Central Payment Corporation Review

Central Payment Corporation (CPAY), a well-known company offering transaction processing services, was established in 2005 and is based in San Rafael, California. The company provides various payment processing options to small and medium-sized businesses nationwide, such as credit and debit card processing, POS systems, e-commerce solutions, and gift and loyalty programs. CPAY has a customer base of over 60,000 merchants and handles over $3.5 billion in annual credit card sales. Let’s delve deeper into the Central Payment Corporation Review.

History and Partnership with TSYS

In August 2012, Central Payment Corporation formed a strategic joint venture with Total System Services (TSYS), a global leader in payment technology and software solutions. This partnership allowed TSYS to acquire a 60% stake in Central Payment, integrating CPAY’s extensive network of over 700 independent sales agents (ISAs) into its own distribution model. The joint venture aimed to leverage TSYS’s technological infrastructure and reputation in the payment industry, while allowing CPAY to maintain operational independence under its existing brand name.

Prior to forming a partnership, Central Payment had already solidified its presence in the payments industry by concentrating on acquiring merchants using its agent-centered approach. Twin brothers Matthew and Zachary Hyman, who are the founders of the company, have made CPAY stand out in the payments industry by focusing on offering competitive pricing and excellent customer service. Through the collaboration, CPAY broadened its abilities by leveraging TSYS’s processing knowledge and technical assistance, allowing the company to expand its operations.

Position in the Market and Services Provided

Today, Central Payment Corporation continues to operate as an affiliate of TSYS, focusing on providing comprehensive payment solutions such as mobile payment processing, recurring billing, and EMV-compliant hardware for secure transactions. The company also offers tailored solutions like the Card Compromise Assistance Plan (C-CAP) and competitive pricing strategies to enhance its market position. CPAY’s affiliation with TSYS has not only boosted its service offerings but has also strengthened its presence in the highly competitive merchant services industry.

Company Background | Central Payment Corporation Review

Central Payment Corporation (CPAY) was established in 2005 with the vision of providing reliable payment processing solutions to small and medium-sized businesses. Headquartered in San Rafael, California, the company quickly grew its market presence by leveraging a network of independent sales agents and offering a variety of services, including credit card processing, point-of-sale (POS) systems, and e-commerce solutions. CPAY’s commitment to service excellence and competitive pricing has enabled it to secure a strong position in the payment processing industry.

In 2012, Central Payment formed a strategic partnership with Total System Services (TSYS), a leading company in the financial technology industry. By entering into this collaboration, TSYS purchased a majority ownership of 60% in Central Payment. The partnership allowed CPAY to utilize TSYS’s cutting-edge processing technology and infrastructure, which improved its service capabilities. While TSYS holds the largest share, Central Payment remains functioning autonomously with its own brand name and takes advantage of TSYS’s assistance and knowledge.

The partnership with TSYS also allowed Central Payment to leverage broader market opportunities and strengthen its competitive edge. CPAY is now able to offer a wider range of services, including advanced fraud prevention tools and faster payment processing, which has been instrumental in expanding its client base across diverse industry sectors.

The company was co-founded by twin brothers Matthew and Zachary Hyman, who serve as co-managing partners. Their leadership and entrepreneurial vision have been pivotal in establishing Central Payment as a reliable provider of merchant services. Under their guidance, CPAY has continued to grow its footprint, offering innovative solutions that cater to the evolving needs of modern businesses. With a focus on scalability and technological advancement, the company remains a significant player in the payments industry, serving thousands of merchants across the United States.

Products and Services Offered

Central Payment Corporation (CPAY) provides a comprehensive suite of payment processing services designed to meet the needs of small and medium-sized businesses. The company’s offerings cover both online and in-person payment solutions, with a focus on delivering secure and efficient services to its merchant clients.

Payment Processing Services

Central Payment Corporation enables businesses to accept a wide range of credit and debit cards, including Visa, MasterCard, Discover, and American Express. The company supports both online and in-person transactions, making it a versatile solution for various business types. Merchants can use CPAY’s credit card terminals, mobile devices, or its dedicated Point-of-Sale (POS) systems to process payments seamlessly.

