Share and Follow
When Tomi Cao took over a new business, she also assumed responsibility for several active Groupon campaigns. These campaigns allowed customers to purchase discounted offers online, which they would then redeem in-store. The process was designed so that Groupon would deposit the payments directly into Cao’s merchant account.
However, Cao has claimed that Groupon has been sending weeks’ worth of payments meant for her spa to an incorrect account. This issue has caused significant concern for her business operations.
Despite reaching out to Groupon for a resolution, weeks passed without any payments being received. Additionally, Cao has reported that she is unable to access information on how many vouchers have been redeemed through Groupon’s online system, as seen in emails reviewed by SBS.
Cao says Groupon’s failure to pay her for sessions has created issues with her business’ cashflow. Source: Supplied / An Head Spa and Wellness
In an email dated Friday 14 November, she tells the site’s support team that: “The Merchant Centre/dashboard shows $0 and no redemption data” … and “We currently have no visibility over what has been redeemed” — leaving the business unsure exactly how much was owed.
Cao said the situation put her in an impossible position: refuse the coupons and frustrate customers, or accept them and take a financial loss.
Customers caught in the middle
Cao told Groupon — and informed her clients on social media — she wouldn’t honour vouchers for new bookings from 20 November, and that she would redirect customers back to the site for a refund.
For Cao’s small business, missing payments from Groupon have had a big effect. Source: Supplied / An Head Spa and Wellness
She said some customers were frustrated or confused when told the vouchers would no longer be accepted.
“Everyone’s already booked … booked well into January 2026.”
Escalating the issue
“A lot of these businesses you see on the platforms … many of them are migrant-owned and just have business owners with English as a second language they speak at home.”
Groupon’s response
In a written statement to SBS, Groupon said: “We’re sorry for the frustration this situation has caused, this is not the experience we want any partner to have when working with Groupon.”
“Our focus remains on resolving this matter in good faith and supporting the small businesses who rely on our platform.”
A waiting game
“I’m supposed to be training staff, hiring new people, push harder on marketing, getting my footing into a completely brand new business I’m trying to build — and I’m not doing any of that. I’m chasing after money that was rightfully owed to us.”
