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Report: #199027

Complaint Review: IPayment, Inc. Merchant Services - Calabasas California

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  • Reported By: San Diego California
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  • IPayment, Inc. Merchant Services 26707 West Augora Road, Suite 100 Calabasas, California U.S.A.

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In Operating a small business it is important to find vendors that help you and want you to be successful. You need them to be on your team so to speak. Well let me tell you that when we choose iPayment, Inc. credit card services we made our biggest error in judgment. We have been with iPayment for about 7 years without a charge back because we are careful about checking out our customers since our product sales are usually thousands of dollars per item. The last 8 weeks have been a nightmare of us and iPayment, Inc. has been a worse nightmare then the individuals who bought our goods with stolen credit cards. The scenario whet like this; purchases where made, credit cards approved, we sent the products and then about one to three months later the charge backs start coming, some without notice!

We hired an attorney to help us sort it all out and after she read the iPayment contract she was shocked. She said she never saw a contract that was so one sided and scolded us for signing it! iPayment's contract allows them to basically go into our checking account and take money out for what ever reason they deem necessary at any time. And then they are also allowed to hold this money or any future money from the merchant's sales for 90 to 120 days without reason. Can you believe this? How can a merchant survive for 90 to 120 days without income and still function? And according to their merchant contract, if you try and stop iPayment from doing this, they will report you to Visa or MasterCard and have you ?blacklisted? which will shut down your credit card payment system forever! One of our charge backs was vindicated but iPayment refuses to return the money to us saying they now are holding our money for 90 days.

Our attorney is trying to find out why. Today iPaymnent went in and took back another approximatley $2,700 and did not tell us why. iPayment's customer service representatives are sometimes rude to merchants and not helpful, in fact you get the feeling they are working against you. Our attorney is still waiting for a return call after being told that two of the mangers she requested to talk to are on vacation! So now iPayment has approximately $4,500 of our money. We immediately switched bank processors and my attorney is now looking into having us close our checking account.

But it is not that easy, the iPayment contract states that if we close our banking account before cancelling our contract with them, then we are in breach of contract and they will ?blacklist? us with Visa and MasterCard. In addition, we have missed the annual 30-day opportunity to cancel the contract with iPayment (as stated in their merchant contract) so we cannot legally cancel the contract with iPayment for another year. So they really got us. Even our attorney is surprised and advised us not to process anymore payments through iPayment ever again. We are still trying to figure out what to do.

Merchants like us are really getting a bad deal here. The credit card companies are getting high interest rates from consumers and the merchants are assuming all the risk in every transaction. In addition the merchants have to pay a bank merchant's fee on every sale. This has got to stop, something has to be done to level the playing field. Merchants are relying on companies like iPayment to approve payments, but these companies do not stand behind their approvals!

I think it is time merchants rebelled against this form of unfair practice. Anybody interested in a class action lawsuit? Or perhaps we all need to refuse to accept credit cards! My advise to all merchants is to have an attorney review your merchant contract before you agree to it and avoid iPayment, Inc. at all costs!

BM
San Diego, California
U.S.A.

This report was posted on Ripoff Report on 07/01/2006 01:28 AM and is a permanent record located here: https://www.ripoffreport.com/reports/ipayment-inc-merchant-services/calabasas-california-91302/ipayment-inc-merchant-services-not-a-company-for-small-business-merchants-calabasas-cal-199027. 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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#4 General Comment

Complete Ripoff

AUTHOR: JZ Maintenance Services - ()

POSTED: Tuesday, September 03, 2013

These guys are a complete scam, i have used them since april of 2013 and have today decided to cancel there services. Every month they charge random amounts to my bank account and alot of money for processing card transactions regardless if i process cards or not. I will not be using these guys no more and suggest anyone considering accepting credit cards as a form of payment to stay clear of this company. I Signed up through card service international site so beware of these guys as there gonna rob your bank account every chance they get.

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#3 Consumer Comment

you are not alone....

