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Merchant Account Scam

Preview: Scammers impersonating merchant service providers claim your Visa or Mastercard account is red-flagged. They use high-pressure tactics to steal financial information or sell unnecessary services. Hang up. If worried, contact your provider directly.

I frequently get calls from companies claiming to be trying to fix my merchant Visa and Mastercard account, which was red-flagged. I hang up on them; however, they are pretty good con men and women. In the future, rather than hanging up, I'm going to say I'll get the person in charge of the merchant account and then just leave the phone off the hook. That way, it'll waste their time, but not mine.

This is a well-known scam. These calls typically involve scammers claiming there's an urgent problem with a merchant account credit card processing or that your account has been "red-flagged” or "suspended.” The key red flags are:

Why it's a scam:

• Legitimate payment processors (Visa, Mastercard, or your actual merchant service provider, which is Square in my case) would contact you through official channels—typically your registered email, written notice, or through your account portal.
• They wouldn't use high-pressure tactics or unknown third parties.
• Real issues would be communicated by the company you actually have a contract with.

What scammers are after:

• They're trying to get you to provide sensitive business or financial information (account numbers, banking details, SSN, EIN)
• They may try to sell you unnecessary "services” or "fixes.”
• They might attempt to gain remote access to your computer or systems

What to do:

• It is recommended to hang up immediately, which I've been doing, but I think leaving them on hold while I do other things might be better.
• If you're ever uncertain, contact your actual merchant services provider directly using the phone number on your statement or contract—never use contact information the caller provides
• You can report these scam calls to the FTC at https://ReportFraud.ftc.gov

I've been getting so many of these; I wanted to let you know to be alert for them.