Don't Get Taken!Don't Fall for Lies & Scare Tactics!
- USMPS
- Apr 15
- 3 min read
Updated: 3 days ago
 Today, a disturbing trend has emerged: unethical payment processors exploit businesses using scare tactics and misleading information.
These predatory practices can lead to significant financial losses, compromised security, and a host of other damaging consequences.
The world of payment processing is essential for modern commerce. However, it can also be a murky and treacherous landscape. Merchants must navigate this space with vigilance and a healthy dose of skepticism.
The tactics of these unscrupulous actors are remarkably consistent. They initiate contact through unsolicited phone calls, weaving tales of overpayments, security breaches, or regulatory non-compliance. They might claim they are currently processing your payments when, in fact, they are not. They ask for documents and details, things that a legitimate provider wouldn't request.
These tactics instill fear and urgency, prompting merchants to share sensitive information about their operations and payment setups.
The psychological manipulation involved is particularly insidious.
The stories told by these scammers, while seemingly plausible, often lack factual support. They may claim that the merchant's current processor is charging exorbitant fees, failing to meet PCI DSS compliance, or exposing the business to fraud. These assertions are typically vague and rely on emotional manipulation to achieve their goal.
Once fear is instilled, these unethical processors try to extract sensitive information. This includes merchant account details, processing volumes, fee structures, and personal financial data. They attempt to persuade merchants to switch to their services, promising lower rates or enhanced security.
The potential consequences of falling victim to these deceptive practices are severe.
Merchants may find themselves locked into unfavorable contracts, burdened with high fees, or exposed to significant security risks. They may also suffer reputational damage, as customers might lose trust in businesses that compromise payment security.
Moreover, losing sensitive business information can have far-reaching implications. Competitors might gain access to proprietary data, enabling them to secure an unfair advantage. Furthermore, financial institutions may flag a merchant's accounts for suspicious activity, causing operational disruptions.
To protect themselves from these predatory practices, merchants must adopt a proactive approach. The first line of defense is to exercise extreme caution when receiving unsolicited calls or emails from payment processors. Merchants should never share sensitive information without verifying the legitimacy of the caller or sender.
Immediately contact your current payments expert, the person who set you up originally.
It's important to remember that reputable payment processors won’t resort to scare tactics or pressure merchants into immediate decisions. They provide clear and transparent information to help merchants make informed choices.
If a merchant receives a suspicious call or email, they should document the interaction and report it to the appropriate authorities. They should also seek assistance from their existing payment processor, a trusted industry expert. In case a business receives suspicious contact, forwarding the emails or information to a trusted advisor is wise. This allows a professional to review the information and help determine its legitimacy.
In summary, the prevalence of unethical payment processors poses a significant threat to merchants. By employing scare tactics and misleading information, these predatory actors seek to exploit business vulnerabilities. Merchants must exercise caution, conduct thorough research, and maintain strong security practices. By staying informed and vigilant, merchants can navigate the complex world of payment processing with confidence and security.
You can depend on us to steer you straight and be available to help answer questions if you are approached by competitors offering ‘too good to be true’ deals.
Want to set up a time to talk? https://calendly.com/usmerchantpaymentsolutions/15min
Thank you!
Ken Givens Director of Sales U.S. Merchant Payment Solutions LLC
CHECK OUT OUR UPDATED WEBSITE!
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