First Data Corp
Small Business Abuse by First Data

We had been First Data merchant service customer since June and have never had any chargebacks or even disputes. On April 1, we received a fax from First Data risk manager Keith Moss stating that the funds on our merchant account had been suspended because of an unusually high dollar amount or an unusual method of processing. The letter did not specify the exact reason. However, it said "We are unable to release any of these funds from suspension, until we have been able to view proper documentation that supports the transaction (s)." In a phone conversation, Mr. Moss said that he just needed to verify the transaction supporting documentation and it should take two business days.
We sent a 31 page fax with all supporting documentation including customers contact details, shipment tracking information, supplier invoices and a letter from bank. Mr. Moss contacted us on April 6 to say that he cannot release the funds because of the high risk associated with our account.

We did everything in our control in order to prove that we are a legitimate low risk business:

Provided all required supporting documents within reasonable time frame.

Submitted the letter from our bank.

Never had chargebacks or credit card charge disputes.

Excellent credit history of both the company owner and the company itself.
It seems that First Data holds funds regardless of merchants business practices. Submitting all required documents and having excellent payment processing record did not convince them to release the frozen funds. The main reason behind this move was to hold the funds so they can collect the interest.

First Data needed additional documents to get more information about our business and determine the appropriate hold amount. They were using these documents not to help clarify the issue but against us, their customers.
First Data minimizes the risk by holding merchant funds and at the same time maximizes its profit by collecting interest from these funds while asking merchant to pay in full all fees for their service. It looks like First Data merchant service cannot make any profit without RIPPING OFF CUSTOMERS.
They make merchants, consumers, suppliers and manufacturers hostages of their improper business practices. It would be interesting to see what their risk analysts would say if somebody put their paychecks on hold for few months
I RECOMMEND READING THEIR AGREEMENT; IT EXPLAINS HOW THEY CAN ABUSE YOUR BUSINESS.

Stay away from this company. First data is the worst merchant service provider we ever dealt with.

Company: First Data Corp
Country: USA
State: New York
City: Melville
Address: 1307 Walt Whitman Road
Phone: 6316836446
Site: firstdata.com

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