Last October, I signed up with IPayment Merchant Processing Services, aka IPayment. They would be processing credit card card payments for my small business.
Most of my customers use PayPal and I soon realized I would not need the services of IPayment, so I jumped through their hoops and closed the account. I say this because they denied receiving any of my e-mails regarding my need to close the account; and, they denied receiving letters that I mailed to them regarding closing my account. They did finally acknowledge my fax stating I needed the account closed.
The usually bill my account on the 1st of the month. They did not debit my checking account on the first, so I assumed all was taken care of with IPay. Unfortunately,
on Feb. 17 $350 had been withdrawn from my business checking account, causing penalties to me since there was not $350 in account. Also, it did not leave money in the account that was needed to pay scheduled bills. IPayment had taken the money out of my account and noted that it was for a Cancellation Fee. My contact did not note a cancellation fee; and, in at least 4 places it noted there was no early cancellation fee.
I called and they said it was an error on their part and they would return my money within 30 days. I found my bank could do nothing about this until they had 30 days to return the money. Basically, they took my money, left me in a financial mess, and apparently can legally hold onto my money without being penalized. This is criminal; and, my hands are tied.
Apparently, IPayment has been doing this same thing to many other small merchants.
Please, protect yourself by staying away from them!
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