Complaint Review: BankCard USA - Calabasa California

I am responding to the above rebuttal about a merchant's funds being withheld. BankCard USA is not in the business of holding funds-there are specific reasons why our Risk Department holds funds. This is to verify legitimacy of the transaction and to protect the business for reasons such as fraud (fraud can consist of ID theft, stolen credit cards...etc). Additionally, when a merchant opens a merchant account-they are approved for specific terms and conditions. This includes monthly volume and average ticket terms (please have the merchant refer to a copy of their signed merchant application/agreement). When a merchant goes over their approved terms, it is the responsibility of our Risk Department to look into these transactions and to protect our company from chargebacks and potential losses. A good example would be if a merchant has a customer who disputes a particular transaction on their credit card statement (because a cardholder has this right) and if the business/merchant goes out of business, BankCard USA becomes liable for these disputed transactions. Obviously the more diputes and/or chargebacks, the more of a loss our company can take. This is the reason why BankCard USA holds some of these transactions-to protect both the company and the merchant for potential loss/liability. And yes, in some cases a Security reserve or escrow account is established. Riskier business types require a security deposit when opening up a merchant account. Please contact our Risk Department with any additional questions or concerns. You can speak directly to the manager of that department. His name is Jason Hardy and his direct # is 800-589-8200, ext. 3479. Thank you, Sharon Tan Operations Department BankCard USA

Why not state that up front and establish an escrow account for the customer? Seems to me that most folks starting a legitimate business expect to have upfront as well as carrying costs to start the business. I think better communication of your "capture" policy to the client may have avoided the hard feelings posted here. An escrow account would have been a legitimate upfront business startup cost and I think he would have planned for it had he known about it. Better communication is the key to good relations.

We are responding to a complaint from the above referenced merchant. In reviewing the merchant's concerns, we have concluded to the following. 1. Due to the possible risk and/or fraud involved with the merchant's business type, BankCard USA Merchant Services, Inc. has the right to hold the merhcant's funds up to a period of 180 days or less (please have the merchant refer to a copy of their Merchant Account Agreement). Keyed businesses are considered high risk businesses because of the high ticket, (which can later evolve to higher dollar amounts of chargebacks, retrievals..etc), keyed transactions, home based business (retail, face to face, swiped businesses have less risks because the credit card is always present and swiped through the credit card terminal). 2. BankCard USA Merchant Services, Inc. is liable for any charges, returns, chargebacks that the merchant processes, under the rules and regulations of Visa/Master Card. Thus, the reason for capturing funds to protect BankCard USA Merchant Services, Inc. Additionally, please note that this process is done to protect the merchant from any potential fraud or loss. Please call us with any additional questions or concerns (800) 589-8200, ext. 112. Thank you, Sharon Tan Operations Department BankCard USA

I didn't know there was a "California District Attorney". There might be an Attorney General For the State of California or there might be some "district attorney" for county in which you are attempting to get your money. But I've never heard of a CA District Attorney. Anyway, I've had similar problems with some companies in the past. EFS use to be terrible when it came to "letting" your money go. I'd probably try with visa or mastercard or whoever's card you used first. Some of these cc processing companies are really bad about giving you your money. You don't say how long of a time frame is involved. If they have a belief that some fraud is involved, that could be holding things up. Usually when you start with a new cc company, the terms for withholding are or should be spelled out in your contract. What does your's say?