Account Being Terminated

[MillionAccounts]

John,

What are the many reasons a merchant account being terminated

[stymiee]

1) Fraud
2) Factoring
3) Owing the processor money
4) Too many chargebacks
5) Using it for illegal activities
6) Being on the Match File
7) Anything that the processor may consider a violation of their terms of service

[MillionAccounts]

This is one thing I can vouch for John, he replies YOU...

[stymiee]

Factoring - Visa and MasterCard do not allow more then one business to use a merchant account. All accounts must be established for one business and to be used only for that business’ products and services. When a business processes transactions for another business, even if they own that business, they are “factoring”.

[MillionAccounts]

John,

Just like the way you elaborated about FACTORING, may I request you to please expand the other 6 factors that you have deliberated I hope I’m not asking for too much

[ses5909]

[quote="stymiee"]1) Fraud[/quote]
Using your merchant account to sell fraudulent products or services to your customers or not selling the product you told the processor you were selling.
[quote="stymiee"]3) Owing the processor money[/quote] If you owe your current or previous processing bank money and do not pay in a reasonable amount of time.
[quote="stymiee"]4) Too many chargebacks[/quote] If your chargeback volume exceeds 1% of your monthly sales.
[quote="stymiee"]5) Using it for illegal activities[/quote] Using your merchant account in anyway as part of an illegal activity.
[quote="stymiee"]6) Being on the Match File[/quote] If you are already on the Match File but it wasn't known at the time your new account was established it will be closed.
[quote="stymiee"]7) Anything that the processor may consider a violation of their terms of service[/quote] The processor believes that you are using your account in any way that violates their terms of service or is too high risk.

[lowermymerchantrate.com]

[quote="MillionAccounts"]John,

What are the many reasons a merchant account being terminated [/quote]

Factoring is one of the main issues for iso's and banks terminating merchants. all to often we see companies selling products that they never take possession off and or are billing for services they are not rendering. this is happening on a large scale in the loan modification business.

[nelsonkist]

Merchant account holds are behind many of the horror stories that you may have read about online or heard from friends. Merchants are often portrayed as the victim in these stories, but there are two sides to every coin. In the case of an account being held, it will be unusable for as long as it takes the processing bank to investigate the breach of the agreement and make a ruling on whether or not to reinstate or terminate the account.