Legalities behind using your own merchant facility compared to something like pay.com.au?

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Hi guys…

I’m only new to the group and have searched my question with out any luck? Please forgive me if it’s been asked before. I also can’t seem to get a solid answer from google or any T&C from my Merchant or my CC…

Not sure if this is a legal or ethical question, or little of both? I have a small business with a merchant facility that processes all cards (including Amex) at .06%. When I can’t use CC for supplier payments I have used pay.com.au or simply transfer the money. What are the legalities around using my Amex to pay the amount to my merchant facility (including the additional .06%) and then transferring funds to supplier out of my merchant account? Essentially doing the same as a 3rd party payment system like pay.com.au?

I feel as though it isn’t legal or the right thing to do but am also having trouble seeing the difference between this and what the 3rd party systems are doing as a business? Everyone still gets paid along the way, I just get to take advantage of my better merchant rate?

Any help of advice or help is appreciated… Cheers…

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Hi AJB, we can’t comment as to the ‘legality’ of what you’re proposing - for specific advice in that respect, you’d need to consult a lawyer. However, we can suggest you review the T&Cs of both the merchant facility and of the card you plan to use. It’s likely that on at least one side, there’d be a clause against paying yourself and/or processing payments funded by your card via your own merchant facility.

If so, you’d risk cancellation of the merchant facility itself and/or the card used, and/or any balance of points on that card. (But again, refer to the T&Cs.)

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