KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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comments on surcharging credit cards and ACH / ISC meeting / Party Invite
November 12, 2025
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You're invited: K&K 2025 HOLIDAY PARTY WILL BE ON DECEMBER 4, 2025 6 PM Old Westbury, NY [presently, I'll let you know if the location changes]. RSVP only if coming with Kathleen Lampert at 516 747 6700 x 319 or KLampert@Kirschenbaumesq.com or Diana Henriquez at 516 747 6700 x 328 or email dhenriquez@kirschenbaumesq.com. Space limited so be sure to RSVP if coming asap
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Private meetings at ISC EAST
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ISC is almost here; reserve your private meeting.
To arrange a private meeting with K&K and staff at ISC East on November 19 or 20 please contact Kathleen Lampert at 516 747 6700 x 319 or KLampert@Kirschenbaumesq.com or Stacy Spector,Esq at 516 747 6700 x 304 or SSpector@Kirschenbaumesq.com. We are planning half hour appointments between 10:30 and 4:30 on November 19 and 20. If you think you need more time let us know. We look forward to seeing you at ISC; meetings will be outside the hall at the food court area.
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comment on surcharging credit cards from article on November 7, 2025
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Ken
We are a long established, small size, traditional alarm service company in California. Here is how we deal with customer payments by credit card.
Third party credit card processors, such as DOXO.COM, there may be others, will accept credit card payments to merchants, like alarm companies, and forward the payment to the alarm company. No cost to the alarm company to have a DOXO account. DOXO.com does assess a service charge for their service, and the alarm company may choose to either: (1) have the customer pay it directly to Doxo, or (2) pay the Doxo charge itself. We opt to have the subscriber pay the doxo fee. Alternatively, the subscriber can mail a check to us (or use zelle, mentioned below).
We have used the service for several years, without a hitch. Because we are mostly paid by check, and very few subscribers pay by credit card, this arrangement works for us, and allows us to avoid the many ongoing costs associated with having a credit card merchant account.
We also accept payments via ZELLE.COM, which imposes no fees on payor or payee. This, too, has worked well for us.
And for recurring revenue charges, there is a type of payment called a Remote Created Check (RCC) which we are aware of, but not used yet. I know of other alarm companies using RCC's, whereby, with advance permission of the subscriber having been obtained, the alarm company prints the check to themselves, and deposits it in its account. The check is paid from the subscriber's own account. This is sort of a manual EFT arrangement. Probably this won't work for larger alarm companies, but works well for the alarm companies I know are using it. Anon in California
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Response
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Thanks for taking the time to share your valuable experience and advice.
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ACH / CC Authorization Form & Price Changes May 24, 2025
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Ken,
In your response on May 24, 2025 to the question titled "Can ACH form permit increased charges and payment" you indicate the following:
"The K&K ACH form was recently updated and does NOT permit increased payment; that would require a new authorization. I suspect that a K&K attorney researched the issue and determined we could not draft an ach that permitted you the right to increase the authorization."
However in the form that came with the All-In-One that I purchased in March of 2025, it says the following on the form:
"You agree that no prior-notification will be provided unless the date or amount changes, in which case you will receive notice from us at least 10 days prior to the payment being collected."
Which appears to me that does authorize a price increase (with a 10 day notice) under the same authorization form.
Was this form updated/changed after I purchased it?
I realize that this is all about preventing charge backs from the payment processor and checking with them is the best course of action. However, on that notion, it seems even more foreign to me that the ACH form would allow for authorization of charges for other services — which will be of varying amounts and nothing that is listed on a contract. I could see a charge like this being disputed/charged back more than a recurring charge that you would have a signed agreement or signed change form to reflect the authorized amount; Especially if a customer pays invoices only every 14 or 30 days (and mails a check) - but after 10 days you invoice and charge their credit card.
name withheld
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Response
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The right to increase the recurring charge without notice is not the same as with notice.
The K&K standard forms are updated multiple times a year, continually, because we get comments, suggestions and frequently check for new statutes and case law decisions. This is why I routinely recommend updating your contracts at least every two years; sometimes it's necessary to update sooner if there is a change in law.
When it comes to ACH you should check with your bank to make sure it will process the transaction.
For credit cards it's a good idea to check with your processor because it may have its own guidelines and rules that go beyond legal requirements.
You may request an update to your K&K contract for free within 6 months of purchase, and half price if within 6 months to a year; after a year you need to get a new contract. You need to check with K&K's Contract Administrator Eileen Wagda at 516 747 6700 x 312 or EWagda@Kirschenbaumesq.com about the update or if you need assistance ordering a new contract. Concierge Clients can also check with Concierge Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304 or paralegal Kathleen Lampert at 516 747 6700 x 319 or KLampert@Kirschenbaumesq.com.
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STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com
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CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304.
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ALARM ARTICLES: You can always read our Articles on our website at www.kirschenbaumesq.com/page/alarm-articles updated daily
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com
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