ED Magedson – Founder
BankCard USAInternet United States of America
I run a small law practice and have used this company's services for nearly three years. I have never had a single charge back or client complaint. All of my transactions are in the thousands of dollars, however, they are relatively infrequent. Only some of my clients wish to pay by credit card.
I explained all of this to BankCard USA when I signed on. I explained that I would have infrequent transactions in high dollar amounts and that the average would run about $5k per month. I explained I might not have a transaction for a few months and then I would have several.
This is exactly how my practice has been. Like I said, everything done with meticulous records, no charge backs, etc.
Well, this company is sitting on about $15k of my money right now. They definitely do it to make money on the float and have no problem violating THEIR contract with VISA and Mastercard who issue valid authorization codes. This company did not even make an inquiry or telephone call to verify the transaction - hoping as many days would go by as possible before I caught on and followed up on my own.
Their ridiculous "complaint response person," Ms. Tan (they need a full-time person to do this??) just says - "read your contract" and "We are entitled to hold your funds." Well, Ms. Tan, I probably am a bit more adept at contract reading than you, and suggest that if you are not meeting your obligations to MC and VISA by honoring authorization codes and promptly verifying transactions of your own accord, your company is not only violating its contract but committing fraud.
My (educated) opinion is that this company advertises low signature rates because it is in the business of illegally making money on the float. Holding funds and "investigating" (i.e. really doing nothing at all) for as long as possible to make up the difference, and more, on the float. Guess what, Ms. Tan, that is an illegal, and even fraudulent business practice! READ YOUR CONTRACT.
It always takes a number of years before a company falls prey to its bad practices and goes out of business. I say within five (5) years this company will be headed toward the door. Be sure to check its BBB reviews.
This report was posted on Ripoff Report on 02/06/2010 01:07 PM and is a permanent record located here: http://www.ripoffreport.com/reports/bankcard-usa/internet/bankcard-usa-holds-funds-indefinitely-to-make-money-on-the-float-does-not-follow-its-ow-565511. 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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