I am a small business owner in the great state of Nevada. About 6 months ago someone for a company called 1st Financial Merchant Group iso Chase Paymentech to find out how much I was paying for credit card processing and stated that I will be saving thousands of dollars a year if I switch my credit card processing with them.
At the begining I was a little hesitant to make the switch even when I knew I was paying higher rate than everyone around us, I had been with the same processor for 10 Years and I never had any problem, plus my rep was a really nice and helpful guy.
Times got tuff and we had to start making adjustments and cutting costs in order to survive, so we switched in May.
At the begining of september I received a phone call from a so called risk department person from First Data questioning my charges, I said that my business is seasonal and we get most of our business in the month of august. I immediately asked if there was any of my customers complaining the services or the quality of the products I redendered, she said no.
I also asked if there was any chargeback, she answered no. Then I ask her why then she is questioning my charges, she claimed was because I was doing too much business and my transactions were suspicius. How can they be suspicius if nobody is complaining? I said. She did not have an answer. I refered her to my rep at First Financial who was going to take care this matter.
In october I noticed I bounced a check at the bank and I could not figure out why, I called the credit card company and that said that the Risk Department, without informing me, is holding 23,000 of our money for security purposes.
I tried to call First Fiancial and they said First Data will holding the money for 6 month because I represent a risk for their company. I tried to call first data and it is impossible to speak to anyone at the Risk Department.
Holding $23,000 for a small business like us will most likely put us out of business, specially now that the economy is shakey.
We did do anything wrong and did not solicit doing business with First Data, we are running an honest business for over 20 years and because of First Data we are forced out.
My advice to any small business: read carefully when you sign a contract with a credit card proccessor, in my case I will never do business with First Data or recommend First Data to anyone.
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