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Merchant Cooperative

Phone: (888) 287-6033

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Customer Complaints Summary

24 complaints closed with BBB in last 3 years | 7 closed in last 12 months
Complaint TypeTotal Closed Complaints
Advertising / Sales Issues14
Billing / Collection Issues2
Problems with Product / Service8
Delivery Issues0
Guarantee / Warranty Issues0
Total Closed Complaints24

Complaint Breakdown by ResolutionAbout Complaint Details

Complaint Resolution Log (24)
09/12/2013Billing / Collection Issues | Read Complaint Details

Debited $250.00 erroneously This was an illegal withdrawal of funds. Breach of trust or a huge misunderstanding I have contacted them and also my bank
last year in the fall of 2012, I contacted merchant cooperative. my request was to cancel my account due to it was not cost effective To continue. I was told that my cancellation date was July 18 of every year, and that time had passed and if i wanted to cancel there would be a cancellation fee. I was made to understand that there would be no notice on or before July 18, but that by the terms of our agreement it would roll over. Although unhappy with this, I stayed. I received several calls from that initial contact requesting me to reconsider, and offering me rate changes. I refused. On June 21,2013 I did send a certified letter of cancellation. I waited until that time, because i was told that i had to give notification within 30 days of July 18. They did receive my letter and responded to it by requesting my signature on the letter. Once again they tried to sell me the new rates. I refused. I was given a number to fax my letter to with my signature and did so. I sent that fax July 1, 2013. ATTN ********* : I used the services until July 12. At that time I ceased using the service. I received a bill dated July 25, 2013, and among the charges was a charge of $250.00 which states it is a cancellation fee. I've contacted merchant cooperative about their error, and was told by ****** that my services terminate in March, and she is not aware who told me July 18, and that she would look into it. I've contacted my bank and filed a report with my bank to retrieve my $250.00. I am also trying to make sure that merchant cooperative cannot withdraw anymore funds from that account. When I last called merchant cooperative ****** answered the phone, she did not identify herself, and spoke to me as if she was unaware of my circumstances. Only after talking for a few minutes I asked was she the ****** that took my call. She admitted she was, and stated they are still trying to find out what happened, and that she would get back to me when she did. Thank you very much.

Desired Settlement
Return of unauthorized funds, to wit $250.00.

Business' Initial Response
I do not have way of confirming a verbal conversation taking place in fall of 2012; I can only go by the documented agreements and data entries recorded in our merchant systems. The documents are stamped with the month of March and our boarding system when we built the merchant file is also date stamped for March. The last conversation we have documented w ***** is when we reduced his fees in May as a retention effort.

The first transaction run on this account was in July after the account was opened in March and this may be where the confusion lies however does not constitute the anniversary of the account. In my research this is the only link I can find to anything related to the account being misinterpreted as being opened in July. Because the account remained open after the anniversary with all provable evidence to support this matter, I am unable to issue a credit for the entire $250 amount however I will issue a credit for 50% of the $250 - $125. This credit is contingent upon having approval from ***** that he will accept this offer. I will only issue this credit upon documented response from ***** via this BBB correspondence. I will await your response.

06/05/2013Problems with Product / Service | Read Complaint Details

I signed up with Merchant Cooperative for Credit Card processing. They failed to give me a machine that was linked to my account.
o I started account with Merchant Cooperative for credit card processing services. Salesman ***** ***** stated there were no contracts or cancellation fees.

