A Neos Merchant Services Sales Rep named Randy Jaffe came into our new, one store business and pitched us on Neos Gift/Reward Card services and a credit card terminal lease with all the regular merchant services. We signed up for a 4 year lease on the credit card terminal and we agreed to purchase a few hundred gift/reward cards from Neos and try out their service on these cards.
We tried their gift/reward card services for a full year (12 months) even though it was beyond our budget for the expensive price of the cards and the $60 per month for the service they provide (which isn't much of a "service" if you ask me). After using Neos' service for 12 months we could no longer afford the cost of the service and cards. The return on this investment was not going well for us and our new, small business is just trying to stay alive during these difficult economic conditions.
So, we decided to discontinue using their gift/reward card service. Neos then informed us that we signed a 4 YEAR contract to just use and pay for their "service" and then sent us a bill for a "early termination fee" of $1,700.
At the time of the sale, the sales rep outlined the terms of the credit card terminal lease, which was 48 months, but then, without us knowing, piggy-backed Neos' gift/reward card service on that 48 month credit card machine lease.
We are a small business; a one store operation. We wanted to try this gift/reward card service to see if it would strengthen our business. We gave it a fair chance (a full year) and then we could no longer afford it. Now, because of a classic "bait and switch" by a dishonest sales rep and the unethical business practices of people of Neos Merchant Services, we are looking at legal/credit issues with this disappointing situation.
We reported them to the Better Business Bureau and offered Neos $300 to make this go away. They declined our offer and countered with demands of $1200 to be paid in 10 business days or they will report this to the credit bureaus. I had to personally sign for all this and so its going on my personal credit report.
BEWARE of Neos Merchant Services as they will do whatever it takes to take your money no matter how bad they hurt you and your small business. They make me sick!
Delray Beach, Florida