1st national processing ipaymentinc Undisclosed fees, Misrepresentation by Agent, Higher than advertised fees, hostile customer service, totally dishonest Internet

In 2007 we began operating a tour company in wyoming. We were promised by Michael Mack who owns www.truthinprocessing.com that he had the best rates around and knew how to navigate the system to get us the best credit card processing rates out there. Our first year we did more direct business than credit cards so we didn't pay much attention to our credit card processing fees.

Over the next couple years our annual sales increased and we began to wonder about the large withdrawals being taken from our account after already paying a % out each batches' deposit. This year we finally looked into it and low and behold we were getting hammered with hidden fees, outrageous effective interest rates (above 5.5%) and other undisclosed fees. We asked Mike Mack about the rates and he insured us that we were at a very good rate and that he had just had them lowered to save us money.

After some inquiry, I learned that we had an account with IPaymentInc and that we should have been getting statements from them. I logged on to find that we were paying a much higher rate than we were told and that we were paying a monthly access fee in addition to several other fees. Not only were we told there was no monthly processing fee by Mike (The independent 1st National Processing Agent - again doing business as Truthinprocessing and with no disclosure of his affiliation with 1st National) we were also completely mislead on our effective rates! In addition, once confronted about these fees and after e-mailing our current statements - which it turns out he has had full access to all along - Mike still promised we were not paying a monthly access fee. I have an e-mail conversation of this!

I then contacted 1st National Processing directly to close our account and was told that we couldn't close our account without our 'independent' agent and that only he could close our account. Again I was never told there was an account being opened with 1st national on or name or that I should be getting statements from them. I had to argue with the 1st National Agent Brian and on the end he called Mike Mack on the phone and got his permission to close our account.

I was then told that until I follow their procedure (ie signing and mailing a form) that our account was not actually closed and that they would continue to charge us their fees until we completed their form. It's funny because our gateway company Auth.Net just closed our account with a quick phone call and a courteous thank you for your business.

By my conservative calculation, Mike Mack (Truthinprocessing) and IpaymentInc's misrepresented % rates and hidden fees have cost us around 10k dollars in the last four years compared to standard processing costs.

Stay away from Ipaymentinc, 1st National Processing, and Truthinprocessing. These companies are operating in the shadows and completely dishonest at best - possibly fraudulent. If you have had similar problems with these companies please add your story to the discourse on this issue. These unethical business practices took money out of my pocket as well as that of the local community in which I live.

I know of one other small business in our area who has just discovered the same problem and is just looking into it.