High-pressure tactics are often used by companies selling credit and debit processing. Here are some of the lines they use:
"We are a company working for the banks (or government) to see that you receive your 30% discount on credit card fees."
"We are working on behalf of the banks/CFIB/Chase Paymentech/VISA/MasterCard to lower your credit card fees. If you send us your statement, we'll find you savings."
While there are several legitimate companies offering merchant services, there are others that are neither fair nor transparent in their business practices.
Here are some tips when dealing with such companies:
Don't provide your statement. A great offer stands on its own merits and doesn’t require a comparison by someone you can neither know nor trust. If you want a comparison done it should be initiated by you and completed by a company that has a reputation for fairness.
Ask for a copy of the contract and the fee schedule they want you to sign. Watch closely for hidden fees and exit penalties. Don’t sign anything until you are satisfied your costs will be lower than anything you are paying now.
Ask if the company has signed onto the Code of Conduct. Based on CFIB's recommendations the Code of Conduct was established to combat some of the worst abuses within the industry. However, some agents will keep insisting you sign their contract even when you have told them you are not interested. If your "no" is not being respected, file a complaint with the Financial Consumer Agency of Canada.
Tips when considering a credit card processing offer
Watch this short video prepared by our Manitoba office.
If you'd like to make CFIB aware of your situation, contact us at 1-888-234-2232.
Join CFIB today. When you do, your business gains the clout, impact and scale that come with being part of the largest small business organization in Canada. There is strength in numbers, and we make your views count. Don't just hope for a better future for your firm, take direct action to protect your business investment by becoming a member of CFIB.