First Data Merchant Services Withheld $25,000 without informing, Cancelled account, Blacklisted AA+ Credit Business Internet

BAD, SHADY COMPANY.
I was recommended to use First Data Merchant services from a friend. I will say I wish I had read all the Internet posts prior to signing up with them.

After processing approx $90,000 dollars of sales in 4 months the company started holding my batch payouts because I was getting near my limit on the initial application. Instead of calling me to confirm this was the case, they just stopped paying out the batches for a week. When I finally realized what was going on, I got an email a week later saying they needed to reevaluate the account.

So I called to get the information on what was going on. After getting through to their Supervisor on over 30 calls to his desk, I was told they needed to do a site survey to see that the product was actually in stock. They did that and I provided them with bank statements, paypal history, tax docs, history of zero chargeback, and a credit rating of over 700. They decided they would close the account, suspend all sales, and put a reserve on my account of $5000 dollars. I was pretty unhappy about this, seeing that I have been in business for 8 years doing the same thing with great results. So I dealt with it until...

The next day I applied for another merchant account. They responded to the application that I was now on a GMF list from First Data. A GMF list is a First Data internal list that tells any processor who uses First Data as underwriters that you are a fraudulent client and to not use you to process payments. So my application was declined. As was my next application to a newer company.

This company called First Data to get a reference and someone there lied and said I owed First Data money and my account was derogatory. WOW I thought. Not only was my business increasing to the point where I needed to get more credit from them, which makes them more money, but now they blacklisted me and will not allow me to apply for credit elsewhere. This might be one of the worst morally ethical bankrupt places I have ever dealt with. I did manage to find a new company who did in fact offer me over a million a year in credit.

So to say the least, First Data Merchant Services not only broke the terms of the contract, but they then imposed a non-options %5000.00 reserve. I have filed a letter with the Better Business Bureau but have not heard back. I am thinking about taking this action to a lawyer(know a good one?) because I believe that legally they voided the terms of the contract. I would like my $5000 reserve back and any upfront fees I paid for this service.

My opinion. STAY AS FAR AWAY FROM THIS COMPANY AS YOU CAN. Check who is underwriting before you get a merchant account as First Data does the underwriting for 60% of the nation. I would not trust them, if they can lock a AA+ credit business such as myself for absolutely no reason and black list me, they can do it to you.

Smallbusinessowner101
That City, California
U.S.A.