Complaint / Review
First Data Merchant Services
Took $500 unauthorized from my checking account after I cancelled my contract without warning me that there was a penalty for cancellation. Would not return it. Hagerstown

I cancelled my contract with First Data Merchant Services in March. I do very small credit card volume. They had been my vendor since September. I had not incurred any penalties when I switched from my previous vendor to First Data or for a change previous to that so I had not reason to believe that switching would be a problem.

While their discount rate has been stable, over the time they had been my vendor they kept tacking on all kinds of fees such that I was paying 4-5% on credit card transactions even though all transactions were clean and with the card present. I decided to switch to a different vendor. I called First Data. They were polite and helpful and the phone. At no time did the customer service person mention that my contract had or might have a $500 penalty for termination prior to three years service. Clearly, this would have been well known in the company as this page is loaded with similar complaints.

I discovered a $500 withdrawal when I received a month-end statement from First Data. My total transactions for 2006 were only $3335, making this a 14% When I called them they told me that I should have looked at my policy. I followed the instructions previously written in Rip-Off and called my bank. They told me that First Data had taken the money in such a way that I could only dispute it within the first 24 hours. They did agree, however, to fax me a Federal Form E and have me fax it back to their ACH department. This was Wachovia Bank which is possibly the best customer service business bank in America. Anyway, they do not know if they will be able to help me but at least they will try.

Amy
Glastonbury, Connecticut
U.S.A.