What Causes Merchant Account Hold Or Freeze & How To Avoid This?

The Bank has the right to Hold and Freeze the Merchant Account without prior notice. This is a step of precaution in case of any frauds. Here are some situations that can lead to potential Merchant Account Hold or Freeze.

Before opening the Merchant Account, the bank asks the Merchant to sign the terms and agreements. And if the Merchant does not follow the bank norms, the bank has every right to freeze the merchant account.

High Number of Chargeback – If your business is causing a large number of chargeback every month then the bank will investigate your business methods and discontinue your banking facilities.

Dealing in Undisclosed Goods and Services – Before opening the Merchant Account, you must inform the bank about your business with a detailed description. In case, you are caught dealing in other goods then you can be subjected to Merchant Account Freeze.

Suspect of Fraud – If you or your business is involved in any kind of fraud or illegal activity then banks can take actions by freezing the account.

If you know the possible reason behind the merchant account issues then you can use the knowledge to avoid Merchant account hold or freeze in the future.

How to Avoid Merchant Account Hold or Freeze?

Get a nice payment processor for your Business Account. Also, get a High-Risk Merchant Account if necessary.

Moreover, if you are about to make changes to your business and starting to sell different goods or services, then make sure you inform your Payment Processor about the change.

Reduce the number of chargebacks. An excessive number of chargebacks can cause a variety of losses including the Merchant Account hold.

Finally, if you are going to make an exceptionally large transaction then inform the payment processor regarding your transaction details.

You can also hire an expert to help you avoid Merchant account holds or freeze. For such services, contact Merchant Stronghold and connect to an expert. We provide the best credit card processing services for all kinds of businesses. Merchant Stronghold specializes in high-risk and offshore merchant accounts. Reach us using the 24/7email support at info@merchantstronghold.com or directly visit us at app.merchantstronghold.com.

What are the Common Complaints of Merchant Account

In this article, we have listed the Common Merchant Account Complaints and the tricks to avoid such issues in your organization. This article can help you look at both potential risks and rewards of working with a given company.

Poor Customer Service

Now your business and payment processing system cannot be perfect every time. And customer faces an issue with the management. At those times, it is the responsibility of the customer service team to provide the demanded attention to a specific topic.

In such a case, you need to stabilize your customer support service.

Tracking your product and customer reviews should be evaluated.

You should take some time to minimize the customer waiting time.

And nobody wants to listen to the automated answering service.

Cancellation Issues

This is one of the frustrating Common Merchant Account Complaints faced by the customers. Many times we order a product or service by mistake. In that case, you immediately try to cancel the order on the company’s website.

It is difficult to distinguish between the mistakes and the frauds for a merchant.

But if your enterprise makes your customer go through a lot of trouble while canceling the order then your business is under risk.

Moreover, it could lead to unnecessary Chargebacks.

Solidify the rules around the replacement and return of order.

And make sure you provide smooth payment processing to your customers.

Misleading Sales Practice

This is one of the worst sales practices. If you wish to lead a long profitable business then never apply such things to your business.

Some merchants try these petty methods to increase sales.

But the customer with one bad issue can report the business of this unethical practice.

For a merchant, sales are very important and to increase sales they try every method.

Advertise your product as it is.

Train your sales agent properly and tell them the customer satisfaction is always the priority.

And if you offer some discount then make sure you clear out the terms and condition to the customers properly.

Set your Price According to your Market

Every merchant wants to earn the profit and for that, they introduce attractive offers with their products while other products are not easily available. In the latter case, sometimes the merchant asks for a really high price that is not according to the product market value. These issues lead to greater trouble for the merchant in future that makes it to one of the Common Merchant Account Complaints.

Disclose your entire price before the customer purchases the product.

This generally leads to customer backing out for the purchase.

Do not add additional charge at the time of payment.

Many merchants are reported of such practices and immediately eliminated from doing any further business.

We provide customized support to the high-risk merchant accounts and credit card processing. Call now or visit the website at app.merchantstronghold.com

Get Merchant Payment Processing Services in USA

What is Merchant Processing Services?

In the world of business, the merchant processing service is very important, in simple words, the merchant processing is nothing but the ability of the merchant to accept the payment without any error or issue. The payment could be in different forms such as cash, debit card, credit card, internet banking, and other online methods. These aspects of the business can immediately boost your business or take it down in one go.

What are the Factors influencing the Merchant Processing Services

Now that you understand the Merchant Processing Services, let’s get to the point and discuss the methods to get the best merchant processing services. Here are some factors that can influence the Merchant Processing or Card Processing Services.

Types of Payment under Payment Processor

The merchant service provider of the payment processor needs to be according to your demand.

You can explore the market with different payment processors and get the one that suits your demands.

Also, you can Compare Merchant Processing Services and payment processing services.

Do not get confused by the payment processors and their offers. Contact Merchant Stronghold for the information to select the best payment processor for you.

Price of the Merchant Processing

The different processor offers different plans for their services. It is your responsibility as a merchant to select the best for your business type. Here are some different pricing methods discussed.

Fixed Rate Plan – This where the merchant works with a business or only one merchant account. You need to pay a fixed amount for the payment processing service.