*8/12/12 -
oGot first machine
oRan a credit card
oCalled the "after hours" services to learn how to put a tip into machine.
oAfter hours told me the Merchant Id did not match my business name in their system.
oI looked on my receipt and it said *********** ******** at the top of my receipt.
oAfter hours voided the transaction for me.

oCalled company
oSpoke with **** in the tech department and told him that my machine was linked with ********* ****** by mistake.
oCory told me he would send me a new machine and a UPS slip for the old one so I can ship it back to him.

oReceived new machine
oCalled "after hours" services for help with hooking up machine because it was not working.
oAfter hours said that the Merchant Id did not match with my business name AGAIN.

oMailed cancellation letter with second machine via UPS and asked for another UPS slip so I could send the original machine back to you. I never got one.

oGot a bill from company saying my account was debited $118.50.

oCalled company and spoke with ********* ***** who transferred me to *****
oCory said he got the machine and the cancellation letter I sent. He said he would call me back the following day after he figured out what happened with the machines. He NEVER did.

oGot a second bill from company saying my account was debited $39.55

oCalled company and spoke with ******. She said she didn't have my cancellation letter on file. Cory denied ever getting the letter even though he told me previously he got it. After getting no help at all from ******, I told her I would send another letter via certified mail.

oCalled company and spoke with ********* once again. I faxed the old cancellation and new cancellation letter to her. She said "the tech department probably threw out the 1st letter when you mailed the machine back."
********** confirmed she got the cancellation letters and said her supervisor (******) would call me. I never heard from him.

oSent certified letter to company stating I wanted a full refund for the processing fees they debited from my account. I never heard from the company.

Desired Settlement
I would like a full refund of $158.05 for processing fees they charged me. I was never able to use the machine therefore, there shouldn't be any processing charges. I also would like them to pay MBF Leasing for the credit card machine. MBF Leasing has been harassing me for the past 6 months stating I owe them the money they gave Merchant Cooperative for my credit card machine. This amount is $1549.99. Merchant Cooperative employee - ***** ***** stated that I was not signing any type of contract when I signed on for their services.

Business' Initial Response
I spoke with ******** today and we are issuing a check today for $158.05 Check # XXXXX. We are contacting MBF leasing company today to try and alleviate some call tension, and going to start the process of ending that contract as well. If you have any questions for us please call us @ XXX-XXX-XXXX, sorry for the confusion and we hope you all the well.

05/08/2015Problems with Product / Service
02/16/2016Billing / Collection Issues | Read Complaint Details

the company was to built a web site which didn't happen and i was being charged for one
the company was to built us a web site for our business which should have been done they said in about 2 to 3 weeks after the time was pasted i contacted them to just keep getting the run around the so call owner ********* won't not even return calls he would put it off on others.i was being charged for a website that i didn't have i want my money back that they owe me this is one of the worst company i have ever dealt with and will never deal with them again and will tell everyone else about them also

Desired Settlement
i want my money back from them i have dealt with them over this for 10 months

Business Response
I reviewed this request with the head of our website applications department and this was her response:

"After review of account in the CRM there is nothing that's states that this merchant was supposed to have a websites built. The lease amount is $29.99. Our website packages start at $59.99. Also there are no notes in our system that states that Mrs. ******* has called in at any time to inquire about a website."

If you have a completed website application from us, please send it to: ****** and I will happily review your request further. I am unclear as to where the breakdown is but I do see that we have refunded you multiple hundreds of dollars for your disputes and according to our internal work tkts it appears each of your concerns have been addressed. Please provide, specifically, what additional funds you are seeking to be returned to you, thank you.

Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
First of all we were signed up for a web site though **** & ********* and when the web site was to be built they sent us a generic layout proof a month late of the web site,it had nothing on it about our company or was all in Spanish so we told them to stop on web site because they didn't deliver what they promised.the money that was being returned was because they were still charging me for web site and the other card reader that was part of the deal, ********* was suppose to take care of that by contacting First Data, and never they never stop charging for the web site for 10 months, They still owe me 108.00 they took after i had turned in all the equipment.we have had several meetings about this problem but ********* can't show up to meetings he sends someone else, and will not return phone calls..The break down is simple, ********* dropping the ball.So i guess you will have to figure out why we was being charged 129.55 a month? Due to all the problems with your company and lack of communication we had, we have had to move on with a responsible company that will answer phone calls when and if we have problem.First Data has already been contacted and also knows the problems with Merchants.

