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Clover Credit Card Machine Scams: Everything You Need To Know To Avoid Getting Fleeced

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Tom DeSimone

Tom DeSimone

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Based in New York’s Hudson Valley, Tom has written for Merchant Maverick since 2013. His work is cited by publications including TechCrunch, Washington Business Journal, and Bank Advisor. He currently serves as Product Manager.

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59 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Joey Adair

    I’ve been in the industry for a very long time. This iteration of hardware/software solutions is by far the most advanced technology we have ever seen. The absolute 2 leading solutions are Square and Clover. The software options, customization potential and ease of use are second to none.

    Square is a TPP and thus, doing business with them is an absolute risk. I can’t tell you how many of my customers I got because Square shut them down and held 10’s of thousands of dollars from them, won’t talk to them, won’t take a phone call, nothing. That being said, their hardware and software is amazing and they have affordable monthly plans for the hardware (albeit their processing is a bit expensive). You can only use a Square device on Square’s Payfac processing and their pricing is not negotiable.

    Clover also has a great set of hardware and open market for app developers to create new functions. In fact, many of the dinosaur POS companies have started bringing their old, out of compliance POS systems up-to-date by adding Clover hardware (such as a mini). One draw back to the Clover (as with Square) is that you cannot re-purpose/resell a Clover system (other than the Clover Go mobile Card Reader) unless the buyer is planning on using the same merchant services company that you use. This is by design of the hardware/software developer, First Data. So buying a Clover off of someone on eBay is pointless UNLESS they are actually setting you up with a merchant account at the same time.

    So I disagree with the article on one point. It is not a scam simply because they are selling you a discounted Clover with a merchant account attached. In fact, it would be a scam if they WEREN’T doing that. Not to say there are not scams out there, because there certainly are, but they come in all hardware/processor configurations. Clover, Square, Poynt, everything. Just do a google search or BBB search or hell, search this website for Square complaints and you will see thousands of people calling it a scam.

    Your safest bet is to be smart. Ask questions like

    “Is there a contract/termination fee?”
    “Is there a contract grace period?”
    “What are the monthly fees?”
    “Is the rate flat or is that a mark-up over interchange (wholesale)”
    “Are there any annual fees?”
    “Instead of leasing equipment, can I rent, or purchase outright?”

      This comment refers to an earlier version of this post and may be outdated.

      Jeneen

      Hello, I am in the process of opening a beauty supply store. And i spoke with a guy about a clover POS. My partner and I are planning to buy the system without the monthly business. Is this a good idea?

        This comment refers to an earlier version of this post and may be outdated.

        Dee Hurlburt

        we had a clover station and used for 4 months in 2015. Paid in full no contracts.
        How do i use it now for our new business. I know we will have to have a merchant service for credit card processing. My concerns are wiping out the restaurant info on the clover and adding our new service business. any and all help is greatly appreciated.
        Dee

          This comment refers to an earlier version of this post and may be outdated.

          Dakota Fillet

          Hi Dee, When Clover released its newest iteration of Station in 2018 the data transfer process became quite tricky for users of older models. You should be able to use the old Clover if you are setting up a merchant services account from scratch and didn’t previously have one. In terms of wiping old data and replacing it, I would think this is something that a Clover rep may be able to help with either in person or over the phone. Hope this helps!

            This comment refers to an earlier version of this post and may be outdated.

            Michael Carro

            I am a Senior Business Consultant and can tell you with Clover that you had with the restaurant information, as long as you are using the same provider they should be able to “factory reset” the station and reprovision it with your new information but, you will have to embark on a new agreement and application with the provider. If you have any questions or problems please feel free to contact me via e-mail and I will be glad to help. I am not and will not ask you to work with myself but as a consultant on the Clover system I would like you to stay with it as I feel it is the best and most user friendly but, others may not feel the same.

              This comment refers to an earlier version of this post and may be outdated.

              Tom Wilson

              Does anyone have experience with repairing a cracked Clover screen? Clover’s site claims to repair them, but conversations with them state otherwise. It seems excessive to have to pay for an entire unit to replace what should be a rather inexpensive screen.

                This comment refers to an earlier version of this post and may be outdated.

                Jessica Dinsmore

                Hi Tom,

                Clover does offer repair but we can’t see on their site if they offer this service for free. Clover’s customer support is notoriously spotty so keep trying! It definitely should be something they help you with.

                  This comment refers to an earlier version of this post and may be outdated.

                  Mari

                  Hi, I have a brand new mini clover I purchased/leased from First Data. Any ideas where/how to re-sell it?

                    This comment refers to an earlier version of this post and may be outdated.

                    Jessica Dinsmore

                    Hi Mari,

                    We have heard of them being sold on eBay, so that may be worth looking into if you are not bound by a lease contract.

                      This comment refers to an earlier version of this post and may be outdated.

                      SHAWN FRANZ

                      Clover is a complete JOKE. They will scam you every way they can. Go with Square or something like that. They will sell you a $2000.00 paper weight. You cannot use the system unless it is for there POS. You get a nice setup but not worth it at all. I only used mine for 5 months and enough was enough. So I have a nice system that I can not use. They will not let you have the play store even though it is an android device. You can only download something if it is in their app market. Also if you do decided to use it beware of American Express. Clover will charge you a crap ton to process them. Once again Square no matter what type of card it is a FLAT rate. Clover has a different rate for each and every type of card.

                        This comment refers to an earlier version of this post and may be outdated.

                        Dan

                        THe Clover system must have some major issue with it. The scammers are pushing for it to be used for their scams hard. This one wants me to process his card, give me $1500 for a measurement if I give the home owner $3000 for the keys. Red flag for certain. Form what I can see, CLover must have some huge security hole that allows them to run a charge on fraudulent cards without getting caught right away.

                          This comment refers to an earlier version of this post and may be outdated.

                          Steve Greene

                          Someone has contacted me from a weird cell phone number telling me they want to buy a filtration system from me and put a 3500 down payment but they want me to use clover to process it. Alarm bells are obv ringing but what is their actual scam?

                            This comment refers to an earlier version of this post and may be outdated.

                            Reyna A Trevino

                            This is happening to me now as well….wow!!! They are calling me from a Google voice number. I should say texting me .. they wont call me . They are asking if they can pay more for my service and I can pay the Limo company from there. Its for event coordinating. I looked up company and I saw your message here so now I know it is definitely a scam.

                              This comment refers to an earlier version of this post and may be outdated.

                              Maria Valdes

                              It just happened to me too! I got a residential cleaning service and a “customer” contacted me to do a deep cleaning service to his recently “bought” home. I checked online several real estate agencies and ALL of them have the property listed for sale. He insisted that, in order for him to proceed with the payment I had to get Clover. He uses a Google voice number and texted me but he didn’t call.
                              I wish I could legally do something, but I am not sure what my options are.

                                This comment refers to an earlier version of this post and may be outdated.

                                Kay Oldjohn

                                Same thing happening to me right now, someone offering to pay for my training services. Claims they’re hearing impaired and can only text, willing to overpay for my services only if I get Clover app.

                                  This comment refers to an earlier version of this post and may be outdated.

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