In Sept I opened a merchant account with Processing Solutions after having been with another company for 5 years. One of the first questions I asked the sales rep was did they charge an annual fee. He said that they didnt. This was the main reason I switched from the other company I was with. I thought I could save money by not being charged an annual fee. But at the end of 2008 and every year since I have been charged an annual fee contrary to what the sales rep had told me. The sales rep mislead me.
When I first signed up I also asked the sales rep how long the contract was and he told me 2 years. I found out after I had closed my account in November that it was an automatic renewal contract every 2 years. This was never mentioned by the sales rep and should have been disclosed and not kept hidden.
On Dec 27 about a month after I closed my account I noticed a withdrawal of $740.50 taken out of my checking account on 12/06 from Processing Solutions. Not knowing what it was for I called about it and was told that $250 of it was
for early termination after being with them 3 years. I had relied completely on what their sales rep who I had trusted had told me that the contract was just 2 years.
The remaining charge of $490.50 was for a Verifone 1000 penpad that I didnt return. You can buy the same pinpad a new verifone 1000 on ebay for around $70. I had owned my own credit card machine but had forgotten that I had used a pinpad
of theirs. I still had the penpad in my possession and offered to return it for a refund of the pinpad charge of $490.50. Amanda the customer service lady I was talking to told me that once I was charged it was to late to return it. The contract does state that their will be a $450 charge if not returned, but I couldn't find it in the contract they faxed me that once your charged you can't return it and get a refund.
I feel I was greatly mislead by Processing Solutions and their sales rep. They kept important information hidden and undisclosed that would result in hidden fees that I would owe when I closed my account. I Would never recommend this company to any business especially small businesses which I am. The unexpected charge put me in a temporary financial strain. I am a 1 man small business and I paid Processing Solutions thousands of dollars in fees over the 3 years that I was with them and they hit me with $740.50 of hidden and undisclosed fees when I closed my account. Its a shame that companies like this can charge hidden fees and ridiculous prices for their equipment and get away with it.
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