Lawsuit filed Against PNC for Overbilling!

It has happened yet again! 

Another large credit card processor, PNC Merchant Services Company, has been accused of over billing. The lawsuit alleges that PNC provides teaser rates with low fees when in fact the customer pays a lot more. Unfortunately this is not an uncommon practice with in the industry.

PNC is actually a partnership between PNC bank and First Data Merchant Service Corporation.

PNC  has over 100,000 merchants and the lawsuit claims they systematically overbill.

To avoid the pitfalls of signing up with a merchant service provider who treats you like a number and will just ending up costing your business more than you bargained for, you should contact a honest credit card processor. 

Heartland Payment Systems Lawsuit -Dirty Secret?

Well it seems some interesting information has been put out by a former employee about exactly what Heartland Payment Systems (bought out by Global Payments) was doing, some of which may not have been public knowledge.

I will paste it here in case the link is taken down:

Heartland Payment Systems Customers have filed a class action suit in New Jersey Courts against the processor for consumer fraud possibly 2.6 billion in unjust enrichment!

Heartland Payment Systems merchant's filed a class action suit claiming that in 2014 Heartland implemented a scheme committing consumer fraud resulting in unjust enrichment. The class action complaint was filed in the United States District Court District of New Jersey, 

the Plaintiff Rudel Corporation Civil No: 3:16.cv-02229 Squitieri & Fearon, LLP NY, NY

The 29 paged suit exposes Heartland's plot in detail of how they used an American Express Program called OptBlue to bait and switch customers into thinking Heartland was acting in the customers best interest with transparency. According to the documents it appears at first Heartland was indeed giving the New American Express Opt Blue savings to the customers as they claimed they were. However, the merchants claim this was smoke and mirrors. Instead of passing on the savings to the customer Heartland kept the savings for themselves. 

American Express lowered their fees. Heartland decided not to pass those savings onto their customer as they claimed. Instead they added a new American Express Discount fee for their customers to pay. So the customer paid less to American Express but more to Heartland for the exact same services Heartland had already been providing for the lower fee the month before. The customer was saving money, as I am sure we will hear Heartland rebuttal, but not what they should have been saving apparently. Here is where it gets sticky. Four months after the initial supposed scheme was implemented they increased their fee again. 

The suit states the increase was fifteen times the initial amount. It also states that Heartland sent a notice on their statement to the customer's stating they miscalculated their rate they needed to charge. But the fees were just part of the issue, apparently this notice Heartland sent was a breach of the customer's contract as it violated a 15 days notice which Heartland did not honor. Heartland better be prepared to explain to these customers how they miscalculated pure profit. That would be my question. Especially profit that needed increased in 4 months and back billed as well which apparently Heartland billed to customers on their October 2014 statements. 

According to the suit there is approximately 2.6 billion dollars over the last two years in question. This will be an interesting one to follow. What will this mean for Global? 

What I can't believe is how I saw this on the docket and think this is bigger news than the stockholders class action suit when Heartland announced the sell to Global, yet you haven't reported this yet at all. Heartland has built its reputation on honesty and transparency. If they are found guilty, this means not only do we have a lying Ted, we have a lying Bob who pulled a fast one on the consumer, then knowingly sold his sour lemon off. Time will tell but its worth investigating further in my opinion.

Class Action Law Suites Filed Against EVO Payments.

Yet another processor is in the line of  fire of a class action lawsuit. Both EVO Merchant Services and EVO Payments International are the subjects of this newly filed suit by Atlanta-based law firm Webb, Klase & Lemond, LLC. The suite alleges that EVO maintains a policy of overbilling merchants. This is why it's important to look for a honest merchant service provider that does not lock you into a contract. This practice of promoting low teaser rates that go up quickly is unfortunately not an uncommon practice.

From PRWeb.com:

EVO is the world’s largest privately owned payment processor, with over 500,000 merchant customers. The suits allege that EVO represents to merchants that it will only charge the payment processing fees and rates prominently disclosed in the Merchant Application but that, after merchants sign up and the parties begin to do business, EVO imposes new fees and increases the agreed-upon rates. The suits allege that these overcharges are effectively hidden in monthly statements.

According to the complaint, EVO has allegedly advertised low payment processing fees despite knowing that the actual fees would be much higher, concealing important portions of the contract from merchants, and imposing fees that were much higher than those disclosed. Several specific fees, such as “PCI” fees and “IRS Reporting” fees, are alleged to be imposed by EVO in an automated fashion, without regard to the agreed-upon rate structure.

