• Report: #682924

Complaint Review: Moneris & RBC Bank

  • Submitted: Sat, January 15, 2011
  • Updated: Wed, October 31, 2012

  • Reported By: sk123 — Atlanta Georgia United States of America
Moneris & RBC Bank
150 N Martingale Rd. Suite 900 Schaumburg IL, Illinois United States of America

Moneris & RBC Bank Moneris Payment Solutions Extremely deceptive and binding contract...with VERY harsh cancellation policy. Schaumburg , Illinois

*Consumer Comment: Dentrix Dental Software Tie up with Moneris Rip off!

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Moneris & RBC bank

To all merchants looking for credit card processing:

Please beware of the fine print which includes VERY excessive and severe consequences for early termination of this (3) year agreement. Below is what will happen if you decide to leave Moneris Payment Solutions or discontinue processing according to their terms stated in application MSFRI-OC-APP-0910.

Early Termination Fee is calculated based on the greater of Two Hundred Fifty Dollars ($250) or Banks average monthly volume derived from processing Merchants

transactions (based on an average of the highest three (3)months of processing volume during the previous or current term of the Agreement,whichever is greater),multiplied by .003,multiplied by the number of full and partial

months remaining in the term of the Agreement

EX:A business processes $40,000 monthly in credit cards and is unhappy with increased rates and poor service.After 1 long year of being fed up they change processors and cancel Moneris.

The Consequence:$40,000 x .003= $120.then take .$120 x 24 (months remaining) on your (3) year term= YOU GET HIT WITH A$2,880 CANCELLATION FEE.

But please keep reading because it gets more ridiculous.

TERM AND TERMINATION. (1)Term.The termof thisAgreement,including any equipment

rental, shall be for three (3) years from the Effective Date and shall remain in full force and effect

until termination.This Agreement shall be automatically renewed thereafter for successive three

(3) yearperiods unless Merchant gives written notice of termination at least sixty (60)daysbut not

more than one hundred twenty (120) days prior to the expiration of the then existing term.

(2) FEES FOR DISCONTINUING PROCESSING. In the event Merchant (i) discontinues or ceases

processing of Card Transactions prior to the end of the term hereof, or (ii) gives notice of discontinuance

of processing (including an invalid or ineffective termination notice),or (iii) violates Section

15 of this Agreement, Merchant shall pay Bank upon demand the Early Termination Fee

described in the Schedule of Rates and Fees attached to and made part of this Agreement. Merchant

agrees to pay this Early Termination Fee and agrees that such Early Termination Fee constitutes

liquidated damages and is not a penalty.(MSFRI-OC-APP-0910).

In other wordsunless Moneris is notified within 60-120 days at the end of the initial contractThey will stick owners back into another 3- year contract without consent.Therefore allowing merchants that have been with them for 3-10 years to still be subject to these outrageous fees.

The above also states that merchants can be punished for discontinued processing.So if you close your business or for whatever reason just decide not totake credit cards, you are still on the hook for thousands of dollarsAnd believe me they come after you. (Keep in mindnone of this gets explained as your signing the contract).

This agreement is about as sleezy as it gets in the credit card business. A penalty this size can be devastating to a small business.The good companies out there wouldnt need a contract written like this.

***The italicized language is directly quoted from a Moneris Merchant Agreement (version MSFRI-OC-APP-0910).

This report was posted on Ripoff Report on 01/15/2011 08:14 AM and is a permanent record located here: http://www.ripoffreport.com/r/Moneris-RBC-Bank/Schaumburg-IL-Illinois-60173/Moneris-RBC-Bank-Moneris-Payment-Solutions-Extremely-deceptive-and-binding-contractwi-682924. 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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Updates & Rebuttals

#1 Consumer Comment

Dentrix Dental Software Tie up with Moneris Rip off!

AUTHOR: Vishal Ramchand - (United States of America)

Wow!  This is an eye opener!  I am sorry to hear about what you are going through with Moneris. 

Curiously I have had a very similar conversation with Moneris yesterday.  Some of our processing fees are above 3% plus plus plus and in addition Moneris is wanting to charge every merchant $6.95 PCI fees every month  If you are not PCI compliant the fees go up to $19.95 per month.

We were approached by Moneris stating they have a tie-up with our practice solution software Dentrix and are offering dental office a great rate.  Being a busy office, we did not ask specific questions about contract length and contract cancellation options, but asked to look at what we are signing.  On the document we signed it has no mention of any contract termination clause or contract term length.  Ahhh... it is not that simple, when we called Moneris we are told it is a 3 year contract and if you decide to cancel the termination fees are the addition of the highest 3 months of fees you have processed.  This is obviously different from what you are being told. 

The previous credit card processing company had no termination fees or contract term length.  The agent from Moneris I corresponded with via e-mail, did not state any of these clauses.  I have an e-mail asking the agent if there were any fees or anything else we needed to know up front.  There was not response to the above question. 

I have forwarded this to my attorney and the plot thickens!! Will update....
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