IDG Contributor Network: Why do merchants let their payment processors get away with so much?
For decades, merchants have signed agreements that force them to blindly trust their payment processors, to a degree they would tolerate in practically no other business relationship.
What kind of trust? Billing reports spell out how many customers of each kind were charged—at different rates—but there is an absence of verifiable data. If the processor reports that 4,867 transactions were of the highest charge kind of card, how do you know that's true? Did the processor share specific details that would allow you to spot-check them?
This trust opens up far too many opportunities for merchants to be ripped off. Consider a recent lawsuit accusing Mercury Payment Systems of just this kind of abuse.
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