The plaintiffs seek the return of all amounts they paid EVO that exceed the rate schedules set forth in their merchant applications.The cases, styled New Beginnings v. EVO Payments International, LLC, et al. and Central Florida Liquidation and Sales v. EVO Payments International, LLC, et al., are pending in the United States District Court for the Eastern District of New York and have been assigned case numbers 17-cv-3650 and 17-cv-4507, respectively.

If you wish to discuss these actions or have any questions concerning this press release, please contact Webb, Klase & Lemond, LLC at (770) 444-9325 or contact(at)WebbLLC.com. 

Wells Fargo found that they were ripping off customers?

Surprise! Wells Fargo found out that after an internal probe, some of it's account executives were ripping off customers and charging some very high fees as per the WSJ. Unfortunately this practice is all too common among processors. I have seen companies that sent in statements where for some credit cards they were being charge 14%! This happens at the big name firms all the time as they take advantage of a merchant's trust in their established name. The bottom line: always make sure to deal with a reputable merchant service provider.

Customer Fights First Data Over Teaser Rates!

This is just in the news today! A small business owner was being taken advantage by First Data processing. The story explains that Rohan Shetty owns a small hot dog stand in Sussex County, NJ.As a small business owner she can't afford to be paying lots of money in merchant service fees.She figures out that the rates she was told were not the rates she was getting! Unfortunately this is a common practice for a credit card processor to offer teaser rates and then hike them up very quickly. They usually try to lock you into a contract so you are stuck paying those high fees for years. This is why if nothing else always avoid a contract. Few companies advertise no contracts but some merchant service providers will offer it.

EMV Technology: Hurting Merchants?

One of the latest discussions many merchants have been having is the new implementation of the EMV technology for credit card processing. One of the biggest issues that are arising for merchants, is how slow the chip readers can be. This will be detrimental to sales when the holiday season comes around. Imagine long lines of people many of whom will simply ditch their shopping carts and go elsewhere as the readers take forever to approve a transaction? The problem stems from the platforms the merchants are using to process the chip readers and not the reader itself. If you are looking for a solution to your chip reader issue and want one that is the fastest you can find, contact Prestige Merchant Services. The platform they utilize has a median time of 1.60 seconds for the terminal interaction with the chip. Chip reading does not have to be slow any longer.

Law Firm Merchant Account

Law Firms at times need specialized merchant accounts. This may be do to the fact that they have money in escro or they need to send out a bill. Make sure to find a good Law Firm Merchant Account that can handle your Law Firm needs.

The right point of sale (POS) technology can help your back office operations run much more smoothly so your attorneys and staff aren’t side-tracked to deal with administrative headaches. With law firm payment processing from Prestige, you can:

Easily track your clients’ appointment history, side-by-side with their complete case histories—without having to fumble through paper records

Streamline, or even automate, client appointment reminder calls, via SMS text or email confirmation

Track and manage inventory of your office supplies 

Allow your clients to pay how they want to pay.

Would your clients prefer to pay for your services online, via a mobile app, or in-person using a credit or debit card? When you partner with Prestige for your law firm credit card processing, the choice is theirs—and the list of options is growing all the time. In fact, payments industry experts estimate that by the year 2020, there will be 455.1 million mobile wallet users.

Consider choosing a law firm credit card services partner that enables your office to accept the latest in payments options—including mobile wallets—in order to attract new, young clients, as well as keep your current clients happy. Today consumers expect the very latest in payments processing wherever they go, even when they’re at their attorney’s office.

Built-in payments processing wins the case.

When you choose Prestige for your law firm credit card processing, you won’t have any surprises or additional software to buy. In fact, our payment processing is already built into the most popular POS systems for attorneys. Your new payment solution will be ready to go from day one, meaning there will be less downtime and more revenue coming in for your office.

EMV and the liability shift

Apparently many businesses have been slow to adapt to the latest security standards known as EMV which utilizes the chip in the latest credit cards to thwart fraud. I already posted at length about EMV technology and how it operates with regard to a credit card machine. More importantly the discussion of the liability shift as of October 2015. Those retailers not utilizing the EMV technology are now left holding the bag if fraud is committed. The Wall Street Journal reported the story of a grocer that was hit with a $4000 charge as they had a series of fraudulent charges and had not switched to the EMV credit card reader.

