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Charles L. Cotton wrote:I just emailed this to the email address in FirstData's response. It will be interesting to see if I get a response. If I do, I'll bet a dollar to a donut that no industries will be disclosed.

This was posted on an Internet forum and purports to set out Citi Merchant Services and First Data Corp.’s policies regarding non-face-to-face transactions. This email is in response to your instructions to “Please direct any questions to Questions@firstdata.com.�

Please identify the other industries subject to your policy, or Citi Merchant Services’ policy, to limit sales to those made face-to-face, as set out in your response quoted below. This information will be used to verify or refute this contention so that accurate information can be disseminated on this issue.

Sincerely,

Charles L. Cotton
Cotton-Farrell, P.C.
1010 Lamar, Suite 860
Houston, TX 77002

Citi Merchants wrote:Thank you for your message. The posting at http://www.nssf.org regarding Citi Merchant Services and First Data Corp. is inaccurate. Further, while we generally do not comment on individual merchant customers, we would like to briefly address the 12/26 letter posted on the web site. Regretfully, that letter did a less than satisfactory job of expressing applicable policies. Those policies are more properly detailed below.

Citi Merchant Services and First Data do process firearms transactions. Our policy restrictions address only the sale of firearms in a non face-to-face environment. Non face-to-face transactions occur when a cardholder is not present in front of a merchant and includes mail order and online purchases. It is our policy not to service merchants that make non face-to-face sales in a number of industries, including firearms.

It is not the policy of Citi Merchant Services or First Data to refuse to process transactions from duly licensed merchants that sell firearms in face-to-face transactions at the point of sale.

Please direct any questions to Questions@firstdata.com.

The posting also incorrectly states that Robert Tenenbaum is the supervisor when, in fact, he is not.

To: A Strict Constructionist

I spoke with Robert Tenenbaum, Citi, at 631-683-6570 this afternoon.

He indicated that:

1) He said he was not the supervisor to the woman who wrote the letter.

2) He said errors have been made by Citi.

3) He asked for my email address so they could send me a clarification letter tomorrow from Citi.

4) When I asked him if the woman who wrote the letter understood federal fireams law he said she was “being educated on it right now�.

They apparently now understand it is not illegal to ship/sell firearms to neighboring state purchasers as long as the firearm goes to a licensed federal firearms license holder who then does the background paperwork.

This idiot lady that wrote the letter did not have a clue what the law is.

16 posted on 01/08/2008 6:42:44 PM CST by HD1200

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).