TERMINATION OF A REPLICA MERCHANT ACCOUNT
There are also some processes involved
in the termination of merchant account.
The merchant who plans to shut down the
merchandise business can request the
service provider to terminate the
account. The request can be made through
e-mails, phone calls or by unsubscribing
through online forms. Once the merchant
requests for termination of the merchant
account, the bank or the service
provider verifies the existing
information of the customer. An identity
proof must be presented while applying
for the termination of the merchant
account. This is done for various safety
reasons as well as to prevent certain
fraudulent acts from the customer.
A termination fee is also charged to the
merchant who wants his merchant account
to be terminated. The termination fee
may be a large sum of money but the
process of termination is easy and
simple. There is certain time period of
certain merchant accounts. If a merchant
wishes to terminate the merchant account
before the expiry of the actual term,
then the merchant has to bear the burden
of paying heavy fees. The termination
fee ranges between 50 dollars and 500
dollars, depending upon the type of
business the merchant holds with the
merchant account. The terms and
conditions are available on the
application form. A merchant can check
the signed legal document which was
provided during the time of setup or
registration. If the termination fees
are mentioned as applicable on the
application form, it is compulsory for
the merchant to pay the termination fee
to the issuing bank or the service
provider.
The termination fee is also determined
by the discount rates of the merchant.
Discount rates are charged to the
merchant for processing of the credit
card. If a merchant’s discount rate has
increased in a particular financial
year, then the termination fee is not
applicable for that merchant. In such
cases, the termination fee will be
termed as invalid. Every merchant
account has a certain time period, after
the expiry of that time period, it can
also be renewed. A merchant can check
with the existing document to find out
whether the time is over or not. If
there is still time left with the
merchant account, then the merchant can
continue his/her business till the
expiry of the specified term. It depends
upon the merchant whether he wants the
account to be continued or not. There
are costs involved to maintain the
merchant account. If there is a positive
statement, then the merchant can
continue with the merchandise business
or else the business can be
discontinued.
There may be many reasons for the
merchant to close the business. One of
the reasons may be to open a new
merchant account which provides
improvised tariffs and rates. In such
cases, it is not necessary for a
merchant to shut one account and open
another. A merchant can, on request,
continue with the same account but the
plans and schemes will be changed. The
merchant account holder can also make
negotiations with the issuing bank to
lower the rates, if possible. And if the
service provider does not agree with the
request, then the merchant account can
be terminated.
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. |