# Changed/cancelled my credit card processor and still got billed $900!



## out da box (May 1, 2007)

They are all a bunch of crooks and pirates! Phone companies, credit card processors, internet service providers, credit card companies.... ALL OF THEM!!!
I changed my credit card processing company prompted by a good sales guy. He said that his company would take care of- meaning pay off my old company. My old company continued to charge me 20.00 or more a month for 2 months. I finally called them and they told me I had to send them a letter in writing to cancel my contract.

This morning I checked my account and the withdrew 900.00!!!! WTF?!?
Are you serious? God Damned Thiefs! F#$^#k Em. 

Bank bailout? Are you kidding? Screw Em. If you think helpng them steal billions more of your hard earned money is going to help you- you've got the game f'd up!


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## PositiveDave (Dec 1, 2008)

My only surprise is that you're surprised! This is the basis of a whole economy.
Salesmen lie.
Their 'customer support' line will be a toll line and they'll keep you hanging on for ages. 
Then they'll lose you.
The salesman isn't working there any more.
They don't do that.
Enjoy!


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## martinwoods (Jul 20, 2006)

Sorry to hear that 
What was the $900 for? why did that take that large of amount?


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## EXTouch (Mar 22, 2007)

Wow, that's a lot. Did you check with your previous credit card processor before you decided to leave to find out what the cancellation policy was? Maybe it was like a cell phone contract and if you cancelled before the end of the contract, there was a termination fee.

You said your new company said they would take care of you (meaning pay off your old company), so shouldn't they be reimbursing you that $900?


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## out da box (May 1, 2007)

Skulduggery!!! They both got me. May be able to jump through hoops before the 27th to get some of the money back. New company lied, old company stuck me. Leave new company= 595.00! Old company charged 295.00 to terminate, 595.00 for the credit card machine. New company did not tell me that they don't supply machines, they just used my old one instead.
Who do you trust? Or at least who steals the least? Guess it's a moot point because I can't get out.


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## PositiveDave (Dec 1, 2008)

You could ring the cc company and put a stop on the payment - let the b******s sue you. If they withheld information or lied you might have a strong case.
In the UK you could argue that it was an unfair contract but that's difficult if you're a company.


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## EXTouch (Mar 22, 2007)

Those fees sound about right (I bought my equipment outright from my CC processor for $300, and I don't have a contract and I only pay for the months that I want to use it) from the companies that I looked at previously. Especially if you were just "renting" the machine.

I definitely would have asked the new CC processor about equipment and the terms of the contract _before _signing with them, and I most definitely would have gotten the terms from the old company about what needed to be done to cancel _before_ I sent that letter. You kinda jumped the gun, but, lesson learned. Sorry for your "luck".


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## n.signia (Nov 21, 2007)

sorry to hear that ridgley, there has got to be a way around it somehow though. thats a bad day.


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## tsquared (Jan 17, 2008)

Your absolutely right, they're like legal gangsters. they can take $ right out of your account and it's up to you to get it back. I would discourage use if at all possible.


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## jiarby (Feb 8, 2007)

BUY your own equipment! Never lease it month to month from the processor!!

Like most things (adjustable mortgages come to mind) it is up to the buyer to analyze the offer and determine the best course of action. You signed the original deal, how did you not know?

They may be crooks, but you are stupid for being suprised about the terms of your contract. Ya gotta read those things. 

Never believe what a salesman is telling you. The salesman might be stupid and not know what the terms are himself! Do your own homework, read the contracts, be an informed consumer. 

You are lucky, at worst you have lost a few hundred bucks... others have lost their homes for the exact same reason. They didn't read the contract. If you don't understand what it means then get help (not from the salesman!). If you sign a contract you don't understand you better watch out!


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## sid (Oct 6, 2007)

Are you selling retail and have to swipe cards? We use Authorize.net and go online to their virtual terminal no equipment to buy, we use it email orders and local pick ups.


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## EXTouch (Mar 22, 2007)

It's a helpful post because other may be in the same boat and not thought about some of these things when dealing with their CC processor. Someone else might be helped by the thread.


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## out da box (May 1, 2007)

Go ahead and read 8 pages of 6 point type in legal and accounting jargon and think you can decipher what the hell they an stick you for. Right.
That's why there are more lawyers and liars than common folk, because you need one to read the damn contracts.
Pay Pal sent me their latest offer for a credit card, I tried to read the fine print-6 pages plus and still could not find the interest rate.
Thiefs. How about just making a product and providing a service and get paid the old fashioned way by earning it and not stealing it-legally.


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## out da box (May 1, 2007)

Ah- Bah Humbug!
I feel better now. They stole it fair and square. Caught me in a switch and bait- I wasn't prepared- didn't see it coming....
Tough lesson learned.
Asleep at the switch.

I guess it is what it is. Business is war.
Tighten up your boot straps.


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## n.signia (Nov 21, 2007)

out da box said:


> Business is war.
> Tighten up your boot straps.


 
yup, I think every business owner should read the chinese art of war, they make a nice small pocket version, it helps keep you on your toes


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## Girlzndollz (Oct 3, 2007)

Sorry, Ridgely, and thank you for sharing your experience. I do hope somehow you are able to fight for some of the fees, but if not, one thing is for sure, this won't happen to you again. It'll be like a one-time class for $900 on credit card processing companies, how to. 

I can't imagine you'll be happy with using the new company who duped you, just because of bad blood. 

