Here is a short list of 3rd Party CC providers:

[www.merchantseek.com]

From Corporate-Shill

I jotted down a response for you regardint that McD's CC surcharge. Hope it makes sense.

For the purpose of accepting CC's a business must engage the services of a Merchant Bank. The business then pays a set of fees plus a percentage of the transaction to the Merchant Bank in exchange for accepting CC's. The terminals, software and other supporting products used in the business may be purchased or leased by the business from the Merchant Bank.

The business's costs of starting up CC service can be rather substantial. Just the data terminals that you swipe your card through can cost from $250 to $1200 per terminal. Accepting CC's from different CC networks (AmEx versus VISA) can require additional Merchant Accounts and increase the cost of the data terminals. In addition a new business, especially a business that might quickly close or change ownership, pays higher level of fees than a well established business.

Here come the 3rd Party CC Processing Companies to the rescue.

3rd Party CC Processing Companies offer Merchant Bank services to small businesses that cannot afford to offer CC services to their customers, or to businesses that have been denied CC processing by Merchant Bank.

(In simple legal terms the 3rd Party Companies will act as a straw man between the Merchant Bank and the business that actually accepts the CC from the customer.)

In addition to offering Merchant Bank services the 3rd Party CC Processing Company will often provide the data terminals and supporting equipment at a very low cost or even free to their clients. The data terminals, because they are accessing the 3rd Party network rather than an actual Merchant Bank network, can be programmed to accept an even wider variety of CC's and perform other functions, such as check clearing.

The advantage to a small merchant using a 3rd Party CC Processing Company can be significant, especially considering the cost of the data terminals as well Merchant Bank regulations.

But there is no free lunch.

The 3rd Party CC Processing Companies still must pay the normal Merchant Bank fees. And then there is that matter of the cost of those nasty (read expensive) data terminals. To make money the 3rd Party CC Processing Company will hit the merchant with a boat load of fees and charges.

The merchant can absorb the fees generated by the 3rd Party CC Processing Company or the merchant can allow their 3rd Party CC Processing Company to collect all or part of the fees onto to the customers that use the service. One way of passing the cost unto the customer would be through a transaction fee for use of the CC processing equipment.

BUT CC surcharges are not allowed. You are correct. Except the merchant is not adding a surcharge to your transaction, the fee that is added is being charged by the 3rd Party CC Processing Company to access their network.

All in all this is much like a hotel that charges you $5 to make a local telephone call from your hotel room. The fee is not for your call; the fee is for the use of their telephone.

Bottom line, wherever you see the phrase "XYZ Network" or "CC processing by ABC Company" on a CC terminal you can be fairly certain that the data terminal is not accessing a Merchant Bank rather the terminal is accessing the network of a 3rd Party CC Processing Company and you will pay for the privilege of using that data terminal.

Hi Alex,

I have an identical case to the XBox 360 story you posted today. I have pictures of the tamper proof seal also. On Friday I was told that I would receive photographic evidence that I tampered with the XBox in 3 to 5 business days (a bit long for an email with a picture attachment, don't you think?), but every time I call the representative tells me that I will have to wait 3-5 more business days (it has now been pushed until Friday). Please keep us updated as to how Jeff's case is being handled, and if you need any details, or photos from me to help the cause, please let me know.

-Matt
matt.nastri@gmail.com

Hey Alex, I'm a daily consumerist reader - I work for Dell Tech Support for thier XPS systems (and read Consumerist in between customers). I may be able to assist the guy that recieved the Dell w/ the pubes in it. I can't exactly make any promises being just a tech-schmoe and all, but if you could help me get in touch with him I'll see what I can do. Anyways, I can be reached at j.fractal@gmail.com if he is interested.

-Justin
j.fractal@gmail.com