Innovative Merchant SolutionsCharged my account without permission!


On August 22, 2006, I purchased a credit card authorization machine package from the company called Innovative Merchant Solutions through Randy Judd, the agent from Auction Teacher Seminar. The agent promised me the world including getting me the machine within 2 to 3 weeks. However, after waiting for over 2 months with numerous calls, the machine or any other device never arrived to my address. Although I did not have the machine, this company charged me monthly minimum fees through my bank account without my permission. I finally canceled the purchase after numerous calls asking for my machine and the refund of the charges. As soon as I terminated the purchase, Innovative Merchant Solutions again dipped into my bank account and charged me another $395 for a termination fee. Fortunately, I was able to get the $395 termination refunded to me from my bank. When I called up Ms. Alice Kimbrough, the rude and impolite Innovative's agent, she told me that regardless whether I receive the machine or not I am liable to the termination fee because I signed the contract. I am not liable for the termination fee because I have given them enough time to send me the machine that I needed for my business and they have failed to do their part. Since then Ms. Alice Kimbrough has been harassing me for this charge. I believe that Innovative Merchant Solutions is out there to exploit the innocent consumer. Its agent is out there making false representation to lure the customers into signing the contract and then keep on charging the customers’ account as soon as the Innovative Merchant Solutions gets the information of the customers’ bank accounts. I have filed a complaint regarding this case to the California Attorney General. I also asked them for help to stop their action to prevent more innocent people to fall into their trap. If any one has the same or similar problem with Innovative Merchant Solutions please report them and file a complaint to the Office of the Attorney General, California Department of Justice, Edmund G. Brown, Jr., Attorney General. Their web address and telephone are: and [protected]. You can even file a complaint through an email in this website. We live in a great country and these things should not be happening.


  • Da
    Dave Mar 23, 2007

    I am currently searching many forums and websites to find other businesses or individuals that have been "forced" to pay Innovative Merchant Solutions under false pretenses.

    It appears they have done this many times and so far have gotten away with it.

    0 Votes
  • Le
    LeAnne Jespersen Sep 21, 2007

    IMS did receive an Attorney General complaint regarding this account and we resolved the matter through that agency. However the crux of the matter was that the merchant changed the designated shipping address for the terminal without notifying us. Therefore, the equipment was sent to the merchant's mailing address listed on the application, and then returned to us. Once we received it back and contacted the merchant to send it again he had changed his mind and no longer wanted it. As a courtesy to the customer the Termination Fee was waived.

    0 Votes
  • De
    Deirdre J. Miller Dec 28, 2007

    I am replying to a Mike Delgado, who wrote to me, but the email he gave was not correct.

    No I have not received a resolution yet! They are absolute crooks! The parent company "Intuit" deny responsibility because they say that Innovative is required to make their own decisions...even the president's office couldn't do anything and kept referring me back to Innovative.

    Then I received a phone call from the sales office offering to provide me with the training I need to get up and running and if, after I've used it for a month and I can prove that it's not satisfactory, they will cancel my account and refund my whole deposit.

    Well you know a dime and a cup of coffee is worth more than that useless piece of cr**p! They will find some way to get out of giving me my $295, because they know I will cancel immediately the 30 days are up.

    If they won't do anything after I have explained all my problems and that I was mislead by their salesman (which, by the way, the Connecticut Attorney General says is illegal), they are not ever going to refund my money.

    The CT AG says if I sue them, they will back me up.....yeah right....and there goes my $295 and more in atty fees.

    They know when they have you over a barrell!

    Want to form an allegiance and take out a class action suit? I wonder how many other people are out there with the same problem as you and me!

    Glad to hear from you....not that it makes anything better, but nice to know I'm not alone!

    Best wishes,


    Deirdre J. Miller, Owner
    A2Z Embroidery
    577 Route 12
    Groton, CT 06340
    [email protected]

    0 Votes
  • Cl
    CLARICE PERRY Jan 08, 2008

    Innovative Merchant Solutions=Dressed up Gangsters, behind an LLC. If ever there is a large class action suit please count me in! We should not have to pay to be lied to, financially hi-jacked and then have to deal with their uppity self righteous customer service!!!! I will tell everyone I know of this band of thieves until I leave the plant earth!!!

    Pissed on for Now---But They will get theirs!!!!

    0 Votes
  • Ev
    evelyn draper Mar 21, 2008

    I had a real nightmare with this company. I had 4000.00 in transactions in June of last year from one customer. I send all my transactions through my quickbooks, innovative okayed the credit cards. 4 months later they raped my bank account of 4000.00 then 3 weeks later I got a letter saying the cards were fraudulent. Since then I closed the service, closed the account and opened a new bank account. Last week my bank statement arrived and low and behold they had somehow got the account number and taken more money out of the account.

    This is theft pure and true. I am filing with the attorney general in California and also in Oregon as that is where I live.
    This company needs to be stopped.

