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OUCH, just got a $350 cancellation fee from online data corp
online data, fees

 1:19 am on Apr 22, 2008 (gmt 0)

that overdrew my account. $^#&^ man! i opened the account in 2005 with merchantplus and they used ipayment.

[edited by: lorax at 1:27 pm (utc) on May 27, 2008]



 3:43 am on Apr 22, 2008 (gmt 0)

That organization sure looks cheesy.


 2:34 pm on Apr 22, 2008 (gmt 0)

File a BBB against them on this charge I have no idea of the contract you signed back in 2005 but it might be worth a complaint.


 4:17 pm on Apr 22, 2008 (gmt 0)

First, make absolutely sure that the fee should not have been charged.
Second, contact the company and demand the money be returned immediately, in addition to reimbursement for any fees resulting from being overdrawn.
Third, if you are absolutely sure, contact your bank and report the withdrawl as unauthorized and illegal. They may also recommend you contact the police and file an official report.
Fourth, you may want to consult with a lawyer in regards to further criminal and/or civil actions to take against the company.


 3:34 am on Apr 27, 2008 (gmt 0)

yes the charge was unwarranted from what merchantplus has told me, and i am hoping they will lower it or refund it all together. I should be getting the agreement via mail this week.


 4:23 am on Apr 27, 2008 (gmt 0)

File a chargeback if it was a card payment, don't pay if it's an invoice, disute derect debit with your bank as unauthorised.

Corey Bryant

 3:55 pm on Apr 27, 2008 (gmt 0)

What about the agreement you signed back in 2005? Can't you review that and see what (if any) might have been the reason for the charge?



 11:56 pm on May 2, 2008 (gmt 0)

hi guys thanks for all the replies and suggestions. a little update: the contract/agreement was sent to me via regular mail, i cut and pasted the part were they are saying that the 1st term(initial term) is a 3 year agreement, the 2nd term is 1 a year agreement, if you cancel before the second term then it's $350 after the 2nd term it is $250.

"2. TERM. This Merchant Agreement shall become effective upon the date that Merchant is assigned and issued a Merchant Account Number (the “Effective Date”). iPayment will advise Merchant in writing of such Merchant Account Number. The initial term (“Initial Term”) shall commence on the Effective Date and shall continue in force for three (3) calendar years after it becomes effective (the “Initial Term”) and shall thereafter automatically renew for additional one-year terms,

unless at least thirty (30) days prior to expiration of the then existing term a written notice of termination (to be effective at the expiration of the then existing term) is given either by Merchant to Bank and iPayment or by Bank or iPayment to Merchant, unless sooner terminated in accordance with the provisions of this Merchant Agreement.

Notwithstanding anything in this Merchant Agreement to the contrary, the parties hereby further agree and acknowledge that in addition to any other remedies contained in this Merchant Agreement or otherwise available under applicable law, if (a) Merchant breaches this Merchant Agreement by improperly terminating it prior to the expiration of the Initial Term; or (b) if this Merchant Agreement is terminated by Bank and iPayment prior to the expiration of the Initial Term due to any Event of Default by Merchant, then in either event, Bank and iPayment will suffer a substantial injury that is difficult or impossible to accurately estimate.

Accordingly, after giving due consideration to the costs that Bank and iPayment may incur by reason of such early termination, including without limitation those incurred in processing the Merchant Application and approving Merchant for the Services, and in an effort to liquidate in advance the sum that should represent such damages,

the parties have agreed that Merchant shall pay, as liquidated damages the sum of (i) $350.00 if terminated before completion of the first year of the Initial Term; or (ii) $250.00 if terminated after completion of the first year of the Initial Term but prior to the end of year two or three of the Initial Term, which the parties agree is a reasonable pre-estimate of the probable loss to Bank and iPayment in such event, and shall not be construed as a penalty. Merchant’s obligation with respect to the Monthly Minimum Discount Fee will end simultaneously with Bank’s receipt of the payment of the respective liquidated damage amount required pursuant to this Paragraph 2."


 12:47 am on May 3, 2008 (gmt 0)

Wow what a bad deal well just goes to show we better be reading what we sign as this is a legal deal and that is that.

Thanks for the update sorry ya had to eat this one.


 3:16 am on May 3, 2008 (gmt 0)

Very bad deal. Is such a thing even legal in your state?

Corey Bryant

 4:19 pm on May 3, 2008 (gmt 0)

Usually the companies will have a merchant sign (a longer) contract to help maintain the company's portfolio. They look at when the merchant signs up and expects that merchant to be there for a certain time. This helps when evaluating a company, especially when selling.

A few years back, a merchant account was worth about $2,000 to the company. I am sure this has changed since 1998 but it gives you an idea why the provider wants an contract.

And since that industry is being sold and brought quite a bit in the past year, it becomes even more valuable to them.


 5:07 pm on May 26, 2008 (gmt 0)

Thanks for posting your story. We were about to cancel our online data corp account since we're no longer running sales through it. We'll try to find and read the fine print of our contract first!

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