Appalling, but True.
There is a breaking news story in the payments processing industry that is worthy of mentioning as an example of the negative industry practices (and reputation) that are relevant to our stakeholders. The full story is on the U.S. Department of Justice website, and the gist is that a credit card processor in New York state has been charged with fraud for overcharging and deceiving over 10,000 merchant customers. Commerce Payment Systems (allegedly) promoted promises of “no hidden fees” that were also guaranteed for life, in addition to offering lower rates that were substantiated by intentionally designed and falsely-generated cost comparisons! Appalling, but true.
We mention this because we occasionally receive account closure notices from merchants, claiming huge savings from a competitor. But knowing this industry so well, and considering the slim margins on which we operate, we know that there is no way these types of claims can be true. Unfortunately, most processors have high early-termination fees, locking merchants into long-term agreements that preclude them from switching back. Caveat Emptor, so please contact us before you sign an agreement from a competitor!