01/11/2016Advertising / Sales Issues | Read Complaint Details

I, owner of ****** auto,had the sales agent miss-represent his product and lied about the cancellation policies to get me to sign a contract.
Dennys auto:Purchase date-3/10/14,**** ******* lied to me to get me to sign a contract.

Desired Settlement
On 3/6/2014, **** ************ rep) had me sign a lease agreement for credit card processing equipment that he told me was cancelable after 12 months if I wanted to cancel it then. When I questioned him about the 48 month contract, he told me that every thing could be cancelled after 12 months & his company would pay 1/2 of my remaining lease for me if I signed up for the package. I had explained to him that I did not want to lease for more than 12 months because the new chip credit card processing machines will be available at that time and I want to purchase one and not lease again. On 6/11/15 I contacted the owner with my complaint, explaining everything to him and he said he would take care of everything & help me re-sell my lease contract & pay me 1/2 of the remaining prior lease. That pay off was $421.85.$210.93 was never paid to me.

Business Response
Merchant Cooperative is a credit card acquiring business; meaning we provide the service to process credit cards. Any leasing company issue would need to be a separate inquiry directly with the leasing company and the leasing agent, in this case **** ******* I am happy to provide **** ******* contact information should you choose to pursue him in any form.

That aside, there is opportunity for you to transfer your lease at any time to another business, but you must work with the leasing company to complete the transfer request documents.

We have record of attempting to contact you from 06/23/XXXX - XX/06/2015 because you inquired then about closing your account, but the ticket was closed for no response from you, at which time we considered your concerns resolved.

We are also willing to upgrade your terminal to an EMV (chip card) terminal if you would like, without any additional lease terms. Please let me know if you would like to proceed.

You referenced a lease pay off, please email the official buyout letter from the leasing company that lists the buyout amount to ********* . Once we receive it, we will review your case for a buyout - this is something that is very common for us but we will need the official letter first.

Please reply with how you would like to proceed.

Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
I contacted *** ****** from day one, but he did not return my voice mail messages. So I tried to contact the owner/ partner of the company, without any responce initially. So when I had lost my patience,and after finally making contact with Mr *** ******* who told me i had to talk to the Manager about my complaints, I again asked to speak to the owner. I found out that management/ ownership has changed. The Brother was now in charge! I went over all my complaints again with him again and he told me that he "would correct things with his company with no problem!" However the equipment lease would take time because it would require a lease transfer etc. He said he would get back to me to make arrangements. He never contacted me & I got tired of all the collection calls from the company because they said I had to pay an "early termination fee"! I never received any documents to that fact nor did Mr Mat Porter tell me about any early termination fee. If I had knowledge of that, I would not have agreed to it. Mr *** ****** said "if I did not want to continue with this package after 12 months, I could cancel it!" The company was also supposed to pay me 1/2 of the lease balance to close out my previous equipment, but they did not! I could have continued this lease until the chip equipment was available, but Mr Mat Porter told me the new chip reader would not be available until next October,and his company would pay 1/2 of the 4 months that was left on my contract. I told Mr Porter that i did not want to lease the equipment and he told me that I could purchase the chip reader for $500, which I had planned to do after the twelve month period. The company & there employees are very unprofessional and borderline scammers and made no attempt to make things right!!!

11/30/2015Problems with Product / Service | Read Complaint Details

We bought a Website from this company and ended up with a credit card machine contract and no website. We did not need a credit card machine.
My Wife and I started a used car dealership in March 2015. Shortly after we began doing business, we started to receive phone calls from ******* ****** from Merchant Cooperative. Each time she called, we told her we weren't quite ready for the services she was offering.

One day ******* called again, My wife told her we had contracted with another company for the credit card machine service. ******* then asked if we had a website yet. My wife said no but that we were in the market for one.

At this point she transferred my wife to ****** ****** he told us he was sorry to hear that we had sign with another company for the machine, but he could definitely help us with the website. He quote us a price. We told him we would think about it.

