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Federated Payments Systems

View Additional Phone Numbers 2 Huntington Quad Fl 3  North Wing, Melville, NY 11747 View Additional Email Addresses http://www.federatedpayments.com


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BBB Accreditation

This business is not BBB accredited.

Businesses are under no obligation to seek BBB accreditation, and some businesses are not accredited because they have not sought BBB accreditation.

To be accredited by BBB, a business must apply for accreditation and BBB must determine that the business meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses must pay a fee for accreditation review/monitoring and for support of BBB services to the public.

This firm has misrepresented itself as a BBB Accredited Business on its Web site at http://www.federatedpayments.com/. On June 24, 2014, the BBB requested that this firm cease and desist all unauthorized use of the BBB name and logo on its website. THIS FIRM IS NOT CURRENTLY A BBB ACCREDITED BUSINESS with the Better Business Bureau Serving Metropolitan New York, the service area in which it is headquartered. As of December 22, 2014, the business has not responded and the case has been closed as discontinued. 

This firm has misrepresented itself as a BBB Accredited Business on its Web site at http://www.federatedpayments.com/.  On May 28, 2015, the BBB requested that this firm cease and desist all unauthorized use of the BBB name on its website. THIS FIRM IS NOT CURRENTLY A BBB ACCREDITED BUSINESS with the Better Business Bureau Serving Metropolitan New York, the service area in which it is headquartered. As of July 30, 2015 the business has responded and the case has been closed as modified.


Reason for Rating

BBB rating is based on 13 factors. Get the details about the factors considered.

Factors that raised the rating for Federated Payments Systems include:

  • Length of time business has been operating
  • Complaint volume filed with BBB for business of this size
  • Response to 22 complaint(s) filed against business
  • Resolution of complaint(s) filed against business


Customer Complaints Summary Read complaint details

22 complaints closed with BBB in last 3 years | 4 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 4
Billing/Collection Issues 7
Delivery Issues 0
Guarantee/Warranty Issues 0
Problems with Product/Service 11
Total Closed Complaints 22

Customer Reviews Summary Read customer reviews

1 Customer Review on Federated Payments Systems
Customer Experience Total Customer Reviews
Positive Experience 0
Neutral Experience 0
Negative Experience 1
Total Customer Reviews 1

Additional Information

BBB file opened: April 15, 2004 Business started: 08/01/1999 in NY
Type of Entity

Corporation

Business Management
Mr. John Guirguis, President
Contact Information
Principal: Mr. John Guirguis, President
Business Category

CREDIT CARD PROCESSING SERVICE BUSINESS SERVICES (GENERAL)


Additional Locations

  • THIS LOCATION IS NOT BBB ACCREDITED

    2 Huntington Quad Fl 3North Wing

    Melville, NY 11747

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BBB Customer Review Rating plus BBB Rating Overview


BBB Customer Reviews Rating represents the customers opinions of the business. The Customer Review Rating is based on the number of positive, neutral and negative customer reviews posted that are calculated to produce a score.

Customer Review Experience Value
Positive Review 5 points per review
Neutral Review 3 points per review
Negative Review 1 point per review

BBB letter grades represent the BBB's opinion of the business. The BBB grade is based on BBB file information about the business. In some cases, a business' grade may be lowered if the BBB does not have sufficient information about the business despite BBB requests for that information from the business.
Details

BBB Letter Grade Scale

BBB Rating Value
A+ 5
A 4.66
A- 4.33
B+ 4
B 3.66
B- 3.33
C+ 3
C 2.66
C- 2.33
D+ 2
D 1.66
D- 1.33
F 1
NR -----
Star Rating scale

  Average Score
5 stars 5.00
4.5 stars 4.50-4.99
4 stars 4.00-4.49
3.5 stars 3.50-3.99
3 stars 3.00-3.49
2.5 stars 2.50-2.99
2 stars 2.00-2.49
1.5 stars 1.50-1.99
1 star 0-1.49

BBB Customer Review Rating plus BBB Rating is not a guarantee of a business' reliability or performance, and BBB recommends that consumers consider a business' BBB Rating and Customer Review Rating in addition to all other available information about the business. If the BBB Rating is NR then only Customer Reviews are used for the Star Rating.

Complaint Detail(s)

2/18/2015 Billing/Collection Issues | Read Complaint Details
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Additional Notes

Complaint: We recently terminated a contract with Federated Payments. They sent us a form to fill out to cancel our service, on this form was "We recommend that you review the terms and conditions of your Merchant Agreement BEFORE terminating." We never received the Merchant Agreement so we asked for it via e-mail. We saw that there was a $500 cancellation fee which we did not agree to when signing the contract. We signed the form to cancel with the following text added to it: "I authorize cancellation but your company is not authorized to go into my bank account for any fee's or withdrawals. I don't agree with your business practice's and unauthorized withdrawals". We also wrote that we do not agree to the following text on their form: "By signing below, I authorize Federated Payments or its affiliate to fulfill the above request in connection with my Merchant Account, and understand that all applicable and surviving terms and conditions of the Merchant Agreement remain in effect." We put a stop order on our account with this company so that they no longer had access to our bank. I saw today that there is a $500 withdrawal from my account from "Electronic Funds Transfer MISC PAYMENT MERCHANT SERVICES INTL CANADA". We DID NOT authorize this. Their previous withdrawals came from Electronic Funds Transfer DEBIT MEMO M/CARD******** GBL MERCH FEES which we put a stop order to.

