Credit Card PCI Compliance Letter

[Will Handley]

Cash works!  We'll need to bone up on whatever currency we'll be using in the future:

1.  Yen?
2.  Euro?
3.  Ruble?
4.  Peso?
5.  California IOU?

My guess...... the Euro!

[Louie Flores]

Will, we go to the EURO I wonder if I would have to buy a new currency pen?

[Robert Hutchinson]

Dominic, we need to find out from Jay, due to this increase in pricing for merchant services, whether we can cancel our affiliation with them without penalty or any additional money owned to them. In that this was not in the original contract.  I do not care that Merchant Services is not getting the $10.00 per month, I just do not wish to pay to anyone $10.00 per month for something that is unnecessary for my business.  Cash and checks work fine for me and credit cards was just frosting on the cake and if my client forgets their checkbook, then they do not have a report until they pay.  I have never had a client not pay me.  As a matter of fact, I always ask for the check/cash before I start the inspection.  No money, no inspection and I go home unless I judge that the client is trustworthy, but still no report until I get the money.  As said, all of my clients in the past 4 plus years I have been inspecting homes, none have not paid either on the spot or a day later.

[Dominic Maricic]

Dominic, we need to find out from Jay, due to this increase in pricing for merchant services, whether we can cancel our affiliation with them without penalty or any additional money owned to them. In that this was not in the original contract.  I do not care that Merchant Services is not getting the $10.00 per month, I just do not wish to pay to anyone $10.00 per month for something that is unnecessary for my business.  Cash and checks work fine for me and credit cards was just frosting on the cake and if my client forgets their checkbook, then they do not have a report until they pay.  I have never had a client not pay me.  As a matter of fact, I always ask for the check/cash before I start the inspection.  No money, no inspection and I go home unless I judge that the client is trustworthy, but still no report until I get the money.  As said, all of my clients in the past 4 plus years I have been inspecting homes, none have not paid either on the spot or a day later.

This is already being worked on by Jay's boss. I'll know more after the weekend. Our attorney says you should be able to cancel the contract and I've let First National know this. They're confirming it themselves and getting back to me with a method to proceed.

[Robert Hutchinson]

So, did we get an answer from Jay as to how to cancel our Merchant Services without a cancellation fee?

[Dominic Maricic]

Their answer is that it can't be canceled without paying a cancellation fee as their agreement allows for an increase in fee. Can you fax me or scan a copy of section 5 in their booklet? I can't find mine and these are the reasons a contract is allowed to be canceled. Fax number is 888-750-4777. I need the info for our attorney to look over.

The PCI compliance is also extremely hard on us. We're having to pay $5,000 a year to be the gateway for you guys to process cards though even though we don't charge you guys for the service! This is direct from Visa: http://usa.visa.com/download/merchants/Agent_FAQ.pdf

[Dominic Maricic]

For those who are continuing to us the processing, here's a press release from another US Bankcard showing how all the banks are having to go through this: http://www.prweb.com/releases/bankcard/services/prweb2943124.htm . You can thank Heartland Bank, Barnes & Noble and a few others for getting hundreds of cards hacked.

[Bill Warner]

Dominic,
Are you continuing the service then? If so, I need to find my paper work again and get things rolling.

[Dominic Maricic]

I'm not 100% sure about that yet. I'm still trying to find out if there's a way around us paying the $5,000 a year as I don't want to have to pass that on to you guys in some way by increasing any prices. I'll let you know shortly as I'm still waiting to hear back from them on my latest round of questioning and need to talk to Visa directly.

Bill if you have the booklet part of the agreement (not the contract), can you fax me or scan a copy of section 5?

[Bill Warner]

I surprisingly found it...
Will be headed your way shortly.

[Dominic Maricic]

Got it, thanks!

[Robert Hutchinson]

Sorry Dominic, I could not find my booklet.  I am glad that you got a hold of one.  So, here goes, and I AM NOT DIRECTING this to you, Dominic, in anyway!!  I am finished with ALL credit card processing institutions!  The one I had before I got started with home inspector pro, screwed me over with their bank charges.  I had to pay to get out from under them.  Now, I thought that I smelled a rat when I signed up with Jay. I should have followed my instincts.  I believe that if Merchant Services were truly on the level and they say that this new charge is not by them and that it is being forced upon them and that they are NOT capitalizing on it, then they should have no issues with those who want to cancel their services.  In that they are forcing the cancellation fee on us, surely shows that they ARE involved monetarily for profit with this new charge.  They are crooked and a disgrace to the financial market.  And I DO NOT CARE if this goes directly to Jay, because I feel that he has misrepresented us all on the benefits of Merchant Services.  Merchant Services is screwing us and I am not going to stand for it.  I am going to find my contract and take it to my lawyer. I am canceling my Merchant Services account and I am removing the payment page from my website.  I refuse to ever use their services again and I will be contacting the Better Business Beaural on this issue.  I think that we should all form a class action law suit against Merchant Services with their refusal to let us cancel without paying them a fee.  I am really angry about this and if there is a way to beat them at this game, I will DO IT!!

[Dominic Maricic]

I totally understand Robert. I do know that the PCI compliance requirement is being forced upon the banks and they have to make sure their merchants (inspectors) are compliant. The company they chose, Trustwave is by far the cheapest I've found (and I've been looking). Like I stated, paypal will be charging $360 if you're using their virtual terminal for their PCI compliance.

I do agree with the fact that you should be allowed to cancel your contract though with this new fee being added and have been talking with the bank for the last few weeks about it. I do hope they will allow it and avoid angering more of our users.

[John Harrison]

I was wondering how all of this would be affecting each of us that are using the service. I would be fine with not having the payfuse login ability. I really would rather not have to personally handle credit card information.

Do they establish your fee of $5000 based on the number of transactions that are processed through your server or how is this decided?

So far within my inspection business it has been nice to be able to accept credit cards there are some clients that I have not personally met. Payment was made online, report was sent online end of transaction.

If there is no work around then I too may be looking toward a direction out of the contract.

[Dominic Maricic]

Yeah, less than 600,000 transactions is $5,000, over that is like $20,000. Of course we're WAY below 600,000 transactions a year.

If you're using the service, then the $15 a month total is still cheaper than you'll find anywhere else. Even if they just enter the data into your site, they want the site scanned & compliant. That was one of my pet peeve's since it's our server we should have one charge if the guys didn't want to use payfuse.

[John Adrian Sopher]

I have to say, I am willing to pay the fee.  I think 40-50% of my business is from credit cards.  Those are powerful numbers!!!

[Dominic Maricic]

Yeah guys who publicize it and guys in certain areas (like California) will use it a lot more than others. Quite a few inspectors have correlated it to an increase in business too as Bill Warner also stated.

[John Adrian Sopher]

I don't know that it increased my business or not.  I'm so new that just one more inspection is an increase in business!!!  LOL

[Louie Flores]

I must be the unlucky one I have been getting paid Cash as of late. I have only had 3 ask to pay with credit card and I offered them Paypal no problem. I do get a quite a bit I bill there Escrow.

[Bill Warner]

I plan to continue with the service.  I continue to offer PayPal as a payment option but routinely have clients who refuse to use paypal for one reason or another. The increased fees are still nominal in my opinion to be able to offer clients a convenient payment option during a time that seems to ask that the clients spend a lot of money (and often cash) in a relatively brief period. I don't like to bill to closing since there are too many unkowns that can prevent me from being paid. I maybe do it twice a year and only for clients who's realtor I know and trust.