Legal Question in Business Law in Texas

merchant account fees

I am a small business owner. 9 months ago I signed up for a merchant account from company A. They sent me a 7 page form to sign that outlined the set-up charge, their monthly fee and per transaction fee for the merchant account. I agreed. Over the last 3 months, three things have developed that were not on any papers I signed and not told to me: There is an additional monthly fee for the online credit card processor, there in an annual fee, and there is a cancellation fee if I terminate the agreement before 3 years. Company A it turns out were just the ''sales people'' and the actual card processor is Company B. Company B says that we agreed to all these tersm and they have sent me a contract outlining their terms that is not signed and I had never seen before. Company B says Company A should have shown me that contract. Company A says theu have never heard of that contract. Neither will refund any charges and each blames the other. Which company is liable and what steps can I take against them? Company A is located in my state (TX) and Company B is located in IL. I can provide any addtional details that are needed. Thank you.


Asked on 12/19/03, 7:22 pm

3 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: merchant account fees

It is impossible to give a hard and fast answer without going over all the documentation and communications. It appears that B is probably liable since A was their agent in setting up the transaction.

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Answered on 12/20/03, 9:00 am
Elizabeth Schaefer SCHAEFER LAW FIRM

Re: merchant account fees

This depends on what the documents you received and executed state, including any exhibits, amendments and addenda. If you can fax to me all of the documents you relied on (advertisements, direct mail pieces, cover letters, etc.) and the contract itself, as well as all the correspondence and documents exchanged among you and the two companies, I would be better prepared to advise you.

Based on your zip code, you are just a short drive away.

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Answered on 12/20/03, 2:47 pm

Re: merchant account fees

Do you have copies of all communications leading up to and after the signing of the contract?

Copies of the contract as well?

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Answered on 12/19/03, 9:07 pm


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