Cayan processing, one of the largest payment processors in the country, informed its customers that they will be charged a $125 PCI non-compliance fee starting in March 2020 if they are not PCI compliant. The fee is not one-time but monthly. This means customers deemed not compliant with PCI standards will be charged $125 per month every month until the customer becomes PCI compliant. This news comes just a few months after Cayan charged its customers a $125 “infrastructure fee” in addition to a rate increase.
What is PCI compliance and non-compliance?
First, let’s start with the basics. PCI DDS stands for “Payment Card Industry Data Security Standard” (PCI for short) and was created by the card brands to help ensure the security of credit card transactions. To be PCI compliant each merchant is supposed to fill out a questionnaire that shows the systems used to process credit cards are secure. It is not a difficult process by any means. In fact, many processors include PCI compliance with each merchant account free of charge. Note: The card brands that created “PCI” do not charge for non-compliance, but some payment processors, like Cayan, choose to.
Why is Cayan Charging for PCI non-compliance?
That’s a good question since Cayan doesn’t have to charge it’s customers the completely unnecessary $125 PCI non-compliance fee. The company claims that it’s for the security of their systems. This makes sense, but then why wouldn’t Cayan make PCI compliance mandatory with each account? Unfortunately, many merchants are not going to see the notice and will be hit with a $125 PCI non-compliance fee. For smaller businesses, this can be a major hit to their bottom line.
How To Stop Cayan Fees
The good news is that CAYAN is allowing upset customers to cancel their accounts without penalty within 30 days of receiving the statement containing the fee! Here’s what Cayan says in the notice: “IF YOU OBJECT TO THESE FEES, YOU MAY TERMINATE YOUR AGREEMENT WITHOUT PENALTY BY PROVIDING WRITTEN NOTICE IN ACCORDANCE WITH YOUR AGREEMENT WITHIN 30 DAYS OF THE DATE OF THE STATEMENT CONTAINING THIS FEE.”
What to do now?
Fees like these, charged by big processors, are a prime example of why it is so important to find a payment processor that has integrity and transparency. Host Merchant Services makes sure all of its merchants are PCI compliant, free of charge, included with their merchant account. Beyond that, there are no hidden or surprise fees ever and merchant’s rates are locked in for life. That means we will never turn around and charge our customers unnecessary fees or rate increases. Finding the right processor can save a lot of time and hassle. If you’re upset and looking for a straight forward solution Give Host Merchant Services a call (877) 517-4678. You will be pleasantly surprised by the high level of service, low cost, and no obligations.