Card Processing Company

[Aceframer]

Really interested in what you have said.

What were the hidden fess that you were not told about ? and how long were you told the contract was for ? I thought as a sole trader you can leave after 18 m and just pay a restocking fee as per the Consumer Credit act 1974 ?

rgds

Mark

really, can you send me details of this as im stuck with merchants services for another 2 years due to unfair contract

 

[LMDServicesUK]

You need to dig out the agreement you signed and it should clearly state that it is governed by the Consumer Credit Act 1974. Also did you sign a separate leasing agreement with a company called Merchant Rentals plc, if you did, do you have a copy of the agreement at all, as that is what they will try and use against you.

Assuming you have been in the terminal contract for at least 18 months and you are trading as a Sole trader or Partnership.

You should then write to Handepay immediately giving notice on your agreement (preventing any further rollovers) and invoke the 18 m termination option and ask what the remaining charges will be from them ?

In theory you should only now be liable for their "restocking fee" for your terminal.

I would also write to your Merchant Services Provider (not HandePay they just sort the terminal), who I assume will be Streamline or Elavon and ask them to confirm if there will be any cancellation charges from them for cancelling your Merchant account..

Let me know how you get on..

Rgds

Mark

 

[Aceframer]

ive done all that and they want £600 to end the agreement.

i thought id signed for 3 years and there was no mention of a years notice, except in the small print, which rolled me over for 2 years. so they basically want paying for the whole term

 

[LMDServicesUK]

Hi Aceframer

Like I said you need to get hold of copies of the agreements that you originally signed, and then assuming they include the statement re the CCA 1974, just give them notice, as a Sole trader, and ask them to collect the machine and cancel your DD.

You will need to pay the restocking fee, but at least you will be free of them and not have to fork out £ 600..

I would also strongly suggest you visit a good local Solicitor and get an initial consultation, which will hopefully reaffirm the advice I have offered you. First meeting with a good one is normally free, just if you instruct them it gets painful..

Are you an FSB member ? Might be a good time to join up and use their Legal helpline/service..

Kind regards

Mark

 

[christine&tim]

My husband has just wound down his business. He telephoned the card processing /merchant company to give notice to terminate the card machine. The saleman said he would have to pay £560 to do so as he has signed up for 4 years. He told the man this was only because the salesman said they only do 4 year terms and after 18 months you can cancel it but there is a termination fee of £150. which we can see, but Elavon said you have to pay ladco as well. Elavon also said there is no 18 months get out, and they do do 1 year terms, so the saleman who came to out home lied to us.
What on earth do we do? can anyone advice. please

 

[LMDServicesUK]

Hi Christine

I hate to say this but XLN are well known for their Shark like tactics in the Telecom world and also sadly now in the card payment industry.

Do you have the original agreements your husband signed and if so you need to review the early termination clauses.
If you were signed up under the Consumer Credit Act 1974 Terms, and your husband was a Sole trader you can give notice after 18 months and just pay a restocking fee to XLN.

You will also need to speak to Elavon to see if there is a termination fee for your Merchant account if you close it.

If you would like to scan and email me copy of the agreements I will see if I can provide you any further guidance, before you seek Legal assistance.

At the very least we might be able to identify some options for you ? Please feel free to PM me if you would like some more help.

Rgds

Mark

 

[Wigan]

I'm glad I searched and found this thread, though there are more on other forums. I received a phone call from RMS on Tuesday asking was I still taking credit cards and I replied yes throgh paypal, izettle & payatrader.
She said had I considered Sagepay as we do good terms and the Merchant account was easier to arrange now.

I was under the impression I was talking to Sage and agreed to an exploratory meeting next Tuesday, on Wednesday I received a phone call from the sales rep and it was only then I realised I wasn't talking to Sage, I asked for rates over the phone but they want to tailor them to my business, I said lets forget it, I want a pay as you go service as I am only just starting after having long term health issues and I don't want anyone being left with any possible liabilities, I offer BACS payments and customers will be offered discounts to use that option once we have a trading relationship.

It may be an expensive way but all the fees are tax deductable so why commit to keeping sharks fed?

I'm a Lloyds customer so I may end up using something there when/if I get busy enough.

 

[LMDServicesUK]

Hi Wigan

Assuming you do not want or need a chip & PIN terminal for your business, a Virtual Terminal and integral gateway would be a good fit, as in our case we only ask for 90 days notice, there is no underlying contract or cancellation fees to worry about.

Depending on what you are selling, this would allow you to take card payments over the phone or via a website if you want to go down the ecommerce route.

We would start you off on an initial rates package and once you have been trading with us for six months, we would then adjust your rates based on the level of business you are doing (down never up..)

If you would like to learn more please feel free to PM me, and good decision re sacking the RMS meeting, avoid at all costs..

Good luck

Kind regards

Mark

 

[baguette]

Hi Wigan
my personal experience says dont get anywhere near RMS.

Their salesman lied, saying "there was a 30 cooling down period under FSA regulations" There wasn't, they are not governed by the FSA [or any one for that matter]. All the RMS did was deny any wrongdoing. They even said 'they were not responsible for their salesmen', which I took to mean that salesmen can say what they like to get a sale.

When you write to complain, RMS usually respond with a phone call, which they record, but usually you cant, so it's a bit one sided as they refuse to release copies of the recordings.

When I contacted Trading Standards it became clear they were already interested in Retail Merchant Services and their sales practices, at which point RMS cancelled my contract.

Other members have posted about high charges for 'overnight data downloads' using premium rate numbers and the high cost of PCI compliance, which should only be around £30.

It's your choice

 

[CardswitcherUK]

Hi Rapmills
Wow, don't think I've seen a post stir up such emotion for a while! PCIP are an ISO for Elavon. I've seen a lot of posts about ISO's and why you should go direct to the bank\acquirers but the reality is ISO pricing is c.30-40% cheaper than bank acquirers and you get broadly the same processing.

We are the UK's only price comparison website for card processing/merchant accounts, etc. We give instant quotes with detailed pricing and no sales calls from a range of providers. You might find some alternatives on our site. There is also a lot of good posts in this thread - worth reading.

Regards