    0 Votes
  • Ri
    Rich Kl May 11, 2008

    I had / have an account with Innovated Merchant solutions.
    They are liars and deceptive. I went out of business and they debited my checking account for $295.00 for a service fee that I was never told about and they had no consent to take it out of my business account or should of asked or notify me first either on the phone or mail before doing so.. I was tricked to sign an agreement where they did not emphasise that this would happen if i went out of busness. They say I signed somehting stating on page two. "I don't remember that at all else I would of questioned that, and I was never told that verbally . They just told me how much money I would save and thier was only a $10.00 charge after 6 months and there was no mention of a disconnect fee of $295.00?. The debit''s are over drafting my checking account and I am being charged $35.00 for the over draft fee's per occurance. I owe the bank $295.00? on top of that? The rep at Innovated Merchant didn't tell me when I called to cancel that they would charge me. He sounded like a high school kid. And the female customer service spoke to when I cancelled sounded like she was in grammer school and negleted to tell me about the discontinue service fee of $295.00.
    There was no attempt at all by any of their rep's or their retention department either to try to prevent this or conatcting me at all prior to the surprise chatge a month after I close?. It would be cheaper to pay the $10.00 a month fee then to pay $295.00 right now. Else I would of made sure there was enough money in the account or used a credit card for the unauthorized debit from my business checking of $295.00. Now they continue to draw a $10.00 service fee even while my account is closed . This is creating more $35.00 over draft fee's. They keep charging a closed account?. I closed up my business in March and they are still debiting my account a $10.00 fee without my consent also??? What is wrong with these people?? Legal Thieves. Lets see what a class action will do! Or just a small claims for $5, 000 or get an attorney and sue them for $100, 000 or more to teach them a lesson.

    0 Votes
  • C
    C May 14, 2008

    I will definitely join in if anyone of you want to file a lawsuit. They hold my $5, 500 and have no intention to deposit to my checking. This is a total scam and I want justice and my money back.

    0 Votes
  • Ca
    Carmen M. Rios Jun 17, 2008

    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. I too will definitely join in if anyone of you wants to file a lawsuit.

    0 Votes
  • Ke
    Kent Strong Aug 28, 2008

    Dido on the cancellation fee scam. We have had an account for nearly 5 years with Innovative and recently cancelled. The customer service rep just said "send us a fax with the reason for cancelling and you are all set." A week later our account was debited for $295 for the "Termniation Fee". This was nowhere on my contract and I was assured by our sales rep Steve Ryan that we would not be charged a cancellation fee as long as we kept the account open for 6 months or longer.

    They also charged us $15 a month(beyond the normal $20 minimum charge) for 3 years and could only identify the charge after we stopped payment on the charges. It turns we had been automatically enrolled in their "Merchant Supplies Discount Program" when we signed up. Again nothing in the contract and it took countless hours of digging to find out why they kept charging this fee. Mind you WE DO ALL OUR TRANSACTION ONLINE and have no credit card terminal that would even need supplies!

    These people are criminals and Intuit should be ashamed to own such a shady and deceptive outfit. Shame on Innovative Merchant Solutions.

    0 Votes
  • Lo
    Louie Cancio Nov 09, 2008

    These people are probably still in business and there are more victims out there not only merchants but the young sales people they train who are completely brain washed that they are part of something that destroys the economic foundation of every entrepreneur has built. Yeah I got ripped off but I kinda want to egg them on to keep trying to get money from me or threaten my credit score cause I know it cost money to do that and thats one of the only way I could get even. I never paid the cancellation fee but its pretty scary that they can still take money out from your new checking account after youve already closed to one they are milking from. My theory is that It got so bad in California that they sent agents to attack the east coast and now the whole country is in debt. These people should go bankrupt or why don't we hire more people to create more jobs to finally milk these IMS people like lets say IRS taking a percentage from their robbery and giving us a tax break from getting ripped off. There should be like a website where I can file that I got ripped off like this one and get every penny back from what they took. These people are still out looking for me. There should be a law when any merchant signs up for a contract and asked their social security number and a voided check that companies like IMS should give you that information from their side as well. If they have a website on all their fees and legal stuff that is not written on their contract which by the way looks more like a job application then can't we merchants and business people have some sort of website for us to protect us from these scams. We have the internet and they have agents dressed up like the bad people from matrix and we should do the same. The business next door from us really gave them hell and screamed for these agents to get out of his store. This merchant runs a Quick Shop and he is from India or pakistan. IMS employs agents who targets the merchant of the same nationality and its sick how far they have gotten. This is something really serious on whats wrong with the whole country and lawyer fees should not discourage us to fight back. For now I'll take the loss but isn't a crime also to let this keep going on to more victims to come? Its sad enough that all business are struggling in this reccession and to fall victim to these people in this time makes me sad and angry. Innovative Merchant Solutions should soon be charge with Deception, racial profiling, theft, and go as far as Al Queda anti capitalist training camp. These people are a serious threat to our economy and should be replaced with good companies with goodwill and a real desire to change people's mind in how they view America and American companies.

