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Alexia Esq.
Alexia Esq., Managing Attorney
Category: Legal
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Experience:  19 Years of Legal Practice Experience in this precise field.
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I have funds being held by my merchant account for an amex

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I have funds being held by my merchant account for an amex credit card ($55,000) They have been held since 8/7. They wouldn't release the funds to me because My credit wasn't good enough. I was told the money was returned to the card holder, but the card holder never received the return. In addition I was charged for the transaction $1,599.00 even though I never received the money. This is causing extreme financial difficulties. What steps can I take and do I have a case against them
Hi, my name is XXXXX XXXXX I thank you for your inquiry. I have been practicing law for 19+ years and look forward to assisting you.

Are you saying that the company, Intuit, that has entered into a contract with you wherein it will allow you to be a Merchant accepting credit card payments from customers, did in fact allow a customer to pay into your account for a product, a product costing $55,000, and then Intuit withheld the money and did not allow you the proceeds from the sale?

How do you know the customer was not credited the $55000 back onto his card account?
Customer: replied 3 years ago.

I got an email from Client (Simon Properties) on Friday saying they cannot issue me a check because the payment was satisfied, and amex has the money. In addition, I was charged 1599.22 for the transaction fee for amex.

OK, so what has Amex specifically stated about this? Anything in writing?

It sounds like Client's refund/credit back into its account has not yet appeared on its online account - is that correct?

But is it also true that AMEX says it was issued?

What does AMEX tell you about the fee for the charge - will it be refunded since they reversed the charge back to the client?

Does AMEX tell you that according to XX clause in your contract, this charge had to be reversed or could be reversed at its discretion?

Also, is this a Client payment in advance for work to be done, or is it a payment for work already provided?
Customer: replied 3 years ago.

My merchant account was with Intuit not Amex. I didn't speak with amex because Intuit was the one that charged my account on 8/20. Nothing in writing just an email from Intuit that it was returned. Payment was for work performed in April. Client has no reason to cause problems as I am currently doing a considerable amount of work for them that they are very happy with.

If there is no basis for this reversal, and it is contrary to your contract, AND, Intuit doesn't correct this eggregious action, you will have the option of suing Intiut for its breach of contract. Clearly the $1599 fee, as well as the $55000 money it took from Client and didn't send to you. That latter aspect will not be payable if in face it shows up in Client's account or Client receives a check refund. If that happens, then client needs to pay its bill expeditiously.

You can likely add the interest lost on the $55k to the extent it isn't available based on the days of when it should have been in your account, but wasn't and wasn't re-payable by the Client after it receives its money back.

I wonder if you'd be better off using PayPal? I am sure it is extremely upsetting to be shorted that cash flow of your earned income paid by the customer.

Before filing suit, you willl want to read the find print in your contract with Intuit - to make sure there is not some fine print of a term that you were unaware of, but that could validate the reversal. I am presuming that Intuit really is putting it back into Client's account, off course. Because if it does not, the client needs to jump on board, perhaps not just being a co-plaintiff in your case, but possibly conferring with the DA for theft of funds. Again, being Intuit, I'd be surprised if this were not a major error or a result of a specific term, but it must return client's money, if that is the case, either way. And if the former is accurate (major error), you can sue if they don't reimburse you your fee and your interest.

I hope this helps! My goal is to provide you with excellent and accurate service – if you feel you have gotten anything less, please reply back, I am happy to address follow-up questions. Kindly rate me "excellent" when you are done. I look forward to assisting you in the future, should you have legal questions.


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