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Innovative Merchant Solutions / Salesman misrepresentation!

1 United States Review updated:

On June 5, 2007 a sales representive of Innovative Merchant Solutions by the name of PAOLO FIDUCIA came into my shop. He was selling a merchant credit card service. At first, my husband and I told him we weren't interested as we had an online service that we were quite happy with.

Mr. Fiducia was not deterred by this. He pointed out that his company had the lowest monthly charges of all suppliers and proceeded to compare the charges of our current provider and those of his. He also stated that his services were the same as ours and would be even less complicated. We were impressed even though I asked him three times to make sure that this was an "online service." An online service meaning that we log onto the merchant service online and enter our customer's information and then print out a receipt. The charges are then credited electronically directly to our bank account. He replied "Yes" each time.

His trainee who was shadowing him at the time and came in with him, however, did ask me if I was computer savvy and I replied that I thought I was. At the time, I should have followed that statement through because I admit to wondering why she asked that question in the first place.

The other sales pitch Mr. Fiducia made was that we "Could cancel any time, without notice without any cancellation fee." I asked him if that was really the case and he replied with the same answer.

The package came with the latest version of QuickBooks at no charge to us. I currently use QuickBooks and was thrilled at that idea so I could integrate my credit card record with those financial records that were already in my database.

Therefore, we were sold on four premises:
1. Less fees
2. An easy system
3. A free updated version of QuickBooks
3. No cancellation fee

We went over all the information with Mr. Fiducia again and decided to sign on. He then got a representative of the company on the phone, who went over information (which was recorded) and made sure I understood their terms. There were a couple of charges mentioned that Mr. Fiducia had not told us about, but they were minimal and I agreed to them. He apologized for "forgetting" those particular charges. At NO TIME during this recorded phone conversation was a charge mentioned for cancellation of their services. Or that the free QuickBooks was not compatible with any version previous to 2004, which I found out about later.

We waited approximately four weeks for contact from them, as promised, to set up our account. In the meantime, they had been applying charges to our bank account. My husband called them and they immediately apologized and removed the charges. We received our QuickBooks CD finally and I attempted to set it up on my computer.

What a mess that was! The system was not even remotely like our current online merchant:

1. We currently have all funds from credit card charges deposited electronically directly to our bank branch. This system required us to open up an online account with our bank, which we had no intention of doing and certainly did not want to do. We prefer to either personally go to our bank with deposits or have funds electronically deposited as we are doing now.
2. I found that this version of QuickBooks was not compatible with my current system and I could not utilize the data that was already there.
3. The system was so complicated to set up that even a well-versed computer user would have trouble -- as I certainly did.
4. I did not have the time to call up a representative for training and certainly did not expect to have to do so from what Mr. Fiducia had intimated.

When I informed my husband that I was completely disillusioned about this and really didn't want or have the time to set it all up, we decided to cancel our merchant application with them. So, he called and spoke to a couple of different representatives (a Jeff and an Angela Tomas) and was informed that we needed to put the cancellation in writing and gave us a fax number to fax it to them.

On July 13, 2007, I did exactly that and within a couple of weeks we discovered that Innovative Solutions had placed a debit against our bank account in the amount of $295. My husband called and spoke again to Angela, I believe, received no satisfaction from her, and hung up, extremely frustrated and very angry.

Later, I called her myself and had to leave a message saying that I would be happy to send back the QuickBooks CD believing that we had been charged this fee because we had the use of the CD and were not honoring our agreement. After all, I had no use for the QuickBooks anyway as it was not compatible with my system. She never returned my call.

Our bank says that it cannot reverse the $295 charge and we are left holding the bag having NEVER used their service -- not once! I am furious and will never use any INTUIT products ever again including Norton Utilities.

Finally, I am writing to our State Attorney General and the California Attorney General, together with the Banking Commission of both States.

This is downright fraud!

