First Data Corporation is a total consumer rip off. If you are a business owner and you accept or need to accept credit cards then stay away from First Data.
How do I know this? I was an employee for over 2 years but finally found a job that is honest and customer friendly. As a sales rep for First Data their is one and only one goal. Meet your sales quota or we will fire you! Lease equipment to customers at rediculus prices. Sell equipment at super high prices.
If you wish to purchase a processing terminal from First Data expect to pay a minimum of $700.00 for it whereas you can shop around and find the same model for under $300.00. According to First Data you are purchasing "value" in the equipment and their service.
Billing problem? No problem at all, call the 800 customer service number and try to speak with someone in India that does not understand english.
Customers that cancel service end up having $500.00 deducted from their bank account without prior warning and can not get it returned. They do this legaly because each customer signs a form from the back of "The Program Guide" known as a confirmation page. The customer must sign this form when the applications are completed and it states in part "that the customer acknowledges by signature that he/she has received and READ the program guide".
This is 32 pages of information that is hard to understand and would take over an hour to read. Hidden near the end, and in the only place, is the part that states this is a 3 year contract and if cancelled prior to the 3 years you will pay a $500.00 penalty.
This information is NOT printed anywhere else in the required documents. The sales rep is NOT required to disclose this information since it is printed in the program guide and the customer must sign stating he/she received and READ the 32 page booklet at that time.
This is how they cover their dishonesty. The sales rep does not get one penny of this money, it goes directly into the company.
A lease is a lease and hard to get out of. The application page where the lease is written in stating the number of months for the lease and the monthly payment is on the main page and does NOT require any signature at all. How can this be a legal and binding lease?
First Data also charges each customer $38.75 in a "annual compliance fee". Compliance fee? No such thing, it is an extra fee charged for doing nothing at all.
The application fee and upfront fees are not required. If you are charged this fee by a sales rep the money is split 50/50 between the company, First Data, and the sales rep. I have seen many instances where a rep charges a customer $200.00 for an "application fee". This is not required. Again, it is split 50/50 between the company and the rep.
Talk about profit in leasing equipment a rep can earn up to a $1000.00 monthly bonus for leasing 8 terminals. You do the math to see what the real profit is to the company.
Once a customer has signed up for the First Data service do not call your sales rep for anything. Call customer service for questions and problems and you will get the run around while at the same time they are trying to sell you something else.
If you sign up for processing using your own equipment you can rest assured that within 90 days or much less, you will receive a call from First Data telling you that your terminal is out of date and has to be replaced. Bogus, not true! Most of the time you can call the 800 number to customer service and they will sell you the same model another department said was out of date and needed to be replaced. Do you have any idea how many sales they make using this method? Over $50 million in 2005 alone!
If you intend on getting started in accepting credit cards shop around and purchase a terminal from a office supply store. Office Depot, Office Max or Staples. They sell the same models at a much lower price. Shop around for the service and refuse to sign a contract. First Data will tell you that you have to sign a contract but when they see they will loose the deal they will give in. This is important because when you get your monthly satement you will find higher charges for processing than what you were quoted but you will never get a straight answer as to why the charges are there or how to avoid them in the future. Generally they will tell you it is because your terminal is out of date and needs to be replaced. Do not do this. It will not in anyway reduce your fees, it can not.
Forget about trying to sue First Data for anything even if you feel you have the proof you need. They have too many staff lawyers and they will tie you lawyer up for years with over whelming paperwork and you WILL eventually be forced to drop your suit since you will not be able to afford to proceed with it. Class action? It will be the only way and will still take a long time.
The honest people that have been employed by First Data in the past have quit and sought employment with an honest processor. First Data has agreements with many banks and customers are not told it is First Data. For instance if you go to SunTrust Bank for a processing account it will be with First Data. SunTrust only receives part of the profit from the account but other than that has no control over the processing, it is still First Data.
Read the program guide! It is long but it is legal. Do NOT sign a contract for the processing account, this CAN be waived even when the rep says it can not.
First Data is money hungry! They push all sales reps to the point the quit due to the pressure. Management spends money for themselves and lower management like they are printing their own. Profits are really good when this company can afford to buy the president a $50 million jet for his "business" use.
Do NOT get ripped off. Stay away from FIRST DATA, you will be glad you did!
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