AUTHOR: victimized_by_ipaymentinc - (United States of America)

POSTED: Friday, April 15, 2011

Ipayment has been successfully sued and the owner appears to be dodging a $300,000,000.00 judgment against him.  Maybe this is why the company has such a huge tract record or poor customer service and shady business activity.

Ever since Ipayment began holding several thousand dollars of our money, we spoke to William in Risk management back in Sept of 2010.  He was very rude on the phone and advised the funds would be on hold and they'd review the account in 30 days to see if they could be released.  30 days came and went, no funds released.  We called William every 30 days for 6 months straight.  Never answers phone, always goes to voice mail.  Each time we were polite and asked for a call back.  Not once did he attempt to call us.  Either he doesn't care about customer service or he is scared of a possible confrontation.

6 months later they again held more funds.  Called spoke to another person in Risk Management (who was actually a nice guy--you can still be nice and deliver poor news) and advised they were closing our account and here's the kicker--they would be holding our funds (back from Sept. and recent) for another 7 months.  He explained it would take 30 days to cancel the account then they can hold the funds for another 6 months beyond that date.  Contract says they can only hold funds for 6 months.  Can someone say fraud????  

Our business is now at the doors of bankruptcy and we've had to cancel and refund customer's unshipped orders.   William called us to see why we were refunding some orders.  He was rude and proceeded to tell us how to properly run a business.  Huh?  He ended up hanging up on us during the phone conversation midway through my sentence.   Didn't even bother trying to call him back--why bother?  Again, this was from a company we paid for a service.  The good thing is we new what to expect from the conversation and recorded it!  

If your reading this, most likely you already use this company, so there is no sense in warning you to stay away.  Here's what you can do, won't get you much results but if your having a problem report them to the better business bureau.  This will not force things in your favor, but in the very least you'll get a call back.   Report it to there state's attorney general.  Once they get enough complains on file, they'll open an investigation.  Once a company is being investigated by the attorney general, they'll always find areas to focus on.  Close your bank account and end your relationship with this company ASAP.  

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#2 Consumer Comment

I AGREE! POST ON GOOGLE, YAHOO, & BING MAPS TOO!

AUTHOR: Pissed-ON - (United States of America)

POSTED: Saturday, March 19, 2011
WORST COMPANY IN HISTORY, They are the bane of American Business, the biggest Piece of Crap Company on earth! They are worried more about getting charged back then they are about making money, the most incompetent company ever! I am the CEO and pioneer of 1 of the best d**n companies ever created and these guys are retarded beyond belief, on a "Red- Alert" because my company gets commissions every month and the amount of transactions fluctuate, these idiots tried to look up 1 of my clients new phone numbers on google that just got assigned to them, instead of calling the client for payment processing, I cancelled my account immediately, d**n insultive piece of crap retards! Even the CEO Greg Dailey is an idiot! FIND SOMEONE ELSE! I've NEVER in all my life been treated like a Theif they way they treated me. HORRIBLE!
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#1 General Comment

Similar Problem

AUTHOR: RV - (United States of America)

POSTED: Friday, December 04, 2009

I own a company that processed all of it's transactions through IPAYMENT INC. as well and we had a similar problem with iPayment. In my companies situation we actually recorded an IPAYMENT representative telling us he would not execute transactions on our bank account starting on a specific day but he did so after that date anyway. After being lied to I quickly switched merchant service providers. Opening an account with IPayment, Inc. was a mistake but staying with a company who lies to you about how the plan on handling your money is CRAZY.

When we called Ipayment we were often told the person we were trying to reach was on vacation although we just spoke to them a few minutes prior. On one occasion, an IPAYMENT representative put us on hold and blindly transferred us to another company that we did not do business with!

When we told IPAYMENT we were not going to do business with them any longer they starting debiting our account but we were able to contact our bank and stop the illegal debits.

I later found out that Ipayment has been sued for embezzling money and fraud AND their officers have had criminal records!!!! 

I'm glad I got away from them!!! I will never ever do business with I Payment Inc. and would gladly join any lawsuit against them and would gladly testify against them.

 

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