I applied for credit card merchant services through Cardservice Paradise a branch office of Cardservice International. Since my company is Internet based I was told I would have to purchase or lease their Linkpoint Gateway service for $1250. Since I was only applying for the service I stated I did not know if I would purchase or lease the gateway service.
My application was faxed to me without the terms and conditions of the Cardservice Merchant agreement. I called and inquired about the number of pages in my fax and was told that's all there was. I was also told I would be under no financial obligation until I was approved for the service.
A few days later I received an approval letter along with a 52 page booklet describing the terms and conditions. I discovered a six-month contract with a $300 early termination clause was in effect. I also discovered a reserve amount would be negotiated between my bank and Cardservice Intl. Finally, the terms I signed for in the contract were not the same as the terms I was approved for.
I called Cardservice Paradise and inquired about the discrepancies between what we discussed and what we were approved for. They continued to "sell" their product made the discrepancies appear to be trivial. I told them I did not want their service.
I checked my bank records and discovered $1250 was debited from my account one day prior to my application being accepted. I sent a certified letter to Cardservice Paradise asking for a refund, claiming their practices were deceptive. I did not get a refund or a response. I contacted the Arizona State attorney general and was told they did not have the resources to handle my claim.
The Better Business Bureau only required them to answer my claim, which they claimed I entered a legal contract with them. Finally, I notified the state banking commission since Cardservice Paradise drafted their own copy of my business checks and cashed it without any signature. The banking commission forwarded my complaint to the attorney general's office and I did not hear back from them.
The amount is too small to take to justice court and I am afraid if I file with small claims court Cardservice Paradise will remove it to justice court. Then I am risking a very costly litigation. Cardservice Paradise was very deceptive in handling my application and I am only glad that I did not continue with their service. I am sure they would have scammed me out of more money.
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