Our clients routinely tell us that they are approached by sales reps who promise to save them money but the rep really doesn’t understand what they are selling. The rep is trained to promise savings, but the merchant has to get new equipment which will be leased. This scam locks your business into a long term 48-60 month non-cancellable lease for equipment that you don’t need and then never delivers any savings. The sales rep then disappears and the merchant is left with a huge cancellation fee to switch their account back and now they have a new lease that they can’t escape with a $50-$100 monthly payment.
So while we’ve known about this scam for awhile, the Federal Trade Commission has formerly recognized it and finally sued a sales office for this deceptive sales practice. Please see the article in Electronic Payments Law for details.
We hope that this lawsuit puts these shady merchant service sales offices on notice the they can’t get away with this scam any more. Leap Payments advocates for our merchants and we pride ourselves on providing open, honest and completely transparent merchant services. We’re glad that this scam has been recognized and hope that the victims get the relief that they deserve.