A week later ****** called back to see if we had made a decision. We told him we couldn't afford it at the moment. He then told us that he would like us to talk with ********* ******, his boss.
We were transferred to ********* who told us he let us have the website for $39.99 instead of $59.99. He said he was only able to do so because we weren't going to be using the credit machine service. We accepted his offer over the phone made an appointment for one of his representatives to visit us.

Mr. **** **** came. He told us the website came with a free Credit card machine. Both my wife and I kept emphasizing that we did not want a credit card machine because he were already set up for that service. He kept reassuring us that the machine was free but in order for his company to provide the website we had to sign the contract for the credit card machine. He even told us that we would never have to use the machine, just to lock it up in a drawer and if the machine we were currently using went off line for any reason we would always have a back-up.

On July 23,2015, he returned with the paperwork (he had a trainee with him). The entire discussion was focus on the website. He pretended he was gathering all the information he needed to build us a website. We were led to belief we were signing papers for a website that came with a free credit card machine. As I was signing, my wife asked him if we were going to get a copy of what we were signing and he said a copy would be sent to us. By this time we weren't worried about signing the contract, we trusted him completely.

A few days later Mr. **** showed up with the credit card machine and told me someone was going to call me about having received the machine. He said I was to answer the questions, but do not let the person on the line knew he was standing right there. I was concerned about the questions I was answering, but Mr. **** stood there reassuring me that it was just routing.

He told me that the contract for the free credit card machine was 4 years, but there is a way to get out of it after a year if for any reason we weren't satisfied with out website. He said this is information he usually doesn't share with all his client.

The four year contract wouldn't have bothered us if we had gotten the website. The contract was signed on July 23,2015. Mr. Pope told us our website would be up and running in three weeks. It is now three months and we are still without a website.

We have made numerous attempt to resolve this issue. We even made a trip to their office in person, sat down with Mr. Pope who assured us he would personally be overseeing the construction of our website. He also said he spoke to ********* ******, his boss and that ********* authorized the refund of all funds collected to date, ($137.08 as of October 1, 2015). He told us to call him and let him know how much it was and he would put a check in the mail. My wife called him and told him how much it was and still no check was receive to date.

At this point, we do not wish to continue doing business with this company.

Thank you for any assistance with this matter.

Desired Settlement
We would like out of the contract. After 3 months, we no longer wish to do business with Merchant Cooperative.

Business Response
The website and the terminal are a package deal, that was the sales program offered and agreed to, and one did not come without the other...

The website is up and has been up since 08/06 as witnessed by a time/date stamped ticket entry confirmation including a response from the merchants wife that she was happy with the website - . . .

It appears for some reason our emails were not being received by the merchant regarding some additional changes they requested, we followed up with phone calls and were hung up on per ticket entry from 09/23...

On 10/19 we were informed by the merchant they will be issuing a BBB complaint; we reached out to them on 10/21 and also followed up with another email attempt, copy and pasted here as the complete ticket note entry:

***Below you will find the email i sent the merchant regarding there website and domain login information, for some reason emails to this mx will not go through from my computer or steven's. I reached out to the merchant to set a time for them to come in and go over everything an she declined and asked me not to call her anymore regarding this. (steven smith was a witness to this call)

Good Afternoon,

Below is the domain name and address for your website, you will also find the webinar on how to add cars attached along with the user name and password ** log in to your site. If you have any further questions please feel free to contact me.

Domain Name:

user admin

Pass:******** ...

Our encrypted, time & date stamped work tickets verify our efforts and as I said, the website has been up since 08/05, which was only 12 days from the time the website request was submitted by the agent...

I am happy to see that GGM receives a refund of billing spent as they have referred to in their original complaint, but I will not unwind a contract for which the work has already been completed and paid for, the merchant originally approved, and for which the merchant ultimately refused communication on to address any of their outstanding concerns...