Desired Settlement: A Refund of the cancellation fee and Public Awareness of this companies bad reputation to help other small business not fall for their bad business practices.

Consumer Response: Better Business Bureau:

I was able to reverse the $500 charge with my bank directly.

Sincerely,
********* ******



 

2/12/2015 Billing/Collection Issues | Read Complaint Details
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Additional Notes

Complaint: After having unexplained charges and fees deducted from our accounts, asking for reimbursement and not receiving it our business decided to switch credit card processors. We first, called and verified that we did not have an early termination fee. Once we were told that we did not have any fees, we proceeded to set up a new processor. once the new processor was set up, we called to cancel. We were told that we needed to send in a request to cancel and it would be taken care of. We sent in the request forms to cancel, scanned in via e-mail. A customer care supervisor responded with an e-mail stating that we needed to use their request to cancel form, which she attached to her e-mail. We filled the forms out scanned them in and simply pressed the reply button with the attached e-mail. We did not receive anymore statements, assuming our accounts were closed as of June, 2014. We did not use their services from May 2014 on. We were receiving a fee every month out of our banking accounts for $54.99. Assuming this was our new processor, we did not contact Federated payments. (Both processors come out of our bank account the same way). On January **, 2015 we contacted Federated Payments finding out that they never closed the accounts even after we called and sent in paperwork twice! After talking to various people, that told me they never received our e-mail with the final paperwork, and that we could not be reimbursed for the monthly fees we were charged, but did close the accounts and reassured me that we would not be charged again. I emailed them an appeal for the reimbursement. The supervisor that makes the final decision on cases like this said that they did receive our email, however it wasn't sent to the correct place in their company and wasn't opened. Therefor, he could reimburse us the money that was taken out of our accounts from June 2014 through January 2015, but then he would have to issue an early termination fee. Which would then basically not resemble any reimbursement. They closed the account without an early termination fee (that we were told over the phone in June we didn't have) before I even spoke with this supervisor that makes these decisions.

Desired Settlement: We would like to be reimbursed for the $54.99 per month for each of the three accounts signed up with our business without any early termination fees. We are not a seasonal business, we have constant transactions. Once a company doesn't have normal activity on an account, after attempts to close accounts, it should be flagged to help fix problems like these. These types of problems can make or break a small business!

Business Response: We were contacted by ******* ****** from Michael A’s Hair Studio on 5/**/2014 to close her account as she has switched to her local
credit union.  We advised her that we would email her a form for her to sign and return to close the account.  She mentioned there were three accounts
total, for her co-workers.  We advised her to have each merchant account signer fill out and sign each form and return as instructed on the form. 

After that call we did not receive the closure form back for the three merchant accounts that is why the merchant accounts remained
open.  All three merchant accounts were used in May 2014 and they were billed for May and continued to be billed
through December 2014 although there was no processing activity after May 2014.  They mention they did not receive any more
statements, but their three accounts were set up on e-statement several months before they chose to close the accounts (March 2014) and nothing changed with
regards to billing or statements; we continued to debit their checking accounts and their end of month statements were available online as they had been previously. 

******* also mentions in her complaint that they were receiving fees out of their checking accounts each month and they assumed this was their new
processor.  Each credit card processing company uses a unique billing descriptor and I am sure the dollar amounts were not
identical, so they were having two processors debit each of their three checking accounts each month but did not contact us again until 6 months later, on
January ****, 2015.

At that time we advised we had not received the signed closure forms for the three merchant accounts, we have thousands of merchant accounts and some may not
process for a period of time and it is not the policy  to close an account unless we were notified in writing to do so. We resent the closure form on January ****,,2015
and finally received the three closure forms back that day (1/**/2015) and closed all three accounts on January ****, 2015.

******* states they returned the closure three forms in June 2014 and since the accounts were open during June they would have been billed
for June. They could have noticed they continued to be billed when they were debited in August for the end of month July statement.

We do believe that companies should work together, along with the Better Business Bureau to work out their differences and in that
regard, although no refund is due because we did not, in fact,  receive the proper closure request, we are offering to refund end of month July Fees in the amount of $59.99 to each
account.  At that point, it is fair to expect that the merchant would have seen the additional monthly billing on their account and could have contacted us to address the issue if they felt the
accounts should have been closed. They did not and the accounts remained opened and incurred costs which we collected. In addition we have also waived the
monthly fees for January 2015 on all three accounts which also were due considering the accounts were open during this month.

Again, as a courtesy, we will credit each account the amount of $59.99 to cover the additional month the accounts were opened when the
merchant could and should have notified us that there was a problem and it could have been addressed before any additional charges were made. Credits will be issued to the bank accounts that were on file for each merchant account. Please verify that each account is still open and active so that we may issue the credits.  

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID# ********, and have determined that my complaint has NOT been resolved because:

We sent in multiple emails in June!!

