Credit Card and Merchant Account by First Data / Cardservice International SUCKS!

I've created this site to let everyone out there looking for a merchant account or credit card processor, to stay away from First Data. Writing a complaint in one of the many complaint website just wasn't good enough for me. I need payback and creating a new website with it's own domain name just seems like the best way to get even.
As you can see, this is a no thrills website. This is by design. I want to make sure there were no pictures, flash or other bells and whistles that would cause this site to do poorly in search engine rankings. I want to be #1 in Google and Yahoo, so that all can read my story and stay away from this fraudulent, crooked, non-caring FIRST DATA company.

Background Story I own and operate two sportbike accessory companies. My website are just over two years old and have started to really grow this year (2009). This makes me very happy and gives me a sense of accomplishment for all the hard work I've put into them. Everything was going great! 2009 started with a bang and I was making many sales. My business grew 400% in February 2009 and continues through March and April. In May, it looks like this trend will continue. Chargebacks As my business grew, I started getting chargebacks. There are many unscrupulous people out there. I run an honest business, but you can't make everyone happy. In fact some people can't be made happy. It's in their genetic make-up. Some customers instead of calling me directly and give me a chance to make things right, they would call their credit card companies and make up some excuse so they could get their money back, and still keep the merchandise. First Data did nothing to protect me from these fraudulent customers (but, we'll get to them in a bit). Luckily my sales were high enough that I could absorb these negative transactions.

How First Data Screwed Me

First off all, a little background. I've been using First Data since the inception of my website. Just over two years. First Data charges me 4.8% on all credit card transactions plus 0.30 per transaction. Not too bad and is within industry standards. Also, they charge me $10.00 a month for the honor of using their service.

Last month (March 2009) I got two chargebacks. First Data quickly deducted my checking account on file. (They're very good and quick about this.) Even though I followed good sense procedures. Ship-to and billing-address were the same; billing address returned "Y", zip-code returned "Y" and CSV returned an "M". Looked good to me. I got UPS tracking number on the order and a signature of my customers' mother, girlfriend or wife. Same last name, but not the customers' first name. With all this, First Data allowed the chargeback and I lost the money plus the merchandise. So I lost the cost of goods and shipping. To add insult to injury I was charged the processing fees by First Data.

Friday, May 1, 2009: Today at 4:00 P.M., I received a phone call while I was at my bank opening a new account that First Data can't access. (I'm afraid they will start charging me for bogus reasons). The call was from Nivia Kapoor, the supervisor in charge of my account. She briefly explained to me about my $6,500.00+ that they are holding. She asked me if I was going to continue to use my merchant account with them. I told her that First Data told me a week ago that my account was cancelled by them. Nivia said no, we are not going to close your account. I told her that I wasn't sure because you are holding all the money of every new sale, until this is resolved. I also told her that I have to pre-pay the merchandise I sell and pay to manufacture my own proprietary items. I couldn't give her a yes-or-no answer because if my answer was not what they were expecting, they would freeze my account for six months and hold all my money as they threaten to do. So I told her how could I continue to use you as my merchant account. Then I said if I continue to use the account will I receive all my money your company is holding, she then replied, "well I'm not sure but you could get half now and we will hold the rest up to 6 months because you might receive more charge backs". And then I said if I don't use you then what? Then she said "I don't know but I need an answer to my question". I then said I hired an attorney that is dealing with my account with your company and has spoken to you multiple time already, so I need you to explain in details what you are asking me so that I feel assure I am doing the right thing. Then Nivea said she can't speak to her because she has no legal right to this, only I do. I told her she does because I signed papers with her law office giving her the right to help decide what is in our best interest After Nivia and I went back and forth I knew they were trying to hold me to something. And she also said because my business is growing so fast that is a concern for them. Now that doesn't make any sense to any business owner. Bottom line; the call was a set up and they still are holding my money and making interest off of it. As a few weeks have gone by, my business is starting to struggle due to lack of funds. But due to our customer service I'm still continuing to move forward and grow our business, as First Data has complained. Unbeliebable!

Monday, July 20, 2009: I'm still waitng for my money. First Data has not contacted me since May 2009. 4 more months to go!

Thursday, August 27, 2009: Haven't gotten my money yet!

TO BE CONTINUED...

Demand Letter #1 from my Attorney.

Demand Letter #2 from my Attorney.

Conclusion:

While all this has been going on, I've been using PayPal as my merchant account. It has worked out well for me and I haven't gotten a chargeback. Final analysis: be careful whom you choose to be your credit card processor. Research the merchant account processor, be thorough, then choose the one that best fits your needs. In the event your new merchant account processor screws you, always have a contingency plan (Plan B) to fall back on.
I've listed some merchant account at the bottom of this page that you can look into. I'm not recommending any of them, since I've not dealt with any of them, but PayPal, which I have no complaint. Do your own due-diligence.

