Business & Finance Small Business

Small Business Owners Victimized by Credit Card Processing Salesman

The St.
Louis area has been hit by a credit card processing scam that has cost local small business owners hundreds of dollars in an already challenging economic climate.
Disreputable salespeople have managed to trick many small business owners into switching their merchant accounts with the promise of lower fees on long term arrangements.
With "no cancellation" clauses standard in the new contracts and high up front fees, business owners are often stuck for years.
Caught While Busy The salespeople involved in the scam arrive at busy times when the owner is most distracted.
With little time to ask questions and a great deal of pressure to sign on, business owners are not aware of their situation until later, and once the three day cancellation period has passed, there is little they can do to get out of their predicament.
Avoid the Bum's Rush As a business owner, it is hard to resist promises of lower fees and better percentages.
However, if someone turns up at your business unannounced and tries to pressure you into signing anything, be it a credit card processing contract or anything else, you should have the sense to refuse.
Set up an appointment time that is convenient for you.
Clear the decks and sit down with the salesperson and make sure you get a copy of the contract to read at your leisure.
Read the contract thoroughly and never sign anything with a "no cancellation" clause unless you are absolutely sure that you want to enter into the agreement.
Have your attorney read the contract as well.
Due Diligence is Your Defense •Remember to ask for references.
•Check them properly.
•Call the BBB before you do business with anyone that arrived at your office unsolicited.
•Don't agree to sign a nondisclosure agreement, and make sure that you stipulate in writing that any deposit you provide will be returned if you don't complete the sale or back out over the three day cancellation period.
While most businesses are truly dependent on their credit card processing abilities, there is no reason to fall prey to scams in an attempt to save a bit of money.


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