us terminating our services with them. We were unaware that we were still in any contract with them that would negate a termination fee of any kind. We were taken for $495 fee plus 3 months of inactivity on our account. Leave it to the banking corporations to once again go after the small business’s bottom line. How can they keep getting away with this? “Government” needs to step in and make some changes. Xenex management, feel free to contact me regarding any corrections you can provide for my injustices.

    —
    Are you with Xenex? Learn how to resolve this complaint.

    Reply
  4. Andrew says:
    January 12, 2015 at 9:25 am

    This company has a sales representative named Ryan Anderson, he is a crook, he leased a credit card terminal to me, I am paying 57.46 on every month, he never explained I was in a contract for 48 months, now I’m hooked, I have 4 other merchants that he did the same thing to, we are getting a class action lawsuit against him, anybody else interested please blog this site!!

    Reply
    1. Katie says:
      February 6, 2015 at 10:18 pm

      In defense to Ryan Anderson, he has always been a great guy to work with and Im pretty sure that this is his old employeer and now competition trying to slander his name and business.

      Reply
    2. Ryan says:
      May 14, 2015 at 10:23 am

      Hi Andrew,

      It sounds like there could be a misunderstanding with the agreement you signed and I apologize for that. Unfortunately there is no way for us to identify your business so we can redress the wrong and remedy the situation. Please leave some way for us to identify your business below or you can reach out to us anytime from 9-5 Monday-Friday.

      Best Regards,

      Management
      Xenex Payment Systems

      Reply
    3. Dena says:
      October 4, 2016 at 6:38 pm

      Same exact problem with the same exact person. He doesn’t explain that you are actually signing two contracts, there is nothing on the service contract that says you are entering into a 4 year contract for service ALONG with the contract to lease the machine.

      Reply
  5. william Fosmer says:
    March 28, 2014 at 2:01 pm

    We have been doing business with Xenex for about 3 years under the impression we did not have a contract because when we switched to them 3 years ago the person representing Xenex told me it was only a one year contract and after that I could cancel or switch without any cancelation charges, because that was a big issue last time I switched. Which brings us to present day. We had a few transactions that caused us a lot of greif, we are a small business and cash flow is very important to us, on a couple transactions they withdrew refunds before the oringinal money was ever credited to our account causing a overdraft on a couple of occasions in which they would only refund my tranaction charge and do nothing about my banks overdraw charges caused by them. they also held funds for two weeks that had nothing to do with the botched transactions.I decided to leave them and go with someone else and when I told them I was canceling they told me there would be a $495.00 cancellation fee as stated in my contract on page 3. I told them I did not have a page 3, it turns out there represetitve only gave me page 1 and 2 of 6 pages. End of story they got there money I am with my bank my transactions are quicker and my bank is crediting me the amount of the cacellation fee for switching. I am glad I switched.

    Reply
  6. Lajoya Roy says:
    June 11, 2012 at 8:53 am

    I’ve been doing business with xenex for 3 yrs. I have a serious complaint. I full filled my contract and when I tried to cancel with proper procedures, they gave me the wrong information. They told me to cancel one month prior because there service automatically renews. I called and the personal gave me the wrong information. After they took my $250 they told me it was 30 days after your contract. Since my contract is up they have no interest of giving me my money back. Since my contract is up less than 30 days, what happened to being prorated?? You still have to take my whole $250. What a rip off! Who wants to give money away?? Don’t go with this company

    Reply

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