The multiple customer service reps I talked to, told me that you did in fact receive this letter after we forwarded the proof of the multiple e-mails. Your company responded to two of these emails(in June), but when asked why they didn't get the closure information, they said it was looked at it as spam. I find it odd that you looked at the others just fine, but this reply to an email was spam?? I will forward the emails once again to your company and also to the Better Business Bureau. 

We will not stop our efforts until we are reimbursed the full amount from the time we closed our account in June 2014 until Januray 2015!

 

 

 

In order for the BBB to appropriately process your response, you MUST answer the question above.


Sincerely,

******* *******




 

Business Response: We received the merchant's additional response to our initial response and offer. The merchant attached copies of the forms that were sent.
In our initial response, the issue was that we did not receive these forms as required. Attaching the forms does not confirm that we received
them. Our belief in the goal of the BBB to mediate issues is continually being eroded by the fact that, in cases like this, where we do not owe
anything based on the facts we still try to make some sort of an offer to help resolve the issue. It seems that if a merchant does not want to
compromise they just simply submit the same request again and again. 

We are not sure what this process seeks to accomplish if resolution is not the goal. Again, we did not receive the closure requests and the accounts
continued being billed as per the original signed agreements. The monthly statements were still available to see this charge as usual and the merchant
did see a debit to their bank account as they have seen previously from our company for the monthly fee. The merchant stated that the fee looked 
just like their new company's fee. This does not make sense as first---that means there would have been two fees and that would have stood out.
Second--the descriptor that appears on the bank statement for our fee (which they have seen in previous months) is not the same as what would
appear for a different company as the merchant claims.

As a courtesy in order to resolve this issue, we feel that it is fair to assume that the merchant should have notified us of the charge to their account that
they saw the following month. If I see a charge on my monthly bank statement that is incorrect I, as well as most people, would be in contact with my
bank or the company that charged me the fee. The merchant did not contact us and the charges continued as per their original agreement.

As we did not receive the original requests to close the accounts, we had no way of knowing that something was wrong. As a courtesy, we have offered
to refund the monthly fees for all three accounts for that additional month that the merchant would have seen the charge and could have contacted us to
resolve the issue. They chose not to and we cannot be held for the additional charges they received.

We feel our offer is more than fair in light of the facts and as states previously are prepared to credit back that month's fee to each account as soon as the
merchant agrees to the credit.
   

11/12/2014 Billing/Collection Issues | Read Complaint Details
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Additional Notes

Complaint: This company made an unauthorized debit via ACH from our bank account on January **, 2014 in the amount of $424.89 under the name of Federated Payments. They did not provide a phone number and up to this point, we had never heard of Federated Payments. We didn't notice the charge until we were doing a bank reconciliation and the charge didn't match any of our transactions. It took several days for our bank to find and provide us with a phone number for the company. When we called on 2/**/14 we learned that Federated is somehow associated with *** ***, a company who provided our credit card processing from 11/**/11 up until March **, 2013. We quit using them after we had 2 incidents of delayed deposits into our bank account which caused several overdraft fees which they refused to reimburse. We were told when we started using them that we would have our deposits in 24 to 48 hrs. We called 3/**/13 to find out where our deposits were and were told that there had been a system outage and that all deposits were delayed. We then called our bank to verify and they knew of no such outage so they charged us 4 overdraft fees since there was no reason for the delay. We asked *** *** to refund our fees because they were a direct cause of late deposits. They refused to reimburse us so we went with another company and told *** *** that we were cancelling due to late deposits and the fact that they refused to refund any bank fees caused by the late deposits. They then told us that we would have to pay an early termination fee if we terminated early (3 year contract) and that we had to complete the proper form. Otherwise, we could just pay the minimum until we reached the end of our contract. This is what we had been doing since March 2013 so, to date we have paid $35 a month for a total of $315 until January when Federated pulled $424.89 from our account without notice. Now they have received $739.89 since they stopped processing our credit cards. Once we figured out that Federated was associated with *** *** we asked for a credit of at least $315 since they had received more than their early termination fee and we were paying monthly, in good faith, even though they had made late deposits. All of this is documented and can be shown as proof, if needed.

Desired Settlement: We would like a refund of $424.89 which was pulled out of our account without our knowledge and a letter stating that our account is closed and that we are no longer owe Federated or *** *** anything nor are we under any contract or obligation to pay them any more money.

Business Response: This is in response to complaint *******.

 
We received the complaint from ** ******** and reviewed the notes on the account. In the complaint, a few issues are discussed
and we will address them individually.
One issue concerned deposits which the merchant feels were deposited late to his account. He mentions checking with his bank
concerning any outages and they stated there were no outages. We never discussed any nationwide banking outage as being the cause.
The issue concerned the terminal at the merchant location which didn't batch properly at the end of the day. This can happen for a number
of reasons including even power issues at the merchant location. If the terminal doesn't batch, then the deposits will not process that
evening. The merchant would be alerted to this issue by not getting the usual batch report. As per the terms and conditions of the
processing agreement, funds are not guaranteed and should not be used until they are deposited. This is why we cannot reimburse
for bounced check fees. The account had been running since 2011 and any instances of this were, by the merchants own admission, certainly
not the norm in any way. 
 
