Coastal Pay Review

Coastal Pay has become a major player in the industry since it was founded, specializing in payment processing services. The company offers a range of merchant services aimed at assisting businesses in managing transactions in a smooth and safe manner. Specializing in providing a wide range of payment solutions, Coastal Pay caters to a varied customer base, such as online stores, brick-and-mortar shops, and major companies. Lets read more about Coastal Pay Review.

Coastal Pay was established in 2013 and is based in Carlsbad, California. The company was founded with the goal of offering innovative and dependable payment processing solutions to businesses, regardless of their size. Throughout the years, Coastal Pay is known for offering a variety of payment options, competitive prices, and excellent customer service.

Company Background | Coastal Pay Review

Coastal Pay was established in 2013 with the aim of providing businesses with efficient and affordable payment processing solutions. From that time on, the company has expanded greatly, catering to numerous merchants in different sectors. Its expansion is a result of its dedication to pleasing customers and its capability to adjust to the changing demands of the market.

The company is headquartered in Carlsbad, California, a strategic location that allows it to efficiently serve clients across the United States. This location also places Coastal Pay in close proximity to a robust network of tech companies and financial institutions, facilitating collaboration and innovation in the payment processing sector.

The leaders of Coastal Pay are CEO Kavan Thanasith and President Travis Chrisman. Both executives have significant experience in the payment processing sector and are dedicated to advancing the company’s growth with customer-focused strategies and creative solutions. Their leadership has been instrumental in establishing Coastal Pay as a trusted provider in the industry.

Coastal Pay’s business model revolves around providing comprehensive payment processing services that cater to the needs of various types of businesses. These services consist of processing credit cards, ACH payments, virtual terminals, and payment gateway solutions. The company provides affordable plans with high capacity, appealing to both small businesses and large corporations. Coastal Pay is known for its transparent pricing, which includes a flat rate per transaction and a low monthly service fee, helping businesses manage their costs effectively.

Services and Features

Coastal Pay provides a wide variety of merchant services tailored to meet the different requirements of businesses. Included in these services are credit card processing, ACH payments, virtual terminal, and payment gateway services. All of these options are designed to guarantee seamless, safe, and effective handling of transactions for businesses of any scale.

Coastal Pay provides a suite of merchant services aimed at enhancing the payment processing capabilities of businesses. These services include credit card processing, ACH payments, and virtual terminal and payment gateway solutions, each tailored to meet specific business needs.

Credit Card Processing

Coastal Pay’s credit card processing service enables businesses to accept a wide range of credit and debit cards, including Visa, MasterCard, American Express, and Discover. The company offers competitive transaction rates and supports both in-person and online transactions, ensuring flexibility and convenience for merchants and their customers.

ACH Payments

Automated Clearing House payments enable businesses to receive electronic payments directly from customers’ bank accounts. Coastal Pay’s ACH payment service is perfect for regular billing and large transactions, providing a more affordable option compared to traditional credit card payments. This service aids businesses in cutting down processing fees and simplifying payment collection.

Virtual Terminal and Payment Gateway Services

The virtual terminal service provided by Coastal Pay allows businesses to process payments through a web-based interface, making it easy to handle transactions without needing physical card readers. The payment gateway service ensures secure online transactions, integrating seamlessly with e-commerce platforms to facilitate smooth and secure customer checkouts.

Detailed Description of Service Plans

Coastal Pay offers various service plans to cater to different business needs. These plans are designed to be flexible, with options for low-volume and high-volume processing. Pricing is transparent, featuring a flat rate per transaction and a low monthly service fee, which can be waived based on processing volume. This approach helps businesses manage their costs effectively.

Unique Features Compared to Competitors

Coastal Pay’s variety of payment options is impressive, with choices such as credit cards, debit cards, ACH payments, and checks. This allows businesses to provide various payment options to their customers, improving convenience and satisfaction. Moreover, Coastal Pay distinguishes itself from rivals by offering a straightforward pricing model, featuring flat-rate fees and affordable monthly costs, unlike competitors with intricate and fluctuating pricing schemes. The company’s dedication to prompt customer assistance and seamless integration with current business systems bolsters its attractiveness in comparison to other payment processors.

