On Monday May 2 Payment logistics terminated our merchant account. After waiting until a weekend to collect revenue for 4 days they informed us that Wells Fargo had required all web sites in our industry would be terminated. With no warning and no time to find an alternate processor. We were unable to complete our transactions for our customers because they held all the transactions, stating that they had to hold them for the anticipated chargebacks that would certainly come in once our customers that had paid did not get their merchandise. We had never had a chargeback, dispute or complaint. I asked them to just refund the entire $8,000 that they took so that our clients would not be hurt. They said no. I asked them to allow my customers (I had told my customers about the event and they all offered to write to come to our assistance because of the service we had provided to them during the past) Payment Logistics said no.
They also informed me that should any of our customers seek damages agaisnt them for holding the customer funds without authorization from the customer to do this, that Payment logistics would take the amount they held and use it to cover their legal costs.
This action has caused total destruction to our business and our personal income. We will be unable to cover our living expenses or continue to do business because Payment Logistics has put our site on a list of terminated accounts. We would like to rally all businesses that have been ruined by the acts of Payment Logistics and Wells fargo (the merchant bank) for taking this action with no reason and fight for the right to do business.
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