The merchant also states that they decided to close the account, but upon learning of the termination fee, decided to keep the account open
so as to avoid that fee. He was obviously aware of the fee at that time. He did send a request to close the account immediately back in the beginning
of 2013 and we were within the agreement to close the account and bill the termination fee. As a courtesy, we agreed to keep the account open as
requested with the merchant knowing that his monthly minimums would still need to be paid---as he stated in his complaint. The account remained 
open until this past December when our end of month fees debit was returned to us from his bank as uncollected. Since the agreed upon payment was not made,
the system automatically closed the account and the fees for terminating the account as per the original, signed agreement were charged. If the monthly fees
were paid properly, the account would not have been closed, but at that point of the unpaid fee the accounting system takes over and the account is closed.
 
The aim of the BBB is to bring the parties together for a resolution. I believe we have already been courteous in offering to maintain the account to avoid
a termination fee--which would have continued if proper payments were made, as well as performing a full rate review on the account in early 2013 which
offered substantial monthly savings as well as crediting the merchant for two months minimums against the $495 term which is why the fee charged was only
$424.      
 
The account is closed and there is nothing more owed on this processing account. As stated above, we feel that we have made concessions already to the merchant
as a way of resolving issues.
    

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID# *******, and have determined that my complaint has NOT been resolved because:

 

From the answer we received we understand that no notes were made in reference to the phone call I (******* ********) made concerning late deposits.  I called about the March ** & **** batches which had not shown up on March **** and spoke to a mature sounding woman in *** ***'s customer Service who stated that there was a system wide outage that delayed the deposits and that she didn't know exactly how long it would take for the problem to be resolved.  I said that I would verify that with my bank. They were unaware of any outages and they had been receiving other merchant deposits as usual. Maybe my call to Customer Service on March **, 2013 could be reviewed, if calls are recorded. The deposit for Friday and Saturday's batches were finally made to our bank account on March ****, Tuesday, in the afternoon.

The issue in question did not concern our terminal and we have hard copies of all our batches with dates and times batched.  The problem mentioned in the rebuttal from Federated (*** ***) goes back to 2011 when we first started processing with *** ***.  We had recently changed our phone system from a land line to Time Warner which uses the internet to route phone calls.  Some of the first batches wouldn't settle and several times we had to call the help desk and they would "force" the batch.  One of the techs adjusted the speed of our processor to match the internet connection and the problem was resolved.  We also called in and had the time of our auto batch moved to an earlier time since New York is 2 hours later than El Paso to avoid any late deposits.  Again, we have copies of all our batches showing date and time and there was nothing wrong with our terminal or the batches on the days in question.

We were not aware of the early termination fee until we sent a letter in requesting cancellation.  We received a phone call stating that we had to complete their form and making sure that we were aware of the early termination fee.  We were not aware of this until his phone call even though we had signed their form after the terminal had been switched over.  Their original form was illegible and we asked for a better copy which *** *** provided but which clearly states $295 in case of early termination.  During the phone call I told them the reason we wanted to switch; late deposits and a surprise $99 withdrawal from our account in December 2012.  The gentleman I (*******) spoke to said that they had sent me a fax which lowered our rates beginning April 2013 and dropped the annual fee (as of Dec. 2013) but I would have to pay the Early Termination fee now unless I wanted to pay $35 a month until the end of the term which is 3 years.  For cash flow purposes we opted to pay the $35 a month which we did until January when Federated (which we didn't recognize) debited our account.  They say that our bank returned their $35 fee in December which we were unaware of because it did  not show up on our statement and we were not charged any nsf fees on the return.  We have the statement to prove this so the ach debit must have been rejected before actually hitting our account.

Courteously receiving $35 a month from us for having to do nothing other than mail out a statement is not a concession and giving us 2 months credit when we clearly paid 8 months is not a concession, especially since we have a paper from *** *** telling us that the early termination fee is $295 and not $495. 

We are a small business and have been in business for over 22 years.  A $474 unexpected fee is hard to juggle with our small budget.  We have been taking credit cards since we opened.  We did not choose to process with *** *** but were switched over because of a credit card advance and our broker switched us over.  Our current processor, ******, has no early termination fee and their processing is lower than *** ***.  We will be careful in the future if we ever need to change processors to look for a more favorable contract with a company with a good reputation for working with their customers.

 

In order for the BBB to appropriately process your response, you MUST answer the question above.


Sincerely,

**** & ******* ********




 

Consumer Response: Better Business Bureau:

At this time, I have not been contacted by Federated Payments Systems regarding complaint ID *******.

Sincerely,

**** & ******* ********

Business Response: We have reviewed the additional response from the customer regarding complaint *******.
As far as the issues raised, our initial response covered most of these issues. Included in this is the fact that, as the merchant states, they opted to keep the account open and pay the monthly fee instead of closing and paying the termination fee. As stated in our initial response, the account would have remained open had the monthly fee been paid. When the fee rejected back to us, the account was closed as per the original agreement and the termination fee was charged.
The merchant states he was not notified of that reject by his bank, but we cannot comment on that because we have no knowledge of his banking---just that we received the debit back from his bank as uncollected. This could not have happened if it was not first presented to his bank for payment.
The one area of the complaint that we can address is concerning the information that was recently sent with his rebuttal concerning the termination fee. On the original contract, it calls for a $495 termination fee which was charged (less the already provided credit). However, I do see on the additional terms and conditions that were sent that the termination fee states $295. This is obviously a misprint as the amount should have been $495 as stated on the signed agreement. Although the actual signed agreement does state $495, as a courtesy we will honor the terms and conditions that were brought to our attention due to this confusion.
As always, we try to work with our customers both past and present as much as possible and upon response from ** ******** to this offer, I will instruct our Accounting Dept to issue a $200 credit to the checking account that we have on file for his business.