Contract Terms and Pricing

Coastal Pay’s contract terms and pricing are structured to provide clarity and transparency to businesses, ensuring they understand their financial commitments and obligations.

Standard Contract Length (Three-Year Agreement)

Coastal Pay typically requires merchants to sign a three-year agreement. This long-term commitment is standard in the payment processing industry but can be a drawback for businesses that prefer more flexibility. It’s important for merchants to thoroughly review the contract details and understand the implications of entering into a multi-year agreement.

Early Termination Fees ($495)

One of the notable aspects of Coastal Pay’s contract is the early termination fee (ETF). If a business decides to cancel the service before the contract term ends, they are required to pay an ETF of $495. This fee is relatively high compared to some competitors and can be a significant financial burden for businesses seeking to switch providers.

Equipment Lease Terms and Costs ($189 per Month for Four Years)

Coastal Pay provides equipment leases as a service, with terms that may not be ideal for every business. Merchants have the option to rent equipment for $189 monthly over a four-year timeframe. This can amount to a significant sum throughout the duration of the lease, sometimes surpassing the equipment’s real value. It is important for businesses to evaluate if leasing or buying equipment upfront is more financially advantageous in the future.

Pricing Model (2.9% per Transaction, $2.50 Monthly Service Fee, Waived if Processing Over $500 Monthly)

Coastal Pay employs a straightforward pricing model that charges 2.9% per transaction. Additionally, there is a $2.50 monthly service fee, which is waived if the business processes over $500 in payments each month. This flat-rate pricing can be beneficial for businesses that appreciate predictable costs, though it may not be the most competitive rate available in the industry.

Comparison with Industry Standards and Competitors

When compared to industry standards, Coastal Pay’s pricing and contract terms are somewhat mixed. The 2.9% transaction fee is relatively standard and can be competitive for some businesses, particularly those with lower monthly transaction volumes. However, the high early termination fee and costly equipment lease terms can be seen as disadvantages. Competitors often offer more flexible contract terms, lower ETFs, and better equipment pricing options.

In short, although Coastal Pay offers clear pricing with expected costs, some businesses may not find the long-term contracts, high early termination fees, and costly equipment leases appropriate. Potential customers must consider these factors in relation to their specific requirements and compare them with other competitors in the market.

Customer Experience

The customer experience with Coastal Pay is mixed, reflecting a range of positive and negative feedback. Understanding these experiences provides valuable insight into what potential customers might expect when engaging with the company.

Customer feedback for Coastal Pay spans both ends of the spectrum. On one hand, many customers appreciate the company’s friendly service and reliability, while on the other hand, there are significant complaints about aggressive sales tactics and misrepresented fees.

Positive Reviews

Many positive reviews highlight Coastal Pay’s friendly and supportive customer service. Customers have praised the company for its reliable support, noting that the technical assistance provided is efficient and helpful. Some clients have expressed satisfaction with how Coastal Pay has helped streamline their payment processing, enhancing their overall business operations. The staff’s professionalism and the ease of integrating Coastal Pay’s services with existing systems are often commended.

Negative Reviews

Although receiving positive feedback, Coastal Pay also receives many negative reviews. Many customers frequently criticize the company for its forceful sales strategies, citing uncomfortable high-pressure sales techniques. Another significant problem is the inaccurate portrayal of fees; certain clients have felt deceived about the expenses related to the services, discovering the actual costs only after they have agreed to the contract. Furthermore, terminating services has been reported as difficult for some businesses, resulting in unexpected fees and challenges during the cancellation process.

Analysis of Customer Service Responsiveness

The responsiveness of Coastal Pay’s customer service is another area of mixed reviews. While some customers report timely and effective responses to their queries and issues, others have experienced delays and unresponsiveness, particularly when dealing with more complex problems or attempting to resolve disputes.

Common Customer Complaints and Company Responses

Common complaints include issues with unexpected fees, difficulties in cancelling services, and dissatisfaction with the terms of the equipment lease. In response to these complaints, Coastal Pay has taken steps such as appointing an independent law firm to address merchant grievances, though the effectiveness of these measures appears varied. Some customers have found resolutions to their problems, while others remain dissatisfied with the outcomes.

