Beware!!! 16% of our gross in 2008 was stolen Leaders for hidden fees and charges.
We run a small handcrafted jewelry business.
When I signed up for the Leaders Merchant account they told me the monthly fee would be $10.95 a month if I didn't make $25.in credit card sales. Plus 2.19% per credit card and. 20 per transaction and that would be it. Sounded reasonable so I signed up. But that was NOT the deal.
In one month were we had $1,042.in credit card sales we were charged $89.in fees from Leaders. That's 8.5%. The monthly "Merchant Statement" from Leaders read "Total Charge to your Account— $26.57". But when I looked at my bank statement the fees from Leaders totaled $89.03. On the bank statement there were imprinter, service pcc, MTOT discount, online access fees totaling $62.46 that were not on the Leaders monthly statement.
In other months when we had no credit card sales we have been charged $71.03 for imprinter, service pcc, MTOT discount, online access, dormancy fees.
I called Leaders to get an explanation of the charges and they offered to reduce our rates, not an explanation of the fees. When I called again to get an explanation of the rates I was told the reduction had been taken back.
I was switched to Customer Care and again asked for an explanation of the fees. Was put on hold, then offered a rate reduction. When I said I NEEDED an explanation of fees they told me to fax my bank statements and they would get back to me.
I faxed to bank statements but did not receive a call. So I called. The Customr Care agent was not available. I was todd she would call me back. "After she came in over the weekend to review my statements." She didn't call. I waited a couple of days and called back. She was busy. I left a message. She did not return my calls.
Finally, after two weeks — many calls and lots of time trying to get an explanation of the fees on my bank statement, I was transferred to a supervisor. He did not explain the charges but asked if I wanted to cancel the account. I said YES, if there is no penalty. He verbally agreed.
But I still wanted to know what the charges were for. Finally a service rep explained. The bancard MTOT is a monthly fee they charge for not hitting a minimum amount of sales Leaders sets for the account. Mine had been set to $1,500. So because I did not have $1,500.in sales, they charged me $30. Or more monthly, a $10. Statement fee and a $3. Security fee. If there are no sales in a month.in addition to the bancard MTOT fee the following month the account is charged a $7.30 dormancy fee. And let me not forget the annual PCI compliance fee.
Of course I've closed the account. Now I'm carefully researching other companies, getting clear explanation of the fees and charges before signing up. I wouldn't recommend Leaders to a masked bandit. I feel like I have been robbed. I have worked countless hours to pay Leaders. What an expensive lesson has been learned.
Ama
Chicago, Illinois
U.S.A.
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