***** ***** ** ** ********** ********* ******** *** ********** **** *** ***** ***** **** ********* ** ***** **** ***** ******** **** ***** ******** **** ***** ***** ********* *******************

8/27/2014 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: I signed up with this company to offer credit card processing at my small business. I was told they would lower my charges to around 2.2%, with a few fees. In the first 4 months of using this company my charges ranged from 12-14%!! I called the company, they told me my business was too small and did not process enough charges to get the rate I had been quoted. I was told that volume was not important when I signed on. In fact they reviewed my past 12 months of credit card volume and said I fit into this particular program.Over the course of 5 months, my business lost between $400-$500 with charges and fees. If you go to their web site it says they service small businesses. Do not believe it!

Desired Settlement: If they would like to refund some of these fees, that would be great and I would remove this post. From talking to them though, it did not sound like that was going to happen.Very disappointed.

Business Response: I have read complaint#******** submitted by ** **********. I have also reviewed the original application which was approved by and signed for by ** **********. As far as the rates that were charged, these are the same rates that are listed on the application. In her complaint, she refers to a 12-14% rate. This is an overall rate which takes into account the total dollar volume processed as well as the actual rate charged. In her application, she states (and the attachment shows) that her monthly volume averages $20,000. Any quote or estimate provided by a sales rep would take into account this $20,000 figure. The claim that she was told that "volume was not important" does not make sense as this information is required on the application and was approved by ** ********** as her signature on the application proves. In fact, her actual processing over the few months she was with our Company only averaged about $1000 per month. This would greatly affect any overall rate estimate.

In addition to the rate issue, she also states that her "business lost between $400-$500 with charges and fees". There is obviously a cost to process transactions. ** ********** feels that she was charged above and beyond what she agreed to and therefore she "lost" between $400 - $500. This is another allegation which proves false as during the entire time with our company, her TOTAL charges were only about $400. (this does not include July whose statement is not prepared yet but only included a couple of days processing). How can someone "lose" more than they actually paid?

I also noticed that regarding settlement, ** ********** states that if we were to refund some of the fees, she would remove this complaint. We actually have already attempted to resolve this issue. Before this complaint was even submitted, ** ********** spoke to our Customer Care Team on July *, 2014. She was calling to discuss closing her account. Our representative reviewed her account and offered to make adjustments to the account in order to reduce some of her costs. She refused our offer and requested that her account be closed. We are unable to return fees which were charged properly as per our agreement but, as the BBB advocates, we did try to work with this customer to resolve her issues. She chose not to work toward a resolution at that time and we feel this complaint is without merit.     

 Based on the facts presented, we are confused as to why this complaint was even submitted. Although we were in keeping with the agreement and her claim of "loss" was proven untrue, we still were offering to work toward a resolution while her account was open. ** ********** chose not to work with us toward a resolution.   

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID# ********, and have determined that my complaint has NOT been resolved because: 

[Your Answer Here]

 As I look at the paper work it says 1.49% and 1.39%  not 14.9% and 13.9%

I was told by my representative, the $20,000 was for my shops total sales NOT what was being processed by credit card. I had gone over previous 6 months of my finacial records to see if your company could save me money in processing. He did a line by line comparison and showed me where I was going to save approximately .3-.5% by switching cc processing companies. 

This representativie also assured me that there were no minimum sales I needed to process to maintain this lower percentage. 

From March *-July *, I processed $4078.81 in cc. My fees over those months totaled $476.49. The lowest was 9.45% and in July it was 25%.

I did request to have my account deleted. I could not afford these rates. If you listen to my conversation with your one rep, he agreed, I had been just charged 14%. He said he could not do anything about it.He then told me my business was too small for your company to offer cc processing. So I immediately requested to be terminated, so you did send me the paperwork and as soon as I got another cc processor up and running I sent the signed paper work in.

At no point did you phone rep offer to get any money back.

The rep who signed me up is no longer with the company. He is working with his manager to see if any of these funds can be refunded back to me. 

What I have learned is, never give a friend your finacial business and stay with the bank institute has helped you since yo opened your business. It is tough running a small single employee business and rates such as these really hurt any profit I would hope to make by offering cc processing. 

 

 

 

 

In order for the BBB to appropriately process your response, you MUST answer the question above.


Sincerely,

***** **********




 

Business Response: We received the rebuttal to our response on Complaint ******** and again feel the need to clarify the issue. The rates quoted by ** ********** from our application
were the per transaction rates charged to her account. As explained in our original response, the higher percentages she refers to are an overall percentage which takes
into account all other fees charged as per the signed agreement. The information regarding expected sales volume on the application refers solely to credit card volume
as this is what we process and what the entire application is designed around. The lower volume actually processed would inflate the total percentage----but does not change
the actual per transaction rate that was quoted and charged correctly as per the agreement.

