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Alex J. Esq.
Alex J. Esq., Attorney at Law
Category: Legal
Satisfied Customers: 16391
Experience:  Experienced Licensed Attorney
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I am a small business owner and I recently acquired a

Customer Question

I am a small business owner and I recently acquired a carwash with some self serve bays. Each bay has a card reader that I can prove on a random basis allow people to use the carwash after swiping their cards, but then no record of any transaction to myself, the merchant, is ever provided. No money conferred. (tested with my own cards) There seems to be 3 entities involved, the guy who installed the hardware less than 1 year ago, the company in the middle who has their name on the hardware and passes the transactions to the merchant services processor. All claim the root cause lies with one of the others. No solutions or answers have been given for 2 months straight since I observed the issue. This is one out of several issues I am having with what I would have thought would be the easy part of the business. Now, none of them are answering my calls. The readers (7 of them) cost around 25K to install less than 1 year ago. Do I have any recourse or do I have to bite the bullet and rip them out only to pay another ~25K to a go with a different set of providers?
Submitted: 1 year ago.
Category: Legal
Expert:  Alex J. Esq. replied 1 year ago.

Hello. My name is***** will be happy to answer your question.
I am sorry to hear about this unfortunate situation.

Is this equipment covered by an existing written warranty?

Did you have an expert determine which part of the setup is malfunctioning?

Customer: replied 1 year ago.
I am struggling to find any info on a warranty, though I have been looking into that and will follow up.I do not have any idea where to find an expert that could make that determination. Right now all three entities that have a piece of the process are claiming its not them, or have declined to provide any further details, root cause assessment or actionable plans to address. I don't know that an "expert" could make better progress if these three and other merchant services providers I've talked to can't explain why this would happen and they are clearly not open to allowing someone to poke around inside their process.
Expert:  Alex J. Esq. replied 1 year ago.

Thank you for your follow up.

Do you have any documented losses as the result of this issue?

Customer: replied 1 year ago.
Since I realized the issue exists I have only documented 2 examples. I trusted they would follow up when I brought it to their attention. My mistake. It is an unattended carwash with some security cameras, but it is very difficult to assess remotely how often it could be happening if they simply do not provide me with any record a transaction. I am getting more cameras installed and will have them focused on the readers in each bay so I will be able to prove more examples in the future. But they have not been responsive to either of the 2 cases I have brought to their attention to date.
Expert:  Alex J. Esq. replied 1 year ago.

Thank you for your follow up.

Generally, it would be difficult to pursue any legal action against any company, unless a neutral licensed credit card equipment company is able to determine actual reason for the failure to register a transaction and once determination is made as to the cause of the failure then it would be important to determine whether it is an equipment failure and if such equipment is covered by any type of warranty.

If it is an equipment failure and the equipment is covered by warranty and equipment manufacturer is refusing to honor any warranty repairs, then a lawsuit can be filed to enforce warranty.

If the issue is non-equipment related, then a legal action can be pursued against the merchant processing company for any documented losses due to their failure to process any valid transactions.

If the installer is at fault, then generally a legal action can be pursued against installer to force the installer to properly install equipment and for any documented losses.

I wish you the best of luck!

Expert:  Alex J. Esq. replied 1 year ago.

Please let me know if you have any related follow up questions?
If not, please positively rate and accept my answer, so I can be compensated for my work.
Thank you.

Expert:  Alex J. Esq. replied 1 year ago.

Please let me know if you have any related follow up questions?

If not, please positively rate and accept my answer, so I can be compensated for my work.

Thank you.

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