In summary, the customer experience with Coastal Pay can be quite varied. While the company has its strengths in providing friendly and reliable support, the aggressive sales tactics, misrepresented fees, and challenges with service cancellation are significant drawbacks. Prospective customers should weigh these factors carefully and consider the potential for both positive and negative experiences.

Sales Practices

Coastal Pay’s sales practices have been a focal point of both positive feedback and significant criticism. Understanding these practices is essential for potential customers to make informed decisions.

Use of Independent Sales Agents and Telephone Appointment Setters

Coastal Pay hires independent sales agents and telephone appointment setters to promote its services. This method is widely used in the payment processing sector and seeks to appeal to a wide range of people through the utilization of a team of sales experts. Independent sales agents frequently operate on a commission basis, incentivizing them to obtain as many agreements as they can. Telephone appointment schedulers assist in coordinating meetings between potential clients and sales agents, making the sales process more efficient.

Analysis of Sales Tactics and Their Impact on Customer Satisfaction

The sales tactics employed by Coastal Pay have had a mixed impact on customer satisfaction. On the positive side, the extensive use of sales agents allows the company to reach a wide range of potential clients and provide personalized consultations. Some customers appreciate the hands-on approach and the detailed explanations of services provided by these agents.

However, there are significant downsides. Numerous complaints have been lodged against Coastal Pay for its aggressive sales tactics. Customers have reported feeling pressured into signing contracts without fully understanding the terms. This high-pressure approach can lead to dissatisfaction, as clients often feel misled or coerced into agreements that do not align with their expectations. The aggressive tactics have also resulted in a high volume of complaints, reflecting negatively on the company’s reputation.

Company’s Stance on Verbal Misrepresentations by Agents

Coastal Pay has taken a clear stance on verbal misrepresentations made by its agents. The company holds customers accountable for the terms of their written contracts, regardless of any verbal promises made by sales representatives. This policy is explicitly stated in their contracts, which emphasize that written agreements take precedence over any verbal commitments. While this stance is legally sound, it has not alleviated customer dissatisfaction. Many clients feel that the company should be more accountable for the promises made by its agents, leading to further complaints and a tarnished reputation.

Pros and Cons

When considering Coastal Pay as your payment processing provider, it’s important to weigh the benefits and drawbacks to determine if it aligns with your business needs.

Pros

Wide Range of Payment Options

Coastal Pay stands out for offering a diverse array of payment options. Businesses can accept credit and debit cards, ACH payments, and even checks, providing flexibility for both merchants and their customers. This variety is particularly advantageous for businesses that cater to a broad customer base, ensuring convenience and accessibility in payment processing.

Low Flat-Rate Pricing

One major benefit of Coastal Pay is its clear and simple pricing structure. The company has a fixed fee of 2.9% per transaction, along with a $2.50 monthly service charge that is exempt if the business handles more than $500 in monthly transactions. This consistent cost format assists companies in controlling their expenditures efficiently, steering clear of the complications of variable rates that may change depending on transaction volume.

High Approval Rates

Coastal Pay is known for its high approval rates, making it an attractive option for businesses that might have faced challenges securing payment processing services elsewhere. This inclusive approach helps more businesses get up and running quickly with the ability to accept payments, supporting growth and operational efficiency.

Cons

Aggressive Sales Tactics

One ongoing problem with Coastal Pay is their forceful sales strategies. Many clients have expressed being coerced into signing agreements due to aggressive sales tactics. This could result in unhappiness since customers may sign contracts without a complete grasp of the conditions or feeling pressured to make a choice.

High Early Termination and Equipment Fees

Coastal Pay enforces substantial fees for terminating the service early, which could go up to $495, in addition to costly equipment lease expenses of $189 monthly for a period of four years. Businesses may face financial challenges if they want to end their contracts prematurely or if they prefer purchasing equipment instead of leasing it.

Mixed Customer Service Reviews

Customer service experiences with Coastal Pay are mixed. While some clients praise the company for its reliable and friendly support, others have encountered difficulties, particularly when resolving disputes or canceling services. The inconsistency in customer service quality can be a concern for businesses that prioritize responsive and effective support.

