I signed up for First Data Merchant in February. I was told at the time that my fees would be around $25 a month and I figured that was something I could afford and was planning to replace my PalPal with this in time. Never used that merchant account because stuff I am selling requires PayPal with Ebay regardless.
So now, the $25 fee became $35 fee, than it became $45.45 fee for the last 4 or 5 months, with not even one transaction going ever through it. So, I thought this is ridiculous and decided to call First Data and cancel the service.
First, they tell me yesterday "no problem", my account would be canceled the same day they receive the fax request from me, but gave me the wrong fax number, and when I checked today my email I saw fax never went through,of course. I used Fax0.com.
So now I think it maybe a problem with Fax0.com, and go to Mailbox services to fax from there and fax doesn't go through again. While there, I call First Data Customer service again ad it turns out they gave me the wrong area code, so that's why it didn't go through the first time. ( I am positive of that, because I repeated the number two times over the phone when they gave it to me, jut to make sure).
With correct area code and fax confirmation, I got back home and call again just to confirm they indeed received my cancellation request and I won't be charged 44.45 on the 4th of October.
Now they tell me that I can't cancel my account because
NOW they see I signed the contract for the full year and my fees are what they are every month until the end of February 2010, regardless of if I have any transactions or not.
They said it was on page two of my contract I signed with them. I vaguely remember pages and pages of small print I had to read as I signed electronically. Than I asked them how about the fees that doubled in the mean time and they said that was also in contract stated they reserved the right to raise their fees at any time for any reason, and I signed that also.
So now I call my bank and tell them about the problem, wanting to see if I can stop First Data automatic charge. They were really trying to help, so she said I had to two options:
One, I could put stop payment from First Data for the $44.45 and my bank would charge me only one time $35 fee for that. But, she also said, if they charge any other amount, it would go through. So now I remembered Mike (the manager at First Data I requested to talk to) told me that my cancellation fee would be $197, and if they tried this amount, the charge would probably go through.
My other option was to go to my branch, close this checking account and open the new one, but I am worried, because I still have the checks I wrote that have not been posted yet. I also worried on waiting for the new debit card from them for another 10 - 14 days, as this is the account I use for all of my everyday stuff. She said they could probably link my current debit card to new account, but I simply don't know what to do.
I feel cheated and cornered by unethical practices of First Data. I thought, ok...it looks like the least painful approach would be let them bill me for $44.45 every month and than cancel again in February.
Little while ago, I received a call from Mike (First Data manager) again, saying if I would chose now this option I have to fax again and ask them to cancel my cancellation request in writing, so they can keep on deducting from my account every month until February.
I was so POed, I said I am considering asking my bank to put stop payment on their charges and than he told me if their charges don't go through they would put my account to collection and this would definitely not be something I want on my credit, plus if I ever want Merchant account again I would probably be having trouble getting it approved.
What do I do? One thing I wanted to do is let everyone know who is considering them for Merchant... Read your small print and don't sign anything before you do. They hit you with 5 pages of it and you need magnifying glass to see it, reading glasses wont do it.....I guess, Live and learn! Uh, I am so mad!