biskitsandgravie
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posted on July 11, 2002 01:28:35 PM
We tried to place a credit card order with a company that we had not dealt with before.
They asked for our business license. Faxed it over, no problem.
They needed a copy of a driver's license for a person authorized to use the card. Faxed that over also. I also gave them the phone number to the card company if they had any questions.
We then get a fax with an application requesting the following. Without it, they will not accept our credit card.
The List:
Company's latest financial statement
Principles' Home addresses and Phone Numbers
Principles' Social Security Numbers
Principles' Drivers License Numbers
Bank Account Numbers and Bank Phone numbers
They also wanted authorization to charge our credit card if we bounced a check to them or if we returned items that were defective, without their permission.
I told them to cancel our order.
Heck, My mortgage application did not want my drivers license.
I know the information they requested is against Mastercard and Visa acceptance practices. I have never heard of a company doing this.
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creativelabels
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posted on July 11, 2002 02:33:43 PM
Was this payment for an ebay auction? This company doesn't sound legit.
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litlux
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posted on July 11, 2002 02:38:36 PM
When I go to a trade show to buy, I always run into a few companies that seem to be run by lawyers and accountants. It is usually those that market collectibles, have been around for a long time with plenty of established accounts, and not too eager to add new sellers, especially on the internet.
I have a feeling your business was being declined in such a way so as to not tip you off.
If not, then just consider how they deal with you when you order, and imagine if you had a problem to solve with them. Count your blessings. They probably just saved you a lot of grief.
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biskitsandgravie
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posted on July 11, 2002 03:05:32 PM
They have been in business for about 2 years. Most of their business is with internet merchants. They actively recruit emerchants. They sent us the catalog, we did not ask for it.
I go to many shows and have only encountered something similar once. A company wanted us to fill out a credit application for COD.
Our business is apparel. We deal with about 75 shoe brands and 100 clothing labels. Nothing like this before.
Mastercard and Visa will shut down their merchant account for refusing to honor the cards and asking for that kind of info.
liltlux, I think you are right that I just saved myself some grief.
creativelabels it wasn't and ebay auction. I was ordering items for our store.
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shop4shoes
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posted on July 11, 2002 03:34:08 PM
Does their name start with and ends with an "E"?
Located in Orange, California?
If so, they used to be another company. The partners split and each formed their own company. The new companies are worse than the original.
I will call the company that biskits is probably dealing with "E". I will call the other "U".
Service is barely okay at "E". We used to do about $2500 month with them. $4500 during the holidays. We stopped using them a while ago. Screwed up orders all the time. Overcharging for freight. Not issuing credits on items they billed us for, but failed to ship. The credit card thing is standard for them. I know of four other merchants that dropped them because of that.
Litlux is correct. They saved you a lot of problems. Be very careful of "U" too.
"U" is just stinky. I placed a $1600 order with them to be paid COD Cashier's check. They called me 3 days after the order was to be shipped to let me know that had only shipped approximately $600 of it. Why? They said that my average COD orders were $1000 and they were doing this to help me. They split up the order so that payments "would be easier" for me. I did not pick up that order when it came and I have not ordered from them again. I was one of their biggest customers at one point. They call me every now and then to see if I want to do business with them. I don't.
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eyegun
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posted on July 11, 2002 03:54:22 PM
Sounds like a major opportunity for identity theft to me. NO WAY they really need that kind of information, especially when they don't ask for all of it up front. You give them a little info and they keep coming back wanting more....
What kind of business is this- a sperm bank??
I'd avoid them like the plague.
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biskitsandgravie
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posted on July 11, 2002 04:05:00 PM
Shop4shoes, You got it right. That is the company.
What kind of business is this- a sperm bank??
They wanted all of that info for just over $200 of wholesale shoes.
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shop4shoes
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posted on July 11, 2002 04:48:19 PM
Report them to Mastercard and Visa.
