Business ProfileforPJG Communications

BBB sent correspondence to PJG Communications on June 14, June 20, and July 2, 2019, requesting substantiation for advertised claims and also advised that their advertising may be misleading to their potential customers. Local laws are not disclosed that may cause the potential customer to be in violation of.

The business responded on June 14, 2019, stating, "Thanks for the response, I will take the time this weekend to answer these questions and provide the documentation you are looking for.". To date, the business has not provided any other information.

The following information was requested and provided to PJG Communications in regard to their website, https://www.pjgcommunications.com/, as well as their Facebook page, https://www.facebook.com/PJG-Communications-674910172883010/:

https://www.pjgcommunications.com/

Eliminate YourProcessing Fees!

Join thethousands of merchants who are saving thousands of dollars!

This statementrequires substantiation. Please provide proof that thousands of your merchantsare saving thousands of dollars.

“Did you knowthat it is now legal for businesses to offer a discount to customers who pay bycash or check, instead of with a credit or debit card?”

“With our CashDiscount Program, you can offset some of your credit card processing costs byadding a customized service fee to all credit and debit card transactions.”

“You can thenreward customers who pay by cash or check by giving them a discount. This helpsyou keep more money in your pocket each month.”

“CASH DISCOUNTPROCESSING

By offering acash discount program to customers who pay with cash, merchants are able toeliminate up to 100% of their processing fees.”

BBBcontacted the New York State Attorney General’s office and was provided with thefollowing information:

“The New York State Court of Appealsrecently addressed this practice in a decision issued on October 23,2018.  You can find a copy of that decision at https://www.nycourts.gov/ctapps/Decisions/2018/Oct18/100opn18-Decision.pdf. The Court held that New York law permits retailers to charge different pricesfor cash and credit card transactions.  Thus, merchants may offerdiscounts for payment with cash, while charging those consumers paying with acredit card a higher price. 

However, the Court makes clear that amerchant may only charge a higher price to credit card users if that price isposted as a total dollars-and-cents price.  Merchants may not simply postthat they are adding a surcharge or additional fee, or that there will be apercentage added to the bill, which would require customers to engage in amathematical calculation.  Merchants may not list or provide a receiptthat lists the cash price plus an additional price listed that is either apercentage amount or additional, line item charge.  As long as the totaldollars-and-cents price charged for credit card purchases is posted, merchantsmay refer to the price as a “surcharge” or use words such as “additional fee”or “extra cost” to communicate to customers that the credit card price ishigher than the cash price. 

Please be advised that the practice ofposting only cash prices or advising customers that a percentage of the cashprice will be added to their bill if payment is made with a credit card may beconsidered false advertising or a deceptive and illegal business practice andsubject to further action by this office.  If a retailer has differentprices for cash and credit transactions, consumers must be advised of such andthe price for both must be clearly posted.”

“CREDIT CARDPROCESSING

Establishing amerchant account with us is easy. Take advantage of our free equipmentofferings and receive competitive processing rates.”

Pleasesubstantiate how you ensure that you are charging competitive processing rates.

According toBBB’s Code of Advertising:

2.   ComparativePrice, Value and Savings Claims

When comparingprices to one’s own former selling price, current price of others, list prices,wholesale prices, or to items which are imperfect, it is important to make surethat consumers have all the necessary information to make an informed purchase.In addition, when offering a price match guarantee, the offer should be made ingood faith, include all necessary information to take advantage of it and notplace an unreasonable burden on the consumer who wants to take advantage of theoffer.

The statement tofollow also appears on the About Us page, https://www.pjgcommunications.com/about-us, as well as https://www.pjgcommunications.com/

“When we sign upa new merchant account we are able to provide free equipment with no earlytermination fees. This immediately separates us from 95 percent of thecompanies in the marketplace, And it is also the reason we have a 99 percentretention rate.”

Please provideproof that 95 percent of the companies in the marketplace charge earlytermination fees.

Please provideproof of your company’s 99 percent retention rate.

https://www.pjgcommunications.com/our-services/cash-discount-processing

All examplesof signage that you have provided on this page appear to violate New YorkStates ruling of October 23, 2018.

“You need tonotify all customers of the program via simple signage, and we make sure thereceipt clearly identifies how much of a cash discount each customer receives.”

How does thereceipt identify how much of a cash discount each customer receives? Does thereceipt show the discount when the customer has paid in cash?

“Cash discountprograms are not credit card surcharges because they do not levy a fee that isadded to a credit card transaction. There has been much confusion around cashdiscount programs in the past, as people tend to associate them with surchargeprograms.  The final verdict on cash discount programs can be found in theDurbin Amendment (part of the 2010 Dodd-Frank law), which states thatbusinesses are permitted to offer a discount to customers as an incentive and toencourage customers to pay by alternative methods other than a credit/debitcards. Such alternative methods include checks or cash in order to receive adiscount which is applied at the time of sale.”

Are businessesin New York state, and any other states with specific rulings with regards tothe cash discount offer, provided information regarding the ruling or law ofthe particular state?

Please providethe information that is provided to your customers in New York state.

“Such alternativemethods include checks or cash in order to receive a discount which is appliedat the time of sale.”

This statementcontradicts what you are stating with your signage, that is not able to be usedor advertised in New York state. How is this discount applied at the time ofsale? That statement implies that you will be receiving a discount of theticketed price on the item that is being purchased. Are there 2 prices on theitems price tag?

The stateswith no-surcharge laws are California, Colorado, Connecticut, Florida, Kansas, Maine,Massachusetts, New York, Oklahoma and Texas, according to the NationalConference of State Legislatures. Puerto Rico also has a no-surcharge law.

What statesdoes your company do business in?

In the“Features and Benefits.” section under BENEFITS TO YOU:”, it states:

“1. Eliminatevirtually all merchant processing fees.”

Please explainthis statement further. Is PJG communications eliminating their fees? Are thecredit card companies eliminating their fees?

“2. Increasedsales volume offsets up to 100% of processing fees.”

Please provideproof that by implementing your machines, your customer will be increasingtheir sales volume and how that offsets up to 100% of their processing fees.

The“Additional Benefits” section states:

“Collect 100% of each sale”

How is thispossible? Even if a cash discount is applied, and the consumer chooses to usetheir credit card, there is still a charge for processing by your companyand/or the credit card company.

“Eliminateprocessing fees”

How are allprocessing fees eliminated? Doesn't the business still have to pay a fee if acreditdebit card is swiped?

https://www.facebook.com/pg/PJG-Communications-674910172883010/about/?ref=page_internal

“About For anybusiness! $10 a month will provide you with UNLIMITED credit card transactions,unlimited supply of receipt paper, unlimited card swiping machines (determinedon volume of business), and 24/7 customer support. We install and train oneverything.”

Please explainhow you are able to offer all of these services for only $10.00 per month.