    0 Votes
  • Le
    LeAnne Jespersen Feb 04, 2009

    First and foremost, the people who are out on the street selling are NOT employees of IMS. They are independent sales representatives who answer to the owner of in independent office. That is how the credit card industry is set up. Very rarely will you actually see an employee of a credit card processing company selling the services. This is just how the industry is structured. Next, the Merchant Application and Agreement, accepted at the time the customer applies, is very clear about any termination fees. 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. Finally, the issues of holding funds and chargebacks are also clearly covered in the Merchant Agreement. Visa, MasterCard and Discover Network outline the policies and procedures for the dispute and chargeback of sales for their customers. These dispute regulations are by no means arbitrary and are not a product of anything IMS can or has ever done. They are created by the bankcard industry for the benefit of the cardholders and the card issuers. IMS accepts the liability for these sales on behalf of the merchant and will accept the loss from the card issuing bank in the event that the merchant does not have sufficient funds to cover the loss. The associations also dictate the types of investigations that IMS must complete and they are driven by unusual or exceptional activity such as a very large sale. Therefore if you usually accept credit card sale for $100 and you process a sale for $2000, the industry requires that this sale be investigated. IMS is just one member of the entire system that all bankcard issuers and acquirers (processors) are a part of. Some banks may knowingly choose to disregard the liability that they share in this process, but this is usually on the basis of other banking relationships, such as large deposits, that they hold with that customer. Because we allow our merchants to hold their bank account wherever they like, we cannot benefit from such a relationship. Additionally, we cannot dictate whether a customer will dispute a sale. The associations make the rules as to how and when a cardholder can dispute a credit card sale. We are obliged to accept the chargeback if the card issuing bank follows all the rules as set forth by the associations. Unfortunately there are some cardholders who take advantage of that system. But it is their card issuing bank's responsibility to determine when they feel their customer is manipulating the system. Almost every consumer advocate in the world will tell you to use a credit card for a large purchase because it's easier to dispute the sale. As a cardholder you have those same benefits, but as a merchant, you can become a victim of that same system that protects you. Sadly it cannot go both ways and protect you on both ends. But again, this is not a system that IMS has created, it is merely one that we are subject to and work with. Anyone who complains about the Merchant Agreement or the feels is simply under informed, and it is not because IMS is any type of scam. We have been in business for 10 years and will be here for another 10. If you own a business and intend on entering in a business contract we strongly suggest that you do your research and enter into the contract that is right for you. There are better deals to be had, and there are worse deals out there too. The bottom line is what is right for you? Our phones are answered by live operators and you can talk to a real person. We don't hide behind voice mail or telephone recordings that are impossible to navigate. This is not the sign of a scam or a company that is trying to hide.

    1 Votes
  • St
    Stevek Apr 27, 2009

    I have the same problem as Carmen M. Rios. I got an email advertising
    Monthly Customer Service Fee - $9.95
    Transaction fee $0.20 Debit Cards are $0.20 Flat
    Ingenico 5100 C.C. Machine $599 VALUE----FREE
    QuickBooks Pro 2009 $295 Value------FREE
    Set up and Application Fee $195 Value ----FREE

    Then it said "Once you have completed the application and your account has been approved you will receive a
    welcome email which includes instructions to begin processing." It also said "Free terminal and free Quickbooks
    software with approved merchant account."

    I called the Sr account executive and went through the application. There is nothing in there about any terms or agreement. I had to put in my information such as drivers license and SSN and bank account number.

    Then he sent me a form that I had to sign for the terms for getting the terminal such as if I discontinued I had to send it back. That was expected but I didn't like how they advertised it as a free terminal when it was really a free loan or lease of one. I had set the form aside and a few weeks later I got a statement from them for processing for $34.95. Min monthly fee of $25 + $9.95 for processing. I was not aware of a minimum and I did not want any processing to start especially since I did not have a terminal yet. I called them but on a Friday night the person was no help. She said that when the application was approved the statement started. I told them that I was going to dispute it with the bank and to cancel everything. I sent in a fax instructing that.

    Then they charged me $395 for a termination fee. I talked to the customer service rep, Colt Curtis and he said to send in the form for the terminal and re-open the account. I faxed those in but they did not do anything. Then I read reports on the BBB and [redacted] and see how many others have had problems.

    Seeing that I had never received anything saying my account was approved, never received a
    welcome email and I never signed anything, and did not receive a Free terminal and free Quickbooks
    software with approved merchant account, that must mean that my account was not approved. Thus they have no basis for charging me anything. Any other card processor sends the app in a pdf with all info up front.

    I don't want to deal with them but I filed a complaint with the BBB there and will do so with the attorney general.

    I went to my bank and filed a dispute with them for the fees.

    0 Votes

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