You know times are tough when banks – “forthright” institutions that position themselves above the fray of payment bro tactics – are out there pulling payment bro tactics.
JP Morgan Chase added a doozie of fees on this poor merchant, jacking up card transactions by 20 bps and adding 20 cents to their PIN debit costs.
What’s suspicious, however, is that the current rate is listed as 0%.
We can’t figure this out.
Perhaps it was a promotional deal to win the account?
A massive merchant that expects low pricing?
Either way it’s comforting to know that Chase is here to help.
We’re sure this merchant will be super appreciative to be snuggling up with this warm blanket of Chase-help when they’re living in a box on the street because their processing rates put them into insolvency.
Payment Authorities was kind enough to share this with us.
Another violator?
TSYS.
Which is owned by Global Payments.
Which is circling the drain.
So bad, in fact, that we heard a former executive at EVO emailed the CEO of Global Payments to ask Global to stop raising rates on former EVO merchants, as the aggressive price increases were causing EVO merchants to churn, affecting EVO’s earn out.
Classic.
To that effect, see this bad boy.
11% effective rate?
Why, of course!
Granted it’s a very small amount of volume at $11K per month, but by no small coincidence the most egregious payments pricing we’ve ever seen was for a racket club on none other than Global Payments (Open Edge) paying over 10% effective rates on $4M of monthly volume.
That’s the kind of value a merchant can expect when partnering with a payments bro.
By the way, Revel merchants will soon be jealous of these Global merchants paying a mere 11% effective rate after Shift4 gets done with them.
Add comment