Paynet Systems credit card processing scam Alpharetta Georgia

Paynet Systems prides itself on educating our customers with regards to their responsibilities when accepting credit cards. Unfortunately it is virtually impossible to predict all circumstances that can potentially lead to issues. This is certainly one of those incidents.

The referenced customer setup his computer business to accept credit cards. We approved the account as we normally due. The problem arose when we started seeing an unusual amount of credit card sales volume in a short period of time. This was outside of the norm for this account. Additionally, in a short period of time, this customer greatly exceeded their approved monthly sales volume. The combination of these events ‘raised flags' within our security/risk department. As a result the merchant was contacted and engaged in a verbal conversation. During the conversation this merchant advised us that the reason his volume was skyrocketing was due to selling fireworks during 4th of July holidays. This was in direct violation of the contract. You cannot setup an account for one business (computer store), and accept credit cards using the same account for a completely different business and product (fireworks). Additionally, as a registered Independent Sale Office, we have established industry rules and regulations that we must follow. Meaning, regardless of who this merchant chose for his processing needs, he would find himself in the same situation. This is not indicative of Paynet Systems. Rather, as an industry, this is simply not allowed and is stricly enforced.

We believed this violation was unintentional. As such, we advised the merchant to setup an additional account for the firework business. He refused. As a result of his unwillingness to correct the error, we had no option but to hold his funds until the chargeback liability period had expired, thus removing the potential risk of losses this situation presented to our company. Once this period expired, his money was immediately released back to the merchant.

It's unfortunate that this situation was not resolved amicably. However, we feel we did all within reason to avoid the ultimate outcome.

The Consumer is absolutely correct in his statement above. They will harass you and hold your money. I have been running my own business for over 10 years and have never experienced TRAUMA of accepting credit cards, this company will make it TRAUMA!

Ok this is a rebuttal to their response, Paynet Systems claimed that the state was in(Michigan) required me to get Additional sales licenses to sell aditional merchandice and that i should send them those licenses.   I have a sales tax lic. in Michigan and it entitles me to sell anything but cigerretes, cars and alcohol. I could sell sex toys if i had wished too, the state doesn't care. I was in their words "approved for a certain amount"   the question that i was asked was "what is your estimitated sales volume.    just that word estimate says it all.    they allso asked me what are some of the products I sold, not all of the products I sold forever, I had planned to have a long standing realitionship with them and keep my account for my computer sales and to start a credit card processing account for july sales for 1 month is well a hassle, but now i have to do this, and i completely understand the dirty underhanded tricks on all credit card processing card companies in question.  I estimates my sales volume to be around $2,500 well my estimate was low because i had never accepted credit cards before and I took in a record 9,000 in credit card sales.  oow I violated my contract, you winey bastards big f******* deal.   I made sure every contract  signed would not punish me for my business to do well.   I have since signed up with a local bank and have a contract with them, and they a sub of first data.  They don't try to screw with me, i have an account at one of their banks  BUT, I actually talked with my sales rep, I know where he works and where he lives.   So if him or his bank decides to  screw me for thousands of dollars i am entilted to, well lets just say he will be the one with the problem.   Paynet systems is lucky they were on the phone and thousands of miles away from my business.  do your self a favor and get in touch with a local bank, if you shake the hand of the person you have signed up with, you will be better off because most likely he will have scroopels. By the way they contacted me,   They called my office on july 1st 2nd, 3rd & july 4th

some customer forgot where he bought fireworks and they couldn't contact my office because I was on location doing business as usual. and by the way, they got my account number worng when they first tried to take money out of my account.  their mistake.