Could businesses have cardnet services denied for having a poor credit rating?
Posted on August 27th, 2009
Lloyds Banking Group have confirmed that they have denied businesses the use of their Cardnet payment system due to their credit rating.
Bruce Palmer, who runs Chauffeur businesses in Berkshire had banked with Lloyds for 5 years when his application for a cardnet terminal was rejected. His original company ‘Bray Cars Limited’ was using the terminals with no apparent problems.
When Mr Palmer opened B.Palmer Chauffeur services, he was rejected the use of a Cardnet terminal. Mr Palmer acknowledges that his poor credit rating will limit the amount of services available to him, but was shocked that this would include a means by which his business could receive money.
A Lloyds spokesperson said “Whenever we agree to provide merchant services to a business customer through Cardnet, we are in effect, agreeing to provide that customer with a form of unsecured lending. This is because we are ultimately liable for any losses that might result, if, for example, the business fails or is unable to provide products or services to its customer, for which they have already paid by card.”
If you are looking to see how to improve your businesses performance, call Argo Business Consultants on 01424 776215
Tags: business advice, cardnet, lloyds banking group, merchant services
Filed under Uncategorized |
