Cardservice International ripoff Scottsdale Arizona
I applied for a merchant account knowing a head of time my type of business is considered high risk. I filled out a pre-application then later a regular application with Cardservice International and was eventually approved to process Visa & MasterCard through them.
I was told I had to use a gateway they supply and had to either lease a gateway or buy one for $95.00 I told the rep DONALD HEINLEIN of Cardservice International's Sales Agent Office in Scottsdale AZ I didn't want to sign any agreement unless he was sure my account was all set. He assured me it was and to star using my account and gateway.
I signed the agreement and made TWO transactions through my virtual terminal. On my third transaction I was told my account had been closed. I immediately called and advise my account should have never been approved and was shut down and the transactions I tired to process were cancelled.
I asked about the payment that was taken from me of $316.00 (one of three to be charged) and was told by the supervisor of the Scottsdale office there was nothing he could do I signed it and the owner would not consider a refund. I was livid especially after only have the account live for less than 15 minutes.
I disputed the charge and it was reversed so I am screwed and now owe two more payments on something I got no use from at all. I've been ripped off by this company and had no use of an account but boy am I paying!
Morris
Phoenix, Arizona
U.S.A.
4 Updates & Rebuttals
Steve
Bradenton,Florida,
U.S.A.
Morris, Take them to court!
#5Consumer Suggestion
Mon, May 22, 2006
Morris,
Card Service International is the biggest scam in the merchant account business. I had this same type of dealing with them like 15 years ago.
Anyway, you are not screwed. They allowed you to use the account, so therefore it was approved. You have recourse, and there are lots of cases in the courts on them.
Do everything in writing and send by certified mail, return reciept requested. Tell your credit card company to cancel that card and issue a new one. Its easier to just report it stolen than to argue with some pinhead in India. This way the future charges will not go thru.
Then send the company a cancellation notice and inform them they do not have permission to charge your account any further.
Go to small claims and file a lawsuit. It is very easy and cheap, and any paralegal can file it for you.
Kay
Tempe,Arizona,
U.S.A.
12 on Your Side
#5Consumer Suggestion
Mon, May 22, 2006
Have you considered contacting your NBC affiliate, KPNX-Channel 12, and talking to their consumer reporter? His feature is "Call 12 for Action," and he handles all kinds of ripoffs. I think they even have a running total of how much money is paid back to consumers. I don't know if your products would pass their scrutiny, but your story would make a good report. The same reporter, Rick DeBruhl, writes a consumer column in the Arizona Republic. I doubt if that Scottsdale company would like the publicity.
Moris
Phoenix,Arizona,
U.S.A.
Reply to Holly
#5REBUTTAL Individual responds
Mon, May 22, 2006
What is your business and why is it considered high risk?
>>>>>>>>>>> I sell Exotic Herbs, Herbal Smoke and Herbal smoking blends
The two transactions you processed, were they typical of your business?
>>>>>>>>>>Very typical. the two combined came to less than $171.00
Did you have a previous processor, and if so, did you leave on good terms?
>>>>>>>>>> Yes I did. A new bank recently bought them and after one year and only three chargebacks in that time I was told the new bank did not want me in their community of merchants any more.
Was your business ever listed under another name?
>>>>>>>>> No I have been in business since 1998 with one website and one business name
Have you owned any other companies? Please respond.
>>>>>>>>>> No
Holly - Chandler, Arizona
U.S.A.
Holly
Chandler,Arizona,
U.S.A.
Questions
#5Consumer Suggestion
Sun, May 21, 2006
What is your business and why is it considered high risk? The two transactions you processed, were they typical of your business? Did you have a previous processor, and if so, did you leave on good terms? Was your business ever listed under another name? Have you owned any other companies? Please respond.