The complaint has been investigated and
resolved to the customer's satisfaction
Innovative Merchant SolutionsUnafair business practises!

Beware of Innovative Merchant Solutions, they never show your agreement unless it's time for your business to close and when you cancel the account they will charge you a termination fee $395.00, even though your business close. I singed up with IMS through Auction Teacher and they said that its great and the agreement they gave me does not show anything about the termination fee.

There are several other credit card companies out there and Innovative Merchant Solutions is not the company you should do business with. I read several other complaints about this company and we all agree.


  • Sc
    scammednomo99 Aug 10, 2011
    This comment was posted by
    a verified customer
    Verified customer

    This is a scamming company. I signed up in 2002 and tried to cancel my account when I got recalled into the military for Operation Iraqi Freedom...they kept charging me the monthly fees even though I was no longer accepting credit cards. The only way to get them off your back is to CLOSE YOUR BANK ACCOUNT!

    The FTC I would love to hear more about this outfit...perhaps they will!! hint hint

    0 Votes
  • Am
    Amkor Inc Jul 19, 2010
    This comment was posted by
    a verified customer
    Verified customer

    We enrolled with IMS on the MIVA Merchant website which "highly recommends" IMS.: We fell into a major SCAM. After 2 transactions of our creditworthy account for the past 12 years using their virtual online access IMS showed the transactions as APPROVED. Almost a week later, after we shipped their orders, we were contacted by IMS telling us that the account is a HIGH risk. IMS asked us for another credit card from our customer which was again submitted. The 2 initial transactions became 6 transations based each on 2.39% + $.20 fees. IMS final charge was $185, and no one at IMS can come up with an explanation. They told us they will refund us, they never did.IMS is charging electronically your bank account without you knowing until you receive the bank statement. IMS are crooks, we lost a lot of money with them and they NEVER paid us the funds they put on hold for the 2 transactions, each time IMS charge 2.39% when they asked us to credit and debit 6 times the same transaction! STAY AWAY from them, there are other (honest) gateways. It is amazing that they can stay in business and no one complaints to a higher level. Enrolling with them will make you loose money and their advertised 2.39% becomes nearly 12% commission, and no guarantee they will transfer the funds in your bank account.

    0 Votes
  • Jo
    joe jmk Jun 22, 2010

    all of you [censored]es better learn the ropes about credit card processing!! i use innovative merchant solutions for my small businesses, and they are by far the best company out there. i have used first data, global, merchant lynx, heartland, and a few banks. ims, by far, has the lowest overall rates. all of your transactions go straight into your quickbooks account, at the touch of a button at the end of the day, to save you hours of manual entry. of course if there is a charge back they are going to hold your funds!! every processor does!! do you expect them to front you the money? you should have checked the id of the sketchy customer you took the card from, or used thier 0% debit(no chance of a charge back). and every credit card processing company has a termination fee. theirs is only $295! they have to pay the reps that went out and sold you, the shipping on terminals, the data enrty people, and many other people for each account!!! if you cancel within a month or two are they supposed to lose money? you fools are just bitter because your businesses probably suck. "lets go on a message board and bash a great company because i have nothing better to do." go run your bussinesses and i hope you idiots switch to first data with their 600 dollar term fee and high rates... losers

