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!