As proven with our original response and the documents attached, this account was charged exactly as stated and agreed to in the signed application. We based our account on the
information about the business which was supplied by the merchant herself. Also, I need to remind you that when she did call to speak to our support team, we offered to review the
account and try to work with her regarding the fees. She chose not to and requested that the account be closed----not allowing us to try to address or resolve any of the issues.
   
We did try to work with the merchant but were unable to based on her actions in closing the account. As all fees were charged as stated in the signed agreement, we can do no more
for this account at this time.

?

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me and the matter has been resolved.

Sincerely,

***** **********



 

4/30/2014 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: This is a credit card processing company. I was talked into switching because I was guaranteed the lower cost of my credit card processing. I was also promised a new terminal that would comply with the new requirements of the credit card companies. I was guaranteed that if I was unhappy with the new company, I could discontinue at any time without penalty. After I switched, it was over 2 months before I received any kind of report from the company showing the rates and the fees charged. The amount deposited for a transaction was not what showed on the bank statement. Fees on each credit card deposit had been subtracted from each deposit and additional fees were taken out in a lump sum. This in its self, made my checkbook a nightmare and impossible to reconcile. For example, if I sold something for $50.00 then the daily deposit I entered into my account was $50.00. However, when my bank statement came, it would have the fees removed from the amount of each deposit and would show that only $47.39 (estimate) was actually deposited into the account. This was an accounting nightmare; not to mention that fees were taken out twice; once with each individual deposit and then again as a sum total for the month. The fees were much more than any fees I have ever paid with previous credit card companies. When I finally started receiving statements from the company, I was shocked at the cost of the fees. I had a guarantee they were the lowest, but at this rate I would have to stop accepting credit cards or risk going broke. By the time the company took out all of their fees, I had no profit and was actually in the red with my transactions. I am a small business and cannot afford to conduct business in this manner. Another problem I have with this company concerns the new terminal I was promised. This terminal turned out to be an old used terminal that only worked every now and then. I lost some business because I could not accept the customer’s card. The terminal was also supposed to be the new type, but it was not. I was told that I might get a different one later on when we were forced to go to them or when they were more available. As part of the agreement, I was promised 50 loyalty cards at no cost but I never received the first one. It is my belief that I was misled and manipulated into taking this service. The salesman promised me saving costs and fees, but they proved to more than triple what I had been paying. I decided to go back to my original processor, especially since they told me that they would handle cancelling my old processor. I am not sure what happened, but I started receiving statements that showed both companies were deducting fees from my checking account. I was able to directly compare their fees side by side and they (National Debit Card Network) were much higher than my old company. When I finally was able to get the account closed, I was not informed of any other fees. When I received my bank statement, there were several charges that had been made without my knowledge or permission. A $295.00 fee showed up on my checking account, not with national debit card network but with federated payments as the one who took the money out of my account. I had to call the bank and finally found out who took the money. This is when I found that National Debit Card Network was not my processor; it was actually Federated Payments System. I called my technical support number and all I was told the first time was the account is now closed. I then had to call back and was told the $295.00 was an early termination fee. This is news to me; I had not been told of an early termination fee when I was told I would be able to change back if unsatisfied with the new arrangements and the guaranteed low cost. I was even guaranteed $500.00 if they were not the lower cost; this $500.00 guarantee is also on their web page right up front. After talking to a couple of different people in customer service they agreed to refund only $150.00 of the $295. I think that this company should be more honest with their customers and not make promises or guarantees they do not plan to honor.

Desired Settlement: I am not asking for the $500.00 guarantee all I am asking for is my money back that they took from me; the full $295.00 early termination fee. Although being with this company cost me much more, I would be satisfied to settle with the $295.00 they took from my account without my knowledge or prior notice. I would also hope that in future business endeavors they would be more open and honest in their dealings with others.

Business Response: We have reviewed the complaint submitted and realize that there may have been some confusion concerning the issue of the refund. Initially the offer was to refund a portion
of the termination fee. However, the account was further reviewed by a ********** and the decision was made to refund the entire $295 based upon their review. In reading the
notes on the account, it is unclear whether this information was relayed to the merchant. I can only assume it was not, or possibly was but after this complaint was filed. Either
way, a refund of the $295 is being processed on this account. It does take a number of business days to process, but the merchant should see a deposit to his bank account prior to
the end of April.

4/19/2014 Advertising/Sales Issues | Read Complaint Details
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Additional Notes

Complaint: A company representing themselves as National Debit Card Network (NDCN), or Federated Payment Systems, has made at least six unsolicited sales calls to our office within the last week. It was extremely hard to get them to identify themselves and the reason for their call. After determining they were selling a product we were not interested in, we requested during our first conversation with them to remove us from their lists and to not call us again. These phone calls have not stopped despite our repeated requests. Their sales call tactics are aggressive, evasive and persistent to the point of becoming a nuisance. We simply would like them to stop calling.

Desired Settlement: We wish to convey our desire for NDCN to immediately stop contacting our office.

