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  1. #1

    Angry Ginix Billing Systems Scammed Me

    Has anyone else fallen victim to Ginix Billing? I paid Electronic Payment Systems $599 to be set up with Ginix's Third Party Merchant Account. When it was time to receive my funds via wire transfer, they emailed me that I would not be receiving them due to chargebacks. First of all, I didn't have one single chargeback. I applied some refunds which they consider the same as a chargeback. How insane is that? Secondly, I was told by Electronic Payment Systems prior to giving them a check for $599 that chargebacks would not be an issue as Ginix Billing charges higher reserves and fees to customers who's businesses typically receive higher than average chargebacks. Well, it's been almost a year later and I have yet to receive a dime. I've even had their employees hang up on me. They have not sent me one form of correspondence and I can't believe that thier bank, Manufacturer Bank (Bank of America) is still doing business with them. If your're considering going with Ginix, BEWARE! They are a bunch of theives!

  2. #2
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    So is Bank of America

  3. #3
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    We've sued them and now are in process of becoming official Ginix creditors.

  4. #4
    I agree do not go with Ginix. I was signup their service when it was free and when the payment date is coming they said i got many chargeback and need to deposits before i got my money which is about $47xx

    DO NOT GO WITH THEM!
    Last edited by Odd Fact; 05-04-2004 at 01:45 PM.

  5. #5
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    Originally posted by Vieri
    I agree do not go with dinix. I was signup their service when it was free and when the payment date is coming they said i got many chargeback and need to deposits before i got my money which is about $47xx

    DO NOT GO WITH THEM!
    Please edit your post so it states GINIX - not Dinix ;-)
    Alex B.

  6. #6
    Im Sorry it should GINIX. Im asking mods to edit my post

  7. #7
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    Originally posted by TheScar
    We've sued them and now are in process of becoming official Ginix creditors.
    Hi there.... i too am a victim of Ginix's bogus business ethics. They owe me approximately $1000.00 that was in my account and i have lost $100,000's in sales and revenues. Could you tell me how you went about suing them to get your money back ect., ect.?

    It has been about one year now since they ' closed ' my account adn i am still getting thier lame emails to inform me that thier accounts have been seized and that i will have to wait until they have been released before they can pay me.....GRRRRR!!!!

    PLEASE, i am begging you to send info on how to get them dawgs to pay me!!!

  8. #8
    You may want to have a look at this thread:

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  9. #9
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    *

    Thanks ..... already replied to it. I hope these guys at Ginix in HELL!

  10. #10
    I think they use Concord system because Ginix usualy have a reference to concord at admin panel.

    http://www.concordefsnet.com/misc/ContactUs.asp

  11. #11
    Bank of America is in bed with these guys. I spoke with Lowell Nackerson at Manufacturers Bank and he gave me alot of "sympathy", but no real information. He said he was meeting with the head of Ginix later that week and would "pass along" my information. Obviously his bank is still doing business with them and I don't believe this whole "freezing" of Ginix acounts is entirely plausible. I would email this guy at [email protected] and ask him for some information. I will look for his direct line and post it when I come across it. I just emailed him last week and he read my email but did not reply. Ginix owes me close to $2000 for a year now and I've never received so much as a single email as to why they won't give it back. All the numbers I have for them are disconnected and I can't believe a company like Bank of America is still doing business with them. I would call the bank president and send a letter to all the board of directors of the bank which I'm sure is a publically held company.

  12. #12
    Has anyone considering filing a class action law suit against Ginix and all of their accessories like bank of america? Seems like there would be enough people out there that they scammed who would participate?

  13. #13
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    I have heard of people starting a forum online to state thier cases against business's that they feel have scamed them. In the end, the forum was used against the accused and was used to show that not just one, but many had been done wrongly.

    I have a website of my own and i could host a forum where people could post thier cases against them but i'm not so sure if the moderators of this site would too keen on the idea of me posting a link to it off this forum. Maybe if one of them could get back to me on that i would appreciate it ( ???). It would be EXCLUSIVELY for Ginix complaints so we could use it and maybe get the head of Ginix or lawyers to use as a reference as to just how many people Ginix has ripped off .....
    Last edited by Hoolyman; 05-05-2004 at 07:38 PM.

