We have ongoing dispute with Merchant Services, Inc. (MSI) about credit card transactions and money MSI holds and don't want to deposit to our banking account without any reasonable explanation. We'd opened a new account with this company on September 19th, 2006. I sighed and faxed application to open a new account on 09-18-06, on 09-19-06 we'd received instructions from MSI sales representative Mr. Anthony Mayo that we can start to accept credit cards, the same day our terminal was programmed/activated.
On 09-19-06 we'd processed several credit cards for completed services, among them credit card for invoices# 10432, 10432-I from customer Mr. Murphy.
On 09-25-06 we were contacted by MSI representative Mrs. Gabriela Robles, who claimed that these two transactions are fraudulent, she insisted on immediate contact with customer and his notification. We contacted customer promptly and, as politely as possible, tried to explain, that we are having problem to process his credit card. Customer was very confused, because he never had any problems with this credit card. He thought, that by mistake he used his parents credit card, who live with him at the same address. We contacted MSI with this information, but were accused in conspiracy and wrongdoing. We were told to call cops (actual phrase Mrs. Robles had used) on Mr. Murphy and to credit money back to avoid dispute on these transactions. We never have any doubt about MSI staff professionalism and immediately credited back amount on invoice#10432-I and also notified Mr. Murphy by certified letter with explanation that MSI has suspicion about credit cardholder. On this letter we received, sighed by Mr. Murphy, statement where he swears that he is authorized user of credit card, he felt very angry to be accused in fraud. He immediately stopped any activities on his credit card.
According to customer statement, we conducted our own investigation and contacted bank issuer of the credit card, we verified address and name on the card. It matches information customer provided, we don't have any doubt. Customer goes by his middle name, he sighs by name Bruce Murphy, he had signature on magnetic strip of his credit card - Bruce Murphy. According instructions on agreement with MSI to verify cardholder identity, we have to check, among the other information (expiration, address, etc.), if signature on sales draft/invoice matches signature on the back of the card. It does. In this case we don't have to insist on providing any over verification or prove of identity.
MSI represented by Mrs. Robles insisted on imprint of the card, but we couldn't obtain it on 09-19-06, because we received new imprint card from MSI only on 09-29-06, but was instructed, we can start accept cc on 09-19-06. At present time we cannot make imprint of credit card, because when we contacted Mr. Murphy about fraud warning, he stopped any activities on this credit card. Credit Card doesn't exist anymore, but it doesn't mean it was used unauthorized on 09-19-06.
Despite our best effort, MSI still insists on fraudulent transactions, even since 09-19-06, when credit card was actually charged, no dispute was filed against our company. Dispute cannot be possibly filed, because again credit card was used authorized by single credit cardholder - Mr. Murphy.
At present time MSI holds funds against our company. We never had any disputes/chargebacks. Any merchant services agreement allows to create a reserve/money fund ONLY in case of dispute or if merchant account has exceeding amount/disproportionately high numbers of Disputed Charges.
We find MSI actions illegal.
We are deeply disappointed in MSI customer service and staff.