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Bluepay Inc. / illegal — business practices that will hurt your business

Mi Review updated:
Contact information:
Phone: 800-559-9859

Do not do business with them
Do not do business with them: they use immoral — and likely illegal — business practices that will hurt your business

In short, Bluepay Inc. contacted my bank without notifying me first and suspended my entire business account! In addition, they are holding onto $4912.02 that I processed with their company—but have neither released the funds to me, nor refunded the money to my clients. This is $4912.02 that I worked for, and yet they are keeping it for themselves! This has to be illegal, so I know that I will eventually get the funds released—but making them do so is only a waste of my time. And this is time that I should be spending on my business, not on fighting these reprehensible business practices.
I have included more details about the experience I went through with Bluepay Inc. below so that you can see why I absolutely recommend that you DO NOT DO BUSINESS with them.
I have been a business owner for 11 years, and I signed up with Bluepay Inc. in July 2011. I then processed about $4912.02 with them. About three weeks later, I went to the bank that I have been banking with for 15 years. When I went to the window, the clerk told me that my entire account had been frozen. The first thing I thought was that somebody had hacked into my business bank account, and I was so worried and stunned I thought that I might have a heart attack. Since I have been banking with them for 15 years, they were definitely trying to help me, and one of the officers stepped in right away and started making phone calls to find out what was going on.
It turned out that without even calling me, Bluepay Inc. incorrectly reported to my bank that I was making fraudulent transactions, and my entire bank account was frozen. Once my bank discovered what had happened, they immediately released my account’s funds—though not the $4912.02 that I had processed with Bluepay Inc..
I went right back to my office and called Bluepay Inc.. My first question was how they can possibly do something like this without even calling me. I spoke with George Jackson, who lied to me and told me that it wasn’t Bluepay Inc. who had done this. He then asked me for the receipts of the transactions that they had processed. I provided all of the requested information immediately and also attached my business license. When I called to confirm that he had received all of the information, he assured me that he had everything and would get back to me the next day. Of course, I didn't receive a call. So on the next business day I sent him an email and left him a voicemail. A couple of hours later George Jackson called me and told me that my account was suspended. Based on my experience with the fact that they had incorrectly reported to my bank that I was making fraudulent transactions and also had my entire bank account frozen, I told him I didn’t want to do business with them anyway. However, I told him that I expected the $4912.02 I processed with them to be released to me. He gave me a vague response—after which I still didn’t know what would happen with my money.
Soon after, I called him again and demanded that he very clearly tell me what would happen with my money that they had processed. Again, he gave me unclear responses. Then, I flatly told him that if they didn’t refund the money to my clients or post it to my bank account, I would call all of my clients and have them cancel the charges I had processed with them—and if Bluepay Inc. gave me a hard time about refunding or releasing my money, I would sue them.
Three hours later, I saw on my bank statement that the money had been placed on hold for one month and an investigator had been assigned to look into these transactions. So my money has still not been refunded or released.
The irony here is that Bluepay Inc. reported me of having fraudulent transactions, when they are the ones who have processed my clients’ cards but are keeping the money themselves!! If this isn’t a fraudulent business practice, I don’t know what is!
Clearly, Bluepay Inc. doesn’t deserve anybody's business, and I am urging anyone who reads this review to think hard before doing business with them.

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  • Bl
      Aug 08, 2011

    Mr. Marinov established an account with BluePay in July. On his application, he described his business model as appliance repair. His account was approved for that type of service.

    Upon review of his processing activity, he admitted that the activity he processed through the account was for services that were in no way related to appliance repair, and for services that carried a significantly higher level of risk. Mr. Marinov mis-represented the nature of his business on his merchant application. As a result, BluePay established a security reserve for the activity that he processed.

    Our risk management team has already identified to Mr. Marinov that a date has been established for the review of that security reserve. He can contact us after August 12th.

