Strip club scam

planteria

...and on that basis i'd be having serious discussions with the bank first of all, james.

i always spend on creditcards, so in fairness it's a different position, but if something appears that shouldn't, im having my money back...even when Barclaycard tried to argue that my card and i were present.

and i have reason to believe that it isn't bogus MI.. but even if it is, i still don't understand why anyone would bother, and why people would be so keen to suggest that it is. if there are repeated threads re. a similar position, perhaps several people have been stung in this way, and turn to MSE to look for advice. admittedly, despite being a regular contributor here, it's not where i'd have turned initially.

billy954

Moneyineptitude wrote: »

I have done exactly that.
.

Ummmmmm.... Hello?????

Why is it that the cynical ones can't just ignore/skip by a post if they don't believe it?

It's rather strange that someone who "called" the thread as bogus in comment 2 is still here after all this time spouting the same old cynisim. Nothing better to do??

And interesting to read a suggestion that contributions from those with low post-count (such as myself) adds to the likelihood of this being a bogus thread. Well done Jessica fletcher, you got me! :T

Cortinaa_GTR

I'd be interested to know who the merchant's card acquirer is. Generally strip clubs aren't boarded as they are seen as a reputational risk to the acquirer. I have heard of them be boarded as 'nightclubs' but any decent underwriter of the merchant application should see through this if they research the applicant properly.


If they have applied as 'nightclub' to take card payments for entry fees and drinks that is fine. If they then take card payments for the dancers (other legal trading entities through their merchant facility) then this is wrong and should constitute a breach of their merchant account.


This may not ultimately help you but if they have deliberately applied for a merchant account under false business pretences it may point to other sinister aspects of how they intend to trade.

planteria

Parnott wrote: »

Generally strip clubs aren't boarded as they are seen as a reputational risk to the acquirer. I have heard of them be boarded as 'nightclubs' but any decent underwriter of the merchant application should see through this if they research the applicant properly.

what does 'boarded' mean, just 'classified'?
and are card processing companies really avoiding providing their services to 'Gentlemen's Clubs'?

kriss_boy

I've witnessed this scam first hand in shall we say, a popular stag locale abroad.

A mate of mine refused to come back to the apartment with the rest of the group and instead showed up at 8am having awoken in an alley with his watch, wallet and most of his clothes missing.

When he reported his cards missing, he discovered several thousand pounds worth of expenditure. We went back to the club for an explanation and were surprised not only by how unsumpathetic they were, but also how brasin and cocky they were that they had cctv footage of our mate handing his cards over.

I say this purely as a warning because sadly some people are daft enough to take credit cards to these places, though they don't deserve to be royally ripped off to the tune of 2 or 3k.

Cortinaa_GTR

planteria wrote: »

what does 'boarded' mean, just 'classified'?
and are card processing companies really avoiding providing their services to 'Gentlemen's Clubs'?

Each business sector is given a classification code to describe the type of products, goods and services they provide. I have experience of two acquirers who would not 'board' (sign up, give facilities to) a strip club due to reputational risk. Most banks / acquirers have their name and logo emblazoned across the card reader screen advertising themselves. To do this in a strip club environment is normally a non starter (hence me wondering who the acquirer is)


This is a common stance and highlighted further for online merchants. Most acquirers have software continually sweeping website content to make sure the merchant account approved to sell 'candles' online doesn't change its operating method and start processing for !!!!!!, weapons or drugs etc.


Obviously there is murkier acquirers out there who do process for !!!!!! sites etc but they generally wouldn't provide card readers as well. So it could be a mainstream acquirer who doesn't fully appreciate the type of business they have a relationship with. All total speculation clearly.

planteria

interesting kriss_boy, and agreed. i'm not sure how you guys took their brasinness, but last time i was on a stag do in Prague it wouldn't have ended pleasantly..

and thank you Parnott, great post. again, interesting. as it happens i think i will be setting up with a card processor in the next few weeks, so i will see what sector they classify us as, when they board us:)

Cortinaa_GTR

planteria wrote: »

interesting kriss_boy, and agreed. i'm not sure how you guys took their brasinness, but last time i was on a stag do in Prague it wouldn't have ended pleasantly..

and thank you Parnott, great post. again, interesting. as it happens i think i will be setting up with a card processor in the next few weeks, so i will see what sector they classify us as, when they board us:)

Your welcome Planteria. Other points to note,


You don't need to go through your own bank. Any acquirer can credit funds into any account nominated by the merchant but there can be benefits to keeping it in house.


The acquirer will need an understanding of


Business Sector - What products / services do you offer?
Business Turnover
Projected card turnover (estimated)
How will you process? Chip N Pin, Over the phone, Online
Average Transactions Values
Will you take deposits, final balances in advance?
Will you take membership / subscriptions payments?


This will allow them to assess any potential exposure of the application before boarding you and issuing your merchant number.


Any questions revert back.

planteria

thanks Parnott. great, i get all that. the only query i have is what the benefits of keeping things 'in house' are? i have a bank and card processor in mind...and they're from different stables...but will, of course, be looking at the terms available.

fd1972uk

planteria wrote: »

crowding around whoever is spending is standard.

It's on a card, so how would anyone know what he's spending? If the dancer has given a price to the guy behind the bar, how does the rest of the dancers know about it?

If he was flashing money around that might be a different case, but by all accounts he was out with £200-£300, not exactly something to get the dancers in a fizzy I'd be sure.

I think being incredibly drunk has made the poster incredibly silly, but here's hoping you get a happy ending...............unless you already did by can't remember it.


FD