POS Systems

Central Payment offers the RiO POS system, a robust solution for brick-and-mortar businesses that require comprehensive sales and inventory management. This system integrates well with Authorize.Net for e-commerce transactions, providing businesses with a unified platform for both online and offline sales.

Mobile Payment Solutions

Central Payment Corporation offers a mobile application and card reader that work with iOS and Android gadgets. The portable reader is designed to be connected through a headphone jack and is ideal for companies that require mobile payment processing. Nevertheless, the business does not have a specific chip reader, which may present a challenge for retailers accepting EMV chip cards.

Gift and Loyalty Programs

With its MyGiftCentral solution, Central Payment Corporation enables businesses to create customized gift and loyalty cards. Merchants can choose from pre-designed templates or design their own cards, offering flexibility to meet specific branding needs.

Recurring Billing and E-commerce Solutions

Central Payment Corporation also provides tools for setting up recurring billing, making it ideal for subscription-based services. For e-commerce businesses, it offers secure payment gateway integration with fraud prevention tools to safeguard transactions.

Additional Services

To support businesses further, Central Payment Corporation offers the Card Compromise Assistance Plan (C-CAP), a form of data breach insurance that helps cover costs related to potential data breaches. Customer support is available via phone and email, ensuring assistance when needed.

Rates and Fees

Central Payment Corporation (CPAY) does not publicly disclose its rates and fees, making it difficult for potential clients to obtain a clear understanding of the costs involved before signing up. This lack of transparency is common in the payment processing industry, where fees often vary based on factors like business size, transaction volume, and the type of services required. Instead of a fixed pricing structure, Central Payment Corporation offers customized pricing tailored to individual merchant needs. To get a quote, businesses are encouraged to contact the company directly and discuss their specific requirements.

CPAY’s pricing model stands out due to its price match guarantee. The company states that it can meet or exceed the rates provided by any rival, ensuring merchants that they are receiving competitive pricing. Even though it may be tempting, it is recommended that businesses closely examine the contract terms, as some clients have noticed differences in the rates they were originally given compared to what they actually paid.

Another highlight is CPAY’s no cancellation fee policy. Merchants can terminate their contract without incurring additional costs, which is relatively uncommon in the payment processing sector. However, this comes with certain conditions related to equipment. If a merchant received “free” equipment as part of their contract, they may be required to return it or purchase it upon early termination, adding a layer of complexity to the cancellation process.

Despite these attractive features, there have been numerous customer complaints regarding hidden fees. Some merchants have reported unexpected charges, such as monthly non-compliance fees, statement fees, or additional costs associated with PCI compliance. These fees can significantly increase the total cost of using CPAY’s services, leaving some customers dissatisfied. For businesses considering CPAY, it is crucial to review the fine print of the contract and inquire about potential hidden charges to avoid surprises.

Equipment and Technology

Central Payment Corporation (CPAY) provides a variety of equipment options to cater to the diverse needs of its merchants. One of the notable benefits offered by CPAY is its free equipment program, which includes countertop terminals, mobile card readers, and comprehensive Point-of-Sale (POS) systems. This offering is designed to help small and medium-sized businesses set up their payment processing infrastructure with minimal upfront costs. However, the free equipment comes with certain conditions—merchants are typically required to return the equipment or purchase it if they terminate the contract before a specified period.

For merchants who prefer not to commit to long-term contracts, Central Payment Corporation provides the option to purchase the equipment outright. This allows business owners to have complete ownership and avoid the complexities involved in returning equipment in the event of early termination. Alternatively, leasing options are also available, though CPAY advises against leasing due to the higher cumulative costs associated with equipment rentals over time. This stance is in line with industry best practices, as leasing can lead to significant expenses for businesses in the long run.

When it comes to technology, CPAY’s range of equipment works with top brands like Verifone for in-store terminals, guaranteeing safe and dependable face-to-face transactions. The mobile readers from the company are compatible with both iOS and Android devices, allowing businesses to easily accept payments while mobile. CPAY’s RiO POS systems are perfect for physical stores, providing a strong option for handling sales and keeping track of inventory.