  14. #14
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    Originally posted by misshollyann
    Bank of America is in bed with these guys. I spoke with Lowell Nackerson at Manufacturers Bank and he gave me alot of "sympathy", but no real information. He said he was meeting with the head of Ginix later that week and would "pass along" my information.
    ...maybe if i started a forum Lowell could send the URL to the Owner of Ginix .....might light a fire under his butt.....or better yet, get the attention of a lawyer that wants to represent all victims and make some cash off it.

  15. #15

    YES!

    Absolutely! Obviously these people are not going to give people their money back any time soon and Bank Of America is a willing accomplice to this. They are still doing business with Ginix and their apparent greed needs to be made as public as possible. A class action suit is most definetely called for in this case. I would be more than happy to be a moderator.

  16. #16

    Ginixsucks.com

    Good domain name.....

  17. #17
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    ...i agree with the domain name but i think i've sunk about as much money as i ever want to in regards to Ginix. Like i said, i do have a domain where i can host a forum directed at claims of wrongful doing by Ginix. I have to give it some thought...might be some legal implications in regards to defacing thier comany...not like that's what they didn't to my company by using them as my CC processor ...grrr

    I'll get back to on that....maybe a Moderator of this site could give me some input on this issue and wether or not it would be ' proper' conduct to post a link to the said propossed forum....

  18. #18
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    Here is a copy of what they sent my wife and i today in regards to frozen funds by Ginix Inc. -


    1521 California Circle; Milpitas, CA 95035 Tele: 408-942-8693; Fax: 408-490-2756
    URL: www.ginix.com
    Dear Merchant,
    As you know, several months ago, Ginix’ banking institution(s) suddenly terminated
    Ginix’ ability to process transactions. They also essentially froze Ginix’ and its
    merchants funds to pay for any potential liabilities for Charge backs and penalties. We
    have previously advised you on several occasions that we will pay you and other
    merchants as soon as the funds are released by the banks. That has not happened thus far.
    Unfortunately, Ginix does not have any control over this situation. We are continuing to
    make our best efforts to resolve the situation as quickly as possible. However, at this
    time, we cannot give you any definite date.
    We will continue to send you periodic updates regarding the status. In the meantime, we
    appreciate your continued patience.
    Sincerely,
    Ginix Support Team
    [email protected]

    ....after a full year of receiving these emails from Ginix Inc. you can only imagine how we feel about Ginix and how they have done us wrong. The worst part is they still take on new clients online at www.ginix.com and have many other names they run under. They need to be stopped!

  19. #19
    Ginix is not the only guilty party. Bank of America is also responsiblty as they on one hand have fronzen Ginix's funds but on the other hand are still allowing them to remain in business, processing for other merchants who no doubt are considered a lesser risk. Call Manufacturers Bank, a subsidiary of Bank Of America, and talk to the Bank's President. Send letters to the board of Directors and let's get a forum up that will seriously impede Ginix's ability to sign on new clients. Let's also get a class action suit going and name everyone from Electronic Transfer to Bank of America in the suit. These people are not going to do a thing unless it hits them in the pocket book or threatens to do so.

  20. #20
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    Although I am not familiar with the particulars of this situation, I can tell you what *might* have transpired with this whole Ginix situation. (This is also a word to the wise about the risks of 3rd party processing as this is *exactly* the kind of "nightmare situation" that can happen!)

    My guess would be that Ginix had a merchant account with BofA and due to the fact that they did not manage their chargebacks or risk sufficiently... or perhaps due to the nature of their business itself, BofA subsequently put their funds in reserve for 180-270 days at which time the funds will be released back to them.

    However, the mention here in the thread that Ginix is *still* working with BofA or still taking on new clients is disturbing.

    And if they now have a new merchant account with a different bank, I don't see why they could not issue credits on the old account (to remove all liability / risk exposure to BofA) and then re-bill on a new account... thus receiving the funds and being able to fund their merchants, in turn, on an expedited basis.

    This is one of the problems with 3rd party processors. Any merchant that they serve is basically a sub-account so if something happens to the "master" merchant account of the 3PP - every single merchant will be affected.

