In September, First Data aka Cardservice International charged my company an Annual Compliance Service Fee for $119.75. I just signed up with this First Data merchant services account this past June and in the agreement that is between our two companies, all fees are spelled out and this fee is not among them.
Upon calling their Customer Service line, I was directed to a clause in the contract that says in part, "... We may also increase the rates and/or fees for Services for any other reason by notifying you twenty (20) days prior to the effective date of any such change." I argued that this is not a fee increase, it's instituting a NEW fee.
The customer service rep countered that it is a fee increase, from $0.00 to $119.75. I pointed out that I have not agreed to any Compliance Service Fee, even at $0.00, in my agreement. I flat out told the rep that I am disputing this charge and to show me where I agreed to pay this fee. She was unable to do so, and brought on a Supervisor at my request. Again, they were not able to show me where I had agreed to this fee other than the "can increase fees with 20 days notice" paragraph. I then asked where to send a letter to their legal department, and was advised to send a complaint to the main address on the statement. I also asked what the charge would be to end my contract. Customer service rep was not interested in trying to keep my business and said the fee was payable, like it or not.
Additionally, the fee will cover a PCI Analysis, which if I do not proceed with, they will charge my account $19.95/mo until I do.
I am now researching other merchant services providers. I have already spoken with Elavon (formerly Nova) and they do not have such fees, even though First Data says that this fee is for proving PCI compliance is required by the card associations.
Bottom line: my agreement with Cardservice / First Data does not allow this charge and I am reporting it here on usacomplaints.com, reporting to the BBB, and sending a letter of complaint to them directly.
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