- Report: #247838
Complaint Review: First American Payment Systems - Nationwide
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First American Payment Systems
201 Main Street Nationwide, U.S.A.
Phone:
800-701-2831
Web:
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First American Payment Systems Credit Card Processing Company holding $3,089 from my client to me ripoff Fort Worth Texas
The credit card processing company NOT to use..
FIRST AMERICAN PAYMENT SYSTEMS
Corporate Office Address:
201 Main Street
Suite 1000
Fort Worth, Texas 76102
Phone: (800) 701-2831
Brief summary of details:
1. My client: A bride who came to my photography studio for final album/portraits selection and purchased $4,700 as the coverage and/or final book for wedding performed on March 10, 2007
2. After initial deposit from last year, ($1,250 to apply towards final book and $750 to pay for my labor on wedding day) her final balance was $3,079.
3. She had a credit card that she couldn't use because of identity theft, BUT a new one had been issued by her credit card company and it was in a different purse at her home 75 miles away.
4. I told her to call me with the card number and info. I usually require a 60% deposit of remaining balance and the rest on receipt. She said she would just pay in full as she said she might as well start paying it monthly via her credit card and she KNEW it would be 6-12 weeks before the custom handmade album would arrive from Italy.
I knew I would be charged a higher % from the processing company because I didn't have the card to swipe.
5. Two hours after she left, she called me and gave me the card info.
6. I suspected she would be contacted by her credit card company to verify the charge.
7. The transaction took place on a Sunday and on the following Tuesday, I received a call from a Michelle' from FAPS. She needed to verify the $3,000+ sale. We did and then it began. What was the purchase? Does she have the product? When will she? I will need to verify from my supervisor whether we can PAY' the transaction to you.
8. She wanted a copy of my invoice, my clients name, phone number and when everything was verified, she'd get back in touch.
9. I immediately called my client and gave her the information, phone number of FAPS and asked if she'd be kind enough to contact them, verify the purchase.
10. FAPS called back and Michelle' said that she talked to her supervisor' and he decided that they would pay me 50% now and 50% when she received her album.
I WAS LIVID! I told her, How DARE you hold MY money and not let me get the payment my client paid. She said she could stop payment' on it. WHAT?
I told her that I'd done 90% of the work by creating a predesign album' that I learned from Gary Fong a worlds former leading wedding photographer, had retouched the images and had shot it, so it was basically done. All I needed to do is send it to Italy for printing and binding. She didn't care and said once again it is our company's guidelines we are following'. She was very terse and offered NO understanding the importance of the $3,000 payment to me as a small business.
I told her I would void the transaction, get a new processing company and they'd never do business with me again. I found out later that they could still tie up MY CLIENTS money AND take and keep the fees charged to me. I said I would then void the sale and run the card for $1,500 twice. Same story and it would be flagged by their computer.
I said what if I got it in two weeks? She said they could still hold the funds for the 6-12 weeks because it was written on my invoice!
At this point I was getting indignant and demanded to speak to her supervisor'. I'm sorry, but he's on another line. I'll have him return your call. He never did return my call.
FAPS said I'd signed a contract 3 yrs. earlier and stated that my high average' sale had been listed as $2,000. Since this transaction was WAY ABOVE' that and my financial profile' was high enough, they could do whatever they wanted. Because I only did $29,000 all last year on credit cards, a $3,000 was too much' for my previous profile'. WELL GEE, AM I BEING PENALIZED BECAUSE I'M STARTING TO SUCCEED IN THIS NEW VENTURE?
I purchased the studio in June of 2004 from a couple that had owned it for the previous 23 years and had built it into a large company. Since I took over, business dropped because their existing clients didn't know me and so in the three years, I'm slowly getting it back to where it was.
I've learned that the innocent' statement of high sale' would put me into a box that would allow FAPS to handle any credit card transaction and the disbursement of MY money to me at THEIR discretion. This is absolutely ludicrous and now my fast growing and $4,000+/wedding average is hurting me. Because I'm doing more and being successful, FAPS can hold funds at their company policy guidelines' and not give them to me EVEN IF THE CLIENT WANTS TO USE THEIR CREDIT CARD AND PAY IN FULL!
This is not my clients OR their credit card company's fault, but this is FAPS fault. Had I known this when I signed up with them, I would NOT have used them. They were the cheapest and sounded ok, so I used them.
It is now Wednesday, 3 days after the transaction, my client is now being charged her percentage from Mastercard AND I don't even have my 50% ($1,500) that the gracious FAPS said I would have.
I called Professional Photographers of America whom I'm a member of and they had never heard of such a thing! They are going to try and help however they can. At present, I don't have the time, resources or emotional time to fight this, so I'm sending this to as many people I can to see if any of you have any suggestions or help you can offer.
I'm sending this to as many consumer business groups, professional associations and foremost to SMALL BUSINESSES WHO ARE SETTING UP THE ABILITY TO TAKE CREDIT CARDS to ask LOTS OF QUESTIONS and specifically use my sick story to see whether or not you want to work with any processing company like FAPS.
