A young man came to my business and told me how I could save alot of money by changing to Federated. He claimed that since I had my credit card machine over 4 years that I wasnt obligated to stay with my present company. I told him that I could not afford to pay fees for breaking a contract and he claimed that his employer would reimburse me if that were the case.
I changed my credit card machine and used federated payments until my old credit card company warned me that i was liable for my old contract and i was only able to change on the anniversary month of when i first was contracted... Which in this case happened to be march. I quickly put my old machine back on the counter and discontinued federated. I called the company and told them my predicament and they replied that they would wait until my contract was up and then continue from that point. I gave back the machine to the rep for federated.
Now federated is sending me a breach of contract notice and failure to pay the processing agreement for $546.50. Not only that, but they want reimbursement for all losses, including all action needed to collect this debt and costs associated with the collection process.
I received a phone call from federated that said the rep works for himself and signs a 1040 and they are not liable for anything he said.
I suggest that anyone looking to sign a credit card processing agreement look at the fine print and do not sign with federated because as stated above... They are not responsible for the representatives who represent their company - unheard of!
In addition they also take their money directly off the top so your totals are a bookkeeping nightmare. Every batch never matches your totals at the end of the day because they take their cut up front.
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