    0 Votes
  • Tk
    tkg Mar 25, 2010

    Innovative Merchant Solutions is probably THE most unethical group I have ever had to deal with. They have been withholding funds from credit card sales since last summer! As a result of a couple chargebacks, they claim that my merchant account raised red flags and took action to create a "reserve" to cover any forthcoming chargebacks. Never mind the fact that I won the disputes with those particular unscrupulous customers. And to top it off, I had a handful of customers cancel their orders and request a refund. When IMS credited the funds back to each customer, they immediately debited my checking account. Understandable under normal circumstances. But when you factor in that those transactions were being held by IMS and the funds had NEVER BEEN CREDITED to my bank account, you have to start questioning the legality of their business practices. In essence, they stole from me. When I questioned them on this, I got the runaround and was told they would look into it. When they realized their mistake (they should have deducted those amounts from the "reserve") they told me they would credit my account-- but not until after I faxed them copies of my bank statements to prove that they really did make the mistake. Afterwards, they informed me that because my bank account was overdrawn, they would not put the money back in. I pointed out that the only reason it was overdrawn was because they mistakenly debited the account. Apparently they are strangers to reason, because they still have that money 6 months later. According to the all illusive contract, IMS can hold funds UP TO 270 DAYS!! How on earth is a small business supposed to make ends meet (especially in this economy) when its credit card processor is holding over $10, 000.00 of its hard earned money????

    0 Votes
  • Ds
    dsummero Mar 18, 2010

    Here are a couple of sites to help get enough people to see this issue in a broader audience. If they are enough people to voice their personal situation with this company perhaps there is a chance they might chance their questionable business practices.

    Here are links already posted to these sites, you can comment or created your own individual posting.

    0 Votes
  • Ge
    Georgiy Kharchenko May 07, 2009


    Innoviative merchant Solutions – the most sophisticated and innovative way to scam merchants.

    Before I started processing with innovative merchant solutions, I red so many [redacted]s, complains about innovative merchant solutions where people say that innovative merchant solutions stealing their money and I thought that because a lot of people do not understand technology they get banned by the processing companies and that they get attacked by hackers using fake credit cards etc…

    I thought that I am different, I understand security and probably others get banned due to hackers. I thought that I will sign up with innovative merchant solutions and give them a shot.

    I am web developer with many years of experience developing credit card security systems. In the past I worked for major banks worldwide and I know security from programming perspective like nobody else. I don't even use security mechanisms provided by gateways and implement my own custom way in my code. It proved to work. I got about 1 chargeback (over 8 months) at $100, 000 processed with linkpoint and chargeback was because customer was not able to recognize transaction. My system makes phone call during checkout to customers and does not allow transaction to go through unless they enter pin number they are given over the phone. I use other tools by maxmind, tools that verify address and location of the IP address to billing address etc… and a lot more.

    I only gave Innovative Merchant Solutions about 10% of my processing to see how it goes. First few weeks it was great. One major issue was stupid security tools. When can't verify address, it places temporary authorization yet returning decline status and when customer looks at the statement, they see these authorizations every time they try to process new transaction. You know when you tell customer transaction is declined; they try it again and again (at least 3 times). Try to explain that process to customer….. When I called and asked why they are doing it, I was told that they do it just in case if you want to process that particular transaction later, you can do so manually. So they expect me to tell every web customer – “if your transaction declined – don't worry I will process it later or I am sorry you have 10 temp. authorizations on your statement"…. STUPID. In any case it probably raised flag and some customer called innovative merchant bank and complained.

    Without letting me know, innovative held all of my deposits and when I called them to find out, I was told that there no hold and I can keep processing. Next day I called and I heard same story and I was even told to call my bank and find out why there no deposits. Innovative reps were trying to postpone telling me that there is a problem so they can steal more money from my processing. When I called for the 3rd time, I was told that there some kind of hold and it was removed (!?!?!?!?), but it was not removed. Innovative was trying to make me process as much as possible so they can hold all that money – Lying to me!!!

    I told customer service rep. that I will not process a single transaction and I was told that some lady by name Jennifer in security department is holding money and that she will call me.

    When she called, she told me that there is a chargeback (1 chargeback) that came recently (most likely b/c customer is confused about that temporary auth.) and when I asked her about the name of the customer or why chargeback came, she said that she don't know (!?!?!?) and that later I will receive it in the mail. I told her that I process with First Data and that the only reason why I need their merchant account is to save money is to pay less % in fees, she automatically told me that they don't like dual processing and that it's better if I were to process with First Data. I could not believe what I heard!!! Next she said that if I want to keep processing with innovative, she will need to place 15% rolling reserve or if I decide to close merchant account she will hold all of the funds for 6-9 months because they anticipate more chargeback's.

