Forum Moderators: buckworks
(not necessarily negative)
1. I had to pay $500 to sign up with them. I was new and did not know that all other companies don't charge a sign up fee.
2. My name, phone and address was misspelled on my card and in my account and it took them a long time to completely correct everything.
3. CSI always raises the "discount rates" without prior notice. Every year I have to negotiate the rates down and every time they promise the rates will not go up anymore, yet every year the rates go up without prior notice.
4. Several years ago a very mysterious "annual compliance service fee" was invented and charged to my account. At the beginning it was like $30-$40 but every year it almost doubled. Last year I think it was $70 and this year it is $120. Not a good thing to do during such a slow economy. They say that every merchant pays the same "annual compliance service fee" which means every merchant this year was charged a $120? Please post if you were not charged, were charged less or more. Break-up of what's included in the fee is not provided. Justification and explanation of such steep increases was not provided as well.
Otherwise a pleasant experience. Their customer service is very friendly and usually helpful although not necessarily always knowledgeable or professional all the way.
Like you, when I first signed up several years ago I was a novice with ecommerce and hit with several nonessential fees - and nothing was "free".
Also: we should demand a break-down of the costs, fees, whatever is involved in that $119 annual compliance service fee and a justification of such steep increases. I demanded a break-down and a justification, but they could not provide any paper written document other than verbal information "round about" which I understood that we are paying for our business security etc., which should actually be included in the gateway processor monthly fee, by my opinion, even if a higher monthly fee. Also I was told this is associated with company called SECURITY METRICS and also with PCI - Security Standards Council www.PCISecurityStandards.org (I hope webmaster allows this link as this is important to merchants to look up and it is not a commercial website neither am i associated with it).
I also think it could be one of those things like "US cross-border fee" and "access fee" new fees that Visa, MC, Discover etc. have recently invented to cover up their CEO's high salaries and increasing profits.
And where are the benefits for merchants for paying up more? CSI says that our businesses are more secure, yet we are the ones who take care of our own security installing security certificates, checking orders for fraud and occasionally dealing with break-ins, hackers and viruses.
Also CSI was unable to provide any written or online information to read about the subject other than the abovementioned "PCI" website.
Why don't they post a clear information (if not a break down and justification) on their website so all merchants could read it instead of calling CSI and wasting precious time for both parties.
I was also suggested to contact PCI and Security Metrics to find out more about the "annual compliance service fee". Last year, I remember I was told that VISA Corporation were the ones to be contacted about this mysterious fee. I did contact Visa, although it was quite an ordeal to find Visa contact phone for the "right" department. All I received was a run around and at best they told me they had no idea about such a fee and they (Visa) said if there was one then my processor provider (CardService Intl.) should be the ones to contact. Does it sound like a typical bureaucratic push-around?
We have to come together and if not decrease this fee, then at least make them (CSI, PCI, VISA, AMEX, MC etc.) post a clear break down and justification of this "annual compliance service fee".
As far as the compliance fee, contact your agent - he / she is probably getting a residual income from your account and should be able to help you. If not, then consider getting another merchant account provider unless they will allow you to switch agents (usually First Data will not to help stop agents from stealing other merchants by giving them a lower discount rate). You should have received a letter giving you information on how to get a quarterly scan (as required for Level 4 Merchants by MasterCard). You can go to another provider as well for that scan, but I do not know if the fee will be reduced from First Data (Cardservice).
Of course, don't forget to complete the questionnaire as well, which is required by both Visa and MasterCard on all Level 4 merchants.
There are at least a hundred or so ASV (approved scanning vendors). Whatever company you choose, make sure they are on the Visa / Mastercard ASV list, otherwise it will not help you.
And if your business if good, contact your agent every 6 - 12 months for a rate review. Chances are, your volume has increased and your chargebacks are low - you deserve it. Of course, if your volume is ever going to be over the amount that you first signed for, then you should immediately contact your agent / First Data to make sure there will be no problems in processing.
