They are flat out thieves that raid your bank account!
We were seduced into leaving our bank's credit card processing by a lower processing fee several years ago. Even though we have never been happy with the fees they add, we didn't swap back. BIG MISTAKE!
In November, we had an employee's nephew buy a vehicle with his credit card. Within 15 hours, Federated called us saying that $10,500 was a larger than normal swipe and wanted us to reverse the transaction. They were right in saying it was larger than normal as we don't like paying the fee on that size a transaction. When I explained we took the card because it was an employee's nephew they claimed it was in our agreement that we could not take relative's cards at out business.
So we reversed the transaction giving Federated the refund they wanted. I also explained to the young man he had to find another way to fund his deal. He did. And he also blocked the payment on his credit card - just in case.
2 days later, Federated presented a $10,500 ACH debit to our bank - wanting us to pay the $10,500 refund. When I called Federated, I was told they had to have the money to refund the credit card company. They explained they would return it to us within 10 days - once the refund was completed. Mind you, they NEVER funded the transaction to us! So we blocked the payment.
The customer by this time had paid us with a check for his car. He called us within a few days saying his credit card company had called saying that we, our company, had run the card and wanted paid the $10,500 his card had approved. He blocked it from being paid.
We explained to him that we had never been paid by the processor, Federated, and that we were not trying to get paid twice.
We changed to our old processing company through the bank.
A few weeks later, we opened our account up to see that our bank had paid Federated a $650 fee for processing that transaction! We could not get it back. Federated said they were paid for the transaction - not for us getting funds. So we were never paid for this transaction but now have paid them a commission for it.
To keep them from reaching in to our account again we closed OUR ACCOUNT OF 10 YEARS and opened another.
I've been on the phone several times with Federated hoping for a refund. I just learned they have now sent a collection company after us for $158 in fees - $30 for us blocking their attempt to get the $10,500, $30 for having a frozen account listed as our bank and another $30 for the customer blocking payment on them.
And, of course, their company "Customer Care" people (Vicki - this time) could care less about customer care. She says we knew the fees & regulations were listed when we signed with them 5 years ago.
The gall and audacity of this company is beyond comprehension. Now reading these complaints and stories of their history - we feel stupid for falling for the lower %.
Do not sign up with these thieves! They will get you! You will regret it!!
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