    I hope that everything resolves itself with this situation. But if anyone wants references for a lawyer who specializes in bankcard litigation, I'd be happy to provide you with a few contacts.
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  21. #21
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    i appreciate your input and yes, it IS disturbing that Ginix is still online and operating especially being a client that they have owed for such a long period of time. As i mentioned to Ginix when i got my first chargeback, they needed to change the criteria required to do a CC transaction through thier online processing form. All they need to do was to change the order form so that the purchaser was manditorily asked to enter the 4 digit number on the back of the credit card and all would be good. CC number software can randomly create CC names and numbers but what it can't do is create the 4 digit number on the backside of the card. Only the person actually physically holding the card can read this number. I mentioned this to them on several occassions to no avail. After about 5 weeks they finally did change thier online order form to include the need for this number and the chargebacks stopped occuring but by that time i would imagine thousands of bogus transactions had occured leaving Ginix in trouble with the Bank of America. Then they closed my account and froze my funds.

    What i don't understand is that every chargeback that occured on my account the funds were deducted from my account and refunded to the rightful owner BUT....they STILL didn't payout what was remaining in my account.

    I would love nothing more to start a forum and rally up as many victims as possible and take legal action against Ginix Inc. but i don't have any funds. After Ginix closed my account my business was ruined and my name tarnished wich has left me pretty much dead in the water.

    The only way i can see taking them to court is to get 1000 people to kick in $100 each to hire a lawyer to get what they owe us.

  22. #22
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    A quick question - how long ago were these funds frozen in the first place? (i.e. how many months ago)

    At this point, the company actually holding the money would likely be Bank of America. The core issue here is probably that BofA has all of the funds frozen in a risk reserve account and isn't going to release it back to Ginix... hence, Ginix can't disburse the funds to anyone.

    However... if they are still in business and taking on new accounts, clearly they have found an alternate bank/acquirer to underwrite their account so one would think that they would at least try to start paying a portion of the frozen balance off.

    I sincerely hope that your situation is resolved soon - along with the other merchants affected.
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  23. #23
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    Hi & thanks again for your intrest and input.

    It has been 12 months since our account was frozen and all funds and account access on the Ginix website shut down. I can't even login to get exact details of my account. Just another disturbing aspect of this whole situation.

    I completely agree with you that they must have another money source backing them in thier current endevours. I have a sneaky suspition that they are in no real hurry to get money from Bank of America because i think even though the funds are being with held, Ginix is making money on the intrest while it has been detained.

    The flip side of that, you would think that we, the people whom they owe money to, would be seeking accumulated intrest from this money that is in Ginix's accounts. I strongly feel Ginix has no intention of paying intrest or statutory intrest on with held funds let alone paying back any of it.

  24. #24
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    If it has been 12 months - then that is beyond the chargeback liability window. There is no reason for BofA to continue to hold funds nor for Ginix to receive & then release those funds.

    In terms of earning interest on the funds in reserve, I can tell you that security/reserve accounts do NOT actually acrue interest. So neither BofA nor Ginix would have earned any interest money on those funds.

    However, that's besides the point. I think legal action may indeed be your only route at this point to get some satisfaction on the amount(s) owed.

    Do you have legal counsel already lined up or a means by which you could get together a group of merchants who were placed in a similar predicament due to the above situation?
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  25. #25
    Bank of america is just as crooked as Ginix. "Lowell" does not give a rats *** if anyone gets their money back because it's no skin of his back. The company he works for - bank of america - is still profiting from their association with Ginix and they obviously don't care that Ginix has STOLEN many people's money. Bank of America is an accessory to this CRIME and they need to have a suit brought against them as well! I doubt it would be that difficult to find a law firm that would be willing to go after them on a contingency basis. After all, we're talking about bank of america. Lawyers LOVE to go after company's with deep pockets. I'm sure Bank of america is violating FTC regulations in some respect as well and the punative damages could be enormous. I'm putting up a forum soon and everyone is welcomed to post their experiences. I'll give the url shortly. In the mean time, remember, just sitting back and waiting on these guys to refund your money will get you nowhere. They will not refund a dime unless they are forced to. No one is "forcing" them to do anything. It's as if Bank of america is aiding and abetting Ginix in their trail of fraud.

