Credit Card Merchant services contract....
Discussion
Hi,
Looking for a bit of info for someone. A close friend has signed a (business) contract for a credit card machine through a 'merchant services' company.
The contract advertised good rates and was sold as 18 months, the actual full length contract was later sent through email and states 36 months with heavy charges for any sort of cancellation (no mention of cooling off etc).
It was signed yesterday, and already they are having second thoughts about what they've been sold vs what they agreed to.
What's the deal here? Is it possible to cancel the contract this early? No products or services have actually been supplied as it says can take 21 days.
Any info is appreciated. I don't have much more info or exact contract wording etc.
Looking for a bit of info for someone. A close friend has signed a (business) contract for a credit card machine through a 'merchant services' company.
The contract advertised good rates and was sold as 18 months, the actual full length contract was later sent through email and states 36 months with heavy charges for any sort of cancellation (no mention of cooling off etc).
It was signed yesterday, and already they are having second thoughts about what they've been sold vs what they agreed to.
What's the deal here? Is it possible to cancel the contract this early? No products or services have actually been supplied as it says can take 21 days.
Any info is appreciated. I don't have much more info or exact contract wording etc.
If the contract signed says 18 months then it's 18 months...
However if they were verbally told 18 months, signed an order accepting standard T&Cs with no mention of contract length and its later turned out to be 36 months going to be a tricky one to argue. This kind of sharp practice isn't unheard of...
As always the devil will be in the detail, you need to review the paperwork carefully rather than ask opinions online!
However if they were verbally told 18 months, signed an order accepting standard T&Cs with no mention of contract length and its later turned out to be 36 months going to be a tricky one to argue. This kind of sharp practice isn't unheard of...
As always the devil will be in the detail, you need to review the paperwork carefully rather than ask opinions online!
The rules changed on this in 2014. Previously the hiring of terminals (for card acceptance) was controlled by the OFT but in 2014 it moved to the FCA. The FCA required those companies providing financing (for terminals) to register and applied more strict rules, especially around the hiring of terminals to regulated customers.
A regulated customer is defined as an individual, partnership (3 or less partners) or unincorporated associated. For a regulated entity the maximum contract length is 18 months. The rules also stipulate that the hiring company must adhere to TCF principles, such as clear, fair and not misleading communication / documentation
So if you are a regulated entity, they have to stick to the 18 month contract length for the terminal. Complain to the FCA if they refuse to amend the contract.
Out of interest is the 'supplier' of the contract one of the historical acquirers (Worldpay/Streamline, Cardnet, Barclaycard, Global Payments) or a newer player (payment sense, RMS etc)?
A regulated customer is defined as an individual, partnership (3 or less partners) or unincorporated associated. For a regulated entity the maximum contract length is 18 months. The rules also stipulate that the hiring company must adhere to TCF principles, such as clear, fair and not misleading communication / documentation
So if you are a regulated entity, they have to stick to the 18 month contract length for the terminal. Complain to the FCA if they refuse to amend the contract.
Out of interest is the 'supplier' of the contract one of the historical acquirers (Worldpay/Streamline, Cardnet, Barclaycard, Global Payments) or a newer player (payment sense, RMS etc)?
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