Additionally, CPAY integrates with Authorize.Net for e-commerce transactions, providing a seamless online payment experience. Overall, CPAY’s equipment and technology offerings cater to various business needs, but it’s essential for merchants to carefully evaluate their options to avoid potential long-term costs associated with leasing or contract-bound equipment usage.

Customer Service and Support

Central Payment Corporation (CPAY) offers customer support through both phone and email channels, providing assistance to merchants experiencing issues with their payment processing services or equipment. While the company’s support options are fairly standard in the industry, customer reviews and feedback highlight significant gaps in the quality of service provided.

One of the most common complaints about CPAY’s customer service is the long wait times when trying to reach a support representative. Several customers have reported being placed on hold for extended periods or having difficulty connecting with the right department to resolve their issues. In many cases, these delays have led to unresolved concerns, causing frustration among business owners who rely on timely support for their payment processing needs.

Aside from extended waiting periods, there have been many concerns raised about the general level of responsiveness and quality of customer support. Certain clients have described situations in which they had to reach out multiple times through phone calls or emails in order to get a response. However, even after receiving a reply, the solution provided was frequently found to be insufficient or short-term. The failure to follow up has led to merchant dissatisfaction, especially in handling technical issues or billing disputes.

To address these complaints, CPAY has implemented strategies such as advising merchants to follow proper escalation procedures and providing more detailed cancellation instructions. The company often responds to negative reviews by requesting that customers contact them directly to discuss the issues further. However, these responses have not always translated into effective solutions, as reflected in the mixed reviews online. Positive feedback generally highlights helpful representatives and satisfactory service experiences, but these appear to be less frequent compared to the negative reports.

User Reviews and Reputation

Central Payment Corporation (CPAY) has garnered a mixed reputation based on user reviews from platforms like Google, the Better Business Bureau (BBB), and independent forums. While some merchants appreciate the company’s services, a significant number of users have expressed dissatisfaction, citing various issues that have impacted their experience with the payment processor.

Common Complaints

The most frequently reported complaints revolve around hidden fees, difficulties with contract cancellations, and poor customer service. Many users claim they were charged fees that were not initially disclosed, including PCI compliance fees, statement fees, and other miscellaneous charges. This lack of transparency has led to frustration and confusion among merchants, especially small business owners who operate on tight budgets. Contract cancellations have also been a major pain point, with multiple reviewers mentioning the challenges they faced when attempting to end their service agreements. Some users reported being billed even after following the stated cancellation procedures, resulting in a prolonged and stressful process.

Another recurring issue in user feedback is CPAY’s customer service. Merchants have shared experiences of long wait times, lack of follow-up, and difficulty reaching knowledgeable support staff. In some instances, users felt their issues were dismissed or inadequately addressed, further damaging CPAY’s reputation.

Positive Feedback

In spite of receiving criticism, some customers have commended CPAY for its competitive products. Good feedback frequently mentions the company’s complimentary equipment offering, quick funding process, and well-informed team. Traders who have experienced seamless transactions with CPAY praise the quick onboarding process and the availability of account managers. However, the frequency of positive reviews seems to be lower than that of negative reviews.

Comparison with Parent Company TSYS

Compared to its parent company, TSYS, Central Payment seems to have a higher volume of complaints. TSYS, a larger entity with a broader market presence, generally maintains a better reputation in the industry for customer support and transparency. The contrast in feedback suggests that CPAY’s operational practices may need alignment with TSYS’s standards to improve its overall customer satisfaction and reputation.

Strengths and Weaknesses

Central Payment Corporation (CPAY) offers several strengths that make it an attractive option for small and medium-sized businesses looking for a comprehensive payment processing solution. However, like any service provider, it also has its share of weaknesses that prospective clients should consider before making a decision.

Strengths

One of the key strengths of CPAY is its wide range of products and services. The company offers payment processing for all major credit and debit cards, mobile payment solutions, and POS systems, making it versatile for various business types. CPAY’s product lineup includes credit card terminals, mobile card readers, and integration with Authorize.Net for e-commerce solutions, providing merchants with multiple ways to accept payments.

