New Merchant Account:

[clipperskipper]

After 15 years with Retriever payment systems and their ever increasing monthly fees, we decided to change merchant banks. I filled out the 

application with my name only, and used my DUNS number in place of my SSN. I recently did a credit check and learned that the merchant bank

had made a hard inquiry, along with AMEX who I would never dream of doing business with, nor will I accept an AMEX card. Any way to get these hard

inquiries removed? The very reason to have an LLC is so that we're not personally attached to this stuff.

[Uborrow-Upay]

Hi, clipperskipper!

The inquiries on personal credit are legit.  It's common practice among merchant account providers to conduct a risk assessment of both the business and the authorized signer prior to establishing the merchant account for the business.

The merchant account, once issued, will usually not appear as a tradeline on either personal or business reports; the inquiry (ies) will show up, though.

Regarding the AMEX processing, make certain that you're not being billed for having it on your account.  As I recall, you did receive a Welcome package from AMEX (which you trashed) when you first opened this new merchant account.  At some point, you're going to get billed for the ability to process AMEX if no transactions (or not enough transactions) are run through your account. 

Check your bank statements for the bank account tied to your merchant account, and look for any charges from AMEX.  They'll usually debit that account automatically around the beginning of the month for any fees due to them. 

This will be a separate charge from AMEX, and it won't appear on your merchant processor statement at all.  And since AMEX encourages paperless billing, and since you got that AMEX processing ability when you didn't even want it...you may have gotten the paperless billing along with the unwanted processing...

Hope this helps! 

[clipperskipper]

What your suggesting is that for Southwest Airlines to set up a new merchant account, Gary Kelly (President and CEO) is personally attached? I habe checked

the statement closely and see no charges from AMEX, I never filled out an application with them so I can't imagine that AMEX would unilaterally begin

making statement charges, however in this day and age where banks will attempt to slip anything by you, I wouldn't be surprised.

[Uborrow-Upay]

Lol.  I doubt that Southwest Airlines has to provide officers' PGs or personal credit reports for much of anything.  But I wouldn't really know about that...I do know that I've given Southwest so much business lately that if they were to apply for any kind of a loan, their bank should be checking my credit!    LOL.

I'm just relating first hand experience with merchant accounts I've had.  The Welcome package you received from AMEX seems to indicate that they think you have a merchant account and are capable of processing their cards.  

The sales agent for a merchant account I'd opened had "routine" items, even ones I didn't ask for, checked off on my application, so I got those unrequested services as a part of the package.  It didn't bother me until fees began to be debited after six months or so...maybe a year, I don't recall exactly. 

So, my experience has been that after a period of time, if a minimal amount of transactions aren't put through Amex, they'll begin to charge monthly, just for having access.  I had to call them and cancel, at which point they offered some other arrangement.  I wasn't interested.  And I got the charge refunded. 

I have no way of knowing whether or not you have Amex as a part of your processing agreement, in error, or by oversight, because of an over zealous salesman or for some other reason.  We do know that they made an inquiry, and then sent a Welcome package.  

I just wanted to give you a heads up based on the info you provided. 

[clipperskipper]

You called it, month six and a charge from AMEX for $7.95 appeared on my business checking account. I called Amex and reamed the girl out,

got a supervisor and explained my Fico inquiry dilemma, and asked for the legal department. The supervisor said that they didn't think they have

a legal department. I sent them a certified letter with some good legal verbiage contained therein like "deliver up the same or we will be forced to".

I'm all set with Amex for one lifetime.

[Uborrow-Upay]

Thanks for the update, clipperskipper.

I can honestly say that I've never had a good experience with Amex, but there's lots of people on these boards who love 'em. 

If it'd put extra money in my pocket to process their cards, I'd accept Amex.  But my customers don't seem to care which card they use to pay my invoices, so I leave well enough alone. 

Good luck, and let us know how you make out with Amex.