Last week, I launched a new website for my business. As part of the site redesign, we switched from PayPal and began using MerchantPlus (http://www.merchantplus.com/) and their processing bank, iPayment Inc. (www.ipaymentinc.com) to process payments. Before going live I directly contacted MerchantPlus directly and received confirmation from ownere Zachary Smith ([email protected]) that my account was in good standing and that there would be no issues related to the cutover.
TWO DAYS into my payment processing relationship with them, iPayment Inc. Flagged and froze my account for "potential fraud" because they were concerned about the volume of transactions we were processing. I received a phone call from Marc Fernando ([email protected]) from the iPayment Inc. "Risk Department" demanding that I forward copies of all of my customers' information to him so he could contact them directly and verify their purchases.
Aside from the obvious irresponsibility of such a demand — it is the merchant's duty to *protect* their customers' information, not give it out to anyone who calls asking for it — the arrogance with which he demanded it was staggering. To quote:
"There is nothing you can do. If you want your money, you will give me what I want."
Really? Wow. After contacting all of the customers in question and getting their consent, I supplied Mr. Fernando with the requested information. I also supplied him with tracking information showing that the items in question had all been shipped and received. Nearly two weeks later, I still have no resolution to this dispute and iPayment Inc. Is still withholding my legitimately earned, legitimately processed funds.
Luckily, I run a very solid business, so I was able to almost immediately dump MerchantPlus and iPayment Inc. And move to another payment processor within less than 24 hours. Unfortunately this wasn't completed before MerchantPlus and iPayment Inc. Effectively stole more than $5000 from me. Even more amazing is that they continued to debit their fees from my checking account even as they were withholding the money on which they were collecting!
Had I not been aggressive in my transition to a new processor, my thriving business might very well have gone under. Gone. Vanished. As it is, $5K hurts, but this company's ability and willingness to withhold funding at the drop of a hat and with rude and arrogant impunity is more than frightening — it's dangerous to the small businesses that weave together the fabric of this nation's economy.
I would recommend that ANYONE and EVERYONE considering MerchantPlus and/or iPayment Inc. SERIOUSLY consider what an immediate and unannounced cessation of their income would mean to their business and look elsewhere. Moreover, I would urge anyone who has had or is having issues with either of these unscrupulous companies to contact the Better Business Bureau, their state's Attorney General's Office and their local Congressperson and Senators
I have done all of these in hopes of not only receiving the money owed to me, but in alerting those who have the responsibility to regulate these businesses of such egregious and shameless abuses of power.
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