We became aware last Friday that Omnifund started charging resellers clients using their gateway 6 basis points on their total credit card processing volume.
To top it off, they are corresponding with our merchant services clients, asking for processing statements, and telling them they can switch to them and eliminate the fee increase. This type of practice is unheard of in the industry.
We’ve done business for many years with multiple gateways, and have never seen this happen. Gateways and ISO offices have had an excellent, cohesive relationship in this industry, mutually helping each other build their businesses. We’ve never encountered a gateway service that threatens our merchant service portfolio by marketing for our clients to switch
Here is what they are sending our clients who inquire about these fees.
Your sales office opted to pass those costs along to you. When these changes were proposed, they had the option to 1) lower your costs at the processing level, 2) switch you over to our secure tunnel (no increase in costs), or 3) pass the increase along to you. They chose the latter.
To switch to our secure tunnel would require you to change processors. We would have you send us your latest processing statement and we would match the pricing you currently receive. Once moved over, the 6 basis points on the gateway would go away.
I hope you will read through the letter and try to understand why these increases are necessary. Regulation and policy changes from the PCI council have caused compliance costs to over double since last year. Breaches are rampant and data security urgency is at an all-time high. We take the security of your information and that of your customers very seriously and must implement the changes to keep everyone safe.