****** ********
Merchant Cooperative

08/21/2015Advertising / Sales Issues | Read Complaint Details

misrepresented services in contract
signed up for a website, was told free credit card equipment was included. Website has never materialized, credit card equipment is now going to cost $149.00 per month. **** **** is the salesman. Contract signed on 3/2/15. The end of April 2015, $276.25 was debited from my bank account. We called, and they refunded us $126.00. After this, they quit answering our phone calls. I no longer use the equipment, went back to using the equipment I already have. When we signed the contract, we were led to believe it was for the website, and we would not be charged until it was up and running. The company I have used for three years has never charged me for equipment. Why should I pay 7200.00 for credit card equipment that most people give you for free for using their processing?

Desired Settlement
cancellation of the contract

Business Response
The website did "materialize" and was approved on 05/06 and the changes you requested were sent back to the web developer. On 06/23 you stated you did not like the picture on the first page and threatened us with contacting a lawyer. The equipment and the website are a package deal - they come together and are not separate billable items, it is your decision not to use the equipment and the website has been live and ready for any edits that you may have requested. You may have received free equipment from another provider, we have those programs too, but your other provider is not going to give you a free website, just like we would not give you a free website, instead it is funded with the equipment & website package you have and choose not to use.

****** ********
Merchant Cooperative

07/13/2015Problems with Product / Service | Read Complaint Details

We try to use their services but wasn't happy. We told ******** **** about it and she told us to send the equipment back and refund monies.
They keep taking money out of our account causing us to pay bills late. She said all the money she be refunded and they want be taking it out no more and I check my account and they took more money out - now even more and I'm tire of it. We have text where she said it will stop. I want people to know that this is a rip off! They over charge for services you will never receive.

Desired Settlement
We want a full refund and for them to stop taking money out of our account. Now we have to change all the accounts out because we don't know who all they gave it out to. Its sad!

Business Response
The merchant was required to send in a signed letter requesting to cancel their account. We did not receive this letter and therefore did not close the account, which resulted in additional billings. We have now received the desired communication to cancel the account and have done so as of this month; no further billing will take place.

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03/15/2016Problems with Product / Service | Read Complaint Details

Services offered were not delivered. Verbal contract release was not honored. Management will not return calls.
I and another board member met with ********* ******, Sr and son in February when they offered to do a radio program promoting our non-profit. After the program they offered to "help" us with our website needs. I met with son ********* ****** at his office in Goose Creek approximately a week later. He promised a website with everything that we needed, free of charge as well as offering us a credit card machine with a 1% fee per transaction and NO ADDITIONAL FEES! As we went over paperwork, before I signed I verbally confirmed with Mr. ****** that we could withdrawal from any contract without penalty and he agreed. Since our first meeting I ended up speaking with nearly 6-8 different individuals about my desires for the website, with no final product results presented. In my frustration, I went into the office to cancel our agreement. I was then met with four individuals who tried to pursued me to give them another try. I agreed and waited for results over another few weeks and still got nothing. I began phoning the office in an attempt to speak with Mr. ****** (son) directly to no avail. I left numerous messages with the secretary Marj and Mr. ****** never returned my call. I tried visiting the office again with the credit card machine to return the equipment that we had never used and was told I had to mail it back to the third party company, First Data Global Leasing. Upon speaking with them, they said I could not return it without documentation from Mr. ****** that he promised and ok'd our release from the agreement. To my dismay, several more calls and in person visits requesting to speak with Mr. ****** were unfruitful. In my last attempt to speak with him, his secretary said she would attempt to write the letter herself and see if he would sign it and that she would phone me the next day. I received no call. Several days past and I called Marj again. I received an email response later from her that stated, "****, Jan 22 at 6:17 PM, To: ********* - Good Morning *****, I received your voice mail today. I have passed every message you have left along, personally, to Mr. ****** at the time you left them, including today... I know that there is anything else I can do. - Regards,Marj Trembath
Administrative Assistant, XXX-XXX-XXXX ext ***

