Credit card processing company rejects firearms industry

[Guest JRules]

http://www.nssf.org/news/fromBP.cfm?BPseq=704

CREDIT CARD PROCESSING COMPANY REJECTS FIREARMS INDUSTRY

REFUSES TO PROCESS TRANSACTIONS . . . Citi Merchant Services and First Data Corp. are refusing to process any credit card transactions between federally licensed firearms retailers, distributors and manufacturers -- a move which will severely limit available inventory of firearms and ammunition to military, law enforcement and law-abiding Americans.

The first company to be affected by this decision appears to be firearms distributor CDNN Sports Inc.

"We were contacted recently by First Data/Citi Merchant Services by a June Rivera-Mantilla stating that we were terminated and funds were being seized for selling firearms in a non-face-to-face transaction," said Charlie Crawford, president of CDNN Sports Inc. "Although perfectly legal, we were also informed that no transactions would be processed in the future, even for non-firearms. I find this very frightening."

To voice your concern to Citi Merchant Services and First Data Corp., please contact June Rivera-Mantilla at 631-683-7734 or her supervisor Robert Tenenbaum at 631-683-6570.

To change to an NSSF-affiliated credit card processing program, contact Payment Alliance International at 1-866-371-2273 (ext. 1131).

[The Rabbi]

I'm pretty sure there is more to this than meets the eye. CDNN can always sue for breach of contract.

[strickj]

is it legal for a cc company to reject a firearm purchase?

[Guest bkelm18]

is it legal for a cc company to reject a firearm purchase?

Its a credit card, so its not your money, its theirs, and they can restrict you spending it however they want. Nothing says you can't go out and get a different credit card.

[strickj]

I suppose...just dont seem right though.next will they keep me from buying a big mac cause it makes people fat?

[The Rabbi]

is it legal for a cc company to reject a firearm purchase?

No,not unless they have spelled it out already in their contract.

[Guest EasilyObsessed]

Weird...I just used my Citi card yesterday with Midway?

[analog_kidd]

Not a problem for me. I only use cash. Haven't owned one of those darn cards for years after paying it off. I do use a debit card sometimes, which comes out of my checking account. I wonder if Visa, who backs the debit card, could deny that transaction?

[Guest Mugster]

+1.

When someone asks "whats in your wallet?" you want to answer "greenback".

I have noticed that even laying 1000 in cash down on a table won't get you a rental car most places these days though. I may have to give in and get one.

[Guest canynracer]

from their website: http://ir.firstdatacorp.com/news/ReleaseDetail.cfm?ReleaseID=282024

NEW YORK & DENVER (DEC. 17, 2007) - American Express (NYSE: AXP) and First Data Corp., a global leader in electronic commerce and payment services, today announced the signing of an agreement whereby First Data will offer American Express® Card acceptance as part of an integrated solution for small- and medium-sized merchants. Specific terms and conditions of the agreement are not being disclosed.

Under this unique arrangement, American Express will retain the acceptance contract with participating merchants, establish merchant pricing, and receive the same transactional information it does today. First Data will provide payment processing services to merchants on behalf of American Express for American Express card transactions under the new agreement. New merchants who sign up for the program will receive an easy, cost-effective, all-in-one solution with the convenience of a single source for statements, settlement and customer service for all major card brands. The program will be available to merchants that are new to American Express Card acceptance in the second quarter of 2008.

"First Data continues to bring innovation to the marketplace that is focused on customer-based solutions," said Brian Mooney, president of First Data Merchant Services. "Through our relationship with American Express, merchants will benefit from a single payment for all major card transactions, consolidated statements, a single point of contact for all customer service, and a one stop shop for all their payment needs."

"This innovative program with First Data offers small to mid-size merchants the choice of a new way to streamline payment acceptance so that they can focus more time on serving customers and growing their business," said Kim Goodman, executive vice president, Merchant Services North America, American Express. "Consumers will also enjoy the convenience of being able to use the American Express Card at even more locations and the opportunity to earn valuable rewards whenever they use their Card."

[Guest canynracer]

here is the letter they sent...

[The Rabbi]

Boy, what a gross misunderstanding of CDNN's operation and Federal law. As well as contract law. I await lawsuits.

[Guest canynracer]

yep...

[Guest failuredrill]

More and more I understand the need to do away with the ties of "big credit". Seems they are overstepping their bounds and picking/choosing who they will do business with....discrimination may be taking place.

[The Rabbi]

More and more I understand the need to do away with the ties of "big credit". Seems they are overstepping their bounds and picking/choosing who they will do business with....discrimination may be taking place.

I have no problem with them doing that. I had no problem with eBay forbidding guns and now any part that allows the gun to shoot.

Their stupid move allowed good players like GunBroker and AuctionArms to thrive.

Similarly there will be provider replacements for credit card companies that discriminate against gun owners, because gun owners are a very large number of the public.

[Guest GMCS(SW)]

I guess as of today I will be notifying Citicorp of my termination of using any of their services. If they do not want to support me, I will not support them!

[Guest bkelm18]

Wow, someone needs to school Citigroup on some Gun Control Act. Remind me to never get a Citi credit card. Not because they decided to stop dealing with companies that deal firearms, but because they based their decision on such grossly incorrect knowledge on firearm law that I will not do business with a company that does absolutely no research before making such a big decision.

[Guest TNDixieGirl]

If you have Sears, or Home Depot, (and many other well-known stores) you already have a Citi card.

[strickj]

I have no problem with them doing that. I had no problem with eBay forbidding guns and now any part that allows the gun to shoot.

Their stupid move allowed good players like GunBroker and AuctionArms to thrive.

Similarly there will be provider replacements for credit card companies that discriminate against gun owners, because gun owners are a very large number of the public.

and lets remember how much we spend on our beloved firearms.how many of us spend more money in ammo than eating out?so far this month i have put 200+ dollars in ammo on my card(thats just online purchases)and have not ate out one time!

[musicman]

Not only is that stupid, and it totally sucks, but they are holding back $75,000 for 3 months from CDNN!!!! I know CDNN surely does a lot of business and probably has some substantial financial reserves, but holding back $75k for 3 months has to have some kind of impact on their financial management. I hope all goes well for them and that they end up with a better contract with a better company in the end. Though I have never had the chance to purchase from them, I appreciate their online catalogs as a good place to dream about spending money I don't have.

[Guest GlockFD]

Not a problem for me. I only use cash. Haven't owned one of those darn cards for years after paying it off. I do use a debit card sometimes, which comes out of my checking account. I wonder if Visa, who backs the debit card, could deny that transaction?

I can t see them denying debit card transactions because the money is already yours. But I guess anything is possible. cash is the way to go, but not always possible. what to do?

[strickj]

what to do?have credit cards to biuld credit,but use cash as much a possible.

[Guest canynracer]

make sure the credit card you have have nothing to do with CitiCorp and you are good to go!!

[Guest Rustyhogleg]

Went up to their web sight here is a partial list of cards that use Citi Bank.

-Stores

Home depot, Blooming dales, Sears, Macy's & Staples,

-Gas Company's

Citgo Plus, Exxon/Mobil, Conoco/Phillips 66 & 76 gas.

-Airlines

American Airlines - AAdvantage

Citi Bank is like the African Killer Bees, you don't thank about it much till you get stung and find out your in a swarm/ dept up to your eyes and supporting them & their agenda's till the cards are paid off.

[ZenDog]

Citi Bank posted 10B dollars in losses Tuesday. They are looking like they might be in trouble and scrambling. Don't know it it relates-- I doubt if it does.