What? Closed credit card merchant account, got "assessed" $400

[Dennis S]

I closed my merchant account because they continued to charge me $20 a month for a security rigamarole test that I passed, so there should be no charge. Also, I am not operating my business now, so I closed it because of the $20 and my bank account is open to their drafts, which I never know what they may charge me for.

I got a letter that basically says they have "assessed my account for $400.00" and "You are required to remit immediate payment pursuant to the terms of your Merchant Processing Agreement."

I have been with them close to 20 years. I get all kinds of fine print BS from them, but I guess what they are talking about happened years ago.

It's largely for crap like this but on a smaller scale that I quit them. I have to wait until in the morning to call them.

Actually, they owe me well over $100 for the bogus charges I never could get them to refund.

Has anyone ever closed a merchant account and had this kind of BS happen?

[testcase]

"You are required to remit immediate payment pursuant to the terms of your Merchant Processing Agreement."



Have you read said agreement recently?

[Dennis S]

It was 1981 when I first signed up and they've been sold a time or two. I am going to ask them to send me a copy of the signed contract.

[Black]

Dennis S wrote:

I have been with them close to 20 years. I get all kinds of fine print BS from them, but I guess what they are talking about happened years ago.

Trying to make sense of this but not able....

[Michael]

Dennis S wrote:
It was 1981 when I first signed up and they've been sold a time or two. I am going to ask them to send me a copy of the signed contract.

I'd bet that they sent you account agreement changes with your statement one month that basically said that if you continue to use the account you agree to the changes. So, even if they don't have a signed contract with the close account charge agreement that you "agreed" to it at one time or another.

Care to tell us what bank/processor it is so the rest of us can be watchful?

Best of luck with this one!

[Dennis S]

It was for a non-returned terminal which I swear I bought over 15 years ago. They have been charging $5 a month under some gobbledygook description I assumed was just some of their nickle & dime crap. So, I paid close to $900 for it plus now they want $400 more - for a freaking $15 on ebay obsolete terminal. No mention of what the $400 was for - on a fscking collection letter 10 days after I closed the account. They are sending a UPS label to return it, but I foresee trouble with the collection agency for a long time.

I took over an hour on the phone with 4 people to get to the bottom of it. You would think that would be something they all knew - $400 collection letter a week after you close your account - yeah, that's a terminal.

[Paul F.]

Gotta wonder what would happen if you bought one on eBay for $15, and shipped that one to them...

In reality; yeah... sounds like a bit of a mess.
Hope you find a way to work it out!

And please DO share the name of the company - so we can thank them for screwing you by never doing business with them.

[Dennis S]

It looks like I'm not the only person to be scammed with a shady lease scam:

http://www.pcmag.com/article2/0,2817,2412196,00.asp

I am looking forward to composing a letter to the big shots at this company.

[mikebub]

This is why I do not recommend signing a contract when purchasing merchant services. Few merchants read the terms and many agreements are incredibly one sided with cancellation fees, equipment penalties, etc.

Learn the pitfalls in the credit card processing business, by getting my free book, "You're getting ripped off by your credit card processor" Go to http://www.merchantsafeguard.com

[decay]

http://merchantsafeguard.com/should-you-...equipment/