Consumer complaint received 01/26/2017 about Bank account or service (Other bank product/service) with First Data Corporation (CA).
Issue: Making/receiving payments, sending money

Complaint: My company XXXX XXXX , XXXX is a toy scooter company that sells to major retailers, such as XXXX XXXX XXXX, XXXX, XXXX. We also have our own website that sells directly to consumers. XXXX We contracted with First Data Merchant Services to process our website payments XX/XX/XXXX. We have been doing business with them since then. 
This past holiday season, we had a huge spike in sales and on XXXX our account was deactivated by First Data Merchant Services. My E-Commerce person sent me an email indicating that we had been deactivated and he did n't know why. When I contacted First Data, I spoke to XXXX XXXX in the Risk Management Department. She indicated to me that she had sent out two letters to us via US Mail and via Email to the contact on her records, which we never received either letter by mail or email. 
XXXX XXXX indicated that we had a huge sales volume so they put our account on hold and that they were holding {$460000.00} of our funds. On XX/XX/XXXX she sent me via email the mentioned documents and requested that we submit our income taxes, last three months bank statements, copies of various sales receipts and proof of deliveries. Which I complied with her requests on XX/XX/XXXX. On XX/XX/XXXX they reinstated the account, but I was then told that they will continue their investigation and management will make a decision if they are going to release our funds. On XX/XX/XXXX I called and left numerous messages and did not receive a response. XXXX XXXX, sent email that day with Management will make a decision by the end of the week. I replied to her indicating that we should not have to wait until the end of the week, as we have supplied everything she has requested. On XX/XX/XXXX, XXXX XXXX called me and stated that they were going to release {$160000.00}. I then sent the following email to her Thank you for your call today. You indicated that you would send me an email confirming our conversation, which I never received. In our call this morning after speaking with your management team, you indicated the following : That First Data Merchant Services will be releasing the sum of {$160000.00} to our account today. I inquired as to how long it will take for us to see it in our account, you indicated that it would be 1-2 business days. 
You also stated that First Data Merchant Services will still hold the sum of {$300000.00} and in 30 days, your management will review our account again, to see if that amount can be released to us. I inquired as to why this would happen and you indicated to me that this decision was made due to chargebacks. 
I advised you that we just received a chargeback mailing on XX/XX/XXXX, which I have attached a copy for your review. The chargebacks on this mailing total to {$490.00}. This mailing is the first mailing we have received in 18 months or longer. I have the last mailing received that is dated XX/XX/XXXX. Where are all of the chargeback mailings going to? 
I find the fact that you are holding {$300000.00} due to chargebacks totally unacceptable. As stated to you in our conversation, I would understand holding {$10000.00} as an acceptable amount. But $ XXXX is an excessive amount. I would like to see a record of all chargebacks that we have received that warrants First Data Merchant Services to hold such a large sum of money. Please send me copies of all chargebacks, and if you ca n't please have the Department that can, do so. I also am concerned since we have not been receiving any chargeback mailings, if and when we do get them, we are not aware of the chargeback and am unable to dispute them. This needs to be resolved immediately. 
I have been asking you to put me in touch with a Manager but to date, you have failed to do so. Please respond by return email as to when we will receive the funds mentioned above

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation