The $100 Modem Deposit, Explained: Why We Hold It and Why You Get It Back

Every Beakom order includes a $100 refundable modem deposit. It is the only qualification for service, it replaces the credit check, and it comes back when the modem does.

That is the short version, and it is on every page of the store. This is the long version: why the deposit exists, what it is and is not, exactly how it flows from checkout to refund, and what happens in the rare cases where things go wrong. We are going to over explain, because nothing about your money should be a surprise.

Why there is a deposit at all

We ship you a modem before you have paid for anything beyond your first month. The modem is Beakom property. It costs real money to build, buy, and ship, and we need it back to send to the next customer.

Traditional providers solve this problem with a credit check. They look at your history, decide how likely you are to return the equipment and pay the bill, and either approve you, deny you, or approve you with a deposit that is bigger the worse your score looks.

We solved it with one flat deposit for everyone. No credit check, no score based tier, no application. You put down $100, we ship the modem, and the $100 waits for the modem to come home. Same rule for every customer on every plan.

What the deposit is

• Refundable. It comes back to you, in full, when you cancel and return the modem in working condition.
• Flat. $100 for every customer, every plan, every time. Residential and Business pay the same deposit.
• Held, not spent. It is not applied to your bill and it does not decrease over time. It sits at $100 for as long as you subscribe.
• The only qualification. No credit check, no address eligibility check, no income verification.

What the deposit is not

• Not a fee. Fees are gone when you pay them. The deposit is not.
• Not revenue. More on this below, because it matters.
• Not a purchase of the modem. The modem remains Beakom property. You use it free while you subscribe.
• Not a credit toward service. It does not pay for your last month. It is returned separately.

The full flow, step by step

1. Checkout

Your order total is your first month of service plus $100. Shipping is free. The deposit is a separate line on the order, labeled as a deposit, so it is clear what it is. The $150 unreturned modem charge is disclosed on the same screen. Nothing about this is discovered later.

2. While you subscribe

Nothing happens to the deposit. Your monthly charge is your plan price and only your plan price. The deposit does not show up on monthly receipts as a charge, because it is not one. Every receipt does include the unreturned modem disclosure, so it stays in front of you.

3. You cancel

Cancel from the Customer Center whenever you like. Service continues through the end of the billing period you already paid for. Monthly fees are not refunded. Within minutes, you get a confirmation email with a prepaid return label attached. There is also a label in the original box.

4. You return the modem

Pack the modem and the charger. Attach the label. Drop it with the carrier on the label. You have 30 days from cancellation to ship it. Tracking on the label lets both of us see where it is.

5. We receive and inspect

When the modem arrives, we check it against the working condition standard. Cosmetic wear passes. Cracked, water damaged, or missing parts does not.

6. We refund

If it passes, the full $100 goes back to your original payment method within 10 business days of the day we received it. You get an email when the refund is sent. Depending on your bank, it can take a few more days to show up on your statement.

That is the whole loop. Our Refund Policy says the same thing in policy language.

The working condition standard, with examples

"Working condition" is the phrase that decides whether the deposit comes back, so here is what it means in practice.

Passes:

• Scratches and scuffs on the case.
• Faded labels or a worn finish.
• Dust, paint flecks, a sticker someone's kid put on it.
• A charger with a slightly frayed but functional cord.

Does not pass:

• A cracked case or a cracked port.
• Water damage of any kind. This includes "it got a little wet once."
• Missing parts. Modem without the charger, or vice versa.
• Signs of being opened or tampered with. The modem is not user serviceable, and the SIM is meant to stay inside.

The standard is deliberately generous on cosmetics. Modems go to job sites, RVs, and kitchen counters. They pick up marks. Marks are fine. We just need a modem that works and is whole.

The $150 unreturned modem charge

Two situations trigger it: the modem is not received within 30 days of cancellation, or it arrives outside the working condition standard.

In either case, we bill $150 to the card on file. The $100 deposit is not refunded, and the $150 is a separate charge. This covers replacing the modem.

