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Don’t get scammed by a merchant services salesperson like the guy in this story here exposed. Download the book, “Secrets of Credit Card Processing Fees Revealed” at electronicmoneycompany.com/about-us
Hi it’s Gingergaye from Electronic Money Company. In the credit card processing business it’s common, or should I say most probable, that every merchant will run into a salesman who blows smoke and sells a bill of goods that is fake news. In fact most likely every merchant in the country has one time or another gotten taken, scammed or hoodwinked with, “I’m going to save you a ton of money on your fees.” gobbledygook.
I recently spoke to a merchant, Mike, who has an inflatable party rental business. He switched over to us after having been scammed and abused by another credit card processing salesman. Let’s call the scammer salesperson, Bob from Brand X. Bob told Mike that he would get a rate varying from 1.5 % to 1.7%. Now Mike does e-commerce transactions. So this is a total lie, since those transactions average 2.5 to 3% and higher. Those rates are not really even real for swipe transactions.
Here’s a list of Bob’s lies; first, he neglected to tell Mike that there were extra fees to get a mobile gateway. In addition to all the monthly fees to set up the second merchant account just for the mobile gateway, Bob from Brand X told Mike he could send him swipers for his mobile phone at no charge. Now the swipers never arrived, but the fees were deducted from his bank account. Bob had charged my new merchant, Mike $85 for a Non-PCI compliance fee. Never had he been given any information on how to become PCI compliant nor was this exorbitant fee disclosed. He also told Mike that his wife could sign all the paperwork for him. This is simply not so. His wife was not even a member of his LLC. Neither Mike, nor his wife, ever actually signed an agreement with Bob. So now, he can’t get a hold of Bob… imagine that? Mike is trying to cancel both of his accounts for the fraudulent lies at the time they were set up. He is now finding out he has not one, but two, huge termination fees for breaking both of his contracts early. Unfortunately, this is also ever familiar and sad. We hear variations of it all the time and I mean all the time.
Check out our blogs, particularly the category called Scams of Credit Card Processing Salesmen. There’s lots of other stories of typical scam situations. Telemarketers call merchants and pressure, pressure, pressure with half-truths, and that is really being kind. I used to think that maybe our industry just didn’t train their salespeople well and that they stupidly gave out incorrect information. But over the years since 2000 when I got in this business I’ve come to accept the fact that many processors out there actually push these scripted lies onto their salespeople. Some honest salespeople leave after they find out they’re scamming people because they don’t want to, but many learn how to keep it going and make a lot of money. They’re never going to talk to that merchant again, so who cares. They keep the system going. They keep finding merchant prey, who are honest upright individuals themselves, and never suspect the trouble they’re getting themselves into. And yes, it is a nightmare to get out of an agreement like this. Mike is going to cancel his bank account to rid himself of the nightmare and open a brand new one. He doesn’t care if it affects his credit, which unfortunately it will.
I personally got so sick and tired of hearing these sad stories all over the years that i wrote a book it’s called “The Secrets of Credit Card Processing Fees Rrevealed“, if you’re interested you can download it from our about us page electronicmoneycompany.com/about-us.
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