October 2018 Complaint Roundup: Sekure Class Action Settlement

What Are Other Merchants Saying?

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© Depositphotos – James Steidl
Here at CPO, we review every comment that we receive from our readers, and sometimes we see merchants mention a topic that isn't covered in our reviews. To help you stay on top of the trends and issues in the credit card processing industry, we've gathered the following merchant complaints posted to CPO during September and October. If you would like to respond or add your thoughts to any of these comments, please follow the links to the original comments and reply to them directly, or leave a comment of your own below the appropriate company's review.

You May Be Entitled to a Cash Settlement

Alan's October 6 comment on our First Choice Payments review states the following:

As of 10/5/2018 this company is settling for $6,250,000 a class action lawsuit for illegally calling numbers registered on the federal no call list, which included mine. I will be receiving a minimum payment of $30.00 for their unsolicited calls. The class action case is Michael Kaiser-Nyman vs. First Choice Payment Solutions. The case is located at .

Alan's claim appears to be legitimate. According to case documents, SekureCard has settled a lawsuit in the United States District Court for the District of Northern Illinois related to its telemarketing practices. You are in the settlement class if, “from July 26, 2013 through February 1, 2018, [SekureCard] called you on a cellular telephone using an automatic telephone dialing system or prerecorded voice.” It appears that the average claim is expected to be about $30, so if you're interested, consider filing a claim here before November 30.

Warn Your New Hires About This Scam

Stephanie's September 24 comment on our RSmall Business Growth Alliance review states the following:

I wish I had been smart enough to check these guys out. The pretended to be my current provider and they were doing an audit of my current plan. They took advantage of my new hire status. I thought I was saving my new company money. since I am not the owner of this business they got my personal information. when I asked them why they need that, the reply was, “so we are sure you are who you say you are.” now I read the contracts and I am listed as the personal guarantee the payment of the fees. $186.00 month for 48 months. I just want to cry. we are a small struggling business and I just helped us loose more valuable cash.

Slamming” is nothing new in the credit card processing industry, but putting a non-business owner on the hook for the personal guarantee of an equipment lease is especially predatory. Not only is Stephanie's employer responsible for paying thousands of dollars for a cheap credit card terminal, but Stephanie herself will be held personally accountable for that amount if her employer defaults on those payments. It's a steep price to pay for a simple mistake. To avoid this situation, you should educate all of your employees about telemarketers posing as your current processor. If you have already fallen victim to this scam, we recommend taking steps to cancel your merchant account without a fee.

Hard Credit Inquiries From TSYS

JVS's September 29 complaint on our TSYS review states the following:

This company is absolutely horrible. They have a fake pci compliance service the refer out to try try and justify fees, and then upsell you on items, they have HORRIBLE customer service, their website and interface looks like something out of a bad html website showcase, they have unjustified fees, and every little aspect of functionality is somehow handled almost like it’s a different company with a different fee, and a different login. It’s just awful.

Worst of all without my permission, when I applied for a merchant account they did a HARD HIT on my f’ing credit just ot open the account what I did not authorize. When I contacted them to request s letter of deletion they declined, after initially not answering for almost 2 weeks. They are shady as F***. DO NOT USE THIS GARBAGE SCOW of a COMPANY.

Pamela Russell's October 13 complaint about TransFirst (a TSYS subsidiary) mentions a similar issue:

Transfirst’s representative told me it would be a “soft pull” on my credit and then they denied my business without a reason. I could never get an answer from the rep or their offices in Colorado the reason I was denied. It turned up on my credit as a “hard pull” instead. When I tried to call them to get it removed because the CRA said that I would have to call them the First rep was very rude and refused to help. Finally when I did get someone she said It was my own fault because I should have known. So, they blame the victim for their “lies” to their potential clients. I’m just glad I was denied. They are a nightmare. Don’t even apply with these people. They are liars.

Although credit inquiries aren't often a cause for complaints, we want to emphasize that merchants should plan for a hard credit inquiry when applying for a merchant account. Here is the relevant clause from TSYS's contract terms:

From time to time, Bank may obtain credit and other information on Merchant, owners and officers of Merchant, and any and all personal guarantors of Merchant, from others (such as customers and suppliers of Merchant, lenders and credit reporting agencies), and furnish information on Merchant’s relationship with Bank and Bank’s experience with Merchant to others seeking the information.

You can expect all other major processors to include a similar clause in their contracts and prepare accordingly. If you are concerned about your ability to obtain a merchant account due to your credit report, we recommend working with a top merchant account provider for bad credit.

Technology Matters

R Collier's October 9 comment on our Cayan review states the following:

I share this purely to help others know of the challenges I experience with Cayan.

If you have a website, I strongly advise to not use Cayan. It is incredibly difficult for software developers to integrate into your site code. I strongly advise you look at Stripe as they are known for their ease of use. My developers suggested I use Stripe but I ignored their suggestion as Cayan was less expensive on a transaction basis. But pleae trust me, the cost to implement Cayan (and Authorize.net) will cost you more than the savings you think you will get from a less expensive transaction fee.

Additionally, I am confused as there are 6 different options to log-in when go to cayan.com. I never know which one to use.

I have been double charged a few times and if I did not look at my accounts as closely as I do and call, I would not have known.

Their customer service options include Chat and Email. Neither of these work as chat never opens and the email requires the user to select a reason from a drop-down, a drop-down which does not exist. I then had to look around until I could find a phone number. I prefer chat or email but they do not work.

When my bank accounts are charged, the charges are not descriptive and the statements’ language does not correspond to the charges.

The charged amount says the charge is from . . .MY Company?! None of the charges are from Cayan which is incredibly confusing and frustrating.

While Cayan may be good if you operate a retail store with a credit card machine, please consider other options when used on a website. Please speak with your developers to know what they prefer, what is easier to integrate and who has better customer service when they have questions.

I wish I would have gone with Stripe (or another similar service) and when we have the revenue to pay for the needed software changes, we will switch.

Hope this helps. . . .

R Collier's comment highlights the most important part of searching for a merchant account: finding a credit card processor that meets your business's needs. Costs, sales, and customer service are all important factors, but they are secondary to whether the company's technology and products will improve your business operations. If you require advanced e-commerce options like R Collier, then you need to prioritize e-commerce merchant accounts in your search. If you own a retail location, then focus on top retail merchant accounts.

We recommend certain providers as great all-purpose options, but there is no one-size-fits-all top processor in the credit card processing industry. As long as you consider what matters most to your business during your search, you can find a the right fit for you.

Have you had an experience that you would like to share with these commenters? Reply to their comments and you may be featured in next month's complaint roundup!

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