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TIPS FOR AVOIDING YOUR HIGH RISK
MERCHANT ACCOUNT TO BE FROZEN
There are several conditions which are
not read by you before you sign the
contract with your “High Risk Merchant
Account” Provider. Also, there are
several things that your provider will
not tell you. This happens not because
they don’t want to tell but because they
wouldn’t discuss such issues with you
unless you have experienced them. One of
the best examples of such an issue is
the problem of “Frozen Accounts” with
your high risk merchant account.
If you own a “High Risk Merchant
Account” and have not made an effort to
research about freezing of you account
then you are in for a big surprise. If
your “High risk merchant account” is
frozen, then your present sales and
future business will be under terrible
risk. There are 2 important reasons for
that which is:
1)
You will not be able to process credit
cards on the internet
2)
You will not be able to get another
“High risk merchant account” from
another provider.
Therefore, you should never allow it to
happen and it will not happen if you
take some simple preventive measures.
Volume Limit Excess
A merchant will think that he can make
up very easily for going over his
processing limits or the average ticket
prize. Unfortunately, there isn’t. The
Underwriters and the provider are there
to do business and are very realistic.
If your high risk business is making
more money then it is very likely that
it will incur more number of charge
backs. In case of such an event, the
underwriter is the one who is liable.
Therefore, a small mistake spelled a lot
of trouble for your provider.
This can be prevented by signing up with
an account provider who is more flexible
with the monthly limit of processing
volume. This simply means that when the
size of your ticket grows, you should be
able to negotiate for the discount fees
and other fees’.
Service Flexibility/Niche Product
The second most common issue which gets
you into trouble with your provider is
the service or niche product that is
offered by you.
Refunds
Is providing refunds for your customers
harmful to your business? It may surely
hurt your business but you also have to
keep up a good quality reputation.
Therefore, you should provide refund for
your dissatisfied customers else, they
will spread ill words regarding your
business. You also don’t want them
commit fraud against you.
Backup Account
A Few business owners have 2 merchant
accounts because of the high rates of
discount. But the advantages are more
than that. If your business will
collapse without a functioning merchant
account then having 2 will save a lot of
money as if one goes down then you can
immediately put the other one up. Having
the backup account might be very tricky
but servers its purpose well.
Freezing of your high risk merchant
account is terrible for your company.
Therefore, find the issues and try to
cancel them out.
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