North American Bancard Complaint - Credit Cards - Merchant Services (Credit Card)
ST. PETERSBURG, FLORIDA -- As a small merchant selling a few books, about a year ago, I was shopping around for some form of merchant credit card acceptance. The salesman at North American Bancard impressed me, and offered me a (low) monthly maintenance fee of $10/month. And that was my primary criteria for going with NAB, since during many months, I actually do no credit card business. Within a half year that rate jumped from $10/month to $25/month. A half year later, and now not doing any credit card business, I called NAB, and tried to end this expensive relationship that was netting me nothing. They told me I had to pay $625 dollars just to terminate. I tried to speak to that person's supervisor over the phone, and the rep would not let me.
He said in the many pages of small print contract that I had signed a year ago: 1) despite being offered and sold upon that $10/month rate, NAB could raise that rate anytime (and at their will); 2) I had signed a three-year contract (and for whatever rate that wanted to raise it to) 3) and to get out of that contract, I had to pay their 'new rate' for 36 months -X months). In other words, had I wished to terminate their contract one month in to it (i.e., almost a year ago), it would have cost me $350 (i.e., $10/month times 35 months). But now, if I want to cancel it today (a year later) it will cost me $625 (i.e., $25/month times 25 months). Hypothetically if I stick with them another year (and they don't raise their rates for another year), I need to pay them another $300 (i.e., $25/month times 12 months) PLUS (and now let's assume they raise their rates again by 250%) ...let's say to $62.5/month for the final 13 months, I'm out another $812.50.
I'm not garnering a single penny sticking with NAB, but I could end up paying them $1,112.5 (i.,e, $812.50 + $300) ...for potentially nothing. What can be done here? ...and please get the word out to anyone else who is considering NAB.