card machine agreements are they binding

[pkight]

A rep for Merchant Retail Services came to see me to give me cheaper rates for my card machine. They were cheaper than my existing company Card save.I asked the rep what I would do about my contract with them He said I only had to give a months notice and they may not like it but there is nothing they can do.He said not to tell them until I received my new machine. I did this and Cardsave said I would have to pay the remainder of my contract if I came out of their machine they also offered me much better rates. I said I would stay and contacted Merchant Retail Services to cancel my contract with them explaining my position, I had not used their machine or done any transactions. They are now asking for £885. to get out of the contract and threatening court. What can I do? any help would be appreciated I am only a small business and have not this cash to spare.

 

[kulture]

You signed a contract with them, they have done up front work setting up the account, they have sent you a machine. I am not surprised that they want paid.

Work out which one is cheapest to cancel, and cancel. Expect to have to pay for your mistake. Sorry.

 

[Suzuki]

But the contract was signed because of some lies the sales rep told so surely wouldn't be valid?

Its easy to see how this plays out though... sales rep denies saying that and you end up having to pay anyway.

 

[kulture]

How could the salesman know the contents of your contract with another company? Unfortunately it is assumed that business owners understand contracts and check them before signing. They have less protection than consumers. It is an expensive lesson.

 

[mobyme]

If you honestly believe you were lied to then let it go to court. If on the other hand you were just hearing what you wanted to hear then bite the bullet, pay the bill and put it down to experience.

 

[Suzuki]

If you honestly believe you were lied to then let it go to court. If on the other hand you were just hearing what you wanted to hear then bite the bullet, pay the bill and put it down to experience.

I think sometimes you need to just admit defeat and chalk it up to experience, and it looks like this is going to be one of those times. Its obvious the other party are going to deny making those claims... the court case is going to be a formality and you're just going to make it more painful as far as spending time/money goes.

OP, if you genuinely can't afford to lose this money then would it be worth trying to build up some proof of the salesman's lies? Call him from another number and record the call. Tell him you're interested in a terminal and then say you need to cancel with your current provider and get him to hopefully say you just need to give a months notice. Repeat this a couple of times over a month or so and there you have it... proof that he does make these false claims to get deals signed up.

 

[Retail Merchant Services]

Hi,

We are sorry that you haven't found it as easy to switch over to us as we designed it to be. Our Payment Experts help businesses to assess savings that could be made by switching over to us.

Unfortunately, we are not able to check any previous provider's agreement or give advice. When we provide a quotation, we do so in good faith but ultimately it can only remain the responsibility of the customer to check that they are not still in a contract with a previous provider.

From the time we receive an application from a new customer, we begin the credit-scoring and application process, we order a new credit card machine and have it set-up by an engineer, and unlike other providers we make a range of additional benefits immediately available, like:

• Free Tax & VAT Investigation Insurance
• Free 24/7 Legal Advice Helpline
• Discounted Business Insurance
• Discounted Accountancy Software
• Discounted Telephone Services
• Discounted Business Broadband
• And much more!

This process creates a significant cost for our business. We do our best to pass on as little of this as possible to our customers and this is only usually recouped throughout the duration of the agreement.

In circumstances where a customer changes their mind after joining us then much like any other contractual provider, we need to recoup the investment made in the customer. This protects our existing customers prices and rates from any rises caused by unnecessary sales administration.

If you genuinely believe than an individual representative made a misleading statement then please contact our customer services team on 0845 241 9960 between Monday to Friday 08:45-21:00 and between 09:00-17:00 on Saturday's. Any such claim will be thoroughly investigated by our specialist management team.

 

[Rosewood Farms]

In circumstances where a customer changes their mind after joining us then much like any other contractual provider, we need to recoup the investment made in the customer. This protects our existing customers prices and rates from any rises caused by unnecessary sales administration.

