Sigh, where to start. I am a small business owner. I had set up a merchant account with another company that I was happy with for the most part. However, after my first several customers, I realized I would also need a way to accept checks by phone. I started looking around online for a merchant account provider who offered this service. I found charge.com.
It was free to apply just like with the other company I was already using. They also had several excellent ratings from reputable sounding companies. I decided I would try and "apply". At no time was there any up front notice/s of any financial obligations on my part. I was under the impression that I was ONLY applying to see if I qualified for an account.
About a week later I get an email saying I had in fact qualified, and something along the lines of I needed to complete another step or two in order to activate my account. Still no notice that I was obligated to go through with activating this account. NOR, was I told that I was going to be automatically activated without my consent. Which, about another week later, found out (by looking at my online banking information!) that I had been, and had already been charged for my first months' fee of $35.25.
My checking account had been drafted without MY consent. That just totally rubbed me the wrong way. I found the original email from this company, and called their customer service line to find out what I needed to do to cancel my account that I had NOT asked for. The nice lady told me I needed to type up a letter expressing my desire to cancel my account, along with my merchant ID#, etc. Then fax that in to them, and they would cancel it for me within 24 hours.
No problem, I would go contest that draft from my account at my bank, then go fax in this paperwork to cancel this account. A couple days later, I happen to be checking my online banking information again (I keep very on top of my finances), and see another draft from this company, but this time it's for $300!
I immediately called them back.
The customer service person I spoke with this time informs me that I have been charged an "early termination fee". Again, I was under no impression of any obligations at ALL when clicking on "apply" on their site.
For them to automatically enroll me, and begin drafting my checking account without my consent, was wrong. Then, for them to charge me nearly 10 times the amount for an early termination fee, is double wrong. I'm sure I'm not the only one they've done this too.
I will get this money back by the way. I just wanted to share this publicly, and hopefully save someone else from going through a similar situation.in the grand scheme of things, $335.25 (total) was not a lot of money to me, but it could be a car payment, or a months' worth of needed groceries for someone else. You don't just go around duping people like that.
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