It started out as a normal working day. He opened his retail store, turned on the music and his computer. His first couple customers came in for the day and then the phone rang. He answered it like he always did but this call was different. He has been using our credit card processing service for a couple years and the caller on the other end made him believe it was a representative from our company.
He trusted us so when he was told that his equipment was out-of-date, he whole-heartedly believed the caller. The caller said he’d need his signature on a document before the new credit card terminal was programmed and shipped to him. He thought this was strange because usually someone always dropped things off in person, but he didn’t hesitate much because it was free. The caller faxed over a document and the storeowner signed it and sent it back. Thinking nothing of it, he went on with his day.
Several days later he received a new credit card terminal in the mail. He plugged it in, disconnecting his “outdated” terminal and started processing using the new equipment. One month went by and he received a credit card processing statement in the mail but from a different provider. He never remembered switching providers. His processing fees seemed extremely high and then it hit him… When he signed the document for the new credit card terminal, he actually signed up for a new credit card processing account.
He immediately picked up the phone and called us to confirm. He sent us over the document he signed and it was a contract for a credit card processing account that included a free credit card terminal. His processing rates and fees nearly doubled and the worst part was he was locked into a three-year contract with a $495 cancellation fee.
In the end, he plugged back in his “outdated” credit card terminal and began processing with CHIPD again. He boxed up the “free” terminal, put it in storage and marked his calendar for three years to the date so he could cancel his second account.
How to avoid scams like this…
Throughout the next several months, calls like these will become more prevalent as the EMV deadline approaches. If you stay educated and follow these simple tips, you can avoid being scammed like this business owner.
- Hang up and call a representative you are familiar with.
- Do not give out any information, tell the caller you will call them back and contact your representative from your current processing provider to verify.
- Read the fine print before signing any documentation.
- If you are happy with your current processing provider, send over any documentation to them before signing.
- EMV compatibility is not required until October 2015.
- Many over-the-phone solicitors are using EMV as a sales tactic. Many business owners do not know that compatibility is not required until October 2015. Don’t feel pressured into making a decision right away.
Most importantly…. Nothing in life is truly free; not even credit card processing equipment.
We always encourage merchants to do business locally with trusted, reputable companies. If you have concerns or questions, please do not hesitate to call our office at (402) 206.2233 or email us at [email protected]. To learn more about CHIPD, please visit www.chipdpay.com.