If anyone out there can help, please contact me.
Thank you.
Phil
West Burlington, Iowa
U.S.A.
FIRST AMERICAN PAYMENT SYSTEMS
Corporate Office Address:
201 Main Street
Suite 1000
Fort Worth, Texas 76102
Phone: (800) 701-2831
Brief summary of details:
1. My client: A bride who came to my photography studio for final album/portraits selection and purchased $4,700 as the coverage and/or final book for wedding performed on March 10, 2007
2. After initial deposit from last year, ($1,250 to apply towards final book and $750 to pay for my labor on wedding day) her final balance was $3,079.
3. She had a credit card that she couldn't use because of identity theft, BUT a new one had been issued by her credit card company and it was in a different purse at her home 75 miles away.
4. I told her to call me with the card number and info. I usually require a 60% deposit of remaining balance and the rest on receipt. She said she would just pay in full as she said she might as well start paying it monthly via her credit card and she KNEW it would be 6-12 weeks before the custom handmade album would arrive from Italy.
I knew I would be charged a higher % from the processing company because I didn't have the card to swipe.
5. Two hours after she left, she called me and gave me the card info.
6. I suspected she would be contacted by her credit card company to verify the charge.
7. The transaction took place on a Sunday and on the following Tuesday, I received a call from a Michelle' from FAPS. She needed to verify the $3,000+ sale. We did and then it began. What was the purchase? Does she have the product? When will she? I will need to verify from my supervisor whether we can PAY' the transaction to you.
8. She wanted a copy of my invoice, my clients name, phone number and when everything was verified, she'd get back in touch.
9. I immediately called my client and gave her the information, phone number of FAPS and asked if she'd be kind enough to contact them, verify the purchase.
10. FAPS called back and Michelle' said that she talked to her supervisor' and he decided that they would pay me 50% now and 50% when she received her album.
I WAS LIVID! I told her, How DARE you hold MY money and not let me get the payment my client paid. She said she could stop payment' on it. WHAT?
I told her that I'd done 90% of the work by creating a predesign album' that I learned from Gary Fong a worlds former leading wedding photographer, had retouched the images and had shot it, so it was basically done. All I needed to do is send it to Italy for printing and binding. She didn't care and said once again it is our company's guidelines we are following'. She was very terse and offered NO understanding the importance of the $3,000 payment to me as a small business.
I told her I would void the transaction, get a new processing company and they'd never do business with me again. I found out later that they could still tie up MY CLIENTS money AND take and keep the fees charged to me. I said I would then void the sale and run the card for $1,500 twice. Same story and it would be flagged by their computer.
I said what if I got it in two weeks? She said they could still hold the funds for the 6-12 weeks because it was written on my invoice!
At this point I was getting indignant and demanded to speak to her supervisor'. I'm sorry, but he's on another line. I'll have him return your call. He never did return my call.
FAPS said I'd signed a contract 3 yrs. earlier and stated that my high average' sale had been listed as $2,000. Since this transaction was WAY ABOVE' that and my financial profile' was high enough, they could do whatever they wanted. Because I only did $29,000 all last year on credit cards, a $3,000 was too much' for my previous profile'. WELL GEE, AM I BEING PENALIZED BECAUSE I'M STARTING TO SUCCEED IN THIS NEW VENTURE?
I purchased the studio in June of 2004 from a couple that had owned it for the previous 23 years and had built it into a large company. Since I took over, business dropped because their existing clients didn't know me and so in the three years, I'm slowly getting it back to where it was.
I've learned that the innocent' statement of high sale' would put me into a box that would allow FAPS to handle any credit card transaction and the disbursement of MY money to me at THEIR discretion. This is absolutely ludicrous and now my fast growing and $4,000+/wedding average is hurting me. Because I'm doing more and being successful, FAPS can hold funds at their company policy guidelines' and not give them to me EVEN IF THE CLIENT WANTS TO USE THEIR CREDIT CARD AND PAY IN FULL!
This is not my clients OR their credit card company's fault, but this is FAPS fault. Had I known this when I signed up with them, I would NOT have used them. They were the cheapest and sounded ok, so I used them.
It is now Wednesday, 3 days after the transaction, my client is now being charged her percentage from Mastercard AND I don't even have my 50% ($1,500) that the gracious FAPS said I would have.
I called Professional Photographers of America whom I'm a member of and they had never heard of such a thing! They are going to try and help however they can. At present, I don't have the time, resources or emotional time to fight this, so I'm sending this to as many people I can to see if any of you have any suggestions or help you can offer.
I'm sending this to as many consumer business groups, professional associations and foremost to SMALL BUSINESSES WHO ARE SETTING UP THE ABILITY TO TAKE CREDIT CARDS to ask LOTS OF QUESTIONS and specifically use my sick story to see whether or not you want to work with any processing company like FAPS.
If anyone out there can help, please contact me.
Thank you.
Phil
West Burlington, Iowa
U.S.A.
2 Updates & Rebuttals
Amanda
Cedar Rapids,Iowa,
U.S.A.
