Filing a Complaint About Your Merchant Account Provider
When you have exhausted all options and your merchant account provider is unwilling to resolve your grievance, it can be a frustrating and enraging experience. However, there are steps you can take to get the outcome you desire. Some of the most common complaints business owners have about credit card processors are issues regarding funding holds (See: How to Get Your Credit Card Processor to Release Your Money), hidden and unexpected fees, cancellation fees, predatory equipment leases, and billing of fees even after a business has closed its merchant account. The approach that you use to resolve your issue will be the determining factor for getting what you want.
Related: Comparing the Best Rated Credit Card Processors
Take These Steps Before Complaining About Your Credit Card Processor
Keep Track of Everything
Before you jump straight into reporting a merchant account provider, be sure to exhaust all of your options with the company itself. Take notes and record the names of people with whom you spoke, their titles, and what they told you. We also suggest recording the phone conversations, but keep in mind that many states require you to notify the other party that they are being recorded. Make sure you have copies of all of your agreements and of any written communications. Most consumer protection agencies will not get involved unless you have made a good faith effort to settle the disagreement directly and can show a record of what has occurred.
Keep in mind that you signed a contract. If you failed to read it before signing, this will work against your case. You will need to prove that you were intentionally misled or that something unlawful has occurred. If you signed your merchant account agreement without reading it fully, you may have to settle with your circumstances. But, does that mean you should give up? Not necessarily.
Do Your Homework
Often, disputes arise because of fees that the business owner did not expect. This problem frequently occurs because the sales agent did not verbally disclose all of the fees that the business owner will incur from the credit card processor. It is unethical for an agent to withhold important fee information during the setup of a merchant account. In fact, they often do this purposefully because disclosing all of the fees verbally could result in a lost sale.
The question then becomes, is it illegal for the agent to not disclose this information? Unfortunately, in most cases, it is not illegal unless you can prove that the agent lied about the fees. Even then, they are listed in your merchant account agreement and you would have to prove that these disclosures were somehow hidden from you. They say that even the faintest ink is stronger than the loudest voice in a court of law, so legal action will likely be a waste of your time if you can’t prove that you were intentionally misled.
Editor’s Choice: This Processor Has No Monthly Fees, Low Rates, and Great Tech
What Not To Do Before You File Complaints
Don’t Close Your Attached Checking Account
You may be thinking, “Is this guy crazy?!” But, the truth is, closing your attached checking account can cause even more problems. This is especially true if your issue is due to funding holds. Once you close you account, there is nowhere for your fee refunds or fund releases to be deposited. Additionally, if the processor detects that your checking account is no longer active, they may hold your funds for the maximum allowable timeframe. If you owe the processor legitimate fees that they can no longer withdraw, they may have grounds to put you into collections or even sue you. Closing your checking account should be a last resort used only for processors that are continuing to withdraw illegitimate charges.
Don’t Be Rude To Customer Service Agents
You feel like you have been ripped off and you are mad as hell. You want retribution and you want your voice heard. As tempting as it is to shout at customer service representatives. Stay calm. Stay collected. Stay cool and speak to everyone with respect. It will get you much farther with the people who can help you and will increase your chances of getting what you want. At the end of the day, the person you are talking to doesn’t have to help you get your money back, or waive a term you agreed to in your contract. However, if you are kind and patient, you may be able to charm your way into getting your problem solved.
Don’t Lie
This seems obvious, but when it comes to complaining about credit card processors many people will say anything to get their money back. Lying compromises your integrity and will kill your momentum. If you made a mistake, own up to it. Often, accepting responsibility for you decisions and actions can garner sympathy from customer service agents.
Don’t Attack
Whether you are speaking with a customer service representative, leaving comments on websites, or filing an official report, stick to the facts. Many websites, including this one, will not publish your complaint if it attacks or uses offensive language. You may want to call people “dumb” or “thieves,” but it will not help your case. The content of your complaint should detail your circumstances without injecting personal opinion, attacks, or unrelated information. This is especially true when filing official complaints with consumer protection agencies.
Related: Our Readers Report these Providers as Having the Best Customer Support
Where to Complaint About Your Processor
As mentioned earlier, the options below should only be utilized if you have exhausted all of your avenues with the merchant account provider. It is also wise to make the provider aware of your intention to file complaints with the organizations in this list. You may be surprised how quickly they change their tune once they realize you are prepared to escalate your issue with third-parties. The methods listed below are primarily useful for U.S.-based merchants. If you are a non-U.S. business and know of methods for your country, please leave them in the comment section below.
Leave a Comment on Our Review of the Processor
Although this website is not an official agency, numerous merchant services providers monitor their user reviews and comments on this website. In many cases, the processor will reach out to us to resolve a complaint left by a dissatisfied client. If fact, we have help business owners recover nearly a million dollars in excessive fees and charges.