    Risk Management
    BluePay Processing, LLC

    0 Votes
  • Mi
      Aug 15, 2011

    These claims by BluePay are absolute lies. I will go through each claim below to explain why they are invalid:
    BluePay wrote, “On his application, he described his business model as appliance repair. His account was approved for that type of service. Upon review of his processing activity, he admitted that the activity he processed through the account was for services that were in no way related to appliance repair, and for services that carried a significantly higher level of risk.”
    In response: I am an appliance repair company. I have been an appliance repair authorized dealer for 11 years. (Attached is my license for you to review.) I also do advertising and marketing for appliance repair independent contractors nationwide.
    Regarding the application, Tom Antonelli, the sales person who signed me up with BluePay, asked me what my business is on the phone. I explained to him that I have been an appliance repair authorized dealer for 11 years. And I told him that I also do advertising and marketing for appliance repair independent contractors nationwide. When he sent me the application he highlighted the areas that I needed to fill in—but he did not highlight the part about what my business is. (I have attached this highlighted application for you to review.) In short, he did not have me fill what my work is on the application at all. Then, after my troubles started with BluePay, I spoke to Tom Antonelli again and told him that I was being accused of misrepresenting my business, and he agreed that I had told him that I do appliance repair and advertising and marketing for appliance repair contractors.
    Also, I absolutely never “admitted” that the activity I processed through the BluePay account was for services that were not related to appliance repair because all of the activity that I processed through the account was related to appliance repair. As I stated, I have been an appliance repair authorized dealer for 11 years. And I also do advertising and marketing for appliance repair independent contractors nationwide. So every card that I processed was either 1) the card of an appliance repair independent contractor paying for advertising and marketing of their appliance repair services, or 2) it was for a customer who received appliance repair services.
    BluePay wrote, “Mr. Marinov mis-represented the nature of his business on his merchant application.”
    In response: Again, I never misrepresented the nature of my business on my merchant application. As I said before, I am an appliance repair company. I have been an appliance repair authorized dealer for 11 years. I also do advertising and marketing for appliance repair independent contractors nationwide. I told this all to Tom Antonelli, the sales person who signed me up with BluePay.
    BluePay wrote: “As a result, BluePay established a security reserve for the activity that he processed.”
    In response: What they call a “security reserve” is actually $4912.02 that I worked for. I charged $4912.02 worth of cards through BluePay and then they suspended my account. Their decision to suspend my account is their choice. However, they also then held on to the money. I repeatedly asked them to either release the money to me or to return it to my clients, but they continually refused to do either. There was no reason to keep my money as a “security reserve” because they were not processing cards for my company any more. If they were no longer processing cards for me, what were they securing themselves against?
    BluePay then said that I could contact them after August 12, 2011. However, they did not mention that in addition to keeping the money that I worked for as a “security reserve, ” they also reported me to the Match list, a database file that is most commonly known as the Terminated Merchant File "TMF." Once you are put on this list, all MasterCard and Visa processing banks know about it. This is essentially a merchant account blacklist that alerts all merchant account companies that you have been accused of doing something risky or fraudulent. And, even in a case like this—when the accusations are false—it is almost impossible to be removed. The only way to be removed is to have the company that put you on it then take you off of it.

    However, on Monday Aug. 8, I did not know that my company had been put on the Match list, nor did I know what the Match list is. So I was shocked when I received a phone call from a merchant company that I have worked with for over a year, long before any association with BluePay, to tell me that they were canceling my account because they received a concerning report about my business. This is a company that had sent a representative to my office to validate my business and is a company that I have never had any charge backs with or problems with the cards that I processed with them. Still, I am on the Match list / Terminated Merchant File (TMF), so they canceled my account.

    Then, twenty minutes later, I received a similar call from American Express. In this case, I had worked with them for 11 years and have had never had a problem. But they also said that they received a warning report from BluePay and because of this they suspended my account for one year.
    Since then I have made numerous calls to different people at BluePay in order to try to solve these problems. A number of times I have spoken with George, a representative in the risk department—and the last time that I called him he just hang up on me. I also spoke with Tom Antonelli, the sales agent who signed me up with BluePay. As I mentioned, he agreed that I had not misrepresented my business, but he offered no help for how to solve these problems. And a couple of times Tom Antonelli gave me incorrect phone numbers of other people to call in the company. Finally, Tom Antonelli gave me the correct phone number for Mark, also with the risk department. I was referred to him because he was well aware of the situation. But the first time I talked to him he lied and told me that he didn’t know anything about the Match list / Terminated Merchant File (TMF). After I pressed him, he admitted that BluePay had notified other merchants something about my business (though, he wouldn’t say what BluePay said about my company to the other merchant companies). He then said that it is totally up to those companies if they want to do business with me. This may be true, but these other companies were told lies about my business that made it seem like I was doing something risky or fraudulent (I don’t know for sure what it is that they were told since no one will tell me exactly what BluePay has accused me of).

    In summary, holding on to my money and putting my company on the Match list / Terminated Merchant File (TMF), is no small matter in my business. I work 60 to 70 hours a week to run my business, yet BluePay has arbitrarily targeted my company with no warning and for no reason. At this point, I am demanding that the money be either returned to my clients or released to me by Aug.16, 2011. I am also demanding that BluePay remove me immediately from the Match list / Terminated Merchant File (TMF). If BluePay does not do these things, I will file a lawsuit against them.

    As mentioned above, for your review I am also attaching my appliance repair authorized dealer license and the highlighted application that Bluepay’s Tom Antonelli sent me.

    0 Votes
  • Jo
      Oct 02, 2013

    CAUTION!!! TERRIBLE MERCHANT! Risk Management will shut down your account without notice or explanation and hold any transactions you have pending for 180 days minimum. All sales and account execs will cut off communication with you. It all starts off very well and they are super nice. Before you know it, the whole things turns into A NIGHTMARE!

    0 Votes
  • Go
      May 30, 2017

    Blue pay processed over $1, 000 for me over the course of a week before doing the same exact thing. They said their risk department wouldn't be able to process payments without a 180 day reserve (them holding my customers payments). Clearly this was absurd and I forced them to refund all of my customers I had not yet shipped to. However the one that I did ship to was for over $200. They kept this money and never released it. I filed a complaint with the BBB and they lied and said they attempted to release it (even though they have my address) and also stated that my $200+ transaction was now reduced to $100.38 because they continued to charge me for merchant services and daily settlement fees afte cancelling my account. This company is absurd fraudulent criminals. Even though the leftover amount was minimal, I will be filing a lawsuit for the correct amount and any associated fees (plus damage to my business, as I too weren't able to immediately get a new merchant account due to false information they reported about me being high risk). Since when is clothing high risk.

    0 Votes

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