I decided to sign up with Online Data Corp almost a year ago because they had much better rates than the merchant account provider I had used the past 7 years. I had 4 chargebacks back in June, July, and August which I was never notified about over the 9 month term that I had my account with them. I wrote them last month and asked what if I had a monthly transaction limit and they wrote me back and said I was fine as long as it was under $4,000. After waiting a week for the money to show up in my bank account I called and asked what was going on and they told me my account had been closed last month (a few days after I had emailed them). They didn't bother to notify me via postal mail or e-mail and just allowed transactions to go through so they could collect the money from my clients which they will not release to me, nor will they give a refund back to my customers. They told me I would have to wait 3-6 months for my account put under "review".
Their agreement states that I am entitled to refund my clients their money and when they need to create a "reserve account" they take a percentage of the transactions.in my case, they will not allow me to give refunds and they took the entire 100% of all of my charges and are clearly in violation of our "agreement". I recently did some searching on this company and was horrified to read that this has happened to many other victims. They are out to screw you over and are extremely unethical in their business practices.
There are many companies (Interland, BluePay, ModernAuthorize, First Merchant Bank Servicess) offering merchant accounts that use Online Data Corporation. Whatever you do stay away from them at all costs. Paying a bit higher rates for credit card processing with a merchant account through Wells Fargo, Bank of America, Wachovia, PayPal, etc. Is a much safer way to go then going with a company who is solely out to rip people off and not give them their money.
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