Links to other sites with complaints on First Data:

Other First Data Corp Complaints

I hope no one uses this company. Cardservice/First Data put our company on the 'match' list for nothing we had control over. A customer decided to 'dispute' charges on his credit card (because he didn't have the cash and wanted more time to pay) and we get socked with the chargeback. I provided all the invoices/shipping tickets to Anthony to prove he got the material delivered. Anthony NEVER told me what else I needed to do to clear this whole matter up. Instead, they cancelled our account and put us on the 'match' list because of excessive chargebacks. So, the decision by a customer puts our entire business in jeopardy. How is that fair? We pay a monthly fee for service from this company and they did NOTHING to help us through this situation. They took $25, 000 out of our account 'by accident' they said, but of course not a big deal to them. It took them 2 business days to put it back in and they lied the entire time. I cannot believe this company is allowed to continue to do business. The number of complaints about them online is amazing. They were recently purchased by Kohlberg, Kravis, Roberts and Co. and that is when all of the complaints began. I hope no one uses this company because they lie from the get-go. ( http://www.complaintsboard.com/complaints/first-data-merchant-services-c63278.html)

They're rip offs. I leased a credit card machine thru first data, they auto debit my account for 4 years for the monthly $20 after 4 years the debit stopped, full filled my lease right, NO they decided I owed another $90 but did not inform me of this a year after the lease was up. I found out by checking my credit report after receiving a call from a collection agency. They had put a derogatory on my credit report. I called and asked why they didn't auto take the $90. Get this they said they called once and left a message! I paid the $90 bucks same day, they said they would remove from my credit report and never did. Now I have to fight this battle with the credit reporting agency to clear my name. When I called First Data Leasing the man I spoke with originally said to bad and hung up on me. I explained that if I had let them take $20 a month for 4 years why would I not pay a lousy $90 and ruin my credit. (http://www.complaintsboard.com/complaints/they039re-rip-offs-c74987.html)

Corrupt and dishonest company. Corrupt and Dishonest Company. First Data of Florida, Colorado, and Hagerstown is a Corrupt and Dishonest company – First Data Merchant Services / First Data Global Leasing is an amazingly dishonest and corrupt company. They operate like a con-artist. Phone representatives continuously transfer calls and lie to customers. They claim that there is a problem with returned equipment and you owe money. They take money that is not owed. They harass customers by having a computer call and say they are a collection agency. Report problems to the Federal Trade Commission at https://www.ftccomplaintassistant.gov/ and to your consumer protection agency. ( http://www.complaintsboard.com/complaints/corrupt-and-dishonest-company-c89076.html)

First Data Merchant Services - Beware. Merchant company will become uncompetitive with credit card processing rates, can not return equipment (that is proprietary to their system only) Many other processing company's will give you card equipment FREE...Don't use ANYTHING to do with FIRST DATA This group of companies Community Merchant Services & First data processing & lease is a BAD, BAD deal...Check around, many better processors & rates.. Don't use ANYTHING to do with FIRST DATA. (http://www.complaintsboard.com/complaints/beware-c80741.html)

First Data Stealing Your Money. First Data Of Simi Valley CA is currently my credit card processing company and I am writing to report some of their latest scams and deceptive tactics that are misleading the public. While reviewing the September statement we discovered a charge for $119.75 under annual compliance service, this charge was not authorized by me and offers no value added to my business. When I called the company they informed me that the charge was automatic and was not refundable. They also stated that they have the right to bill me anything they want as far as they note it on the statement the month before. I do not think that this is fair and that it is taking advantage of the general public and small businesses. They are hoping that nobody would notice and dispute the charge and their service agreement hides these deceptive techniques in their fine print. This is unethical and deserves and investigation as there may be millions of dollars of these illegal fees at stack, why should small businesses and consumers pay Visa and Master Card system maintenance fees? They get paid commission and service fee on every transaction! This is another scam that is making Credit card company rich of the hard working public.
There statement is very deceiving, the notification about the charge was buried on bottom of the first page in Grey area and the charge was not included in the fee category, they deliberately put the fee of $119.75 in Financial Advise category so the consumers won?t notice it. See Copy of the first two pages I referenced below. Furthermore, they continue to charge more fees and last month statement showed two more fee and they offered no alternatives to the consumer, pay the fee or the cancellation penalty charge!
(http://www.complaints.com/First-Data-189883/First-Data-Stealing-Your-Money-189883.html)