We recently opened an account with Instabill or ECS UK services, etc. I'm not sure if the majority of the disservice comes from ECS or just the US chapter, called Instabill who is run by Jason Field.
We were charged large fees to first set up an account. We agreed to the fees to set-up merchant accounts for both credit card processing and also e-check processing.
Immediately, some issues seemed concerning. We operate our system using the ZenCart, and needed further integration using our own tech specialist. However, we requested help from Instabill's so-called "tech expert", and could not get a response.
As they informed me, we cannot actually open the accounts until we have tested them for a few runs to be sure they were working properly. As we could not get in contact with the tech, we found someone online who was able to provide the installation manuals as their tech would not reply to our messages. Once we received these, we had our tech build the module and install it on our system.
We then informed Instabill that we would like to start testing with the credit card account, and wished to leave the e-check processing account on hold until we were actually comfortable with their system. Given that they charge a $50 statement fee on a weekly basis, we were not confident that it would be worthwhile to have the e-check merchant account open charging us that fee on a weekly basis.
After several weeks of processing with them, we were not very satisfied with their services. We had several unanswered emails, and their system was not sending us confirmation emails about orders we were receiving (a problem I have found to be very common with their system through my online research). The fees they charge are also far above the industry average upon further investigation.
Then, one day we received our weekly settlement report and it showed a charge of $750 for charges on the e-check account. I have been very careful to document all conversations between myself and Instabill, and had informed Jason Field in a conversation prior that I would be recording our phone conversation. He obliged.in this conversation, I clearly state that I do not want the E-Check (ACH as they call it) account opened until we had thoroughly been satisfied with their credit card processing system. I then questioned them about how they could be charging us $750 on an account that was not to be opened. Further, I received this bill of $750 after 15 weeks of the account apparently being open. I informed them that by law and ethically as well, if they were invoicing me for this on a weekly basis, they were required to provide these statements to myself. They had not provided me with one statement until I requested them, 15 weeks later. This appeared extremely fraudulent to me.
I am pasting the message for which they still will not send a response below:
"Further, we did not receive even one statement from your company until the fee appeared on our bill at which time we requested the statements.in a statement to you prior about this I noted: "statements provided date back to February.By law, you are required to provide us with these statements on a per-billing basis. However, this is the first we have ever seen or heard of them, and we had to request them.
Further, the $50 statement fee is void given that we have not received any of these statements until now. Obviously as you were not sending us these statements you can not expect to charge us the $50 incurred on each statement. It's not just by law, its ethically as well.
I will await the refund from your bank. I will give you until June 24 (just over two weeks) to have this issue resolved appropriately. If it is not resolved, I will be forced to have our attourney look into it in greater detail. It is not just the money, but the principle of how the entire situation escalated that is concerning to me.
Are there other items that you are billing us for that we are not aware of yet? I hope you are able to resolve this issue, as it certainly was an error on the part of your billing system. We are willing to pay the initial $50 statement fee, as if this was brought to our attention through the required statement, we would have cancelled the account then, after the initial bill. We would not have allowed it to remain open and accumulate $750 of statement fees.
Please recall, we did inform Jason that we did not wish to use this account UNTIL we were satisfied with your credit card processing system.By offering to pay the initial $50 statement fee, we are being more than accomodating to this error on your part. I have also not received any confirmation from the bank that the account has been closed. Please forward this on in writing"
I still am awaiting a response. But as it has surpassed the June 24 cutoff, we are escalating the claim as it appears as their intentions are to continue to act fraudulently.
In regard to their systems:
Many issues developed in relationship to their refund system. They do not encourage refunds to our clients.in fact, they do not refund the initial fee that they charged when the client made their purchase, and in addition they charge a further % on a refund as well as a $10 base fee to issue one single refund. Further, if a merchant has over 4% in refunds, they will refuse to release funds upon your payout date as they consider this "risky". As we are an online retailer of fashion items, our lines change constantly, and quite often customers may place an order for an item that we have just discontinued. Given this, we would have normally refunded them using the old system. However, with this new system they discourage these refunds. So I got in contact with Brian in the risk department at Instabill and he informed me that the best way to refund individuals was to send them checks. This seems like a very sketchy system to me, where even the merchant cart provider encourages other methods of refunding your clients.
Their chargeback system is even more unfriendly, and does not allow the merchant to argue their side reasonably. It is also even more expensive with a $50 base fee for all chargebacks.
Also, I receive daily complaints from individuals attempting to place orders claiming the system won't let them through. Our decline rate is actually higher than our sales volume rate. I have attempted to resolve this issue with Instabill on several occasions, but they will not provide us with answers to what is causing the errors. Our clients, as well as us, are getting very frustrated.
There is one further account which I would like to document. IT is that of their issuing refunds without your permission. They do, do this, and are very unreasonable even when they did so unlawfully, and will refuse to refund you the fees even in their error.
I am taking the matter noted above about the $750 fee further this week. I have noticed there are several individuals who have also been having issues with this company and have filed their own complaints online. For those of you, I wish for you to get in contact with me so I can give you the advice my lawyer has given me. As I think it will be beneficial to you in how to recoupe your funds from Instabill.
In the future, I hope that Instabill will realize that it is important to act in an ethical manner, but the change has to come from the top.
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