'PCI Compliance Inspector' Approaches Several Local Businesses -
Buyer Beware
By Tom Kocal
A Savanna businessman has been contacted by several of his customers about a representative from a fraudulent credit card
processing company attempting to overcharge them for a service that would also cost thousands to cancel.
Leo Townsend, President of International Payment Solutions, LLC (IPS), contacted The Prairie Advocate on Friday, October 16, after he had
received several phone calls from his customers, wondering about the validity of the claims made by this "representative of IPS."
Townsend said, "This 'representative' from IPS - International Payment SYSTEMS - called himself a 'PCI Compliance Inspector.' Not only did
he misrepresent my business, International Payment SOLUTIONS, but there is no such thing as a 'PCI Compliance Inspector.' If you are using a terminal
and NOT the internet to process your credit cards you are most likely compliant and the majority of terminals are compliant." Mr. Townsend suggests that
if you are approached by or receive a fax from someone indicating that your terminal is not compliant that you contact your processing bank or IPS
to confirm.
What does "PCI" mean? The Payment Card Industry Data Security Standard (PCI DSS) is a set of requirements designed to ensure that every
business that processes, stores or transmits credit card information maintain a secure environment. Essentially any business that has a Merchant ID
(MID).?The Payment Card Industry Security Standards Council (PCI SSC) was established in 2006 to manage the ongoing evolution of the Payment Card
Industry (PCI) security standards with focus on improving payment account security throughout the transaction process.
PCI applies to ALL organizations or merchants, regardless of size or number of transactions, that accepts, transmits or stores any cardholder data.
Said another way, if any customer of that organization ever pays the merchant directly using a credit card or debit card, then the PCI DSS requirements apply.
The PCI DSS is administered and managed by the PCI SSC (www.pcisecuritystandards.org), an independent body that was created by the
major payment card brands (Visa, MasterCard, American Express, Discover and JCB.). It is important to note, the payment brands and acquirers are
responsible for enforcing compliance, not the PCI council. ?"This fraud who is misrepresenting my company is trying to sell a 5-year credit card processing contract
at $40 to $50 per month, just for the terminal lease. That's without even taking any credit card transactions," Townsend said. "Anyone who contracts
under these bogus terms would have to pay upwards of $3000 to cancel before the 5-year term ends.
"To walk in off the street and lie through their teeth to get people to sign a contract for a terminal that I sell outright for $200 truly angers me,
especially when he is misrepresenting my company."
An internet search for a company called International Payment Systems by both Townsend and The Prairie Advocate yielded no results. Townsend
has notified the Carroll County Sheriff's office about this potential fraud. Although Sheriff Jeff Doran has not received any other complaints directly related
to this one, he believes that this is one good reason to buy locally, from people you know.
"We are getting so many calls of this nature right now," Doran said. "Everybody is a target for a scam these days. Basically, it's 'buyer beware.'
Every time you get a call or email - unless it's from someone you know - keep in mind the potential for a scam. There are so many of them that it's
nearly impossible to follow up on and prosecute. Help yourself: if it sounds too good to be true, it probably is."
International Payment Solutions, LLC (IPS), located in Savanna, Illinois, handles any type of electronic transaction besides cash. "We handle lots
of local business, and we've had them for years," Townsend added. "Our rates are good. We have had some businesses where we have cut their cost by
over 90%."
Townsend believes that credit card processing is primarily a function of the integrity of the salesman and the competence of the bank. He said all
credit card processing banks are a member of an organization wherein all members' prices are the same. "International Payment Solutions, LLC is that
rare combination in the industry where integrity and low pricing are our goals. That's why this fraud is so serious. He is not only misrepresenting my
good business, he is costing businesses thousands of dollars more than needed."
For more information about PCI and how it may affect your business, contact either your processing bank, or International Payment Solutions,
LLC, located at 9304 Scenic Bluff Rd. in Savanna. The Townsend's can be contacted by phone toll free at 1-866-522-1169, locally at 815-273-2117, fax at
815-273-2133, or visit the web site at www.inter-pay.com .