Unfortunately many small business owners have been hesitant to switch due to the high cost of EMV credit card machines. Many processors are charging upwards of $5-800 for an EMV ready credit card terminal as they are taking advantage of the need for new equipment. There are processors such as Prestige Merchant Services who offer a free EMV terminal program to businesses looking for competitive pricing without a contract and don't want to pay for new equipment. Be careful about which processor you deal with as many will attempt lock you into long term contracts and will try to lease you equipment that will cost you 10-20 times what the credit card terminal is worth.

PayPal Class-Action Settlement

It seems that a settlement has been reached against Paypal for some really horrible business practices.

I have been telling people for years that dealing with PayPal could have dire consequences especially for small business owners. Many PayPal users may have received an email with the following message:

NOTICE OF CLASS-ACTION SETTLEMENT. THIS NOTICE MAY AFFECT YOUR RIGHTS. PLEASE READ IT CAREFULLY.

A settlement has been reached in a class action in which the plaintiffs allege, among other things, that PayPal improperly handled disputed transactions on PayPal accounts and improperly placed holds and reserves on accounts or closed or suspended accounts. Plaintiffs also allege that PayPal failed to provide annual error-resolution notices and monthly account statements under the Electronic Fund Transfer Act. You are a member of the Settlement Class if you had an active PayPal account between April 19, 2006 and Nov. 5, 2015. Certain Settlement Class Members who had a hold or reserve placed on their account and/or who had their account closed or suspended by PayPal are eligible to receive a monetary payment upon submission of a valid claim form. This notice summarizes the proposed settlement. For the precise terms and conditions of the settlement, please see the Settlement Agreement available at http://www.accountholdsettlement.com/, by accessing the Court docket in this case through the Court's Public Access to Court Electronic Records (PACER) system at https://ecf.cand.uscourts.gov, or by visiting the office of the Clerk of the Court for the United States District Court for the Northern District of California, 1301 Clay Street, Oakland, CA 94612, between 9:00 a.m. and 4:00 p.m., Monday through Friday, excluding Court holidays.

PLEASE DO NOT TELEPHONE THE COURT OR THE COURT CLERK'S OFFICE TO INQUIRE ABOUT THIS SETTLEMENT OR THE CLAIM PROCESS.

10 Tips on Avoiding Chargebacks

Chargebacks are something all businesses try to avoid at all costs. Have too many chargebacks (as little as 1% of the total amount of your sales) and your merchant account might be terminated. That would mean you no longer could accept credit cards and that would hinder any business.

What is a chargeback?

There are a few possibilities for a chargeback but the most common cases are:

1) Customer is unhappy with the product or service they were given.

2) Customer is disputing the charge because it was never authorized (I never bought this!).

3) Clerical- Customer is double billed or billed incorrectly.

4) Insufficient funds.

There are variations of this theme such as the customer does not recognize the name of the biller (which is why you should always try to keep the name on the bill the same as the business type).

In most cases a customer can have up to 120 days (depending on the type of card) to chargeback a transaction and/or they have an issue with the product purchased.

10 tips to avoid chargebacks:

1) Avoid Clerical Errors

Make sure you are careful about the information you are using when billing the customer

Visa has some great tips here

2) Use Your Company Name on the Bill

If the customer does not recognize the name of the company for the charge they are more likely to charge it back due to fraud or unauthorized use.

3) Get a Contract

Basically make sure you have an agreement signed for the product or service you provide. 

If they signed off on it, it will be hard for them to dispute it.

4) Dispute it

If you think the chargeback is unfair or fraudulent it may be worth fighting (if you have time) and dispute it as each chargeback has a fee associated with it.

5) Protect yourself against fraud

Many companies won't ship out items if they don't match with the billing address or if the security code is wrong. They might then  contact the customer to verify the purchase is legitimate.

6) Don't Wait

If your company is notified about the chargeback it would be best to contact the customer right away and resolve any chargeback disputes.

7) Clarity

Be clear about the service or product you are selling! Don't lie or leave out things about your product or service as that is one way to almost guarantee the customer will chargeback.

8) Policies

Make sure you have clear return/refund policies stated on your website or store. This way there are no misunderstandings and you are less likely to have a dispute.

9) Call Me

Make sure the customer knows how to contact you. If your phone number is readily available on the bill the customer is more likely to call first then charge it back.

10) Set the right expectations

If you provide truthful expectations about your service or product you are less likely to have a dispute. A great example: Delivery dates or stock availability.