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  • Cl
      8th of Jan, 2008
    0 Votes

    Innovative Merchant Solutions an Intuit Company

    This company is a bunch of Liars and Thieves!!! Where there is smoke there is fire. If you properly research this company the same complaints repeat themselves over and over again. The theme of deception, misrepresentation, rude service, run around tactics, non-disclosure, padded fees, and account hijacking. Instead of performing like a responsible company they operate like the mafia branded with a LLC! Make no mistake this company lies, cheats and steals money from your account!! All under the pretense of a convoluted contract which you will need a lawyer to read the fine print and a lawyer to get you out of!! They are poorly organizated and unfortunately that burden will fall on you the convented customer to both protect yourself and battle for your livelehood, money and respect! They are the rudest most confortation people I have ever had the displeasure of doing business with barr none!!! Which leaves to wonder if the employees are trained in obnoxiouness 101, and rudeness 101. This prevelent practive is unacceptable for a company in the finanicial service industry. This company is not worth the paper it advertises on and should be left for other like minded gypseys, tramps and theives. They took $266.00 of funds to cover for $8.00 worth of fees. They charge anywhere from $295 to $395 to patronize another company after 1 or 10 years, they charge annual fee of $75.00 compare to companies that charge none, they charge monthly service fees, hijack your money, they also charge $50.00 charge back fees versus other companies that charge $25.00. This is just the beginning....Is this a company you want in your bank account, processing your money? Please think, think twice there are Kool-Aid stands with more business morals than this company. They are bold face liars, ill-tempered with your money and skating close to scam artists.

    Pissed and not afraid to tell Others
    Atlanta, GA

  • Su
      22nd of Feb, 2008
    0 Votes

    This also what happend to us-almost verbatim. We were also told our machine was compatible with their services , only to find out we couldn't accept food stamps or checks through them, yet the rep said we could. I called to complain & cancel the serivce before it was even set up & then was told about the $295.00 cancellation fee. Before we signed a contract my husband asked if we could cancel if we were not satisfied & the rep said "of course. If we were not satisfied we could cancel within 60 days and there would be no charge" When I complained to the company they said the rep must have made a mistake and they weren't responsible for what the reps tell us. I could write a book about this company but now they are trying to take me to court & pay their legal fees!

  • Ne
      16th of Apr, 2008
    0 Votes

    I am dealing with same kind of problems with this company also.I felt, hopless, discourage, pushed down, unrepectfull since the first day I got the service with this company''innovative merchant solutions'' and is getting worst and worst.
    I see other people have problems with this company and I hope somebody do smth, for all this stress we getting for nothing.We are paying for their service, we working hard to make those money they takes from us, but they are never for us when we need their help even worst their bringing more stress in our lives.I am getting depressed every day more and more and feeling hopless for the fact that they dont care for us.
    We are small bussines .We put a lot of hours to keep the place open for people.
    We dont deserve this from that.
    They sent a salesman to our bussines to give info what they offered.

    He promissed me they will pay for the penalty I will get from my previous company if i discontinue with them, THEY NEVER DID...
    He promised me i will get better rates especially on debit cards, but they were procesing every cards as credit card so i didnt get that benefit
    I got promissed for help if my machine brake down, even a free machine if i started with them.Since I had a new equipment that time I didnt bother them, but the worst thing is happening naw...
    I have 3 weeks without service because my credit card a far as they say is not any longer good .I should purches from them a new one.I ordered omni 3200 machine from them they sent me twice wrong machine, different way set up that i had to return to them .They charged me more than they told me ...and i havent seen the credit back even that i delivered within 14 dayes as they told me.
    My bussines is going down, my customer are leaving and not coming back .I mentioned to the person named Noel with ext 22139 and he had bad attitude, I felt disrespectful.
    Anybody can advise me what I should do.
    English is my second language and i feel discreminated about this with the people that work for ;;innovative merchanant solutions''

  • Si
      12th of May, 2008
    0 Votes

    IT seems that this is the way they do business. I have had a similar bad experience.

  • Do
      13th of May, 2008
    0 Votes

    I have the same problems with these low life ### buckets. I'm going to bite the bullet and dump them for another company that is honest. I don;t care about the cancellation fee. I just want to run from these idiots as fast as I can.

  • C
      14th of May, 2008
    0 Votes

    Hi guys, we all should file a formal class action lawsuit against them. They stole thousands from me and have no intention do deposit the fund to my account. I've gave them all the supporting docs they need and they have no reason to hold the fund. Please contact me if you are interested on filing a lawsuit. We all should work together and destroy all these scammers.

  • Ho
      14th of Jun, 2008
    0 Votes

    I signed up in November of 2005. I did notice the termination fee and questioned the sales rep Mitch Wolfe. He said that was there only to insure that customers didn't "jump ship" a few months after signing up. He assured me it would not apply if I completed two years or more of business with IMS.

    I did change my CC service earlier this year after more than three years with IMS because of their extremely high processing fees. I was charged the fee and IMS denied knowing their own salesman!

