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Scams involving money are as old as time. Both consumers and merchants alike must be vigilant in protecting themselves from scams, especially those that involve credit cards or credit card processing services. As more legislation is passed to protect consumers from fraudulent acts, merchants remain a target for certain scams. It is important to understand what to look for in order to protect your business as well as your bottom line. Here we look at credit card processing scams and what you can do to protect yourself from becoming the next victim. Credit card processing scams are tough to track and sometimes even harder to spot. Scams in this industry are not generally considered criminal in that a law is broken. Rather clever wording and misleading promises are used that can cost a merchant hundreds if not thousands of dollars in processing and other fees. These are they things you must be on the lookout for when selecting a credit card processor. Hidden fees When choosing a credit card processing service, carefully read the contract and ask if there are any fees which are not disclosed in the agreement. Also remember that just because fees are disclosed, doesn’t mean you aren’t getting ripped off, not all credit card processors charge these fees. Some of the fees that may be disclosed or not disclosed include but are not limited to: - annual fees
- technical support fees
- customer support fees
- licensing fees
- software fees
- chargeback fees
- termination fees
- statement fees
- bank setup fees
- daily close-out fees
- non refundable setup charges
Keep in mind that the more you pay in fees the less you are benefiting from accepting credit cards as a method of payment. The wrong credit card processor can literally make or break your business. Background check It is important to check the reputation of any company with which you do business. When that company is responsible for ensuring your receive payment for goods and services sold by your business, their reputation becomes even more important. Check with the Better Business Bureau to see how previous clients rate the business. You can also get a good feel for a business by using the Internet. If you were to enter the company name into a search engine with the words; fraud, scam, ripoff or illegal you might be able to spot problems before they start. Unrealistic promises A frequently used tactic by less than honest credit card processors is making promises that seem to good to be true. Companies providing legitimate credit card processing services are generally working within a limited industry. This means that while some companies may be able to offer better prices or benefits, most are very similar in nature. When a company goes completely off grid offering promises that no one else in the industry can compete with, there is a good chance very important information is not being disclosed. There are two popular sayings that should apply when considering a credit card processor. If it seems too good to be true, it probably is….and let the buyer beware. By keeping these adages in mind, you reduce the risk of being scammed by a credit card processor. Photo via redspotted | 
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