EMV Credit Card Machines

If you have a merchant account and especially if your have a credit card machine you may have heard about EMV technology. 

EMV stands for Europay, MasterCard and Visa, have developed new technology to increase security with regards to transactions.  As a result merchant's using credit card terminals not offering this technology will bear the responsibility of any fraud as of October 2015! EMV credit card terminals can be expensive and it would be smart not to get stuck with a lease where you usually end up paying 10-20 times what the credit card terminal is actually worth. There are processors that will offer free emv credit card machines. Most companies offering free credit card terminals may  have a contract so make sure the one you choose does not or you may get stuck with hidden fees. 

Here is some more information on EMV: 

The deadline is fast approaching for businesses to transition to EMV card technology. 

WHAT IS EMV?

EMV cards contain a chip, in addition to the traditional magnetic strip, that is used to transmit data. Unlike standard magnetic card, EMV cards create a unique transaction code every time they are used. Each code can only be used once, making fraud more difficult and less likely to occur. 

WHAT IS THE PURPOSE OF EMV?

Create Universal Standards EMV has been around since 1992 U.S. is one of the last to adopt the card technology Makes traveling and doing business overseas easier Increase Security U.S reported $11 billion in credit card fraud in 2013 (Almost half of the world’s credit card fraud) EMV can help protect both consumers and businesses Fraud losses for brick and mortar retailers dropped 60% in the UK after adopting EMV technology

HOW TO PROCESS EMV TRANSACTIONS

EMV is a card-present technology that can be processed several ways.

Contactless Those individuals with NFC enabled cards (dual mode) can tap the card in front of a NFC enabled POS device and then provide either a PIN or signature. Chip & Pin Insert the card into a POS device which keeps the card until a PIN number is provided. (Most used worldwide) Chip & Signature Instead of providing a PIN to complete a purchase, this process just requires a signature. (Most likely to be implemented in the U.S.) Chip Only If a transaction is under a specific floor limit, neither PIN nor signature may be required.

UNDERSTANDING THE FRAUD LIABILITY SHIFT

Mark Your Calendar for October 2015 While each card payment brand (Visa/Mastercard/Discover/American Express) has their own unique description for the changes in liability, all agree that beginning in October 2015 when a fraudulent transaction occurs, whichever party (Merchant/Processor/Card Issuer) is the cause of the contact chip transaction not occurring will be held financially liable for any resulting card present counterfeit losses.

Responsibilities By the end of 2015, an estimated 70% of credit cards and 40% of debit cards in the U.S. will support EMV Merchants are responsible for having and EMV-compliant terminal Merchants are responsible for working with their Processor to ensure that the terminal is capable of accepting EMV transactions

PREPARING YOUR BUSINESS FOR EMV

When it comes to preparing your business for EMV adoption and standardization, the countdown is on. As a retailer, your first order of business should be the development of a detailed, time-sensitive EMV roadmap. Use it to outline the steps you'll take to be in compliance by the time October 2015 rolls around. By having everything upgraded and ready to go ahead of time, your business will be prepared to meet the requirements and ensure that you are not held liable for fraudulent transactions.

Sources

http://www.cardfellow.com/blog/emv-smartcards-ready-or-not-here-they-come/ 
http://www.foxbusiness.com/personal-finance/2014/07/10/8-faqs-about-new-emv-credit-cards/ http://www.nilsonreport.com/publication_chart_and_graphs_archive.php 
http://www.smartcardalliance.org/publications-card-payments-roadmap-in-the-us/ 
http://myfw.com/2014/06/18/emv-changing-way-business/ 
https://www.javelinstrategy.com/brochure/314
http://www.cardhub.com/edu/credit-debit-card-fraud-statistics/

Many companies getting ripped off in 2014

It's 2014 and businesses are getting in gear for the new year. The problem is that many companies don't even realize how much they are "actually" paying for credit card processing. The merchants statements provided by most processors are designed with one thing in mind: to fool you. They are afraid that once you realize what you are truly paying, you will go elsewhere. This is why so many processors will attempt to lock you into a contract, usually for 3 years. I have seen companies like Bank of America charge non-qualified cards (business credit cards) at 14% and the business had no idea! The important thing is first, never sign a contract (say it again, this time with feeling). The second thing is, find out if your processor is  hitting you up with hidden fees. Starting the new year is a good time to reassess your bills and make sure you are not overpaying for services. For many, merchant services should be the first place you look to for savings. On average Prestige Merchant Services has saved companies 20-50% off their current monthly merchant service bill. Unlike other processors, they will give it to you straight and if you actually have a great deal they will tell you there is no need to switch (unless you are getting crummy customer service, in which case you probably should). If you want to make sure you are not overpaying on merchant services and like the idea of possibly saving thousands for the upcoming year, get a merchant statement and contact a reputable merchant service provider for better rates. They have professionals that can make sense of those difficult-to-read merchant statements that usually will give a forensic accountant a big headache.

