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Old 25th September 2008, 12:41 PM   #1

Join Date: Sep 2008
Posts: 1
Angry Credit Card Processor Problems - Is There Anything Else I Can Do?

I am glad I stumbled upon this forum, it seems like there are a lot of people here who know what they are talking about and have been through a lot. I am currently having a serious issue with our new credit card processor and am wondering if anyone has any advice on how to handle it.

Basically what happened is that I switched my company’s credit card processing to TransFirst after doing it all through Paypal for the past year or so. When filling out all the paperwork with our TransFirst rep we came across the box ‘Total Monthly Visa/MC Sales’. The rep just told me to put in whatever we had been doing in Visa/MC for the past couple of months. At the time we averaged about $40,000 in Visa/MC, $15,000 in Amex/Discover, and $10,000 in Paypal… so I wrote $40,000 in the box without thinking twice about it.
Right about this time our website was recommended by USA Weekend (the weekend magazine that is distributed in newspapers all across the country) and it caused a large increase in traffic and sales. This was very exciting for us and I continued processing our credit cards as usual.

About 25 days into the month I got a call saying ‘You have exceeded your monthly limit of $40,000 and we are holding the $29,000 you went over the limit in a reserve account for an indefinite amount of time.’ A couple of days later I received a letter from TransFirst’s Risk department saying that the money would be held a minimum of 90 days. As you can imagine, it is extremely difficult to run a small business after $29,000 is sucked out of your account.

I contacted our rep and she said the following in her e-mail:

“I understand your frustration. When we set the expected monthly amount, it is generally that “expected”, I never intended or assumed it would be a “cap”. As I stated before, I was not aware this was being placed on your account until you told me.”

Our rep didn’t even know about the limit on our account, how was I supposed to know that a limit was placed? If I would have known that we had a cap on our account and any sales over that amount would be put away for a long period of time, I never would have ran that many cards… we would have figured something else out. No one told us about any limits.

I called the Lady at Transfirst in the Risk Department and she treated me like a complete idiot. She would not listen to me and just said, “I will talk to my supervisor.” They had me submit a bunch of paperwork and all I got back was an e-mail saying they weren't releasing any funds at this time.

Does anyone have any ideas on how to handle this? Is there anything I can even do?

Thanks for any help, I really appreciate it!

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Old 25th September 2008, 11:13 PM   #2

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I am sorry about the current situation you are in.
We run a merchant service with our partner company and I tell you the "lady" that you talk to us "lying" that she didn't know there is a cap on your account. All our agents know this unless of course your lady is new.

The normal process was for you to raise the cap when you knew you were getting a lot of business on your website. You would call this in and ask them to raise it. However, considering you were not completely aware, I suggest you speak with the manager and work this out with him/her.

I suggest doing this rather than working this with the "Lady".

I suggest you lift you cap now and ask them to process your money ASAP.

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Old 26th November 2008, 05:35 PM   #3

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NPC. (No I am not affiliated with them). I had the exact same problem, the mid-risk department at Wells Fargo one day out of the blue held $50k.

I went with NPC - NO PROBLEMS (about $4 mil/year on Visa / MC). They were happy to have my business.

Good luck

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Old 2nd January 2009, 01:22 PM   #4

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I run a Nationwide credit card processing company and have seen this happen many times.

The best way to handle this is to ask your rep for a processing limit increase request form and send it back to her with whatever financials you can provide and ask her to send it to her manager to see if there is anything that can be done. Sometimes it is better to do this with the sales organization instead of the risk department since the sales organization has an interest in keeping you happy as well as their rep who his likely an independent contractor.

Hope this helps.

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Old 13th January 2009, 02:47 AM   #5

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Default Re :

If you're looking for, what you consider, a really good credit card, you'll find that the best credit cards are most often offered to consumers with the best credit scores. While many may find this unfair, it's the credit card companies' way of rewarding their customers for their loyalty and good management of their debts.

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Old 21st January 2009, 08:20 PM   #6

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Those problems are usually contained to merchant's that process at 1000% there average volume overnight. 90 days is also the longest period of time to hold funds and they do so to protect their interests if there are many charge-backs resulting from the spike in sales. The risk department should have asked you for your invoices and sales records and seen that these sales are legitimate and not sucpicious. A lot of fraud comes from online sales from South American, Africa, and Asia and as long as you were not having a huge increase of sales to those areas, for the most part you should have been given less of a hassle. You are just trying to run a small, sucessful business and should not be punished for the increase in sales.

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Old 21st February 2009, 05:06 PM   #7
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Get an attorney.

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Old 22nd February 2009, 11:45 AM   #8
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I had the same thing happen not too long ago (although a lot less money). If you can provide proof of these sales (I had to submit a million tracking numbers for example) they should be able to release your funds. I have since switched to another company (Cutting Edge Card Services) and I am very impressed with their service. My rep told me that if any charges are going to come in over the limit, just call him to alter him and they will handle it. Definitely talk this through up front if you switch companies.

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Old 15th May 2009, 01:56 AM   #9
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Check out other processing companies, this limit should be for reference and you shouldn't be penalized for it. There are a lot of company's out there. Most with more up-front practices.

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Old 12th June 2009, 12:43 AM   #10

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Hello Sir

Thanks for the suggestion...
Please reply to ma query also..
What would cause a batch not to be processed?

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