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BIO: Rob Snell is author of a DUMMIES book, a now retired Yahoo! Store designer / developer, and a small business owner probably much like yourself.

COPY COW is his
Starkville copy shop
GUN DOG COMICS was where he sold comic books
Currently, he's a co-owner of the family business selling dog training collars & pet supplies with his brother, Steve Snell.

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If you're using MOM, (Dydacomp’s Mail Order Manager), you could be at risk of losing your company. Did you know that Dydacomp has complete control over your credit card processing? If you’re using MOM you’re probably using, First Data, Powerpay/E-onlinedata or other credit card processors and gateways that Dydacomp set up.

When Dydacomp set up your cc processing they became the listed reseller under the name Card Management Services LLC. In other words Dydacomp is making a percentage of every sale you run through MasterCard and Visa. Dydacomp is actually your partner. Profiting from you without disclosing is, although unethical, is not really the problem here. The real problem is Dydacomp ultimately has complete control over your credit card processing. If the majority of your sales run through credit cards, then somewhere along the line you will find yourself at their mercy.

Try negotiating your processing fees with your current credit card processor that Dydacomp set you up with. Call them and you’ll find out you can’t. Your processor and gateway will direct you to your original reseller of the account and they’ll give you this phone number 973-774-4122. When you call that number guess who answers, you got it, MOM technical support. How can MOM’s technical support team answer for Card Management Services (CMS)? You guessed it; they are one in the same. But don’t ask the Dydacomp, they’ll deny it to the end. Dydacomp will swear they never heard of CMS. If you don’t believe me try it yourself, call your credit card processor and ask them who the reseller is, see who they send you to.

The fact that Dydacomp is making money off of every MasterCard/VISA sale you make is not the risk I was talking about. Here’s where it gets scary for the owner of any company that is using MOM. Dydacomp will not allow you to use a credit card processing account that you opened on your own. You must use Dydacomp’s reseller to open the account. If you don’t believe try it. Open a new account with FirstData or any processor that Dydacomp uses, then call Dydacomp with the MIBS and TIBS #’s and you quickly find out. NO Way, you can’t do it. Try opening your own account and using it with MOM, no way, you can’t do that either. Everything has to be done through Dydacomp.

Dydacomp has ultimate control over your gateway and credit card processing account. They can close your Authorize .net and possibly your merchant account at any time they want, with our without your consent. It can take weeks to open a new account - imagine no income during that time.

If you haven’t read about it, credit card processing companies have found a new way to raise capital. They are implementing a little known clause in your agreement that allows them to withhold deposits as a reserve against your sales. That withholding can be from 5% to 100% of your sales for up to 11 months. Do some research on the internet and you will find out that companies are being put out of business because they’re credit card processors are withholding some or all of their funds without any warning. See what happened to internet based company, Angies’s List, who woke up one day to find $3,000,000 missing from their account one day (you read correctly – three million dollars). This issue should be researched by all business owners because it can have devastating impact on your cash flow.

Here is the bigger problem: if you’re running MOM software and it happens to you, you’re screwed. You’re limited to whoever MOM wants to offer you. Try choosing your own processor and you’ll find Dydacomp in the middle, more worried about losing their cut then they are of you losing your business.
Just be prepared when you initiate this discussion with Dydacomp. There Merchant Services division are pros. They’ll swear on their first born that they are not resellers and have no financial interest in your processor. It’s all a matter of security they claim.

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