Business Response: We have thoroughly investigated the claim made by *** ***** ******.  Federated employs the latest technologies enabling us to track every outbound call, when it was made, what the result was as well as monitoring all conversations to ensure that all requests made by the merchant is complied with.   Unfortunately, the telemarketer failed to take *** ******’s company off the list when requested and, as a result, is no longer with the company.  On a follow up call on April ****, *** ******’s request to be put on the “do not call” list was received and immediately complied with. We apologize for any inconvenience. Thank you. 

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me and the matter has been resolved.

Sincerely,

***** ******



 

8/8/2013 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: About a year ago, a salesman for Federated Payments came to my office and offered to reduce my cost for merchant Credit Card Services. I was already content with what I had but in the interest of saving money I let him go over with my office manager are current merchant service. He said he could save me substantial money based on what he saw from my current merchant statements. I stated to him in front of my Dental Assistant that I would be willing to switch if and only if I did not have to buy any new equipment and there was no cancellation fee's associated with his and the previous merchant. When I started doing my taxes in January 2013, I noticed the fee's for my credit card merchant went up substantially to a little more than $1300 for the year (not including the % they take out for each transaction). Needless to say this amount of fee was excessive. So I started to investigate and discovered that the previous two merchants were still taking out there fee's from my merchant account. I contacted the prior merchant and they claimed that I never signed the cancellation document (which I know is false). So rather than playing with the old merchant and forms, I simply close my bank account. At which point I am pretty angry with both the old merchant and the new merchant for not following the agreement to close the old merchant out. Now Federated is calling me to collect an early termination fee, saying that I signed a contract with them for 3 years. First and foremost I would not sign a 3 year contract of commitment with any service other than a cell phone. The service at Federated said I had and mailed me a copy. Now I receive this contract that has a signature which looks very much like mine but I question two aspects about the signature. First the signature does not have the last 3 letters of my last name and it says specifically (no tittle) under one of the signature line's and the signature has Dr in front. So my objection to this contract is how did a partial signature of mine end up on this contract. I know for a fact that I did not read and sign that document. If it really is my signature it was done in a shady manner to capture my signature without my reading the document. Placing the signature aspect under another sheet of paper and misleading me to sign something else. What aggravates me is that I told the salesmen I did not want any cancellation fee's or issue's. I tried to explain this to Federated Payments service and they just reiterate that they have a contract and that I owe them $400+ dollars to reconcile the early termination fee.

Desired Settlement: After $1300 in fee's I do not want to owe a company an early termination fee, when they were supposed to reduce my costs not increase them. This company did not deliver on what the salesmen preached. In fact it actually cost me more. I feel that if my signature was indeed captured on a contract that it was not done in good faith and that shady dealings have taken place.

Business Response: We have reviewed the account and complaint from ** *******. 

I am slightly confused as well as disgusted by the accusations made concerning high fees and
some nonsense concerning possible issues with his signature on our agreement. He states
that something was "shady"---without being very specific---but the only thing I find shady is his
deflection of his responsibilities.
 
** ******* started processing credit cards with us in August 2012 and continued through April
2013. During this entire time, there are no records of any calls concerning rates or fees. Certainly
no calls stating that he was paying more than before or that the account itself was fraudulent in any
way. This I find strange in light of his complaint.
 
He also states something about a previous company he worked with. As far as any previous company, 
it would have been an account between himself and that company. We would not have the standing
to close that account. He would have needed to work with them directly and I do not even know why
that was mentioned in his complaint.
 
As far as the "shady" signature issue, we already know that the account was used for almost a year with no
complaints. I am unsure as to why he was using an account that he is (maybe) sure he didn't sign for?
The agreement has four different signature spots that were signed by ** *******. Clear signatures
which are all similar but most certainly are not exact as he claims we must have used a signature over and
over again. He also submitted a letter from his bank to verify his business banking information.  Is he also
going to claim the rep rifled through his files while at his office to procure this document?    
 
At this point, it is clear that ** ******* has gone to great lengths to paint an entirely untrue picture of
events and it seems has chosen to use the BBB as a forum to justify his claims. There are nothing but falsehoods
here and we are outraged  that this has been turned into a legitimate BBB complaint against our company.
 
At this point, we wish to completely separate ourselves from this merchant and have nothing more to do with
him. I have instructed our Collections Department to cease any further collection efforts and hope that this is
the last we hear from ** ********.
 
 
Thank you-----
 
* *****   
 
 
     

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID *******, and find that this resolution is satisfactory to me and the matter has been resolved.  However, I will point out that what I have said in my original complaint is true and that the dealings with this company were not forth coming.  In conclusion, I am satisfied with the resolution that Federated Payments and I can go our separate ways without any obligations.

