COMMON MISTAKES THAT PEOPLE MAKE WITH
OFFSHORE MERCHANT ACCOUNTS
There are plenty of stories available
about the processors of credit card
freezing funds and terminating merchant
accounts. Almost all of these stories
show the credit card processors in the
negative light as the one who is trying
to steal money from the owners of small
business. While this makes the story
interesting, it is not accurate.
It is the responsibility of the “Credit
Card Processors” to protect the
merchants and the card holders from
credit card fraud. The starting signs of
credit card fraud are unusual activity
in the merchant account. When the
processor detects any unusual activity
in your account they will not ask any
questions, but first freeze your funds
and close your account.
In this scheme of “Shoot First Apologize
Later” plan, there will be some innocent
victims who would have unknowingly done
something which results in the shutting
down of their account.
The remaining portion of the article
will explain about the activities which
will result in the closure of your
merchant account. The article will also
explain some actions to prevent it.
Unusual processing activity in your
account
This is the main reason why innocent
businesses become the victims of account
closure. Unfortunately, unusual activity
is not properly defined. This problem
can be overcome by a little common sense
and caution while operating your
merchant accounts.
High Level of Chargeback’s in your
account – Lost or Won
Without regard to whether you have lost
or won a chargeback, a high level of
chargeback’s in a short time will cause
your processor to terminate your
account. It is very important to find
ways to limit the level of chargeback’s
in your account and also correct the
issues which are bringing in too many
chargeback’s for your business.
Selling of Products or providing service
which is not listed in the service
agreement signed by the merchant
provider and the merchant
If your merchant account processor finds
out that your company is selling goods
or providing services which are
significantly dissimilar than the ones
given in your merchant agreement, then
your merchant account will be terminated
immediately.
Processing other people’s or business’,
transactions
Factoring of merchant accounts happens
when you process another individual’s pr
business transactions with your merchant
account. Merchants resort to this method
to reach their monthly minimum target.
If a merchant processor or provider
finds out that you are factoring your
merchant account then your merchant
account will be terminated immediately
and you will face criminal charges.
“Unusually high average ticket”
Processing of a transaction which is
abnormally large for your business and
merchant account can lead to the closure
of your account and also the freezing of
your funds.
“Unusually High Processing Volume”
Similar to exceptionally large tickets,
abnormally high volume of processing
will also lead to doubt and the closure
of your merchant account. Processors
expect you to limit your volumes to the
number stated in your agreement.
If your account was closed due to a
naive mistake, you should learn your
lesson and move on to open another
account with another processor.
Contact
one of our helpful account
representatives to assist you in the
setup of
a
high risk merchant account or
offshore merchant account for a
high risk merchant. |