As a result of Mr. ******'s verbal promise to me, I have not paid the lease amount due for the credit card machine which is near $2000.00. Although we never used it, I am not being permitted to return it without Mr. ****** writing a letter stating his verbal promise that would allow us out of the contract at any time without penalty. I am now personally being held liable for this monetarily. I am receiving threatening calls from First Data Global Leasing, whom Mr. ****** is affiliated and am beyond frustrated at his lack of Customer Service and Ethical Standards. They vow to "help" non-profit organizations while running a business that buries their customers in deceit and broken promises while financially taxing them. Once they have you, they turn their backs on you. I've spent nearly a year speaking to a slew of folks within Merchant Cooperative, never getting the product, services or promises that we were conveyed we would. I am only seeking release from all agreements as Mr. ****** verbally promised me back in late Feb/early March of 2015! I was lied to, products were misrepresented, the customer service was non-existent and the promises were misleading.

Desired Settlement
I am requesting that Mr. ****** write a letter to First Data Global Leasing of his verbal agreement to allow us to withdraw, without penalty, to any and all agreements entered into by engaging in business with Merchant Cooperative. That this collection be revoked and my credit remain unaltered.

08/12/2015Advertising / Sales Issues | Read Complaint Details

Merchant Co-operative sales reps are totally misleading, and misrepresenting their product. Merchant co-operative releases money as they seem fit.
**** and ******** are a joke. They tell you up front they are only trying to get you to get a website which I need but fail to tell you you are signing up with the worst leasing company=y in the world FIRST DATA. Then they addressed my concerns as far as stopped payment and bad checks by getting me to sign up for a check reader, it will deposit money immediately into my account and will be there immediately like a debit, yeah right Karl. Try four to five days and no guarantees on deposit either. And was told yeah **** only $10.00 a month and when all was said and done is now $19.00.

They call me every other day telling me I had to process payments, I explained to them I only was in it for the website that didn't matter they kept calling and harassing anyway. I finally decided that since I was paying for the service what is he harm in using it so I did. Big mistake.

I changed my Bank and gave ******** my new routing numbers and no one at Merchant Cooperative thought it prudent or wise to call me and tell me they had the wrong number. It took over one week for them to resolve the issue and get things fixed. I mean for me to do all the work and get things fixed, no one there did anything but tell me what I had to do.

Funny how you pay for a service and I the business owner had to loose over $100 an hr by doing what they are suppose to do.

I would love to tell them where they can shove there products but I am threatened with a lawsuit from first data by terminating the contract. Note a contract is bind by an agreement that both parties have to perform according to said contract. the fact that your company misrepresented itself and has failed to perform its service makes this part of the contract void and this contract was based on you ability to uphold your part of performing the service therefore and contracts mde within part of this contract are also void (FIRST DATA).

I have had enough, The fact that my last transaction is being held in a reserve is the last straw. It is not my fault I do not Process $3000 transactions regularly or on a daily basis, what I do know that your company provides a machine to verify information and authorize a sale, the fact is that if any information is incorrect swiped or typed in it is verified by you and your processors and if approved an authorization is given. I do not know why two days later I get a call saying that I need to have the card the signature of the owner and the sales receipt signed by the owner, am I the first person to do sales over the phone.

The sale has been taken out from the purchasing party and no calls of fraudulent activity from them has been given, yet Merchant cooperative fails to release "my money" due to there own suspicions, I thought that's what the police and courts were for, if it is and was a fraudulent activity I performed would not the customer or supposed customer have filed such a complaint for fraud, or m I the only one with that thought. ********* I know your are just a rep but I am beyond upset. I am tired of spending my time fighting to get my money.

Desired Settlement
I want money to be released and In my account within 48 hrs period. I want your company to come and take all equipment seeing as it doesn't work anyway. I want your company to Deal with First Data and for you to explain it is due to your misrepresentation of equipment as well as what it was suppose to do that is the cause of cancellation. Your company is the guilty party you will be responsible for any cost that arise from first data, with luck they will drop you like a bad apple.

Industry Comparison| Chart

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