  26. #26
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    ....i agree that sitting around and waiting isn't going to get anything resolved. My problem/challenge is that i don't live in the US, i'm Canadain. Money is another issue that i would have to deal with. My wife and i never did recover from the damage Ginix Inc. did to our online business and had basically left us in the poor house so to speak.

    I will be the first to sign your forum.

  27. #27
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    ....hhmmmm....imagine this. I got this in my email today. It's the latest ' news' from Ginix Inc. in regards to my frozen account. I copied and pasted it for you all to read:


    5655 Silver Creek Valley Rd #592 San Jose, CA 95138 Tele: 408-942-8693; Fax: 408-490-2756
    URL: www.ginix.com Email: [email protected]

    Dear Merchant:

    We are pleased to inform you that Ginix' banking institution has released a portion of withheld funds to Ginix. The funds are in Ginix' account and therefore some payments to Ginix' merchants should hopefully be possible in the near future.

    However, unfortunately, Ginix still does not have information which would allow it to calculate the appropriate amounts of chargebacks, penalties and fines to be assigned to Ginix' merchants. This information is with our banking institution, we have requested for it and waiting to get it.

    We will continue in our efforts to get relevant information from the Bank and keep you posted. Thank you for your continued patience.

    Best regards,

    Ginix Support Team



    Sooo....now they are suggesting that by using Ginix Inc. and thier less-than adequate online transactions/processing & software/website, they are actually considering imposing fines on the people that had accounts with them?

    Can anybody tell me why i should be even considerd to be paying fines OR penalties? Should I not be charging THEM for the year they have had my funds with held????

    What a joke....looks like hurry-up-and- wait some more......

  28. #28
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    Well, in reality - it is probably a good thing that they calculate it all properly.

    Keep in mind, there is only so much money that is there and which is going to be released and if they tried to pay everyone 100% of the gross without deducting any fees for chargebacks or the costs incurred - there wouldn't be enough money to pay off all of the merchants.

    So, ultimately, at the end of the day, a large group of merchants would be slightly overpaid and a smaller group would be paid nothing at all.

    Don't get me wrong - in NO WAY am I defending Ginix. I think that their actions (or inactions) have caused a great deal of pain and suffering to a great many merchants. But I think we can all agree it would be nice to see ALL merchants paid off who are owed money so rather than just start funding everyone back what they "think" is correct - it would be better to make sure it is done right the first time.

    At least this letter seems like a positive step in the right direction. I know it can be frustrating and hopefully this is not just a stall tactic on their part. But at least maybe there is some light at the end of the tunnel now.
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  29. #29
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    Well considering that they haven't mentioned once anything about aquired intrest or any kind of additional compinsation for frozen funds...especially over 12 months such as it is in my case & the fact that there are no ' charge-backs' on our account, and if so it would be due DIECTLY to thier security sytem failure, why are they even talking about ' fines OR penalties' for merchants that used the system they said was ' bullet-proof' ?

    This is a concern that was addressed on Ginix' website in regards to secure transactions and fraudulant transactions BEFORE i signed on with them:

    30. Does Ginix provide fraud patrol?

    Yes. GINIX provides a fraud detection service, which helps you identify fraudulent transactions before any funds are transferred into your account. All orders are screened before they become final by a negative balance database, which helps detect fraudulent card numbers, this reduces bank fees. The negative balance database will continually notify you, and will also update fraudulent information.

    { http://www.ginix.com/home/en/support/faq.html#28 }

    I trusted in this and they FAILED to provide security so i don't feel anyone using thier system should even be considerd to get fined or penalized for using thier system. This is also why i feel i should get some kind of compinsation for the pain and suffering, tarnished business name and function - PLUS statutory intrest on lost earnings and profits. Do you not agree?

  30. #30
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    In a perfect world, I'd agree with you 100%. The only point I am making is that this is a far-from-perfect situation so my hope is that all merchants are - at the very least - paid what they are "technically" owed by Ginix per the contract.

    Anything above and beyond that would be great - and it would certainly be justifiable given the situation... I am just not sure if this will ever happen or not. This situation is never going to ever fully go away for Ginix, however, until they make ammends with the customers that were affected by this.
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  31. #31
    "Hopefully be possible in the near future"???? I guarantee that every single person they owe money to will get shafted. No one will end up getting the full amount that is owed to them and even at this point, you won't be getting your money back anytime soon. I'm still going forward with a forum and class action law suit. The punative damages alone would be well worth it.