OK, you recoup the investment by charging the cancellation fee of £100 + VAT to cover the cost of collecting the terminal & data cleansing. How is it then justified to collect the remainder of the monthly fees for the length of the contract as the customer will no longer have access to a) the terminal (so you can rent it out to someone else), b) the additional member advantages such as the helplines (which the customer will not be able to use so helplines will not be costing you anything for that customer) nor c) the payment gateway. It would cost the customer the same whether he/she continues using your products but in the event of him/her cancelling they would not be putting any extra load on your services, in fact it would be taking demand off your services whilst retaining the revenue for them.

 

[Retail Merchant Services]

OK, you recoup the investment by charging the cancellation fee of £100 + VAT to cover the cost of collecting the terminal & data cleansing. How is it then justified to collect the remainder of the monthly fees for the length of the contract as the customer will no longer have access to a) the terminal (so you can rent it out to someone else), b) the additional member advantages such as the helplines (which the customer will not be able to use so helplines will not be costing you anything for that customer) nor c) the payment gateway. It would cost the customer the same whether he/she continues using your products but in the event of him/her cancelling they would not be putting any extra load on your services, in fact it would be taking demand off your services whilst retaining the revenue for them.

Hello Rosewood Farms,

The reason it is justified not only legally but morally, is the same justification for any business who provides a service or a product to a customer. When a customer enters into an agreement they rightly expect to receive the product or service that they pay for on the other hand and applying the same principle the service provider equally has the right to receive what has been agreed.

On this principle (and others), we compare favourably to other merchant services providers (our agreements are shorter than many). An agreement for a defined period of time, when entered into does become binding, much like any agreement for a utility supply, gym membership or mobile phone contract. It allows the service provider to recoup the investment made in the customer.

As we mentioned on a previous post, we are unable to discuss individual accounts in an open forum but we are more than happy to talk to you and give you any help you need concerning your account.

Our team are available from 08:45 - 21:00 on 0845 241 9960 or you can drop us a line at info{at sign}retailmerchantservices{dotco dotuk}

 

[roydmoorian]

OK, you recoup the investment by charging the cancellation fee of £100 + VAT to cover the cost of collecting the terminal & data cleansing. How is it then justified to collect the remainder of the monthly fees for the length of the contract as the customer will no longer have access to a) the terminal (so you can rent it out to someone else), b) the additional member advantages such as the helplines (which the customer will not be able to use so helplines will not be costing you anything for that customer) nor c) the payment gateway. It would cost the customer the same whether he/she continues using your products but in the event of him/her cancelling they would not be putting any extra load on your services, in fact it would be taking demand off your services whilst retaining the revenue for them.

The name Rosewood Farms says a lot - You are in an industry where "my word is my bond". Thousands of lorry loads of grain worth £6000 pounds per load are sold daily on verbal contracts over the phone.

The OP needs to think themselves lucky that their card co. had not passed them over into a Siemens Phone System type of contract. £885 is far from peanuts but unless a rapid solution can be found then best to cut their losses and move on as it would be very easy to spend the same again on recovery services and still get nowhere.

Back to you -I can understand how you can finish Dexters on grass but how do you finish Jersey Bull Calves on a 100% grass system. Could the same method be used for Hostein Bull calves ?

 

[Rosewood Farms]

Back to you -I can understand how you can finish Dexters on grass but how do you finish Jersey Bull Calves on a 100% grass system. Could the same method be used for Hostein Bull calves ?

I'm sure it could - there are two tricks to it 1) keep them on milk longer at the beginning and get them off to a good start, the same as the suckled Dexters get & 2) don't expect them to look like a limmi - you're finishing them to turn a profit, not to get top prize at a fatstock show.

 

[Rosewood Farms]

The name Rosewood Farms says a lot - You are in an industry where "my word is my bond". Thousands of lorry loads of grain worth £6000 pounds per load are sold daily on verbal contracts over the phone.

That's true, and I am guilty of listening to what the RMS salesman told me, rather than sending him away and checking the facts before signing anything, but then that's his job, and I should have been more wary, as I normally am.

He was a nice chap though & had I not tried to cancel within the 30 days he stated I legally had I never would have known that the information was false. Perhaps it was a genuine mistake and should have said that it was a 7 days cooling off period but in my business if I make a mistake I honour it.