At Freedom Payments, we uphold the values of transparency and integrity in our approach to merchant services. In navigating the complex landscape of credit card processing, it’s essential to be aware of the deceptive tactics that some in the industry employ.
Sales Calls Chaos:
Businesses across the nation find themselves inundated with relentless sales calls from merchant services companies. This saturation has fueled intense competition, pushing sales representatives to resort to questionable and often aggressive tactics. The relentless nature of these calls underscores the cutthroat environment businesses must navigate when seeking reliable merchant services.
Value vs. Price Dilemma:
Effective salesmanship traditionally revolves around demonstrating the value a product or service brings. However, in the world of credit card processing, a considerable number of sales professionals opt for the path of least resistance – emphasizing price over value. The lack of understanding regarding the intricacies of credit card processing often results in misguided sales strategies that prioritize cost savings at the expense of delivering genuine value to businesses.
Hidden Fees Reality:
Navigating the credit card processing landscape requires a keen understanding of the various fees involved. Interchange fees, card brand fees, and associated costs contribute to the overall expense. The raw cost of processing a credit card can range from 1.1% to 1.8%, depending on factors such as the card type. Understanding these hidden fees is crucial for businesses to make informed decisions when choosing a merchant services provider.
The Bait and Switch Game:
A prevalent and concerning tactic in the industry is the bait-and-switch approach. Some merchant services lure businesses with promises of exceptionally low rates, often between 1.3% to 1.4%. However, what they fail to disclose is that these rates are merely introductory and are subject to increase after an initial grace period. This misleading tactic can leave businesses locked into contracts, facing unexpected rate hikes, and frustrated by deceptive practices.
Long-Term Strategy:
Deceptive sales representatives employ a cunning long-term strategy. They understand that, once a client is committed to a contract, the likelihood of them staying for at least a year or more is high. This strategic move ensures sustained profits for the sales representative, even if it means the client ends up paying higher rates than initially promised.
MCC Code Manipulation:
Merchant Category Code (MCC) manipulation is another concerning practice in the industry. By altering the MCC code associated with a business, some individuals aim to showcase fictitious savings. This deceitful tactic involves presenting a false MCC code with a lower interchange rate, potentially leading businesses to believe they are saving money. However, the consequences of this manipulation can be severe if discovered, with the merchant bearing the responsibility for any fines imposed.
Our Commitment at Freedom Payments:
At Freedom Payments, we firmly reject the bait-and-switch approach. Our commitment is unwavering – we refuse to compromise on honesty to secure clients. By prioritizing transparency, maintaining upfront communication, and operating our merchant service business with unparalleled integrity, we ensure lasting and trustworthy relationships with our clients.