    Sure I closed merchant account as I will not deal with such dumb way of handling the situation (if any). Sure I will NEVER NEVER even come close to innovative for processing and if there a lawsuit against them I will be the first one to participate.

    As of now I am so tired of dealing with idiots and I switched my business to Google checkout 100% as Google checkout is the best and most legit processing business I ever came across. Thanks to Google checkout and I hope that these idiots at innoviative who think they are in control go down, get fired and innoviative will lose its business!!!

    I don't understand where US congress is looking at??? This is 100% monopoly. These processing companies don't care about small business and they do everything possible to steal money from them promoting larger enterprises. This is perfect example why USA economy is in deep sh*t!!!

    0 Votes
  • Le
    LeAnne Jespersen Feb 04, 2009

    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.

    0 Votes
  • Em
    e-merchant Dec 30, 2008

    AVOID Intuit and its Innovative Merchant Solutions!!

    The following are FACTS related to my experience with them:

    1) They play sneakery with contract terms. They have a merchant agreement that makes reference to a website document that is loaded with secondary terms. This website document is completely in their control and you have no way to lock in a frozen copy showing terms at the time you sign up with them as you NEVER specifically SIGN a copy of the website document.

    2) included in the sneaky secondary terms not called out in the main document that you sign is a termination fee that they claim they can charge you no matter how long you have been using their services when you decide to end services with them even if you go out of business.

    3) They agreed to waive the termination fee when trying to keep my business away from a competitor and they breached this agreement when I terminated services. When I contacted them to end services, they never made any mention that I would be charged a fee, they merely asked for me to fax my request to end services so I assumed they were honoring their verbal agreement to waive termination fee. Instead, they sneakily deducted it from my bank account.

    4) They created duplicate accounts for me resulting in double bills and it took several months and several rounds of my contacting them to get this rectified and they offered nothing for my time an energy spent on this issue that was 100% their fault only.

    5) They like to charge you fees that are NOT disclosed in your monthly statement, you only find them as deductions on your bank statment. This prevented me from even having an invoice from them showing the charge for my accounting records. I only had the sneaky band deduction to show the charge.

    I found an annual fee this way. I had no knowledge an annual fee even existed. They waived this when they agreed to waive termination fees.

    Due to the above, I advise the following:

    a) check the standard contract laws in your state to see if terms such as the ones IMS likes to hide in its website addendum can be null and void due to their being deal breakers(meaning had IMS specifically covered the term with you, you would have NOT signed up for them).

    b) never accept any verbal confirmations from IMS. Get it in writing as they seem to have a habit of breaching verbal agreements per my own experience with them and per the complaints I viewed on the BBB website.

    c) strongly consider doing business with someone else for credit card services as it appears there are many out there with better rates and handle discussion of fees in a much more upfront honest manner.

    All of the above are FACTS that I experienced DIRECTLY and have since learned there are many others with similar experiences in reviewing BBB complaints and the ripoffs website.

    0 Votes
  • Gg
    G G Whytlaw Jan 25, 2008
    This comment was posted by
    a verified customer
    Verified customer

    Signed up for their credit card clearing and specifically asked the saleman if there was an early termination fee. He said only in the first year. Three years later as I want to switch to a more reasonable rate and fees, they inform me that in the small print of their forms is a termination fee ,forever ,at $295.00. Shame on me for not having my attorney spend two hours reading their forms. STAY AWAY FORM THIER SCAM!! The industry has many firms that will do better and not have the termination fees.

    0 Votes
  • Cl
    CLARICE PERRY Jan 08, 2008
    This comment was posted by
    a verified customer
    Verified customer

    This is just one of their "Normal" business practices in the interest of customer service? These people must laugh all the way to "Hell" with the unethical practices they employ!

    0 Votes

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