Banctek Solutions Merchant Services 2023: Reviews & Complaints

Here is our response to the BBB case that he opened as well. It also includes his side of this story.

01/03/14 to set up a retail processing account for his crossfit gym classes. At the time of underwriting Mr. Vaughn disclosed to Banctek that his business would be taking retail/card present transactions for crossfit classes, supplements and t-shirts. He did not disclose that he would be running his website’s ecommerce business through this processing account. In fact, Mr. Vaughn specifically stated he was running his online business elsewhere. Nor did he specify he would be selling gym equipment.
There are very different setups for retail/card present versus keyed/ecommerce merchant processing accounts. That said, the pricing provided by the sales agent was going off the fact that Mr. Vaughn stated this was card present business. There are different interchange pricing levels set by the card associations (not Banctek) and due to Mr. Vaughn keying his sales rather than swiping a physical card, this was causing his transactions to downgrade, thus charging him a higher interchange level.
The terms of the contract Mr. Vaughn signed are clearly outlined and Banctek tried on numerous occasions to reach out to Mr. Vaughn to educate him regarding the need for clear delineation between his retail and online business. Fees, including the early termination fee are clearly outlined on the 2nd page of the contract that he signed. Additionally, Banctek Solutions never held 3,000.00 with no reason given. Again, Mr. Vaughn had stated he was taking payments for crossfit classes and t-shirts with an average ticket of 100.00. On March 28, 2014 Mr. Vaughn ran a $2,470.00 transaction which was well above his approved parameters set by the underwriter at the time the account was reviewed for processing approval. Banctek Solutions does not assume liability or fund AMEX transactions. All Banctek does is process the transactions. When we saw the size of the transaction we asked for an invoice and explanation of the size of the transaction (due to the fact this account had been problematic), however, never held funds. On April 15, 2014 Mr. Vaughn contacted the office asking that we release this aforementioned $2470.00 transaction. It was relayed to him that we never held funds and he would need to contact AMEX for information regarding the funding of this transaction.
Mr. Vaughn quit processing and on May 13, 2015 Mr. Vaughn emailed a cancellation letter requesting that his account be closed. He was reminded of his 5 year contract term and of the fee associated with breaking this contact. He advised he was aware and that he wanted the account closed.
From day 1, Mr. Vaughn failed to disclose truthful information regarding his business for Banctek to properly underwrite and set up his account. Banctek Solutions respectfully denies this individual’s request for a refund. Mr. Vaughn processed outside approved bank parameters and broke his contract of his own volition. I have attached emails and Mr. Vaughn’s signed contract to help validate my written outline.
06/11/2015 ashl EMAIL Forward Business response to Consumer
06/15/2015 WEB BBB BBB REVIEWS CONSUMER REBUTTAL TO BUSINESS RESPONSE : (The consumer indicated he/she DID NOT accept the response from the business.)
BancTek’s characterization above is simply disingenuous.
1.) My revenue comes from group classes, t-shirts, and supplements. I do, however, allow people to register (and pay) for classes on my website. This is how I have always done business and was totally transparent in that fact with your sales team. The sales team said because I wasn’t selling a product over the internet or shipping out merchandise that “it wouldn’t be a problem” It was only after I was pressured into the signing the contract did your underwriting team chime and say I had to open two accounts and jump through all these hoops. On a related note, the credit card information isn’t even captured by my site, but rather my backend software provider. All data is transmitted through their servers, not mine.
2.) I am not currently, and never have been, in the business of selling fitness equipment. There was, on one occasion, a time where I had an extra machine listed for sale in a local ad. Someone wanted to buy it with a credit card, so I obliged. It would have been reasonable if you had called me asking about the transaction (or declined the card)…. but instead your company decided to hold those funds hostage. It was BancTek that withheld those funds and it was only after I called and raised hell were they finally released.
It is clear by your response that you will not be doing the right thing here and refunding the termination fee. As I said before, BancTek made it impossible for me to continue to do business with them. They are they absolute worst partner I have ever had…. ever.
Any businesses out there should google their name and check out rip off sites….. you will be shocked at how much info you find.
Seriously, don’t use this company.

06/17/2015 ashl EMAIL Forward Consumer Rebuttal to Business
06/18/2015 WEB BBB RECEIVED BUSINESS’ REBUTTAL RESPONSE : The processing of Visa or MasterCard credit cards are conducted by sponsored “underwriting” card acquiring banks. This payment processing environment is regulated by rules dictated by the aforementioned card associations of Visa and MasterCard.

One of the longest held rules is that of both Visa and MasterCard to prohibit the occurrence of “factoring.” This term refers to an approved merchant processing the (credit card) sales of a non-approved business through their merchant services account. By “approved” I am referring to a merchant (whose definition would include the business type, the business in particular, and the owner or principles themselves) that has been evaluated for risk by a particular card acquiring (i.e. payment processing) “underwriting” bank and approved for handling its credit card sales processing. Indeed, your merchant account was factoring when you took payment for exercise equipment (MCC merchant category code 5941) on an account approved for the sale of gym classes (MCC 7997). Please refer to section 6.1.1, page 14 of your Program Guide and the section clearly covers factoring being strictly prohibited.

Again, let me reiterate, funds were never held by Banctek for the transaction of the gym equipment sale. Your account for accepting AMEX was direct with AMEX. Banctek does not assume liability on or fund AMEX transactions. All Banctek is responsible for is the transmission of data. At the point of funds being held for the aforementioned factored sale, this would have been the risk department at American Express. Again, they would have been concerned seeing a transaction of this nature come through on an account approved for gym classes. Additionally, any risk department at any company would have been concerned at the fact this card-not-present transaction did not have AVS (address verification) or CVV (card verification value) confirmed.

There are clear rules and regulations set forth by the card associations that all parties, from the merchant level to the acquiring bank/processor level, have to adhere to. Part of the responsibility of being a merchant whom accepts payments via the card associations is being educated on said rules and regulations. I apologize that you are frustrated and upset, however Banctek has standards set forth by Visa/MasterCard that are followed. Perhaps additional knowledge will benefit your business: