ED Magedson – Founder
Flagship Merchant ServicesInternet USA
Flagship Merchant Services First Data of Omaha Fraud, Theft and Blackmail Internet
Don't be fooled by their claims of being the #1 ranked merchant service provider in America. Do a quick BBB serach and realize this company is far from it.
The salesman offered us a great rate on credit card processing and had our account established in only 2 days... A week later the ball dropped. My company processes an average of $120k per month in credit card orders, and our prior 3 months of banking and charge history was faxed to Flagship before our account was opened to verify our business. This didn't make a bit of difference!
$20,000 into processing orders with Flagship and I looked at my bank account with a puzzled look "Where is my money"? It was being held by Flagship... They turned n**i on my brand new merchant account, freezing the funds my customers were paying to my business and then blackmailing me into providing confidential customer details to the company in order to have the funds released. [continued below]....
I sent in the receipts and waited... The next day a new response came in "oh by the way, we also need you to send in information on these other few orders", with the guarantee that as soon as the information was supplied my funds would be released. ANOTHER LIE. A bitchy woman from their risk department calls me and says "why haven't you shipped these orders yet?" as a few had not been shipped while others had. I said "BECAUSE YOU HAVEN'T FUNDED ME FOR THE ORDERS - I ONLY SHIP AFTER I RECEIVE PAYMENT". She then told me rudely that I am required to ship merchandise within 24 hours and that they would not relinquish my funds until I provided them with tracking information for all orders, and they had verified after calling each customer that the merchandise was received without issue.
Now I had been lied to on two separate occasions, telling me if I supplied X then they would release my funds, which never happened... My options? Deal with a n**i company who was blackmailing me with me own money to ship out merchandise I'd never been paid for, and then hope and pray to God they'd actually release it to me (they can play this game for up to 6 months I found out). I decided "F**K THIS - GIVE MY CUSTOMERS BACK THEIR MONEY" so I could re-process their orders via my other merchant account which has NEVER had a problem (CHASE PAYMENTECH).
I was informed that I would still be charged the processing fees BOTH DIRECTIONS! That's right, 3% on everything that came in (that was never funded to my business) and another 3% on top of this for refunding! In the end FLAGSHIP STOLE OVER $1200 from my company in processing fees without ever funding my business! Even after closing the account they refuse to refund back the funds of which they have now stolen.
FLAGSHIP is the biggest FRAUD of a Merchant Provider on the net. Don't trust ANYONE who works with First Data in any way. They will steal your money, blackmail you with it, and then rob you if you don't do what they want.
This report was posted on Ripoff Report on 09/13/2013 06:44 AM and is a permanent record located here: http://www.ripoffreport.com/r/Flagship-Merchant-Services/internet/Flagship-Merchant-Services-First-Data-of-Omaha-Fraud-Theft-and-Blackmail-Internet-1084161. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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