My credit card processor (e-onlinedata) is trying to put me out of business!

And why you should think about it before using them, too.

A little background: Most of our clients pay via check or paypal. We typically have less then $100 per month going through our E-Onlinedata (EOD) account initially setup through modernauthorize.com. Since we've had the account (almost three years) we've not had a single chargeback. We've been pretty pleased up to this fiasco.

My largest client wanted a multimedia streaming computer hosted for a unique application. We don't normally build custom computers anymore, but we have a great relationship with them - hosting their website, consulting work, etc. We do a lot of business with them, but again, they usually pay by check.

So, we spec'd out a system and the client paid the invoice through our AWBS system, a little less then $3,000. All was going fine until I got a call from the Risk Management department at E-onlinedata which left a message to call them back. I initially suspected that it may set off a red flag for a transaction of that amount given that we usually don't process that much. I was almost pleased in a way that they had called to verify the transaction.
EOD said they need to do verification and needed a copy of the invoice I had sent to the client. I faxed the invoice to them as requested on the same day (last Friday, 8/12). I called my client to inform them of the delay and my client even called their credit card company, Chase, to inform them that they had made the purchase and it was authorized. EOD uses Chase on the back end I found out during my next call, but that doesn't matter - procedures and all.

So, I called Tuesday to see when the transaction would be processed. Of course, they never got my fax and never thought to call even though I made it very clear that I was faxing the invoice over as soon as I got off the phone with them on Friday.

So, Tuesday, I faxed the invoice over and Sharmaine from Risk Management which she later called back to confirm that they got it. Wednesday I got a call from them wanting to know if I had shipped the computer out to the client yet. I explained that the computer would be hosted (colo'ed) at my location and the client knew that. Sharmaine said she was going to then submit the transaction for processing. Another round of voicemail on Wednesday and I was able to reach Steve in Risk Management today. Steve wanted to know if I had shipped the computer yet. I again explained that it's a "hosted" computer and is not being shipped to the client.

Steve then said "ok" and that he was going to submit the transaction for processing and it should show up in my account within 24 hours. Finally.

Or so I thought. I then got what I thought was a very unprofessional call from E-Onlinedata's Risk Management Steve later in the day which you can listen to here:
http://baltimoretech.com/ccrisk.mp3

To summarize, Steve "has no choice" but to force a refund because:

1) The computer has a video card, so it clearly can't be used for hosting
2) I'm charging for shipping
3) He somehow knows more about my business and my client's needs then I do.

This guy sounds incredulous, to say the least. He balks at the shipping charge, which is clearly on my client's invoice (after all, I don't make the computer parts myself and I do have to get this thing to my colo provider somehow). He reads off the specs of the computer clearly indicating in the voice message posted above that HE is the final authority on if this transaction is processed. How does E-Online Data think they know what my client wants? My client has the same invoice I faxed them. It's what my client is requesting that I build. The order details are between my company and my client.

Not only that, but EOD are now apparently capping my account to $100 per transaction. I suppose my annual hosting clients will have to pay via two invoices? Maybe someone can explain that better from the voicemail.

I of course immediately called them back and again spoke to Sharmaine. She told me there was nothing she could do expect pass me to her manager's voicemail. I of course left a message and anxiously await my call from him tomorrow.

Can anyone recommend another merchant gateway for a company that currently does not process a lot of transaction per month?

Sorry to hear about your bad experiences, kind of lost you in the middle of this one though!

wow, that must suck, hope you can get your money and everything back to normal. Check to see if you can take legal actions and sue the for the damage they caused (ie refund, cap, etc).

Good luck!

Looks like this is going to be resolved... by switching to another payment processor!

If you have no agreements standing, you're basically screwed.

Recoil, maybe you should consider going to the top, or try contacting your local consumer rights institute/organisation.

This is a sad story, and shows some peoples complete ignorance of customers intelligence and rights.

this is crazy. when did this joint start thinking they get the right to not only decide whether your business is legit but pry into it in the first place?