We reached out to Eigen and they didn’t provide comment on the article, but there’s a convenient link that would seem to buttress our position.
As a whistleblower site of sorts, we had a number of Eigen merchants write in to ask for our assistance in parsing some recent Eigen communications.
These communications, some of which are pasted below, can be summarized as such:
- Eigen is increasing rates on its merchants
- If the merchant moves to Shift4, they “get value”
Everybody with a brain knows precisely how Shift4 (aka Shaft4) makes money, here’s how they would explain it:
- Induce merchant into an agreement
- Ensure that the one-sided agreement forces the merchant to waive claims for any damages
- Increase fees on merchant in perpetuity (unlimited evidence if you care to look)
- Repeat
So a merchant can experience a little displeasure with Eigen now, or an eternity in hell under Shaft4…
Here are some of those Eigen communications. Note that while they look the same at first blush, the rates are different.
Why?
Who the hell knows.
Maybe they’re A/B testing a new greed feature?
We love the consistency though:
- Tell the customer they’re valued
- Send the communication after the clock has already started on the fee increase (i.e. the communication was sent in December for a fee increase starting in… December)
- Mention all the great table stakes “features” the merchant will get from Shift4
- Completely gloss over how hard the merchant will almost assuredly get boned given Shift4’s precedents. If the merchant thought 5 bps and $150 was high, boy are they in for a surprise
The best part is that Shift4 doesn’t even wait to increase fees.
Just look at how they rolled out their fee increases after buying Givex.
And don’t get us started on the Revel merchants who are reporting fee increases.
Eigen merchants need to start scouring the streets for empty petroleum barrels before it gets much colder: they’re going to need them to keep a hobo fire going for the Yuletide.
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