Sincerely,

 *** ***** *******


 

8/5/2013 Billing/Collection Issues | Read Complaint Details
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Additional Notes

Complaint: Hello There- Couple of years ago Federated Payments System Sales Rep. "***" visited our business "Sunny Food Store" and we agreed to use there service without any contract and with 3 year price guaranty. Everything was good for couple of years. Then some time towards end of 2011 or early 2012 "***" Federated Sales rep. offered better rates and switched service provider along with credit card terminal machine which he took along with him that he provided when we started this service and said he will take care of everything from canceling account to shipping terminal machine to office. Even after account was canceled according to there sales rep. Federated kept charging my account for monthly charges for couple of months. In feb 2012 Federated sent me collection letter for $665 which i showed to there Sales Rep. *** who was my point of contact for federated. Couple of days later he said for some reason they did not received terminal machine which he shipped, but now everything is resolved.. Recently i started receiving collection letters and blank calls from Sunrise Credit Services Inc. asking me for $831.25 on behalf of Federated Payments. Now *** is no where to be seen he does not pickup phone. Could you please help me resolve this issue. To me Its issue between Federated payments and there Sales rep. if any because i had no contract and to me i returned there terminal to there Sales rep. ***. Rather Federated overcharged my account for couple of months even though account was closed and i did not even had there terminal. The Sunny Food Store was sold and incorporation that was using these services was closed in July 2012. Federated merchant id : **************** Sunrise credit services Account nbr : ************

Desired Settlement: All i want is stop contacting me for the collection because i do not owe them anything. I don't even care for the money they overcharged me.

Business Response: We have reviewed complaint #******* and the notes on the account here at Federated Payments. It would seem that

** ***** stated that he had a number of issues with a sales rep names "***", both when he was an independent
contractor for our company as well as after he left our company and began working with him as a sales rep for 
a different company.
 
Our attempts in the past to work with this merchant proved unsuccessful and that is why his account was 
forwarded to a collection agency. It appears the merchant is not going to meet his obligations under the 
agreement so, as a courtesy, we have decided to cease collection efforts on this account. Of course, this 
concerns amounts involving Federated Payments referenced in this complaint. Any issues concerning the
rep and the other companies he represented should be directed towards them.
 
***** *****
VP of Operations  

5/21/2013 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: Federated Payments has failed to honor several contracts between us.

Desired Settlement: Full compensation given to myself as per their contractual obligations under the exsting contracts

Business Response:

We have researched this complaint thoroughly and no monies are due **** *****.   

3/13/2013 Billing/Collection Issues | Read Complaint Details
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Additional Notes

Complaint: I was approached mid year 2012 by a sales rep for Federated Payment Systems promising lower fees. Upon signing up, I immediately realized that the company was charging my bank account for fees that were very excessive. Within the first month, the fees were in excess of $75. Then, in December my account was charged for $203 worth of excessive charges that were never disclosed. In addition, I was never provided a contract and at one point, there was another account created without my knowledge or approval. Needless to say, I never ran ONE transaction with this company and made multiple phone calls to try and resolve this. On multiple occasions, I was harrassed by **** with threats of more charges. I basically let it go. Then I received notification for both of the accounts that they were going to put it in collection. I reached out to **** ******* (not sure of spelling) to try and resolve. He then tried to persuade me into sending back the equipment without any promise of resolution. I refused. He was very pushy and tried to force his hand. After a lengthy conversation last week, he agreed to put in writing a resolution where the equipment would be returned and I would pay them $203. Since then, I have not received this agreement from **** and he will not return my phone calls. I have also sent written correspondence and have the fax confirmations. This company is full of crooks and unfair and deceptive practices. I will be filing complaints with the FTC in connection with this also. According to many complaints found on the internet, as well as my expreience, this company has no ethics.

Desired Settlement: I will accept a letter stating what was agreed upon last week where the equipment is returned and I will pay the $203 in exchange for closing both accounts and stating that they have received payment in full and full resolution has been reached.

Business Response:

With reference to complaint #*******.

 

We reviewed the complaint sent in br Mr ******** and our Collection Department contacted him by telephone to resolve his issue.

It seems we originally discussed an arrangement for the merchant to pay $203 and return our equipment in order to resolve this issue. It

appears there was some confusion as to what steps we being taken to finalize this agreement. We take offense to Mr ********'s

comments regarding our company being "full of crooks" and characterizing our practices as "deceptive" . Agreements were signed

and submitted for accounts by Mr ******** and these agreements state specifics regarding fees and responsibilities. When he

spoke to our Collection Department, we extended a courtesy in offering to resolve his issues as stated earlier. There was simply a delay in

completing the paperwork. We have since been in contact with Mr ******** and have received his check and equipment. This issue will

be resolved as requested in his complaint.

 

Thank you----

 

***** ***** ** **********

Business Response:

Re: complaint #*******

 

As per Mr ********'s response that he is waiting on a written notification that this issue has been resolved, I have spoken with our

Collections Department and have verified that letters have since been emailed as well as mailed to Mr ********.

I have attached both letters to this response.

 

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID *******, and find that this resolution is satisfactory to me and the matter has been resolved.

Sincerely, 

******* ******** 



 

1/30/2013 Problems with Product/Service
12/19/2012 Advertising/Sales Issues
11/27/2012 Problems with Product/Service
10/29/2012 Problems with Product/Service
10/25/2012 Billing/Collection Issues
10/11/2012 Problems with Product/Service
10/6/2012 Billing/Collection Issues
10/1/2012 Problems with Product/Service
9/25/2012 Problems with Product/Service
9/13/2012 Problems with Product/Service
9/5/2012 Advertising/Sales Issues
8/21/2012 Advertising/Sales Issues