Countless businesses fall victim to the unethical “bait and switch” tactics employed by some payment processors. These deceptive practices can have devastating effects on businesses of all sizes.
What is “Bait and Switch”?
Bait and switch occurs when a payment processor lures merchants with attractive, low-cost processing rates, only to dramatically increase fees or change terms once the business is locked into a contract. This practice exploits the complex nature of payment processing agreements, leaving many business owners feeling trapped and financially strained.
Common bait and switch tactics include:
- Offering extremely low initial rates (teaser rates) that skyrocket after a short period.
- Contracts riddled with obscure charges that weren't clearly disclosed upfront.
- Shifting transactions to higher-cost tiers without explanation.
- Pushing unnecessary, overpriced hardware through long-term leases.
- Difficult-to-cancel agreements that renew automatically with increased rates.
Falling victim to these tactics can result in unexpected increases in operating costs, cash flow issues because of higher-than-anticipated fees, damage to customer relationships, and legal issues when trying to exit unfair consequences. This is why it is always important to read the fine print before signing a contract, ask about the payment processor's proposed fee structure, and seek legal help when necessary.
How the Sigal Law Group Merchant Processing Litigators Can Help
If you believe you have fallen victim to bait and switch tactics, make sure you document all communications and fee changes, file formal complaints with relevant regulatory bodies, and pursue legal action for breach of contract or deceptive practices. The Sigal Law Group merchant processing litigators will help you navigate these complex issues, potentially negotiating better terms or pursuing litigation to recover damages.
Don't let deceptive payment processors undermine your hard work. Remember, a fair payment processing agreement should be transparent, understandable, and beneficial for both parties. If you are grappling with unexpected fee increases or contract issues with your payment processor, contact the Sigal Law Group today for a free consultation. They will work tirelessly to protect your business interests and hold unethical payment processors accountable.