There are a few threads reviewing credit card processors on the forums. Maybe you can find someone better yet, when you are able to end your business with the current company you now use.

Here are some links for you:

http://www.t-shirtforums.com/business-finance/t63167.html (this one is titled alternatives to credit cards, but people chime in with some great services for processing that they use.)

http://www.t-shirtforums.com/business-finance/t74710.html

I am going to link your experience into both of those threads for folks to be aware of this side of the processing contract. Again, thanks for sharing and the benefit you'll be able to provide others in your shoes in the future.


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## out da box (May 1, 2007)

It appears as if I can return the machine intact to old company-I can get a rebate for 600.
Done- UPS.

If I can mail/fax a copy of orig. contract, we can get a 250.00 refund from the new company. If we can scramble to get it in before the 21st.
Like a danged reality show- or sick game show.
Meanwhile they're flipping your money, while you struggle to keep the lights on and gas in the vehicle for 30 days. 

It's hard but it's fair I guess that's what they say.


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## Girlzndollz (Oct 3, 2007)

Well, that sounds like a pretty dang good outcome to the situation. Hope it works out.

I was just in a thread the other day, and I hope you insured that UPS package! 

Best wishes, Ridgely, good to hear you might not have to swallow such a bitter pill. =)


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## ino (Jan 23, 2007)

Its a catch 22 system that the Bankers have created. Heads you lose tails they win.
Forget all this human rights crap, a couple of years in the salt mines wouldn't do them any harm.


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## Twinge (Apr 26, 2005)

3 rules when signing up for a credit card processor (obviously, these apply to similar things as well):

1) Don't sign anything you don't understand, and make sure everything is in writing. A salesman may tells you such-and-such, but if it's not i the contract, it's not enforceable.

2) Never, ever lease a credit card machine. Leased machines often cost a total of a few thousand dollars; purchases machines are usually a few hundred. Some companies will even give you a basic machine for free.

3) Always make sure that there is no cancellation fee. Check to verify this fact is listed clearly in the contract you sign - never take a salesman's word that there isn't a cancellation fee unless you can see it in writing.



Now, for my own anecdote of a similar experience! We had a processor that we were using for a while charging us ~$15-20 a month even if we didn't process any cards. Since we were only using it sporadically, it sucked to pay when we weren't even using it, and we decided to switch to another company with a $5 base monthly statement fee instead.

When we originally signed up for the first company, we made sure that there was non cancellation fee at all - clearly written into the contract. However, shortly after we did cancel, suddenly we got a message from our bank saying we had a check bounce; apparently they had deducted $250 from our account for canceling!

This is where the real insanity comes from situations like this, and your bank probably won't do much of anything to protect you from it. Direct withdrawals from a bank account are ridiculously unprotected it seems like. Anyway, we of course called them up and complained lividly, recording the call just in case. I faxed them a copy of the contract and they told us they'd refund it.

It wasn't refunded after 2 days had passed, so I called them up again. What ended up happening is they refunded the $250 twice. I'm guessing this was accidental on their part. I was certainly going to demand additional payment to cover the insufficient fund fees, but that covered it nicely =)


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## out da box (May 1, 2007)

Update on situation...
Looks like they still got me for 595.00 cost of the card terminal. New company switched out my old terminal which I DID NOT OWN and replaced it with one of theirs, they call it a "equal trade". 
My "old" terminal is no longer any where around evidently and I have no recourse according to the new company other then to eat the 595 bucks.


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## CardPaymentServ (Feb 19, 2009)

I would like to apologize.

I am in the payment processing industry and while this is not typical it does happen. Every processor has their on version of a cancellation policy and fees. In your case the processor may have charged you the amount of lost revenue that they expected to lose over the rest of your contact period.

My suggestion. Be forceful but not rude. Ask for the director of operations. Ask them to produce a ledigable copy of your merchant agreement and terms. Try negotiating and telling them that $100 is reasonable but not the whole $900. Also see if you go back to them if they will refund your $900.00, be sure to call your new processor first and let them know how your sales rep provided you with inaccurate information and you want out of the new contract or you will call the Federal Trade Commission and report this as fraud. If none of the options work I would suggest finding a friend who is a Lawyer and have him shot a letter of on email as no processor wants to deal with the head ache a lawyer can bring.

Ryan Morgan


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## A Discount T (Mar 24, 2009)

Have 2 bank accounts. Only leave enough money in the account that the CC company can get to, to pay the monthly fees. As soon as they deposit any money, move it to another account.

The most they can get burn you for is $25.00 ISF and their fee.

Just a thought......


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## out da box (May 1, 2007)

Hmmm, there's an idea.


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## CardPaymentServ (Feb 19, 2009)

Actually moving your money over and not paying your merchant services bill would be really bad. Like Banks, Credit Card Processors maintain a shared data base of merchants who either get to many charge backs, commit fraud, violate the card association rules or do not pay their bill. This data base is called "MATCH" and as a merchant if you end up on the "MATCH" list you cannot open a new account ever. Both the company and your personal information are tied to the "MATCH" list so even if you open a new company you still cannot open a credit processing account. 

The bets way to combat processor charges is to contact them directly. If you have a lawyer or can pay one $100 to write a letter or make a call on your behalf this tends to work quite well.

As Always if anyone ever has questions please let me know.

Ryan Morgan 
Sr. Consultant
Card Payment Services


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