I originally received a call back in August of 2005 from a telemarketer from Merchant Services stating they could lower my monthly costs of VISA/MC at almost 1/2 of the cost that I was currently paying. I welcomed the chance to save some money, so they had a sales rep by the name of Eric Torgersen come by my business, National City Trophy to introduce himself. He said he was part of the Merchant Banking Industry of Fifth Third Bank with different business names of other customers that they currently offer their savings program. He proceeded to explain that he would replacement my old equipment and keep my rates lower than standard for 36-48 months. He did a cost comparison worksheet from what I was currently paying and what I would be saving over this 36-48 month period. He said that the equipment would be leased to protect against malfunction of any kind that they could replace it within a 24 hour period.
This turned out to be untrue, 3 months after the contract started the rates became overwhelmingly high at almost 2.99% per transaction plus statement fees, debit processing fees and another 107.00 for the equipment I leased. I called him directly because he was the individual whom signed me up, he said that he would lower the rates and apologized about the rates going up that it was standard for VISA/MC to raise their rates but he would make an adjustment to my account, he did and no longer than three months later they went up again. I was fed up at this point he evidently misrepresented his company's contract. I was calling and calling and they said that if I were to cancel I would be charged from 295.00 and up. At this time I was told that the equipment was actually leased through a 3rd party company named MBF Leasing. I called these people and they said that I had a 48 Month lease and the cost of it is 4800.00 to close out the agreement. Fustrated and confused I said that I would just have to live with the mistake that I made with signing this contract that they keep over my head with each accusation of cancellation.
So last September 2008 the machine broke down, I called Merchant Services and they told me there was no warranty on the machine to call MBF Leasing, I called them and they directed me back to Merchant Services, finally MBF Leasing agreed to send me a loaner for the broken equipment that I had, at the time I was unable to process credit cards and was losing business I agreed. The loaner machine came in about 1 wk later in an old box with dust all over this machine. Tried to get it to work and come to find out that it was not compatiable with system I was currently processing with. I mailed back this trash equipment and canceled all service with both parties out of pocket over 1500 hundred dollars later. I ended called CHASE Bank and bought my processing equipment out right for 400.00.
Merchant Services had the nerve to call me and try and get me to resign another contract, I hung up on them. They also continued to debit my checking account for a cancelation fee for not canceling within 90 days of the contract renewal date, stating that the contract will automatically renew for another 12 months if not canceled. I ended up canceling the 295.00 EFT debit with my bank and mailed them a money order for the 295.00 also just paid 400.00 to MBF Leasing to get off of my back and leave this terrible experience behind me.
National City, California