Credit Card Processing: Scams and Fraud

Merchant services representatives often use a range of tactics to secure your business, some of which are quite deceptive. For instance, a pre-recorded sales call might claim that your pricing has gone up, stating that failing to contact the company implies your acceptance of the increase.

The catch? This call isn’t from your actual merchant services provider, and they have no insight into your current rates or fees.

The Merchant Services Sales Call

Variations of the Sales Call

There are different versions of these calls, all claiming that your merchant account rates have increased. The caller usually doesn’t disclose their identity to maintain the illusion of being associated with your current provider. Often, they won’t know who your current company is, allowing them to avoid outright misrepresentation. These calls frequently come as voicemails left after hours or bypass the phone system to reach your voicemail directly.

Version 1

In this scenario, the caller suggests you may have noticed a rise in monthly service fees and that, without a response, it will be assumed you accept these changes. A call we received at Monify went as follows:

“This message is an important notification regarding your merchant account. You may have recently noticed an increase in monthly service fees on your processing statement. If we don’t hear from you, we will assume you accept the new costs. You can contact your merchant service partner to dispute this increase, but it must be done promptly. Reach merchant account executives directly at [number]. Failure to respond will lead to continued increased fees.”

Version 2

In this version, the caller indicates that the fee increases are a result of your not conducting a rate review. One such call we received stated:

“This is a notification of fee increases on your merchant account that requires a timely response. Our records indicate you may not have completed an annual rate review. You can contact dedicated merchant account executives at our partner office during business hours at [number] for assistance. Reviews are by request only, and we are not obligated to remind you again.”

These calls are designed to intimidate you into responding, as no one wants to accept a price hike. However, remember that this is not actually your merchant services provider calling. The caller typically avoids identifying their company and may go to great lengths to keep their name undisclosed, knowing that revealing it could alert you.

Moreover, they frame these calls as “reminders” or “courtesies,” making it seem like it’s in your best interest to engage with them.

What Happens Next

If you return the call or if you speak to a live person, they may claim to be “your processor” or “your merchant services provider.” Their aim is to persuade you to switch processors, often without full disclosure. They may insist that you need to sign new paperwork to maintain your current rates or submit an updated application to continue receiving services.

What You Should Do

If merchant services representatives keep calling with various tactics to get you to respond or switch processors, be cautious. Never sign new contracts or submit paperwork without thoroughly reviewing it and confirming its legitimacy with your current provider. Some clients have ended up at Monify after unknowingly switching processors.

Ideally, avoid these sales calls altogether. If you do answer, demand the caller’s company name—don’t assume that they’re your current processor. If they refuse to disclose their name, hang up and contact your provider directly to verify who you’re dealing with.

If you receive a voicemail like those reported at Monify, don’t return the call. Instead, reach out to us directly to inform us of the call and verify if it was legitimate.

If you’re a current Monify client and have received one of these calls, feel free to contact us for advice or a rate review.