    Please do you self a favor and stay away from this dishonest and lying pack of thieves!

  • Ca
      17th of Jun, 2008
    0 Votes
    Innovative Merchant Solution - unfair fees
    Innovative Merchant Solution
    26541 Agoura Road
    United States
    Phone: 818-736-7800

    I opened an account with Innovated Merchant two weeks before my business was up and running. I sell hardwood floors and had not yet establish a cliental but wanted to be ready with a credit card machine. I told the rep that I would activate the machine as soon as I need to. About a month later an unauthorized debit from my business checking in the amount of $55.00 was debited and a month after that another $55.00 was debited again. I called them and asked why I was been charged if the machine was not activated. I was very angry and I cancel.
    I was told that all I had to do was to send back the credit card machine; I was never told that I had to pay cancellation fee or tax fee on the credit card machine that I returned unused and never activated. It is totally a rip off to have to pay for something that I did not use or to pay tax on something that I do not have.
    I refused to pay for it and now a collection agency is call me I either pay or my credit will be ruined. What can I do?

  • Te
      13th of Aug, 2008
    0 Votes

    My husband and I have had the very same problems from this company. We closed our business and they assured us they would not charge us the cancellation fee because we were not going to another company. We supplied proof we did not "jump ship" and go to another company and they said we did not send the proof in time so they charged $295 cancellation fee anyway. The whole company is a bunch of liars and cheats.

  • Vi
      7th of Nov, 2008
    0 Votes
    Innovative Merchant Solutions - very bad company
    Innovative Merchant Solutions
    2125 Burbank Blvd #100
    Woodland Hills
    United States
    Phone: 800-397-0707

    Their salesman misrepresents things and never said anything about a termination fee. I never would have signed if they had been upfront about a termination fee($395.). They are a very crooked and their representatives are horrible at providing customer service. They suck, suck, suck!!!

  • Ry
      1st of Dec, 2008
    0 Votes

    I was told I was going to have my previuos merchant canceled and paid by them, never happpened and now they owe me over 400 bucks. Then when I canceled they immediately took 500 dollars from my account lol, I almost ready to throw all my merchants out the door. The only people that really keep me in bussiness are cash and check customers anyway.

  • Le
      5th of Feb, 2009
    0 Votes

    IMS is committed to transparency of pricing and fees, including termination fees. The application language quoted in the report regarding termination fees is printed in bold and is located immediately above the applicant's signature line to help draw attention to the fact that termination fees apply. The Merchant Agreement, which is an important part of defining the obligations of the parties under the relationship, clearly describes the standard termination fee. IMS takes care to describe merchant obligations in clear and unambiguous terms in its application and merchant agreement. It encourages and expects that merchants entering into such an important relationship take appropriate time to understand their obligations under the relationship.

  • Gu
      27th of Feb, 2009
    0 Votes

    This company charged me every month for a year for services I did not get from Quickbooks. To top that off, they double charged my bank acounts for services fees and sometimes charge my account for things I didn't do or want. In addition to all that they charged my accounts in December for their Christmas vacations and overdrew my account because they did not inform me before their withdrawl that they were going to take the money out. I ended up having to close my accounts all together to get them to stop chatging my accounts for everything and had to move my accounts to another bank.

  • Rn
      15th of Mar, 2009
    0 Votes

    I've been a customer for several years processing small charges using Quickbooks. Then last month a client wanted to pay a large bill via credit card (about $6800), the charge was approved, but Innovative Merchants withheld the funds. I waited for days to find this out, then told me I had to fax an invoice, and I also gave them the clients name, address, phone, etc, to verify he is willing to pay the invoice via the credit card (that WAS APPROVED)

    I don't hear from anyone for days, the money never appeared in my account. I called my client and he said the money was taken out of his account. I called the merchant back and for some reason the person handling the issue wasn't in. I sent an email, left voice messages, no one called back. I had to call again and ask for a supervisor. They said it was the Las Vegas branch that was handling it, and gave me their contact info. I sent an email, never got a response. I called the next day, left a voice mail.

    Finally someone called me back, but they said they would not transfer the funds to me because some of the work on the invoice was older than 6 months. I argued that they could call the client and verify he is willing to pay the invoice. They told me it's against their policy to process charges for services older than 6 months, and that I had to issue him a credit. All this took over 12 days to find out, and only after a half a dozen or phone calls. I had to issue a credit back to the customer.