We disclose this in three places, every time: before purchase on the store, at checkout on the order screen, and on every receipt. It is the single most repeated sentence in our business. We would rather be annoying about it than have anyone surprised by it.

If you are close to the 30 day window and something has gone wrong, such as a lost package or a family emergency, contact us before the window closes. We are a human sized company and we can look at the situation.

What if the return package gets lost?

The prepaid label has tracking. If tracking shows you handed it to the carrier and it went missing in transit, that is between us and the shipping carrier, not you. Keep your drop off receipt or a photo of the tracking scan. That is your proof, and it is all we need.

If tracking shows the package never entered the carrier's system, we cannot treat it as returned. Drop it off in person and get a receipt rather than leaving it somewhere for pickup.

What if the modem was defective?

If the modem stops working through no fault of yours, that is on us. Contact us through the Support page. We replace it at no charge and provide a prepaid label for the defective one. Your deposit is not affected. Business plan customers get expedited replacement.

Defective is not the same as damaged. A modem that stopped connecting is defective. A modem that stopped connecting after it fell off the roof of the truck is damaged.

Why the deposit is a liability, not revenue

This is the part where we explain the accounting, because it is the clearest proof that the deposit is really yours.

When you pay the deposit, we do not book it as income. It goes on our books as a liability, which is the accounting word for money we owe. Every deposit we are holding is a debt to the customer who paid it. It stays a debt until the modem comes back and the refund goes out.

That means the deposit does not make us money and cannot be spent as if it did. It is not a revenue strategy. It is a placeholder for a modem. Our monthly plan price is the only revenue in the business, which is exactly how it should be.

Deposit vs credit check: the comparison

We are biased, but the right column is the one we would pick as a customer too.

Why $100 and not more

The number is a balance. It has to be enough that most people send the modem back, and small enough that it does not become the credit check we were trying to get rid of. A deposit that only people with spare cash can afford is just a different gate.

$100 is a number most households can put down for a month and get back. It is also less than what the modem is worth to us, which means we are taking on some risk on every shipment. We are fine with that. The alternative is checking everyone's credit, and we have opinions about that.

Where you will see the deposit mentioned

We are repetitive on purpose. You will find the deposit and the $150 charge described, in the same words, in all of these places:

• The plan page, before you add anything to the cart.
• The checkout screen, as its own line item with the disclosure next to it.
• The order confirmation email.
• Every monthly receipt.
• The Payments & Deposits page.
• The Refund Policy and Subscription Policy.
• The cancellation confirmation email, with the return label attached.
• This post.

If you ever find a place on our store where the deposit is described differently, tell us. That is a bug.

When the deposit is charged twice, and why

One situation confuses people: they cancel, return the modem, get the deposit back, and then reorder a month later. At the new checkout, there is a $100 deposit again.

That is correct. The deposit is tied to a modem, not to a person. A new order means a new modem, which means a new deposit. It is not a fee for leaving and coming back, and there is no penalty for reordering. You are simply holding a modem again, so the deposit is on hold again.

Frequently asked questions

Can I skip the deposit if I have good credit?
No. The deposit is the same for everyone. That is what makes it fair.

Does the deposit go up if I keep the modem longer?
No. It is $100 on day one and $100 on year five.

Can I pay the deposit with a different card than my monthly plan?
The deposit and the first month are charged together at checkout on one payment method. Refunds go back to that method.

What if my original card is closed when I cancel?
Contact us before you return the modem. We can work out the refund route.

Do I get the deposit back if I cancel after a week?
Yes. Same rules. Cancel, return within 30 days, refund within 10 business days of receipt.

Is the deposit charged per plan or per modem?
Per modem. One modem, one deposit. Two modems, two deposits.

The bottom line

We hold $100 and give it back when you send the modem home. That sentence is the policy, and every paragraph above is just the fine print written in large print.

The deposit is how we skip the credit check, skip the address check, and still get our modem back. Read the Payments & Deposits page for the version we keep on the store, and How it Works for what happens after the box arrives.