To give a breif history we are a company in the wholesale business specializing in the sale of wholesale video games both on the internet and eBay. We have been in business since 2002 and been an eBay PLATINUM POWERSELLER (which is only possible with great feedback of 98.5% or higher, ours is well over 99% positive from all our customers, and sales over a stated amount roughly $25,000-$149,999 in sales per month) for over 2 years as well.
Our website has been are secondary means of purchase for our customers and was established roughly 1.5 years ago. We have had nearly $1,000, 000 in sales each year since our inception and have used Paypal as the primary means for this and are in great standing with Paypal having our own personal account manager and direct line.
Moving forward to the problem. We decided to add an additional means of payment for our website (on top of the Paypal, etc currently offered at that point) and recently decided to implement a credit card payment system. We decided on and were approved by eprocessingnetwork.com with 1stamericancardservice.com as the payment processor / merchant account. We have had this account with our credit card processor 1stamericancardservice.com for about 3-4 months now.
I had a valid transaction take place through my website that was for $4632 from a regular customer of ours for a wholesale lot of video games, again which is all we sell. Our monthly volume allotted for this account was $4,000 and our average ticket was suppose to be $400. We recieved a call 3-4 days after the transaction was APPROVED from our credit card processor stating that they needed additional information to send the money to our checking account which we could answer for them over the phone right then.
2 HOURS LATER THEY WERE STILL ASKING QUESTIONS AND WERE ACTING LIKE WE WERE A SCAMMER. (We've been in business since 2002 with nearly 1 million dollars in sales each year with not even once credit card chargeback ever). After 2 hours and getting no where I proceeded to ask what was really the problem with the transaction that was requiring such a long detailed conversation.
They stated it was since it was for $4600 and therefore needed special approval. I explained the transaction was already APPROVED by them days and days ago, and we had already began shipping the 500 video games as they stated for us to do within 2-3 days of the order being approved as per the written, stated, and agreed to policy in the agreement we signed.
Furthermore, no where at all in the user agreement does it state once a transaction is approved that it could be held for so called "special approval" when the customer himself called them to state it was indeed authorized!!! I was told to fax them a copy of the invoice after answering hours of questions. I did so the same day, this past Thursday the 22nd of Sept and was told it should be settled by Friday but no later than today, Monday Sept 26th.
After not seeing the money in my checking account again today I called them back and asked what was going on. I was transferred 4 times before I was told the transaction is being held pending special approval still. I explained that no where in the user agreement does it state the need of special approval for an already approved approved transaction, and furthermore, I had faxed over the invoice (which is also NOT mandated in the user agreement, but I did anyway trying to resolve this) per their request Thursday and was told no later than Monday to expect the funds which never arrived. I asked what the problem was with the transaction and was told again it needed special approval and was literally yelled at and hung up on by their customer service rep.
I immediately called back and asked for her supervisor, who without me saying a word, stated is this Dustin? I stated it was, and she proceeded to yell at me stating that she was the supervisor and her name was Michelle. She ranted loudly no matter who I talk to nothing was going to change. I stated that I had been told nothing other than it needing special approval and ship it within 2-3 days.
I further explained all I want to know is why does it need special approval in the first place when it does not state this in the user agreement I accepted or anyhwere else for that matter, and how long will it take to recieve the funds that are already past due to be deposited into my account. I was being so so nice honestly (even though I was upset) and she hung up on me despite me biting my tongue through this whole ordeal!
I called back a third time asking for this supervisor's manager and was given to a female manager of loss prevention's voicemail where I proceeded to explain what had transpired. I recieved a call back within 15 minutes from this manager. The first words out of her mouth were and I quote, "Is this phone call being recorded?" I answered, "Yes all outgoing and incoming phone conversations are recorded since we take pride in our customer service.".
She replied, "I cannot speak to you then" and proceeded to state that the only way she would talk to me was without being recorded. (as soon as someone asks that I know where its going and its normally not a good place). I explained I stopped recording and she proceeded to state that they are closing my account.
I asked why amd she replied your over your monthly sales volume!!! So I made more sales and they make more money as a result but that's a bad thing and they're closing the account!?! Bear in mind I am only over $600 of the TARGET not set in stone sales for the month, and per the user agreement is NOT A VALID REASONAL FOR TERMINATION OF AN ACCOUNT!
My reply to her was the user agreement no where states that you can hold an approved transaction once it has been approved for 3-4 days before notifying me of the non-stated, special, secondary authorization needed for this transaction by the credit card processor itself, meaning them, when they the credit card processor mandates all items must ship within 2 - 3 days, it literally does not make sense since the items per the terms they themselves set had to have already shipped!!
I further explained that they were breaching their own user agreement and were causing me to lose $4600 for an item we began to ship that they authorized and told us over the phone and via the written user agreement to ship within 2-3 days. She stated "prove it". Umm its in the user agreement for one.
Now my credit card merchant account is closed for no reason at all, and in clear breach of their rules I accepted, and they broke. To top it off they still have the $4600 and are not even stating what their intentions are with this money that has been held for nearly 2 weeks thus far. Any attornies out there feel free to contact us about this.
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