Summit Merchant Solutions
100 Throckmorton Street, Suite 1800
Fort Worth, Texas 76102
Phone #:
Sales rep: John Hendricks
Customer service: Juan
All this has been documented factual by the ftc
On 4-30 I met with John Hendricks on behalf of my company Yeller Towing & Wrecking, Inc. To discuss obtaining a new credit card processing company, Summit Merchant Solutions, location was Zimmerman, MN. John and I sat thru a meeting about an hour long and went over the details of their policies, fees and credit card transaction process as well as terminal leasing details for the Hypercom Blade Credit card processing terminal (wireless).
At that meeting john did a comparison of the fees I was paying thru our current credit card processing company and saw that I could save between $16 and $32 month in processing fees. Our volume average was about $1200 per month in processing with a low of about $200 and a high processing amount of about $1800.
He stated that the charges I would incur were a. 05 cent per transaction fee, somewhere between 1.39% and 1.75% Card processing fee. 20cent per batch fee, a $59.99 tax terminal lease fee, a $5.00 Statement fee, and a $2.00 card "processing fee". I asked John numerous times if that's all that were would be charged and nothing more. He stated that "he's an honest guy and there those charges would be final and no hidden charges like the other companies". On 4-30-09, I wrote out a check for $20.00 to open the account upon approval. I asked john when the thirty days starts and he stated it started when we activated our terminal. He also stated that ALL charges would come out of the account around the 1st to the 3rd of every month. He also stated that he was 100% sure. According to our transaction summary, the test transaction to Summit Merchant solutions was on May 15thactivating the account. I also confirmed this with the Summit Merchant rep and John also, both were on the line during activation. So according to our sales rep, the 30 days should be up on June 15th.
On may 15, I told john that there were missing parts in the box as we were on the phone together. The missing parts were the mobile car charger for the wireless unit and the mounting base for the tow truck. Also at that time, the power cord for the charging base was defective and the Summit Merchant rep activating the terminal stated that it would be sent out as well. On May 16th, I received the charging cord for the base but still no car charger or mounting base. I then called john and asked him what the problem was. He told me to call summit merchant help line and they stated that there was no such product. I called John back and he stated there was as promised and that he would get that ordered immediately.
On 05/22/0229, we received an ACH automatic with drawl in the amount of $68.80 from our checking account. I once again called John to ask what had happened. He stated that he'd check into the problem. I called Summit merchant solutions and they stated that the $68.80 charge was the lease payment and that I'd have to call the leasing company. So I did just that. When I talked to them they said that there was extra charges ($59.95 for the terminal, $4.95 for insurance, $3.90 Tax) for insurance and that it would NOT come out on the 1st to the 3rd of every month. I called John back and asked about the charges. He stated that he'd once again take care of it and call back. I got a call back with John telling me that I could change that date and that he had no clue why there was insurance on the unit. He wasn't aware of that extra charge. I called the leasing company and they stated that there was NO way to change the date of that payment or take away the insurance charge.
On 05-26, we received another charge from Summit Merchant solutions. I once again called John Hendricks. He said that he had no clue as to what that charge was and that he had to call his supervisor. He did apparently. He said that the charge was a mistake for the car charger, which I was told by Summit Merchant that they didn't have. John once again, said that they would get that reversed. Till the date of this letter above, it has not been reversed.
On 05-27, I called Summit Merchant Solutions to ask what all the charges were about and when they would come out of my account and what would come out of my account. She stated that there was a $25 minimum fee that would come out. John NEVER told me about this, They told me about the credit card processing fee, the $5 month statement fee, the. 05 cent per transaction fee and then of course my percentage minimum fee that would be charged at the end of the month. We had two surprise charges that John NEVER told us about now. The $25/month minimum and the $5 per month insurance fee. Also the rep from Summit had told us that they always take the settlement fee at the lowest approved rate out first and then at the end of the month, they take out any difference if there was any. John NEVER told us about this. This conversation lasted about an hour and I asked if there was ANYTHING else I should know about numerous times. She stated that covered absolutely everything! I called John to tell him what I had found out. He stated that it was wrong and he'd once again call his supervisor. He called back and stated that they would take care of it once again. As of June 9th, the date of this letter, nothing has been done about it.
On 06-03, we had yet another charge in an un authorized amount come out of the account in the amount of $38.03. I called Summit Merchant Solutions first this time. They had stated that there was a Wireless Fee fee that we had never herd of. And also that there were some charges that were wrong and that would be credited back to the account, yet again. I called John about this problem. He stated that there was not wireless fee and that he'd never herd of that fee before and would take care of it yet again. I was livid and gave him 24 hours to get it all fixed. He also stated that the Car charger and the wireless terminal mount were shipped a week and a half ago. We have seen nothing.
On June 5th, we called to cancel our contract which according to John was with in our time frame to do so. He didn't answer all day that Friday. We called again on Saturday June 6th, no answer, We tried again on June 8th, No answer, and we left messages.
On June 8th, I called into Summit Merchant Solutions to cancel the account and talked to a guy named Juan in the top level customer service. He stated that there were errors, that I was told many incorrect things about our account and that we couldn't cancel the contract with out a $495.00 fee because the account went into effect on may 5th. I told him that our rep told us different. He stated that he's not responsible for what the sales reps tell us during the sale. I explained everything that John had told us and what had happened. He looked at the charges and noticed many errors and that he'd try and see what he could do. He said that he reversed some charges but that was incorrect because they haven't hit our account. He also stated that there were so many problems, errors, and problems, that it would take him three days to check it all out and for me to call back on June 11th.
On June 9th, we finally got a hold of John. He said that on Friday June 5th, he was out with his kid at some boy scout camp and he wasn't answering the phone. Moreover, according to Summit Merchant, that was the last day we could cancel. Everything is still wrong with the account. Summit Merchant Solutions & John Hendricks are accused of false and misleading sales & practices and breach of contract.
As of the date 06-09. NOTHING that has been promised, has been received, credited, or delivered. NONE OF IT.
Revised, on 06-09, I recieved a call from our rep atating that he only knew of one problem that he was not aware of and started yelling at me. I've caught them in many lies and I guess thats frustrating for them! He also stated that he'd have his "boss" the 4th one down on the chain of command from the president position in that company call me. Earloier in the day he stated that his boss was the 2nd down on the chain of command.interesting!
Small Business Owner
Minnesota, Minnesota
U.S.A.
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