where to Report Bad Credit Card Processors

How to Report Bad Credit Card Processors

When you’re running a business, having a reliable and efficient credit card processing system is essential. Unfortunately, there may be times when you encounter a terrible credit card processor that is causing you problems. Whether it’s slow processing times, incorrect charges, or poor customer service, dealing with a lousy processor can be a major headache.

However, there is hope. By filing a report with the right organizations, you can bring attention to the issue and potentially resolve it. Additionally, the manner in which you file your report and the wording you use will significantly impact the outcome of your complaint. In this article, we’ll guide you through the steps to report bad credit card processors and help you make your complaint as effective as possible.

Before Reporting the Credit Card Processor, You Should:

Keep detailed records

Before you file a report against a merchant account provider, ensure you have tried resolving the issue with the company itself. Document the names and titles of the individuals you spoke with, as well as the information they provided. This information will be necessary, as many agencies will only get involved after a good-faith effort has been made to resolve the dispute. Remember, signing a contract and failing to read it may be detrimental to your case unless you can demonstrate that you were deceived, the contract is invalid, or criminal acts occurred.

Understand the terms and fees

Disputes often occur due to unexpected fees that were not disclosed by the agent. Although not disclosing all prices is unethical, it is not necessarily illegal. To avoid this issue, be sure to thoroughly read the service agreement. If you can show that the merchant account provider has gained substantial revenue from other processing and monthly charges, you might be able to convince a manager to cancel or refund the claimed fees.

Conduct research and file with the proper agencies

If you suspect illegal activities and find multiple similar complaints against the provider, you must notify the appropriate authorities. While some complaints are regular for any business, there are unethical providers that engage in illegal tactics for quick profits. Your reports can assist in identifying and shutting them down.

Before Reporting the Credit Card Processor, You Should’n:

Maintain professionalism

When facing a dispute with a credit card processor, it’s natural to feel frustrated and angry. However, it’s essential to remain calm and professional in your interactions with customer service representatives and when writing comments on websites. Speaking respectfully will increase your chances of resolving the issue and getting what you want.

Be truthful

When making a complaint, it may be tempting to lie in order to get your money back. However, lying will damage your credibility and harm your chances of a successful resolution. Stick to the facts.

Focus on the facts

 When speaking with customer service representatives, commenting on websites, or submitting an official report, avoid personal attacks or using offensive language. Stick to the facts of your situation and leave out personal opinions, insults, or irrelevant information. It will increase the credibility of your complaint, especially when making an official report.

Where and How to Report Bad Credit Card Processors?

report bad credit card processors

Only as a last resort. Utilize the options listed below only after attempting to resolve the issue with the provider and if unethical, unlawful, or misleading practices can be proven. Inform the provider of your desire to register a complaint with that particular organization. This may prompt them to resolve the matter before formal complaints are made. The alternatives presented are primarily for companies situated in the United States.

Submit a complaint to the Better Business Bureau

Contrary to popular perception, the Better Business Bureau (BBB) is not a government-backed or non-profit entity. It is actually a privately owned C-corporation. While the BBB doesn’t have the power to impose penalties or shut down companies, most service providers still attach a lot of importance to their BBB rating and often put in extra effort to resolve grievances reported to the organization.

Report the case to the Federal Trade Commission

The FTC is a government agency tasked with protecting consumers from unfair and deceptive business practices. If you believe your merchant account provider is engaging in any fraudulent activities, it’s important to report them to the FTC. Not only will this help bring attention to the issue and potentially prevent others from falling victim to the same scam, but it will also help the FTC track and investigate such cases.

It’s essential to gather as much information as possible about the scam before reporting it to the FTC. Including any documentation, such as contracts, emails, or receipts, as well as the details of your experience, including dates and names of any relevant individuals. Having this information on hand will help support your claim and increase the chances of a successful investigation.

It’s also important to be aware that the FTC cannot help you recover lost funds, but they can use the information you provide to take legal action against the fraudulent company. So, don’t hesitate to report any instances of financial scams to the FTC. Your actions can make a significant difference in the fight against fraud.

Contact the Acquiring Bank

If you have reported your dispute to the BBB and the merchant account provider still refuses to resolve it, you might want to consider taking the next step. Most merchants work with an “Acquiring Bank” that endorses their account. Becoming a sponsored provider is challenging and costly, and their business relies on retaining this sponsorship. Too many complaints lodged directly with the Acquiring Bank could jeopardize their status, and the provider may have no choice but to comply with your request if the bank becomes involved in your case.

Contact the State Attorney General

If all other efforts have failed and you believe your merchant account provider is committing illegal acts, consider contacting your State Attorney General. This powerful entity will only act on your complaint if there’s enough evidence of wrongdoing. To find your State Attorney General, simply search for your state name followed by “Attorney General” in a search engine. Be prepared to provide solid proof to support your claims when filing a complaint.

Contact the Government Representatives

While it is true that the credit processing industry has many reputable companies that offer fair and transparent services, there are also many providers that engage in unethical or illegal business practices. Due to the lack of direct regulation in the industry, merchants are often left vulnerable to scams and rip-offs. This is where the role of government officials comes in.

By writing to the authorities in the Senate, you will bring attention to this issue and make your voice heard. It can assist in increasing public awareness and push government authorities to take action to defend merchants from fraudulent merchant account providers. When it comes to advocating for change, every voice counts, and the more people that speak up, the more likely it is that meaningful change will occur. By writing to your representatives, you can play an active role in promoting a more fair and transparent credit processing industry for all merchants.


When a business experiences issues with its credit card processor, such as slow processing, incorrect charges, or poor customer service, it may need to report the processor to resolve the issue. This process includes documenting the problem, researching and filing with the appropriate agencies, maintaining professionalism and truthfulness, and focusing on the facts. Organizations to file a report with include the Better Business Bureau, Federal Trade Commission, and the Acquiring Bank.

Before filing a report, it’s crucial to attempt to resolve the issue with the provider and to have all necessary information and documentation on hand. The Better Business Bureau does not have the power to impose penalties, but companies still attach importance to their rating. The Federal Trade Commission (FTC) is a federal organization that protects customers against fraudulent business practices, and reporting to the Acquiring Bank may prompt the provider to resolve the issue.

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