On 05-28-09 our company processed a debit card payment on a customer for $1456.00 and got our approval #, had the customer sign and the next day the money was deposited in our company account. On July 24 we then got a notice from the card processing company that they withdrew the amount (almost 2 months later) and the reason given was "Code 99". We called the processing company and was told that this was intitiated by Bank Of America and there was nothing we could do about it. IT WAS NOT A CUSTOMER DISPUTE.
We then had the customer come in and he called the bank to see why. They told him on the speaker phone in my presence that on 05-28 that she could see no reason why Bank Of America would reverse the approval as there was more tha enough money to honor the approval, but that the Credit Card Department did it.
We were transferred to the Credit Card Dept and was told that they have the right to renig on any approval whether it was 2 months or 2years. As a merchant we rely on the word of the approval and not knowing for up to 2 years whether or not someone is going to take back the money is unconsienable.
We then had the customer bring up his account on line and soon figured out what Bank Of America did. That is, on 05-28 there was more than enough money. Subsequently the customer proceeded to continue to use his debit card for 45 more days without making a deposit. Bank Of America, upon discovering there incompetence in monitoring his account reversed our approval as well as one other $1400.00 approval they gave to a company in Washington and proceeded to honor everything after my approval, including Jack In The Box, McDonalds, Fuel Companies, Tax People etc... At our expense. After doing so they backed out all of the NSF fees charged aned gave the customer $700.00 that was left over.
So 2 merchants operating in good faith have been screwed out of a total of $2800.00.
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