Scam Alert: “Slamming” Watch out for unethical sales tactic by a scamming credit card processing company
WRA was recently alerted by Heartland Payment Systems (WRA’s endorsed credit card processing provider) about a scam targeting restaurants involving deceptive sales tactics. This scam is being perpetrated against restaurants using many different credit card processing companies, not just those using HPS.
What to watch for
Be on the lookout for a company using an unethical sales tactic known as “slamming” in which its telemarketing staff calls merchants (like restaurants) and poses as their current merchant services providers. The standard interaction appears to be that the company’s telemarketer neglects to specify that they are not your current provider. The telemarketer then insists that you need to replace your credit card processing equipment in order to remain compliant with a new change instituted by Visa or MasterCard. Businesses who fall prey to these tactics and fail to accurately determine that the phone representative is not their current provider will then sign up for a “replacement” terminal, only to unexpectedly find themselves in a lengthy, expensive equipment lease.
How to respond
If you receive a call from anyone other than a verified employee of your current credit card processor requesting to do an “update” to your processing equipment – do not allow them to move forward. Call your credit card processing company, or your HPS relationship manager to confirm legitimacy. The HPS number is 866-976-7201.