What EVERYONE SHOULD KNOW ABOUT CREDIT CARD PROCCESSORS
#2Consumer Comment
Sat, May 12, 2007
Phil, It sounds like what you incurred here is some type of a charge back! Just you stating that your reciept had no policy on it! This is very important! You need CUSTOMIZED RECIEPTS being printed from your credit card terminal, to protect yourself! Phil I have been in SALES for nearly 7 years I Hate sales people here is why: They will either LIE out right to you to get a sale or simply LEAVE OUT HUGE PIECES OF IMPORTANT INFORMATION TO GET A SALE! I started working for a cc proccessing company about a week ago, here is what I have discovered since: ALMOST ALL CC PROCESSING COMPANIES LEAVE OUT TRUTH OR LIE OUT RIGHT TO SELL YOU! I quit working for the processer that I worked for, for the one week once I relized! Here is what YOU NEED TO KNOW!! Credit Card And Electronic Payment Processing Company's And What They Don't Want You To Know! 1) Terms Of The Contract! 2) Non Disclosed Rates & Fees! 3) Monthly Minimums 4) Initial Costs VS Rates In The Card Processing Industry The Most Important Part Of A Merchant Account Is The Terms Of Agreement! I.E., How Long You As A Merchant Are Required To Remain With This Particular Source Without Incurring Substantial Financial Penalties! This Is Often Well Hidden (And Not Discussed At Time Of Signing) Part Of The Contract Is Much More Important Then Your Initial Rates, Equipment Pricing, Or Monthly Fees! Any Term Agreement Longer Then A Couple Months Is VERY UNWISE! Unless A Written Guarantee Is Obtained Clearly Stating That Rates Will NOT Be Raised During The Length Of The Term! It Should Be Noted That Rate Guarantee's Although Often Not Stating Thus Do Not Apply To Interchange Raises; i.e., If Visa Or Master card Raise The Rates They Charge Banks, All Sources Go Up Accordingly! Regardless Of What Any Company Or Agent Told You! Term Agreements Are Undoubtedly The NUMBER 1 Cause For Merchant Anger And Frustration In Our Industry, And Unless You Have Written Assurance Of A Rate Guarantee For The Entire Duration Of Duration Of The Term Such An Agreement Should Be Avoided At All Costs! If Your Agent Or Representative Does Not Mention Term Agreements Or Bother To Show You, In Writing Within The Contract He Or She Is Asking You To Sign The Length Of Your Contract Commitment Or Your Penalties For Early Termination. Never Take The Work Of The Agent Or Company, Require Them To Show You, In Writing Within The Contract You Are Signing! Why Is This SO Important? Simply Put, Many Even Large Banks And Processors Have Purposely Devised A Deliberately Deceiving Merchant Account Program, Offering Initial Rates Below The Legitimate Competition And Sometimes Offering A Free Real time Gateway Or Other Equipment That Initially Costs Them. Once An Unsuspecting Merchant Is Signed Into A Long Term Commitment, The Rates Begin To Creep Up, Usually In Small Increments. Usually That Initial Rate Of 1.59% Or 2.25% Can Become 2.99 Or Even Higher! When The Merchant Decides To Switch To Another Processor, They Find It Will Cost Them Several Hundred Sometimes Thousands Of Dollars To Get Out Of That Contract! (This Is A Real Industry Trick To Be Studiously Avoided!) OFF BRAND EQUIPMENT There Are 3 Brands Of Credit Card Processing Equipment That Can Be Used By Virtually All U.S Processors: Nurit (Lipman USA), Hypercom & Veriphone. Purchasing Equipment Other Then These 3 Brands (Except Software) Is Risky At Best! Obviously If The Terminal You Purchase Can Only Be Used By One Or A Few Processors, Then You Are At The Long Term Mercy Of Those Processors, Regarding Rates, Fees And Service. Marketing Off Brand Equipment That Is Only Compatible With One Or A Few Processors Sources Is A Major Industry TRICK, Regardless Of The Deal Some Slick Agent Is Offering You On Equipment, If That Equipment Isn't One Of These 3 Brands You Are Making A Mistake! BUYER BEWARE Monthly And Hidden Fee's That WIll Inflate Your Bottom Line!! Following is a partial list of various
Phil
West Burlington,Iowa,
U.S.A.
FAPS does a little.
#3Author of original report
Fri, May 11, 2007
After wasting hours trying to obtain help and talk with these people, it was either get nothing now, or 'beg' for more than the 50% they were going to give me. An hour ago, they put $1,800 of MY money into my account. They're still holdinng $1,200 that my small business earned and I DO need it now, and not when my client gets her album. FAPS is going to make my client call them and tell them when she gets her album and assure them she's happy and THEN FAPS will release the rest of MY money that they've earned interest on for a few weeks and I've had to pay interest on my credit cards that I could have paid down. To all small businesses, look at your contract and make sure whoever you use doesn't pull a stunt like this. If it does say they can hold YOUR funds until they feel it's ok, I'd find another processor ASAP! In 30 yrs. in business, I've NEVER had this kind of problem or treatment from a company!