In summary, Coastal Pay provides numerous advantages, such as a variety of payment choices, transparent pricing, and excellent approval rates. Nevertheless, potential clients should carefully consider the notable drawbacks of aggressive sales tactics, high fees, and mixed customer service reviews before making a decision.

Compliance and Security

Compliance and security are crucial aspects of any payment processing service, and Coastal Pay is committed to maintaining high standards in these areas.

PCI Compliance Details

Coastal Pay adheres to the Payment Card Industry Data Security Standard (PCI DSS), a set of requirements designed to ensure all companies that process, store, or transmit credit card information maintain a secure environment. Coastal Pay’s compliance with PCI standards is essential for any business processing credit card transactions, as it demonstrates meeting the strict requirements set by the PCI Security Standards Council. This involves implementing strong security measures to safeguard cardholder data, performing routine network scans and security audits, and upholding a secure network infrastructure.

Measures Taken to Ensure Data Security

Coastal Pay implements several measures to ensure the security of data handled through its services. These measures include:

Encryption: Coastal Pay uses advanced encryption methods to protect sensitive information during transmission. This ensures that data cannot be intercepted and read by unauthorized parties.

Secure Network Infrastructure: The company makes sure the security of their network infrastructure is strong to avoid breaches and unauthorized entry. This involves the use of firewalls, intrusion detection systems, and other technologies to safeguard their systems.

Regular Audits and Monitoring: Coastal Pay conducts regular security audits and continuous monitoring to detect and address potential vulnerabilities. This proactive approach helps prevent security incidents before they can impact customers.

Employee Training: Coastal Pay ensures that its employees are trained in the latest security practices and protocols. This includes awareness training to help staff recognize and respond to potential security threats effectively.

Company’s Transparency Regarding Compliance

Coastal Pay is transparent about its compliance efforts and security measures. The company provides detailed information about its PCI compliance status and the steps it takes to protect customer data. This transparency is important for building trust with clients, as it demonstrates Coastal Pay’s commitment to maintaining a secure and compliant payment processing environment.

Coastal Pay’s adherence to PCI standards, combined with its robust security measures, ensures the safety of customer information. The company’s transparency about its compliance efforts reinforces its dedication to providing secure and reliable payment processing services. Businesses can be confident that Coastal Pay prioritizes the security of their transactions and protection of sensitive information.

Customer Support

Customer support is a critical component of Coastal Pay’s service offering, ensuring that merchants receive timely assistance for any issues they encounter. Coastal Pay provides multiple avenues for customer support, aiming to deliver reliable and accessible help to its clients.

Availability and Quality of Customer Support

Coastal Pay offers 24-hour technical support to its customers, ensuring that assistance is available around the clock. This continuous support is vital for businesses that operate outside of traditional business hours or have urgent needs that arise unexpectedly. Coastal Pay guarantees to answer written inquiries within 24 hours, along with offering phone support, to quickly resolve issues that can be handled through email or written communication. However, the customer support quality has garnered both positive and negative feedback.  Some customers praise the prompt and helpful service, while others report delays and unresponsiveness, particularly with complex issues.

Customer Support Channels

Coastal Pay provides several channels through which customers can seek support:

Phone: Direct phone support is available 24/7, allowing customers to speak with a representative for immediate assistance.

Email: Customers can send written inquiries via email, with a commitment from Coastal Pay to respond within 24 hours.

Live Chat: The company also offers a live chat option on its website, providing a convenient and quick way to get answers to questions in real-time.

These multiple channels ensure that customers can choose the method of communication that best suits their needs, whether they require instant support or prefer written correspondence.

Common Issues Resolved by Customer Support

Customer support at Coastal Pay handles a range of common issues, including:

Technical Problems: Troubleshooting and resolving technical issues related to payment processing equipment and software.

Billing and Fees: Addressing questions and disputes regarding billing statements, fees, and charges.

Account Setup and Configuration: Assisting new customers with setting up their accounts and configuring their payment processing systems.

