Posted on 07-29-2013
Over the last few months, I've received an alarming number of clients contacting me because they received a "better offer" from their bank, Wells Fargo. As a personal account manager for every one of my clients, my main job is to provide constant customer service to keep my clients happy, including price-matching (or price-beating) any offer that comes from a competitor. I make sure my clients are aware of our guarantee to match or beat ANY offer from a competitor, which is why they contact me before switching to another company. In the last few months, I've reviewed 4 contracts from Wells Fargo. In each case, the Wells Fargo sales rep was telling my clients they would save "$100-$150 per month" by switching. Here's the alarming part though, not ONE contract verified such claims! In fact, the fine print of EVERY contract actually showed that the rates would greatly increase by switching. How on Earth could Wells Fargo make claims to lower rates, while really raising them?! It's simple. Their sales reps use a very common (unethical) sales approach called "Selling the Vanity Rate." As some business owners know, Visa/Mastercard have many different categories of cards, each with a different cost to the business owner. These categories mean that a business owner might (for example) pay 1.69% to accept one Visa card, then pay 3.59% to accept another one. Any HONEST sales rep explains these different categories and costs to the business owner... Wells, however, does not. In talking to my clients, I discovered that every sales rep had quoted them a "flat rate of 1.59%." When asked about surcharges or hidden costs, the sales reps stuck to their guns and said (repeatedly) that they only charge 1.59%. Period! Of course the fine print of their contracts state otherwise, which I was able to point out to my clients, saving them from making horrible, costly mistakes. The terrible thing about the misleading sales tactics of Wells Fargo is that once you sign up, you're instantly locked in a 3-year contract. That means, by the time you receive your first statement and find out you were conned, it's too late to escape without paying a severe penalty. It's unfortunate that such a large bank has now turned to this strategy of acquiring business, and it only adds to the bad reputation of our industry. My hope is that I can save at least a few people from making the costly mistake of switching their merchant account to Wells Fargo. If I can do that, I will feel like I have done my job!
As always, feel free to call us if you have any questions! - Cameron K. - C.E.O. 866-986-9306
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