How to File a Complaint
- Search for the processor using the search bar in the upper right.
- Find the processor’s review in the search results and click through to the review.
- Scroll down to the comment section and leave your review.
If a processor want to resolve your complaint, we’ll reach out to let you know.
File a Report with the Better Business Bureau
Despite the common belief that the Better Business Bureau (BBB) is a government agency (or non-profit), it is actually a privately held C-corporation. The BBB is not as powerful as most people think and cannot fine or shut down companies. Despite the BBB’s limited power, most providers care greatly about their BBB rating and will usually work harder to resolve complaints filed through the bureau.
Visit the Better Business Bureau website for more information.
Call or Write the Acquiring Bank
If the provider is unwilling to budge, you may want to try this next option. Nearly all merchant account providers are sponsored by an “Acquiring Bank” that underwrites the provider’s accounts. Not only is it difficult and expensive for a provider to become sponsored, their business depends on maintaining the sponsorship. Too many complaints filed directly with a provider’s Acquiring Bank could mean trouble. If the Acquiring Bank is willing to get involved in your case, the provider will most likely acquiesce to your demands.
To find a provider’s acquiring bank, simply go to the provider’s website and scroll to the bottom of the page. Most will list it in the footer looking something like “XYZ provider is a registered ISO/MSP of ABC Bank.” The acquiring bank should also stated in your merchant account agreement.
Call or Write Your State Attorney General
Your State’s Attorney General has a lot of power but will only get involved if they believe something unlawful is taking place. If you choose to file a complaint with your Attorney General, be ready to provide evidence that something unjust is happening with your case. You can find your State Attorney General by searching your state’s name and “Attorney General” in any major search engine.
File a Report with the Federal Trade Commission
If you believe your merchant account provider is engaging in financial scams, be sure to report it to the Federal Trade Commission (FTC) through the contact channels below:
FTC Complaint Assistant
1 (877) FTC-HELP
Write to Your Government Representatives
Some might argue that the biggest problem with the credit processing industry is a lack of government regulation. By writing your representatives in the Senate and House, you can bring awareness to government officials that can enact laws to protect merchants from predatory merchant account providers.
Write Your House Representative
Write Your Senate Representative
Write or Call the National White Collar Crime Center (NW3C)
The NW3C has no actual authority to enforce any actions against a processor, but it assists law enforcement in the prevention of economic and cyber crimes. By informing the NW3C of a credit card processing or merchant account scam, you help make law enforcement aware of the offenders.
National White Collar Crime Center
File a Report with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3)
If an unscrupulous merchant account provider is conducting business through the Internet, you may want to consider also reporting it to the IC3. The IC3 is a partnership between the FBI and NW3C and forwards complaints to the appropriate state, federal, local or international law enforcement or regulatory agency. Keep in mind that this is for reporting of merchant providers that primarily market themselves online and are conducting illegal activities.
Federal Bureau of Investigation Internet Crime Complaint Center
Frequently Asked Questions:
Reporting Credit Card Processors and Merchant Account Providers for Illegal or Unethical Practices
Illegal or unethical practices can encompass a wide range of issues, such as fraudulent activities, unauthorized charges, deceptive billing practices, fund holds without valid reasons, failure to deliver promised services, non-disclosure of fees, and violation of industry regulations or laws.
Pay attention to warning signs like high pressure sales tactics, misleading rate and fee quotes, deceptive marketing, unexplained or unexpected charges, withheld funds without a valid reason, refusal to provide clear explanations, and unresponsiveness to customer inquiries or complaints. Review your statements regularly for discrepancies and consider getting a third-party statement audit.
– Leave a review on CardPaymentOptions.com
– Federal Trade Commission (FTC): File a complaint with the FTC online at their official website.
– Consumer Financial Protection Bureau (CFPB): Submit a complaint to the CFPB through their website.
– State Attorney General’s Office: Contact your state’s Attorney General’s office to report the issue.
– Payment Card Industry Security Standards Council (PCI SSC): If the issue involves a violation of PCI compliance standards, report it to the PCI SSC.
Yes, if you believe you have suffered financial harm or damages due to the provider’s illegal or unethical practices, you should consult with a legal professional. They can advise you on potential legal actions, such as filing a lawsuit or seeking damages.
Before signing up with a provider, conduct thorough research. Read reviews, check for complaints, investigate their compliance with industry standards, and review the terms and conditions of the contract carefully. Consider reaching out to existing customers to gather their feedback.
Disclaimer
This article is provided for informational purposes only and should not be construed as legal advice. Should you need legal or other counsel, please contact an attorney or other professional advisor.
