Stealing Your Business

There are some great merchant services providers and reps out there.  Unfortunately, there are also some that are not so great, and others that are downright shady. 

A client of mine just called me to say that he had just been contacted by someone claiming to work with his credit card processor.  She asked him to send copies of two recent statements to her for verification purposes.  Fortunately, the client has a local rep, in me, who he can contact to talk about such suspicious situations.  I was able to immediately assure him that the name and email address of the person making the request was in no way affiliated with his card processor, or me, as a local representative of his merchant services provider. 

A very official sounding request from someone you believe is working with your trusted provider could easily fool many business owners, especially when caught off guard.  When thinking it through, however, your processor would not need to have you send information to them since they already have all the details they would need.  Furthermore, even if they had to share information with a legitimate third party, such as an auditor, there are much more efficient ways to accomplish that without the need to contact every client.  The only reason the caller wanted my client's statements was to look for a pricing angle that might appeal to the client, and convince him to switch.

"So what?" you may say.  "If I can save money, who cares how she made the initial contact? 

For one thing, you would be entering into business with someone who's already established herself, or himself, as a liar.  For another thing, there's a good chance the lies, or failure to disclose information, run deeper than the original request for your statements.  Often such companies promise lower rates, but fail to mention other fees that are likely higher, or may not have existed at all with your previous provider.  Perhaps they make a rate reduction sound like it'll save hundreds of dollars for you, when in all likelihood, it would only save a couple bucks.  After all, a tenth of a percent, or 10 basis points, only amounts to 10 dollars for every $10,000.00 you process.  Additionally, the service may not be nearly as good, with no local rep, longer deposit times, less management capabilities, less versatility, and so on.  Oh, and once you're in their contract, there may be expensive exit fees should you realize later that you've been suckered. 

For important products and services such as credit and debit card processing, work with someone you know and trust whenever possible.  It's okay for someone to earn your business, but by all means, steer clear of those who try to steal it.