HSBC merchant accounts – those credit card terminals used by small and large merchants – have been charged $69 per merchant, effective December 2008. Without warning all merchants are charged a $69 compliance fee. Not only did HSBC assess the compliance fee, but then HSBC does not accept responsibility for compliance. Here is what they said:
“…for our valued customers. New mandates, most often referenced as payment card industry data security standards (PCI DSS) have been enacted to protect cardholder data, and the entire credit card processing payment system. Compliance with PCI DSS and related state and federal mandates are your responsibility.”
It is typical of HSBC. It is the merchants responsibility, but HSBC charges $69 without warning.
Effective with the January billing cycle, HSBC will start charging merchants using HSBC terminals an extra $9.95 per month as all merchants are automatically enrolled in the new HSBC merchant benefit program – Merchant Advantage.
Again typical of HSBC, the statement was dated 12/31/2008, with the surprise $69 charge, and effective one day after the statement, the new $9.95 fee is effective. There is no opportunity to decline the services or fees.
Also typical of HSBC, if merchants no longer desire to have an HSBC credit card terminal, or cancel their ability to take Mastercard, Visa, American Express and Discover cards under the HSBC agreement with Total Merchant Services the following applies as part of the Merchant Request To Close Processing Account:
“I understand that my deposit account will be debited for any processing fees outstanding. I understand I may incur up to a $295 termination fee for this request.”
HSBC has merchants under pressure. A surprise $69 compliance fee, a new $9.95 per month assessment, and a threat of $295 just to make HSBC go away. I opted too make HSBC go away all together, even if it does cost $295. The minimum monthly charge through HSBC and Total Merchant Services was $40 a month even if the merchant did not process any payments that month. The cost will increase to $49.95 in January 2009.
(Monthly cost are approximate, based on which cards are accepted at the merchant location)
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