Contract and Termination Queries: Providing information and assistance regarding contract terms, early termination fees, and the cancellation process.

Overall, Coastal Pay provides multiple customer support options such as round-the-clock phone assistance, email, and live chat. Although support availability is strong, the quality and responsiveness can differ, resulting in some customers having positive experiences while others identify areas for enhancement. The customer service team is capable of addressing a wide range of concerns, from technical problems to billing questions, to ensure that merchants get the assistance necessary for a seamless operation.

Market Position and Competitors

Coastal Pay has carved out a niche in the payment processing industry by offering a range of merchant services designed to cater to businesses of various sizes. Despite the competition in this sector, Coastal Pay has managed to establish itself as a reliable provider, known for its diverse payment options and straightforward pricing model.

Coastal Pay’s Position in the Payment Processing Industry

Coastal Pay operates in a highly competitive industry, where numerous companies vie for market share by providing similar services. Coastal Pay’s strength lies in its comprehensive suite of payment processing options, including credit card processing, ACH payments, and virtual terminal services. This range enables it to cater to a diverse range of businesses, from small retailers to large corporations. The company’s dedication to PCI compliance and data security enhances its market position by providing clients with confidence in the safety and reliability of its services.

Key Competitors

Coastal Pay faces stiff competition from several well-established payment processing companies. Some of its key competitors include:

Square: Known for its user-friendly interface and flexible hardware options, Square is a popular choice for small businesses and mobile merchants.

PayPal: PayPal is a major player in the industry, especially in the e-commerce sector, due to its robust online presence and wide range of payment options.

Stripe: Preferred by tech-savvy businesses and developers, Stripe offers robust APIs and extensive customization options.

First Data (Fiserv): First Data, a prominent payment processor, offers comprehensive services and is recognized for its extensive operations and collaborations with banks.

Comparative Analysis of Coastal Pay’s Strengths and Weaknesses Relative to Competitors

Strengths:

Diverse Payment Options: Coastal Pay’s ability to process a variety of payment methods, including ACH payments and checks, sets it apart from competitors who primarily focus on credit and debit card processing.

Transparent Pricing: The company’s simple pricing model makes it easy for businesses to forecast and control costs.

High Approval Rates: Coastal Pay’s high approval rates make it accessible to a broader range of businesses, including those that might struggle to get approved by other providers.

Weaknesses:

Aggressive Sales Tactics: Coastal Pay is facing criticism for having overly aggressive sales tactics, which may turn away potential customers and harm the company’s image.

High Early Termination and Equipment Fees: Compared to its competitors, Coastal Pay’s early termination and equipment lease fees are relatively high, which can be a significant disadvantage for businesses seeking flexibility.

Mixed Customer Service Reviews: While some customers praise the company’s support, others have reported issues with responsiveness and the quality of service, which can impact overall customer satisfaction.

In summary, Coastal Pay is well-placed in the payment processing sector thanks to its range of services and clear pricing. Nevertheless, potential clients should take into account the challenges presented by its aggressive sales tactics, high fees, and mixed customer service experiences. Compared to Square, PayPal, and Stripe, Coastal Pay has distinct advantages and also encounters notable areas for improvement.

Conclusion

Coastal Pay provides a variety of payment choices, clear pricing, and high approval rates, making it a suitable option for numerous businesses. Nevertheless, there are notable downsides such as aggressive sales tactics, high fees, and mixed customer service reviews. Potential customers must carefully consider these factors before choosing to use Coastal Pay’s services.

Frequently Asked Questions (FAQs)

What is the typical contract length with Coastal Pay? 

Coastal Pay typically requires a three-year contract. This is standard in the industry but can be a drawback for businesses seeking more flexibility.

How does Coastal Pay’s pricing compare to other payment processors? 

Coastal Pay charges a fixed rate of 2.9% per transaction along with a $2.50 monthly service fee. This fee is waived if monthly transactions surpass $500. Although simple, other competitors might provide cheaper rates or more adaptable pricing plans.

What are the most common complaints from Coastal Pay’s customers? 

Common complaints include aggressive sales tactics, high early termination and equipment fees, and inconsistent customer service experiences.