High Risk Credit Card Processing- Not Easy to Find!

Most companies can find it difficult to get approved for a merchant account if they fall into the category of High Risk. Many processors are unwilling to deal with companies that deal with firearms, travel, e-cigarette, tobacco, Adult products, weight loss, ticket sales, debt consolidation, TMF, dating websites, credit repair, collection agencies and more! You may have trouble finding a reputable company that won't treat you fairly until now. For High Risk Credit Card Processing you can contact Prestige Merchant Services. They handle the highest risk merchant accounts so if anyone can approve them, they can.

Square UP Payment - Big Problems for Serious Businesses

Square is a mobile credit card system that took the wireless merchant service industry by storm with it's free swiper and no monthly fees. The questions is, are they the solution for anyone wanting to accept credit cards? The answer seems to be no.

Risk:

Square is not a bank but rather "money mover". As they don't require any credit check they can't truly asses your risk of going bankrupt. This then translates into longer time frames for deposits, usually several days to as much as several weeks. I have heard of merchants being told  they will have a 30 days freeze on their account due to their dollar amounts being larger
than what Square wanted to handle and other various possibilities.

Rates:

Square's rates may seem low as they have no monthly fees but their rates are much higher
than interchange rates and can be as much as 3.25% for keyed in. Many people have reported
that they have a tough time getting the swiper to work at times (hey it is free) and then have to key in and pay 3.25% which is much higher than the true interchange rate


BBB Report:

Although the BBB reports Square as an A- complaints are gaining to almost 500 complaints.

Customer Service: There is practically none when it comes to Square and it is reported that if you call it will probably  go to voice mail. Many customers complain about the swiper not working often. If you are serious about mobile credit card processing try going with a true mobile credit card processor.

Processor is Sued by Merchant over $28,000

I was not surprised to learn that EVO Merchant Services was sued by a plumbing business:

 GALVESTON – Parker & Pompa Inc. has filed suit against EVO Merchant Services LLC, Discovery Bank, Discover Financial Services and Do It Best Corp. in an effort to recover nearly $30,000 in back credit card payments. Recent court papers filed Oct. 8 in Galveston County Court at Law No. 2 explain that the defendants failed to remit $28,490.97 generated from Discover Card charges from the plaintiff’s customers from Oct. 7, 2008, through April 9, 2009. The suit shows the complainant, doing business as Ideal Plumbing Co., entered into a contract with EVO, doing business as Bank Card Depot Inc., which called on the former to submit information pertaining to Discover Card charges made in Galveston County during the special time period. In turn, according to the agreement, EVO promised to acquire and process the charges. Meanwhile, the plaintiff and Do It Best executed a contract to which the latter agreed to accept the funds released from the proceeds in question and place them in an account attributed to the complainant as well as disburse and forward the subject money to the former. EVO received written statements itemizing the dates and amounts of the aforementioned charges and forwarded the documentation to Discover Bank and Discover Financial Services, which supposedly processed the information and gave the amount in dispute to Do It Best, the suit states. Parker & Pompa alleges it did not get the $28,490.97, insisting the defendants “have failed and refused, and continue to fail and refuse” to pay. Attorney Michael L. Wilson with Rider & Wilson in Galveston is representing the complainant, and Galveston County Court at Law No. 2 Judge Barbara Roberts is presiding over the case. Cause No. 68,458

Evo has many complaints listed against it. I happen to know they have some of the most corrupt practices
when it comes to hidden fees and padding their pockets.

VeriFone Copying Square's User Agreement?