An additional benefit worth mentioning is CPAY’s policy of not charging cancellation fees. Traders can switch providers more easily because they are not required to pay punitive cancellation fees. Also, CPAY’s price match guarantee is a compelling feature, promising to match or beat competitors’ rates to provide merchants with competitive pricing. Businesses can feel more secure about the cost-effectiveness of the service due to the flexibility in pricing.

Weaknesses

Despite these strengths, Central Payment Corporation faces several challenges that have impacted its reputation. The company has a high volume of negative reviews, primarily due to complaints about hidden fees and billing disputes. Many merchants have reported unexpected charges, such as PCI compliance fees or additional statement fees, which were not clearly communicated upfront. This lack of transparency has led to frustration among customers.

Another weakness is the inconsistency in customer service. Many users have reported long wait times, unresponsive support, and difficulties in resolving issues, which can hinder businesses relying on prompt assistance. The limited transparency on rates and fees further compounds these problems, as merchants are often unclear about the actual costs they may incur, making it harder for Central Payment Corporation to maintain long-term customer satisfaction.

Competitors and Alternatives

Central Payment Corporation (CPAY) operates in a highly competitive market alongside other established payment processors such as CPI Card Group, Geidea, and CMS Info Systems. These companies offer similar services, including credit card processing, Point-of-Sale (POS) solutions, and mobile payment systems, making it essential for Central Payment Corporation to differentiate itself in terms of pricing, service quality, and customer satisfaction.

Overview of Competitors

CPI Card Group: Primarily known for its card manufacturing and issuance services, CPI Card Group specializes in providing EMV, contactless, and dual-interface payment cards to financial institutions and businesses. While it doesn’t offer direct payment processing like Central Payment Corporation, it competes in the broader financial technology space by supplying high-quality card solutions.

Geidea: Geidea, a payment service provider based in Saudi Arabia, provides a complete range of payment processing options, such as POS systems, e-commerce solutions, and contactless payments. Its popularity has grown due to its focus on new ideas and its smooth compatibility with different digital platforms. Geidea is a strong rival to Central Payment Corporation in the Middle Eastern market due to its extensive assistance and fairly clear pricing.

CMS Info Systems: Headquartered in India, CMS Info Systems provides end-to-end payment solutions, including cash management and ATM services, making it more diverse than CPAY in terms of service offerings. CMS focuses on secure transaction solutions and serves a large network of clients, including banks and financial institutions.

How Central Payment Stacks Up

In terms of offerings, CPAY’s versatility with mobile payment solutions, POS systems, and robust e-commerce integration positions it well against competitors. However, the lack of transparency in its pricing and the high volume of customer complaints about hidden fees give its competitors an edge. While Central Payment Corporation does offer a no-cancellation fee policy and price match guarantees, which are appealing to small business owners, its inconsistent customer service can deter potential clients.

Geidea, for example, is known for its straightforward pricing and strong customer support, while CMS Info Systems offers a broader range of financial services beyond standard payment processing, making these alternatives more attractive depending on the specific needs of a business. In comparison, CPAY’s strengths lie in its comprehensive product offerings, but it needs to improve its customer experience and pricing clarity to remain competitive in this rapidly evolving market.

Conclusion

Central Payment Corporation provides a wide variety of payment processing services, making it a great option for small and medium-sized businesses looking for flexible solutions. Although businesses may be enticed by its no-cancellation fee policy and wide array of services, they should be wary of possible hidden fees and customer service challenges. It could be advantageous for companies to consider other options before making a final decision if they desire clear pricing and reliable support.

Frequently Asked Questions (FAQs)

What is the cost of using Central Payment Corporation?

Central Payment Corporation does not publicly disclose specific rates and fees. However, the company offers a price match guarantee and encourages businesses to request a customized quote. This allows merchants to compare CPAY’s pricing with other processors to find the best option.

Is there a cancellation fee with Central Payment Corporation?

CPAY claims that there is no cancellation fee. However, merchants who cancel early may be required to return or purchase any equipment provided, adding some complexity to the cancellation process.

What types of equipment does Central Payment Corporation offer?

CPAY offers Verifone countertop terminals, mobile readers for tablets and smartphones, and RiO POS systems. These solutions cater to both in-store and online payment processing needs, providing flexibility for different business types.