Jul
06

first data merchant processing

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first data merchant processing
Banking practice is this legal?

I live in Massachusetts I have my Merchant Account at Sovereign Bank. They process their Credit Card transactions through First Data. I put through my credit card from first order to see how smoothly the work process. I used my credit card from another bank, Mayflower Coop called to make the transaction. Seconds after I saw that the amount Sat through Mayflower charge was deducted from my account. That seemed fine. Then I checked my merchant account in the Sovereign and the charge on my card was not yet published as a credit. A whole day passed. No credit. Two days. Nothing. I called customer service from First Data and was told that usually takes 24-48 hours for a load on their payment. It has now been 80 hours and still see nothing. Is that legal? What are you doing with my money while I wait for the credit to be deposited in my merchant account. Are you earning interest on it? Please someone enlighten me!

Yes, it is legal. It is also very common for the bank that holds your merchant account to hold off payments for a few days in new accounts. They do not want you to run a lot of objections, take money from your account, then get stuck when the owners of one hundred Credit Cards stolen home disputing the charges. It stings from a small employer, but that's the way it goes. Richard


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