- Report: #681104
Complaint Review: Federated Payments - Melville New York
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Federated Payments
Two Huntington Quadrangle 3rd floor Melville, 11747 New York, United States of America
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Federated Payments Overcharged for every little thing they can dream up Melville, New York
This company comes up with all kinds of reasons to charge fees. They have charged me twice in one year for my "annual fee" then come up with new reasons to charge additional fees. I just received a new on claiming a fee for "IRS reporting" for 2012 and it's only 2011! They lied toget me sign thier agreement and now I'm paying heavily for it! Guess thier CEO wants another million dollar boat or something!!!!
2 Updates & Rebuttals
Dave
Hanover,Pennsylvania,
USA
Your additional charges
#2Author of original report
Sun, February 13, 2011
Your reply) Under the Housing and Economic Recovery Act of July 30, 2008, The United States Treasury Department has now enacted IRS regulation 139255-08, mandating that all credit card processors report on merchant transactions to the IRS. This regulation was signed into law on August 16, 2010, and will be in effect for the 2011 tax year
The U.S. Government decided to add these new restrictions, even though Federated Payments, along with its partners and the Electronic Trade Association, lobbied the US Senate on our merchants’ behalf to repeal this new law. As a result, we have been forced to make a tremendous investment to develop and maintain automated reporting systems that will meet the IRS requirements. We have taken every possible step to ensure that our reporting will minimize any IRS requests to withhold merchant funds pending investigation. Federated Payments is forced to take these actions to comply with federal law, and we regret that this has created an additional cost. By packaging this cost into a one-time $99 fee, rather than into ongoing, increased billing, we hope to minimize the financial impact to our merchants. Federated Payments is committed to providing the best care anywhere, and will continue to provide the lowest possible pricing in all the areas that we can control.
A- So now you have to keep track of the money, huh, must be hard for a financial institution! Instead of telling my company you also tell them, and have to keep a record of my tax numbers. I have to admit, that’s a heavy workload!
Marketing Director Federated Paymen
United States of AmericaTHE REAL STORY
#3UPDATE Employee
Thu, February 10, 2011
In response to this posting by “Dave” that he was charged twice for annual fees this is simply not true. "Dave" obviously misunderstood. The real story is that he was charged his annual fee once (that was agreed to in advance and signed under contract) and a one-time IRS fee for the reasons set forth below.
- Under the Housing and Economic Recovery Act of July 30, 2008, The United States Treasury Department has now enacted IRS regulation 139255-08, mandating that all credit card processors report on merchant transactions to the IRS. This regulation was signed into law on August 16, 2010, and will be in effect for the 2011 tax year
- The U.S. Government decided to add these new restrictions, even though Federated Payments, along with its partners and the Electronic Trade Association, lobbied the US Senate on our merchants’ behalf to repeal this new law.
- As a result, we have been forced to make a tremendous investment to develop and maintain automated reporting systems that will meet the IRS requirements. We have taken every possible step to ensure that our reporting will minimize any IRS requests to withhold merchant funds pending investigation.
- Federated Payments is forced to take these actions to comply with federal law, and we regret that this has created an additional cost. By packaging this cost into a one-time $99 fee, rather than into ongoing, increased billing, we hope to minimize the financial impact to our merchants.
Federated Payments is committed to providing the best care anywhere, and will continue to provide the lowest possible pricing in all the areas that we can control.
