Many merchants experience a troubling pattern in their payment processing agreements that involves the disappearance of enthusiastic sales representatives once contracts are signed. This issue, while seemingly innocuous, can actually carry significant legal and financial ramifications for businesses relying on payment processing services.
Payment Processor Bait-and-Switch Tactics
During the initial courtship of the new client, a payment processing sales representative will typically employ aggressive tactics, bombarding potential clients with promises of unparalleled service and support. Then, once the contract is signed, these same representatives become unreachable, leaving merchants to grapple with unfamiliar systems and unexpected issues.
This lack of support can cause several subsequent issues, including:
· Potentially breaching their payment processing contracts.
· Forcing them to misrepresent their services
· Allowing them to violate consumer protection laws.
The Residual Model Income
At the heart of the disappearing sales representative issue lies the compensation structure for many payment processing sales representatives. They often earn a percentage of each transaction processed by their signed merchants, creating a perverse incentive to prioritize acquisitions over long-term support.
Unfortunately, this can leave many merchants facing things like unexpected fees, technical difficulties, and lackluster customer support on their own.
How Merchant Processing Litigators Can Help
The Sigal Law Group merchant processing litigators understand how frustrating it can be to connect with a sales representative and then have them disappear the moment the contract is signed. If you or someone you know has dealt with this issue, you have options. Your merchant processing litigator may encourage you to do a number of things, including:
· Pursue damages for misrepresentation,
· Seek contract termination with a penalty, or
· File complaints with state and federal regulatory bodies.
It is important to recognize that as the payment processing landscape continues to evolve, so too must the legal approaches to protecting your business from deceptive practices. The disappearing sales representative phenomenon serves as a stark reminder of the need for vigilance and due diligence in an industry where trust is paramount. For help today, contact the Sigal Law Group today for a free consultation.