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Gate2Shop Establishes Minimum Monthly Fees For All Clients

Regular 'moving of the goalposts' frustrates business owners

Published on 13 January 2014

Discover the World Of Judaica

by WireNews


Sofia, Bulgaria

Gate2Shop Logo
Gate2Shop Logo

According to Rado Peev, Key Account Manager for the Bulgarian based credit card processor Gate2Shop, "new management" will set a minimum monthly fee condition of US$200 for "all clients" beginning March 1, 2014, which will likely result in a number of small businesses taking their credit/debit card processing elsewhere.

One Gate2Shop client told WireNews+Co: "We signed-on with Gate2Shop in August 2013 because Google had, unfortunately, stopped offering its 'CheckOut' service. Since then, Gate2Shop has moved the goalpost on different aspects of the service they provide us without any reason or explanation," explained Kathy, a small online B2B operator.

"At first we were not informed by our account manager that there was a minimum holdback or retention of 500.00 units (whether that's USD, EUR, GBP or any other currency), which for some traders can represent thousands of dollars," Kathy told WireNews+Co.

There was no mention of a retention in a copy of the Gate2Shop agreement reviewed by WireNews+Co.

"Then we were told that even after we achieved the 500.00 unit target for any currency, payout would be delayed for 14 days after the last sale was made," Kathy explained.

Again, no mention of the 14-day hold after sale is found in Gate2Shop's agreement.

"Finally, last week we received an email from Mr. Peev, our account manager, in which he informed us that beginning 'March 1, 2014 a minimum monthly fee of USD 200' will apply to our account," Kathy added.

For some smaller online businesses a minimum fee of $200 might make it impossible for them to turn a profit. Others might not generate that amount in sales.

But according to Gate2Shop's website there is no minimum fee. Even so, Mr. Peev confirmed to WireNews+Co by email that the fee was "a new management condition that affects all our clients."


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Posted 2014-01-13 12:41:00