    I then had to ask my customer to mail me check, that my merchant service wouldn't allow the charge (made me look unprofessional). He paid through his paypal account, which went through smoothly in a few days. Then, about a week or so late, he called me to complain that the original charge was never credited back to his account.

    They took his money right away, held it for over 12 days, then took over a week to credit back his account. I lost the client because of this. On top of all this they charged me almost over $480 is processing fees (they took their fees coming and going). Even though Intuit never actually funded my account for the charge, they made me pay fees for the charge AND the credit.

    A week later, another client wanted to pay an invoice. I processed the charge, it was approved. Again, they made me fax an invoice, this time it was for work done within 30 days. The charge was approved on 2/27, I faxed the invoice on 2/28. It is now 3/14 (over 2 weeks later), and I don't have the funds. I made about a dozen calls so far, and no one is giving me a straight answer. Again, they said the Vegas branch is handling it. I call and they're either out to lunch or at a meeting. I leave a voice mail, send email and get no response. I called today (saturday), they put me through to the vegas branch and the person answering sounded like he just woke up. He told me no one was there to give me an answer as to why they are witholding my funds AGAIN.

    The people I spoke to were unprofessional, unresponsive, and didn't care the least bit how this hurt my business. Worst customer service I've ever encountered from the merchant service. I thought Intuit was a reputable business as the makers of a major widely used accounting program. This experience has changed my view dramatically.

    It's absolutely unacceptable in how I am being treated and how they are handling these transaction in a completely unprofessional manner. They 'claim' to fund your account in 48 hours, yet I had to wait 12 days to find out they withheld funds because an item on the invoice was over 6 months old, then had to return the charge, and they took a high percentage both times.

    Now, I processed another 'APPROVED' charge without any date issues, and it's been over 2 weeks and NO ONE has told me why the funds are being held again. The office handling never responds back with an answer.

  • Bu
      6th of Apr, 2009
    0 Votes

    I just called the office of the President of Intuit to complain about Innovative Merchant Solutions. I was told by Perry that someone will contact me within 4 hours. She said Intuit executives review all complaints that come in to the President's office. She also said she has not received many complaints about Innovative Merchant Solutions. I would suggest that if you have a problem with them call the President of Intuit and complain.

    I reached them through their corporate offices in CA: 650-944-6000

  • Ro
      15th of May, 2009
    0 Votes

    In my case as others Innovative was unable to provide service. Tech. support was rude and never returned calls. I canceled my account with them and denied them access to my bank account. They were unable to debit me for there cancelation fee so they turned it over to a collection agency ( Consolidate Recovery Group ) which put it on my credit report. They call me every couple months and send letters saying they are suing me. I am waiting until I get something from the court. In the mean time I am applying for credit and if denied I will be seeing them in court.

  • Im
      18th of Jun, 2009
    0 Votes

    Innovative Merchant Solutions does not support their clients. Their passive approach towards disputes puts their customers at risk. In all of our dealings with this company they have taken the easy way out and failed to perform their functions. They deny claims based on failure to rebut within the time frame when they actually received the paperwork. My only guess is that they are not willing to make any effort actually review the claims or defend their clients. I would not recommend this company to any company. Their association with QuickBooks was our reason for selecting them but it was a very costly mistake which we have now rectified by cancelling our association with this company.

  • Aw
      18th of Jun, 2009
    0 Votes
    Innovative Merchant Solutions - Termination Fee
    Innovative Merchant Solutions
    21215 Burbank Blvd
    Woodland Hills
    United States
    Phone: 800-397-0707

    I switched to this company because they promised lower rates. I used their services for over three years without contract month to month. When I decided to terminate their services and go with another company they charged me $295 termination FEE. They are unethical and have bad customer service. DO NOT USE THEM.

    THEY are not cheap at all...THEY Will take you money...again and again...

  • Sa
      19th of Jun, 2009
    0 Votes


    i just had a sales rep come into my store, and after everything he said about the company, I was really considering moving over to them. Thank God I decided to google them and that's when i came across this post.

    THANK YOU ALL for taking the time out to write these reviews. You have just saved me a headache I don't need.

  • Sc
      10th of Jul, 2009
    0 Votes

    I also have been taken by this scam of a company. $295 termination fee? Are they crazy. It's companies like this that should be shut down. Where's the government regulation for these guys? Oh, how did I forget... they are too busy bailing out these other idiots at our expense. What was I thinking?

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