Banctek Solutions

Initial Business Response /* *** ** *** */
A merchant processing application was signed by Mr*** *** on 01/03/to set up a retail processing account for his crossfit gym classesAt the time of underwriting Mr*** disclosed to Banctek that his business would be taking
retail/card present transactions for crossfit classes, supplements and t-shirtsHe did not disclose that he would be running his website's ecommerce business through this processing accountIn fact, Mr*** specifically stated he was running his online business elsewhereNor did he specify he would be selling gym equipment
There are very different setups for retail/card present versus keyed/ecommerce merchant processing accountsThat said, the pricing provided by the sales agent was going off the fact that Mr*** stated this was card present businessThere are different interchange pricing levels set by the card associations (not Banctek) and due to Mr*** keying his sales rather than swiping a physical card, this was causing his transactions to downgrade, thus charging him a higher interchange level
The terms of the contract Mr*** signed are clearly outlined and Banctek tried on numerous occasions to reach out to Mr*** to educate him regarding the need for clear delineation between his retail and online businessFees, including the early termination fee are clearly outlined on the 2nd page of the contract that he signedAdditionally, Banctek Solutions never held 3,with no reason givenAgain, Mr*** had stated he was taking payments for crossfit classes and t-shirts with an average ticket of On March 28, Mr*** ran a $2,transaction which was well above his approved parameters set by the underwriter at the time the account was reviewed for processing approvalBanctek Solutions does not assume liability or fund AMEX transactionsAll Banctek does is process the transactionsWhen we saw the size of the transaction we asked for an invoice and explanation of the size of the transaction (due to the fact this account had been problematic), however, never held fundsOn April 15, Mr*** contacted the office asking that we release this aforementioned $transactionIt was relayed to him that we never held funds and he would need to contact AMEX for information regarding the funding of this transaction
Mr*** quit processing and on May 13, Mr*** emailed a cancellation letter requesting that his account be closedHe was reminded of his year contract term and of the fee associated with breaking this contactHe advised he was aware and that he wanted the account closed
From day 1, Mr*** failed to disclose truthful information regarding his business for Banctek to properly underwrite and set up his accountBanctek Solutions respectfully denies this individual's request for a refundMr*** processed outside approved bank parameters and broke his contract of his own volitionI have attached emails and Mr***'s signed contract to help validate my written outline
Initial Consumer Rebuttal /* *** ** *** */
(The consumer indicated he/she DID NOT accept the response from the business.)
BancTek's characterization above is simply disingenuous
1.) My revenue comes from group classes, t-shirts, and supplementsI do, however, allow people to register (and pay) for classes on my websiteThis is how I have always done business and was totally transparent in that fact with your sales teamThe sales team said because I wasn't selling a product over the internet or shipping out merchandise that "it wouldn't be a problem" It was only after I was pressured into the signing the contract did your underwriting team chime and say I had to open two accounts and jump through all these hoopsOn a related note, the credit card information isn't even captured by my site, but rather my backend software providerAll data is transmitted through their servers, not mine
2.) I am not currently, and never have been, in the business of selling fitness equipmentThere was, on one occasion, a time where I had an extra machine listed for sale in a local adSomeone wanted to buy it with a credit card, so I obligedIt would have been reasonable if you had called me asking about the transaction (or declined the card)but instead your company decided to hold those funds hostageIt was BancTek that withheld those funds and it was only after I called and raised *** were they finally released
It is clear by your response that you will not be doing the right thing here and refunding the termination feeAs I said before, BancTek made it impossible for me to continue to do business with themThey are they absolute worst partner I have ever hadever
Any businesses out there should google their name and check out rip off sitesyou will be shocked at how much info you find
Seriously, don't use this company
Final Business Response /* *** *** *** */
The processing of Visa or MasterCard credit cards are conducted by sponsored "underwriting" card acquiring banksThis payment processing environment is regulated by rules dictated by the aforementioned card associations of Visa and MasterCard
One of the longest held rules is that of both Visa and MasterCard to prohibit the occurrence of "factoring." This term refers to an approved merchant processing the (credit card) sales of a non-approved business through their merchant services accountBy "approved" I am referring to a merchant (whose definition would include the business type, the business in particular, and the owner or principles themselves) that has been evaluated for risk by a particular card acquiring (i.epayment processing) "underwriting" bank and approved for handling its credit card sales processingIndeed, your merchant account was factoring when you took payment for exercise equipment (MCC merchant category code 5941) on an account approved for the sale of gym classes (MCC 7997)Please refer to section 6.1.1, page of your Program Guide and the section clearly covers factoring being strictly prohibited
Again, let me reiterate, funds were never held by Banctek for the transaction of the gym equipment saleYour account for accepting AMEX was direct with AMEXBanctek does not assume liability on or fund AMEX transactionsAll Banctek is responsible for is the transmission of dataAt the point of funds being held for the aforementioned factored sale, this would have been the risk department at American ExpressAgain, they would have been concerned seeing a transaction of this nature come through on an account approved for gym classesAdditionally, any risk department at any company would have been concerned at the fact this card-not-present transaction did not have AVS (address verification) or CVV (card verification value) confirmed
There are clear rules and regulations set forth by the card associations that all parties, from the merchant level to the acquiring bank/processor level, have to adhere toPart of the responsibility of being a merchant whom accepts payments via the card associations is being educated on said rules and regulationsI apologize that you are frustrated and upset, however Banctek has standards set forth by Visa/MasterCard that are followedPerhaps additional knowledge will benefit your business: http://usa.visa.com/download/merchants/card-acceptance-guidelines-for-visa-merch...⇄