  32. #32
    I just discovered this forum and have a keen interest since Ginix/BofA owes me about $36K. For the life of me, I can't understand why people in my situation, who did absolutely nothing wrong, aside from just a very few chargebacks, should have to bear the burden of chargebacks and penalties supposedly incurred by Ginix and/or others. I haven't reviewed the TOS, but doubt that a court would uphold such a liability even if it were stated in the contract.

    The alleged release of funds is a positive step, but we are woefully short of details. After all, its our money, and we are deliberately being kept in the dark. I'm sure the attorneys for Ginix and BofA are counseling total vagueness in communicating with merchants.

    Please update me as to any activities regarding another forum or class action.

  33. #33
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    Welcome to this thread! I feel all us Ginix victims should stick together and work closely at keeping all updated with any news about funds being released or potential lawsuites....

    Cheers!

  34. #34
    Hello.
    I am Shin of Inter Eye, Inc.
    We were one of the webmasters who used to receive sales money from Ginix, Inc.
    Since Ginix was involved in the matrix scheme with Ez Expo and other companies, their fund was frozen, and they stop wiring our sales money. We have nothing do with their business, but beause of their illegal actions, we are not able to receive our money and had to stop operating our website.

    We are looking for the other merchants who have not received the fund yet from Ginix.

    We keep in touch with the lawyer named Jeffrey Wilens of Lakeshore Law Center who have the class action lawsuit against Ezexpo and Ginix, Inc. He is willing to sue Ginix for us but his legal fees are very expensive with us alone. He suggested us try to locate other merchants with a cumulative loss of $100,000 or more. Tell me what you think.

    They are still hold our money over $30,000.
    My email address is [email protected]
    Hope to hear from you.

    Thank you .
    Sincerely yours.

    Shin




    Originally posted by misshollyann
    Has anyone considering filing a class action law suit against Ginix and all of their accessories like bank of america? Seems like there would be enough people out there that they scammed who would participate?

  35. #35
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    Hi Shin, welcome to this discussion. Ginix also left us in the same situation with no funds to continue our online sales and where for forced to shut down all online operations as well. We are not out tens-of-thousands of dollars like you.....only a couple thousand or there-abouts.

    The hole thing about this though is that if we were to go after Ginix Inc. for 'statutory intrest' on lost revenues it WOULD be in the tens-of-thousands considering we are showing OVER $90,000.00 US in sales for the previous 12 months prior to using Ginix Inc. as our online processor.

    If we can help at all or somehow be included in the law-suite you are trying to get established, please let us know!

  36. #36
    They hold only a lit bit more than 1.000$, but we can join the fight.

    We are a European based company, but we also have a legal US company.

    Please let we know further details.

    Kind regards,
    Leonardo Ascenso

  37. #37
    Hello.
    Thank you for your replies. Does anyone know if Ginix was sued by any merchants?

    Regards,
    Shin

  38. #38
    We searched over and over and as far as we saw, never read anything about a law suit against Ginix.
    www.yourdotstore.com
    Managing USA resources with UE engineers know-how since 1999

  39. #39

    Ginix is being lawsuit already

    Hi Shin,

    You've asked if anyone already lawsuit Ginix, the answer is yes.

    Use This link is the Santa Clara Superior Court

    www[dot]sccaseinfo[dot]org
    (I'm not allowed to post urls)

    and make a case title search using "ginix"


    As far as I know this Red and Partners BV is a company from Holland that used Ginix to process their adult websites and the next court date is scheduled for July 22nd, 2004

  40. #40
    I just spoke with James Towery, counsel for the plaintiffs in the Santa Clara lawsuit. Mr. Towery said that he recently learned that Ginix had closed its office, and apparently left the country. He expects that the lawsuit is now a "dry hole" - his words.

    Everyone can draw their own conclusions, but it not be amiss to allege that the Ginix principals have taken whatever money was released, if that's even true, and disappeared.

    Ginix never made an appearance in the suit, and Mr. Towery will be obtaining a default judgement, for what its worth.

    Lastly, he never pursued Bank of America or Mechanics Bank.

    Sorry to be the bearer of bad news.

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