It's really pathetic when an established company like VeriFone attempts to steal it's user agreement almost word-for-word from it's competitor. When VeriFone was notified of this copyright infringement they took quick action to modify it and shaved down their user agreement quite a bit. As per Gigaom:

“When we said that Square made it easy to swipe, we meant credit cards,” said Square spokesperson Aaron Zamost. Sean Kane, a member of law firm Pillsbury’s social media, entertainment and technology team, said a company caught copying another firm’s legal user agreements or terms of service could be sued for copyright infringement. But that is rarely pursued when it comes to terms of service and user agreements. It is still an issue, said Kane, because companies who copy a user agreement or TOS could be accused of fraud if their service actually differs from the user document. That could be a problem now for VeriFone, which now has a slimmed-down user agreement that doesn't address many key points about the service.

The truth about Intuit Go Payment

The bottom line is this:


When things look to good to be true, they usually are.


Here is what an Amazon reviewer stated about Intuit Go Payment:

I got this app as it seemed to have more competitive pricing than Square. For a $12.95 monthly fee I am in the lowest rate program available: 1.7% for swiped transactions, and 2.7% for manually entered. However, I am always charged between 2.7 and 3.7% plus a transaction fee. The reason given is that the cards I am charging are "reward" cards of some type. So I get charged the low fee and at the end of the month every transaction I have ever made has at least 1% added to it. I know many of these card are not reward cards, although the vast majority of cards nowadays are. Customer service has been as pitiful as other processors I have used. 




These are just some of the reasons to use a reliable merchant service provider who will not hide fees and lock you into a contract.

Beware of Bait and Switch Rates!

As mentioned previously, when  looking for a competitive deal on a merchant account, beware! It's good to know that I'm not the only one warning people about the pitfalls of "teaser rates". Like anything in life, "if it's too good to be true, it probably is". If you have learned nothing else from reading this blog it should be this: Never sign a contract! The rate should also not be the only determining factor in which merchant service provider you choose. A merchant account is a very important aspect of your business and if something goes wrong, you want to know you are dealing with a company that can service you well and quickly. It is very unusual to get the deal you are sold and that's because the hidden fees will keep you in the dark. Make sure you do your homework and pick the company you are most comfortable with. This will help you in getting a true
deal on credit card processing.

Merchant Service Providers: What Have They Done for You?

Most credit card processors are good at one thing: deception. This is one of the main reasons I started this blog. I wanted to expose the myth of what businesses think they are getting as opposed to the deal they actually got. As I mentioned previously, most companies really don't know what they are truly paying as the statements you receive seemingly require a forensic accountant to figure out. There is a reason the majority of provides have a 3 yr contract that they may or may not tell you about. They don't want you to know about all those hidden fees and they are hoping if you do figure it out, it will be too late as the contact has you locked in.


All this aside, what are these processors really doing for you other then eating into your bottom line? Prestige Merchant Services is the only merchant service provider that offers a way to expand your business at no cost to you. They offer free SEO (search engine optimization) consultations which can be essential especially for small and medium sized businesses. Perhaps you have a nice website but how easily can you be found online? Are you on the first page of Google for all the major keywords in your industry? These are just some of the questions Prestige can assist their customers in. Need a website? Let Prestige assist in setting one up for you at a very competitive rate. This is truly ground breaking within the industry and you should be sure to contact them for more information.

News: Small businesses are getting ripped off

Fox News has an article and video that discusses how small businesses are getting ripped off bycredit card processors:

"I'm almost embarrassed I fell for their scam," said hair salon owner Magic Munson. 

She was approached by a salesman representing a company called Payment System Corporation who promised the halve her costs for processing credit cards and debit cards. It's a strong pitch to small businesses that are struggling in a bad economy.

But after she signed up, the company couldn't help her hook up several card swipers. She began getting bills even though the machines weren't hooked up.  The salesman was nowhere to be found and the friendly faces pictured in a list of customer service representatives were missing in action.

"If you try to call any of these people, they'll put you on hold. It's a fight to talk with a real person. i was on hold for 20 minutes (once) and after 20 minutes, they just hang up the phone.  She also began getting bills for services that she never used and was denied refunds that were promised.

There are  a 2 things one should take from this article that differ from what the article implies:

1) Never sign a contract! If there is no contractual obligation you will never have an issue going elsewhere, which should make the company you are with bend over backwards to keep you business by servicing you and doing it well. It will also make it less likely that they are hiding fees.

2) If the rates you are being quoted seem to be good to be true...they probably are.

Rates like 1.09% for credit cards are simply impossible as that is below the actual cost.

Be careful out there and only deal with the most reputable company.

Although few companies have  a no contract policy a merchant service provider that advertises as such is Prestige Merchant Services.