They will warn them. If they keep it up they will cancel their merchant account.
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feistyone
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posted on July 11, 2002 07:27:11 PM
If someone asked for that much information from me, my answer would be "no way in hell!"
Finer Fashions on Ebay, top designers, latest styles.
http://members.ebay.com/aboutme/feistyone/
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sn0bbish
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posted on July 11, 2002 07:40:04 PM
i agree with eyegun. there is no reason they would need all that if any of that info. that seems to me pretty much what anyone would need to commit identity theft. i would not give them anymore info and report them to mastercard and visa like shop suggested.
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shop4shoes
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posted on July 11, 2002 08:10:09 PM
You can use the form below.
http://www.mastercard.com/cgi-bin/contactus.cgi?template=ContactUsMV
Store near mine kept asking to see identification when people tried to use their credit cards. Someone turned them into mastercard and visa and their account was terminated. They lost their account near Valentine's Day and it hurt their business. They got another merchant account under the wife's name. They don't ask for id anymore.
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sparkz
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posted on July 11, 2002 08:26:37 PM
The information they are asking for is exactly what an identity theif would love to get his hands on. If you provide them with this info, they could conceivably rack up about 100 grand in charges against you in a few days time. If they can get this info from 10 customers we're looking at a million. What's to keep them from pulling off something like this and disapearing in the middle of the night? There was an Ebay seller that pulled a similar vanishing act recently and the law is still trying to find him. Personally, if they tried to get this type of information from me, I would forward the request to the state attorney general. I smell a big time scam here.
The light at the end of the tunnel will turn out to be an oncoming train.
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biskitsandgravie
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posted on July 11, 2002 08:52:03 PM
sparkz, they are not ebay sellers. They are shoe manufacturers, based in California.
I am going to report them. I am surprised that anyone would give them this information.
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sparkz
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posted on July 11, 2002 09:15:11 PM
B&G,
I understand they are not Ebay sellers. I was referring to thebarry(sp?) as an example of the type of person who would go to great pains to build a legitimate looking front, and then suddenly going for the big payday and vasnishing with the loot. I feel the company you describe fits this profile as there are too many red flags to suite me ( and apparently you too or you wouldn't have voiced your concerns here). The California Attorney General gets paid big money (my tax dollars) to keep these scam artists in check. Make them earn it.
The light at the end of the tunnel will turn out to be an oncoming train.
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biskitsandgravie
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posted on July 11, 2002 09:56:18 PM
It never occured to me that a business would do that. Who is thebarry?
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gravid
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posted on July 12, 2002 05:38:42 AM
Beside reporting them to the card companies I would also send them a letter asking for exactly the same information they want in return in order to do business with you.
It would be interesting to see if they can explain why they are not willing to give what they so freely ask for.
[ edited by gravid on Jul 12, 2002 05:39 AM ]
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biskitsandgravie
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posted on July 12, 2002 06:08:25 AM
I just got off the phone with Mastercard. I told them what happened. The service rep asked me several times, "They wanted all of that to accept your credit card? Are you sure they didn't think you wanted to establish corporate credit with them?"
I read off the items on the application and she said that she was flabergasted. She really loved the part about charging a credit card for bounced checks. She got all of the merchant's info from me. They are sending a letter to the merchant's processor to inform them of the situtation. She said that the processor will warn them to cease the practice. If they don't she said they "won't be accepting credit cards for much longer."
She said that a merchant can not use a mastercard to secure another form of payment.
Doesn't paypal do something like that if you take money from your checking or savings to pay someone?
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shop4shoes
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posted on July 12, 2002 12:11:40 PM
Good for you Biskits.
She said that a merchant can not use a mastercard to secure another form of payment.
I know that in my contract with MC & Visa it is specifically mentioned that a merchant can not charge a customers card for a bounced check. My processor says it is considered a pretty heavy offense by MC & Visa.
I am sure they know the rules they have just decided not to play by them.
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