• Report: #719240
Complaint Review:

First Data Corp

  • Submitted: Mon, April 18, 2011
  • Updated: Mon, April 18, 2011

  • Reported By: upset_merchant — Delaware United States of America
First Data Corp
1307 Walt Whitman Road Melville, New York United States of America

First Data Corp Small Business Abuse by First Data Melville, New York

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We had been First Data merchant service customer since June 2010 and have never had any chargebacks or even  disputes. On April 1, 2011, we received a fax from First Data risk manager Keith Moss stating that  the funds on our merchant account had been suspended because of an unusually high dollar  amount or an unusual method of processing. The letter did not specify the exact reason. However, it said "We are unable to release any of these funds from suspension, until we have been able to view proper documentation that supports the transaction(s)." In a phone conversation, Mr. Moss  said that he just needed to verify the transaction supporting documentation and it should take two  business days.
We sent a 31 page fax with all supporting documentation including customers contact details,  shipment tracking information, supplier invoices and a letter from bank. Mr. Moss contacted us on  April 6, 2011 to say that he cannot release the funds because of the high risk associated with our account.

We did everything in our control in order to prove that we are a legitimate low risk business:

  • Provided all required supporting documents within reasonable time frame.

  • Submitted the letter from our bank.

  • Never had chargebacks or credit card charge disputes.

  • Excellent credit history of both the company owner and the company itself.

It seems that First Data holds funds regardless of merchants business practices. Submitting all  required documents and having excellent payment processing record did not convince them to  release the frozen funds. The main reason behind this move was to hold the funds so they can  collect the interest.

First Data needed additional documents to get more information about our business and determine the appropriate hold amount. They were using these documents not to help clarify the issue but  against us, their customers.

First Data minimizes the risk by holding merchant funds and at the same time maximizes its profit by collecting interest from these funds while asking merchant to pay in full all fees for their service. It looks like First Data merchant service cannot make any profit without RIPPING OFF CUSTOMERS.

They make merchants, consumers, suppliers and manufacturers hostages of their improper business practices. It would be interesting to see what their risk analysts would say if somebody put their  paychecks on hold for few months



This report was posted on Ripoff Report on 04/18/2011 08:38 PM and is a permanent record located here: http://www.ripoffreport.com/reports/first-data-corp/melville-new-york-11747/first-data-corp-small-business-abuse-by-first-data-melville-new-york-719240. 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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