Report: #372939


  • Submitted: Mon, September 15, 2008
  • Updated: Sat, February 28, 2009
  • Reported By: Merrimack New Hampshire

IPayment And 1st American Card Services IPAYMENT RIPOFF THWARTED BY SOVEREIGN BANK Internet

*UPDATE Employee: A made up story by a competitor.

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1st American Card Service advertises No Cancellation Fees, No Middle Men Bank Direct and No Contract Term Length. These all seemed like a great idea when we were shopping for a new credit card service provider.

After working for weeks with 1st American, we decided that it was not worth the frustration trying to get the sales girl to understand her job and the company's fee structure. Unfortunately, paperwork was processed (during a moment of weakness) and an account established. But they advertised No Cancellation Fees so I felt no remorse when I cancelled the account.

We had received monthly statement charges from IPayment (apparently there WAS a Middle Man!) but I didn't really think about it much. But, when three weeks later we received a $350 cancellation fee from IPayment I contacted 1st American immediately! I was sent email saying I should not have been charged and they would absolutely have it reversed immediately.

I am very glad that most of the exchange was done through email, giving me a very clear record of the transaction, because after another few weeks still nothing had been done. I was finally given a phone number for IPayment.

The IPayment conversations were very interesting. First, I was told that the charges would be reversed that week. When I called again the following week to find out why nothing had been done, I was told that they only do the credits once a month and I would have to wait until the 15th. This was unacceptable, since that would have given them my money for a month! The supervisor intervened and told me it would be processed Tuesday, then hung up. Of course, Tuesday came and went. I waited until the 15th. Still nothing. I called a fourth time and was told by the customer service person that she had no record of the transaction, that the person who had processed the original request no longer worked for the company, and the request would have to be resubmitted!

Thanks to Rip-Off Report, I realized if I allowed this to happen it would take me over 60 days past the original charge, giving them the upper hand. So I printed out everything I had that referred to the charge and brought it down to Sovereign Bank where we have our business account. I spoke with Betty, telling her this was an unauthorized charge. She promptly had me sign a very straightforward, one page form to refute the transaction. Four days later, the $350 was returned to our account!

A Word To The Wise: Before signing anything with a credit card service, find out if they use IPayment to process their transactions. If they do, thank them for their time and RUN!

Thank you Rip Off Report and Sovereign Bank!

Merrimack, New Hampshire
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This report was posted on Ripoff Report on 09/15/2008 07:03 AM and is a permanent record located here: 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. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#1 UPDATE Employee

A made up story by a competitor.

AUTHOR: Bill - (U.S.A.)

There is not much more that one can say other then this is a made up story by a competitor.

1st American Card Service has been in business for over 25 years and has one of the highest ratings in the industry. Offering Merchant Accounts is a highly competitive business and when you loose a customer to a sound competitor with a great track record and lower prices sometimes people get desperate to do anything to strike back.

We have a letter signed by executives at Sovereign Bank and after 2 months of research not only did they not find anything that fits "Morgan's" story, they found that our company(s) have never been a party to any ACH reversals. They also went on to say they found no consumer complaints by anyone using the name "Morgan" for as far as the records they keep go back. They do however have a number of workers named "Betty", as anyone taking a guess at a name would conclude.

However we did receive a very detailed email from a competitor at about the same time this report was filed with a threat that they would "get us" for winning over a merchant that they desired to sign up for a competing service.

No coincidence.

The records we have concerning this response can be made available on request.
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