Dispute with credit card processor

[Tom Waits]

Hello,

3yrs ago I signed up for a 24 month credit card processing contract via a re-selling agent (a well known small business telecom company that also sells energy, card processing etc).

I recently realised the rates I was being charged were raised half way through the term of the contract. I spoke to their help desk and they say, "We didn't raise the rates, it was the card processing company."

I spoke to the card processing company and they say, "we didn't do it, we're not allowed to do it, we're just the processor. The rates are decided by your re-selling agent.''

I have combed the contract and it doesn't mention they are allowed to raise rates during the contract or introduce new types of rates.

It would seem like I have a prima facie case of 'breach of contract' for the excess fees charged. But, cynically, I'm assuming there is some clause deep, deep in some Ts&Cs that says, more or less, 'we can do whatever we like and f*** you'. I don't want them to get away with it but also don't want to spend thousands of pounds with a lawyer and many hours getting distracted from running my business.

Does anyone have experience with this? Who can raise card processing rates? Is there a tried and tested dispute channel other than the players themselves who are not helping? Anyone know a good lawyer in this field?!

 

[Mr D]

Tried and tested dispute channel? Court.

 

[TotalWebSolutions]

As above it could be the card scheme fees that have increased but if that was the case your card processor/acquirer should advise you of this in writing (the same if they had increased any of their rates too).

Are you out of contract now on a 30 days notice with them? If so, now might be a good time to shop around for a better deal in any case.

 

[Tom Waits]

As above it could be the card scheme fees that have increased but if that was the case your card processor/acquirer should advise you of this in writing (the same if they had increased any of their rates too).

Are you out of contract now on a 30 days notice with them? If so, now might be a good time to shop around for a better deal in any case.

Feb 17: I signed a 2yr contract being quoted 0.42% debit, 1.51% credit, 1p auth, £5 PCI. The contracts mentions Cross Border fees for MasterCard but none for VISA.
Apr 18: Debit card goes up to 0.43%, credit card up to 1.52% AND a NEW 1.65p transaction fee (per transaction) is introduced (not mentioned in contract). ALSO, Visa 'International Acceptance Fee' is introduced.
I guesstimate these extra charges add up to c. £1000 of extra fees during the second year of the contract.

Reselling agent and card processing company both say, "we didn't raise your prices, it was the other guy".

Yes I'm out of contract and I'm shopping round but don't want to sign new deal until this is resolved because while my business is still 'up for grabs' they are at least pretending to care about my case (but I'm still spending ages on hold, continuously being fobbed off, promised callbacks that don't come, passed on to different people etc etc).

Really frustrating, dark and murky world with spectacularly (purposefully) opaque pricing.

 

[Tom Waits]

Tried and tested dispute channel? Court.

Small business (micro business) vs giant multi-national financial conglomerate. Really don't want to do it unless I'm certain; hence me asking here. Most seem to be saying, as I suspected, there will be a clause in the fine print that allows them to do whatever they like.

 

[Tom Waits]

Hi Tom

i run a card processing company, it depends which rates were increased - sometimes mastercard and visa increase their base rates which applies worldwide and companies can increase this

however if its a transaction rate you may have an argument

unfortunately often they will cover this in their contract when you signed it ( small print )

if you want to message or call me i'm happy to advise/assist where possible

thanks

They changed the 'service charge' from 0.42% to 0.43% AND they introduced an extra 1.65p per transaction flat rate 'Transaction Fee'. Since my average transaction is about £25, this 1.65p is another 7bps! So in effect the charge went from 0.42% to 0.5%.... which is a 20% increase!

 

[Mr D]

Small business (micro business) vs giant multi-national financial conglomerate. Really don't want to do it unless I'm certain; hence me asking here. Most seem to be saying, as I suspected, there will be a clause in the fine print that allows them to do whatever they like.

Then need to convince them without using a court.

 

[Peter Stuart]

They changed the 'service charge' from 0.42% to 0.43% AND they introduced an extra 1.65p per transaction flat rate 'Transaction Fee'. Since my average transaction is about £25, this 1.65p is another 7bps! So in effect the charge went from 0.42% to 0.5%.... which is a 20% increase!

my advice is to let it go, might seem harsh but they simply wouldn't have increased your rates without it being allowed in the small print of the contract ( which is a joke ) dependant on which company it is you really need to be careful being fobbed off as if you don't give them notice they will more than likely auto renew you for another 2 years

 

[Nochexman]

Your contract is with whoever you signed up with and who is also presumably billing you. You should write to them showing how your rates have been increased without your agreement. Give them a limited time (seven days?) and ask them to respond in writing to your complaint. If they don't you should, in the first instance, follow their complaint procedure. Keep it out of the courts for now. Effectively you can start the clock running and if they do not respond to your satisfaction you can backdate any costs to whenever you first raised your complaint. Good luck!

 

[zomex]

my advice is to let it go, might seem harsh but they simply wouldn't have increased your rates without it being allowed in the small print of the contract ( which is a joke ) dependant on which company it is you really need to be careful being fobbed off as if you don't give them notice they will more than likely auto renew you for another 2 years

I would agree with this.

Although very immoral it's likely that they are covered by their contract. The best thing you can do is complain as much as possible while looking for a replacement processor (Stripe for example).

 

[Tom Waits]

my advice is to let it go, might seem harsh but they simply wouldn't have increased your rates without it being allowed in the small print of the contract ( which is a joke ) dependant on which company it is you really need to be careful being fobbed off as if you don't give them notice they will more than likely auto renew you for another 2 years

Many many thanks for the cold, hard truth. I guess you are 100% correct. It is indeed a joke that I 'negotiate' fees at the beginning of the 'contract' but they do so in the full knowledge that they can raise rates, and significantly so, whenever they like. And when I question it, everyone I speak to denies all responsibility (i.e. they are all saying, "we didn't do it").

I will swallow my pride, suck it up, renegotiate a new contract and move on.

Many thanks again for your help.

 

[Tom Waits]

I would agree with this.

Although very immoral it's likely that they are covered by their contract. The best thing you can do is complain as much as possible while looking for a replacement processor (Stripe for example).

Many thanks for your help. You are right, I just need to suck it up and move on.

(Stripe, like SumUp and iZettle while attractive for their much more transparent pricing are still way more expensive unfortunately.)

 

[Peter Stuart]

Many many thanks for the cold, hard truth. I guess you are 100% correct. It is indeed a joke that I 'negotiate' fees at the beginning of the 'contract' but they do so in the full knowledge that they can raise rates, and significantly so, whenever they like. And when I question it, everyone I speak to denies all responsibility (i.e. they are all saying, "we didn't do it").

I will swallow my pride, suck it up, renegotiate a new contract and move on.

Many thanks again for your help.

no problem, if you get what you think is a better offer i can look at it for you as i know most of the companies well

thanks