Leveled Pricing – When the merchant needs to pay a different amount depending on the risk factor. This method can be beneficial as the risk can vary each month and the merchant is not needed to pay anything extra.

Interchanged Pricing – Where the payment processing fees and processors benefits are clearly mentioned in the bill. This is the most transparent pricing system ideal for medium to large business.

Contract and Support for the Processing

The type of contract you signed is what’s going to lead further payment processing in your enterprise.

This means you need to compare Merchant Processing Services and their contract as well.

The contract includes details related to pricing, security, terms and all the other important details related to the processor.

These are some of the common issues faced by our users related to “Compare Merchant Processing Services”. If you are also having these issues then contact Merchant Stronghold.

Instant Approval Merchant Account For Your Business

There are benefits of getting a Merchant Account Provider for Business:

Better Money Management

No matter how small or large enterprise you have, money management is one of the very important aspects of a business. Without proper management of money, you won’t be able to see any profit. This is how a merchant account helps:

You get a merchant account, which is connected with all the modes of transaction available.

Now, if a customer makes the purchase using the credit card, debit card, or other cashless modes, the money will be directed to your merchant account directly.

Also, you can easily track the flow of money and make your business better.

Customer Satisfaction

There are many people who do not carry a large amount of cash anymore. Also, they prefer card mode of payment when it comes to expenditure. Coming back to the merchant, they need to equip their business with the tools to accept such payments. A merchant account provides such services.

A merchant also provides the tools to accept various kinds of card payment.

This provides flexibility to the customer, as they have the option to choose from multiple modes of the payment.

If you have an online platform to make business then you can also add payment buttons to the website for the customer.

No Fake Currency or Bad Check Hassle

In the case of cash or check transaction, the merchant is always worried whether the money offered is genuine or not. Sometimes, these little frauds can lead to a great loss for the merchant.

By using the cashless transaction, the merchant can avoid cases of fake currency and bounced checks.

A merchant account also offers payment modes for the recurring transaction of products and services.

Growth in Number of Sales

As we discussed, a great number of individuals are opting for the card payment as the mode of transaction. And introducing the cashless transaction can actually bring more business. With the growing security, the number of card customers is increasing exponentially.

Credit Card Payment Processing After Signature Rule Change

In this article, we discuss the details related to Credit Card Payments After Signature Rule Change. We will discuss old and new rules related to the payment after signature. For more information, feel free to contact Merchant Stronghold at the toll-free number.

Why There was Need to Make Changes to the New Rule?

Other card networks such as Visa, American Express followed over the steps of the MasterCard. But the Visa made it optional to sign on the receipt. Here are factors that made card networks to change the norms related to signature.

The Card brands wanted to speed up the payment process by eliminating a step that is Signature.

Also, a signature is not strong evidence to fight against chargeback/fraud for a merchant.

Most of the signatures were unrecognized by the customers.

Also, most of the people are adopting the internet banking methods, where signature rules are not applicable.

Moreover, by applying the proper safety instruments, a merchant can reduce the card fraud and number of chargebacks. And new methods are more reassuring than the previous ones.

This is one of the most recent changes and many customers are not aware of this. The process of Credit Card Payments After Signature Rule Change is a lot easy. However, many customers still wait to sign the slip after making the payment.

How does this affect a Merchant?

The Merchants are most affected by these changes. Also, some of them are in favor of the changes while others were not that satisfied with the changes. These new changes have left the merchant with one question, “How to Process Credit Card Payments After Signature Rule Change?” Here are some important guidelines for a merchant that can help them understand the new process.

The Payment Processing will be fast now.

Alternatively, they are provided with a new set of rules that are also applicable to Internet banking and similar transactions.

A receipt with signature was not at all helpful to fight against reversal cases.

It will reduce the need to keep every piece of paper stored for the merchant.

As the online details or digital details would be enough to help with the further processing.

We can say that the payment experience has become much better for both merchant and customers.

We provide assistance to high-risk or offshore businesses along with the credit card processing tips for various business models. Contact us at the toll-free number +1 (888) 622 – 6875 or try the email support.

Understand Transaction Descriptor Or Merchant Descriptor

It appears on the credit card statement or any other bank statement of the customer that contains details of the company and merchant involved in the particular transaction.

The purpose of the merchant descriptor is to identify who the payment was made to. Whenever a merchant goes for the merchant account, he or she is asked to provide the merchant descriptor as well. 

WHAT ARE THE BENEFITS OF HAVING TRANSACTION DESCRIPTOR OR MERCHANT DESCRIPTOR?

Having a transaction descriptor can save the merchant from a chargeback. This is the most important benefit of having the transaction descriptor.

A descriptor gives clear information about the merchant and the purchase.

This helps a customer to quickly identify the transaction.

That also results in a low chance of the chargeback from the customer’s end.

According to the various reports from the card networks, most chargebacks are filed simply because the customer did not identify the transaction.

Now you know, as a merchant you should give attention to the merchant descriptor. If this is the case, you need to gather more information about the Transaction Descriptor or Merchant Descriptor.

There are two kinds of Transaction Descriptor:

Static Descriptor – A Static Descriptor remains the same for all the transactions made by the merchant.

Dynamic Descriptor – And in this case, it varies and includes the details of the purchased goods or service.

You must be wondering which one is better and what should you get for your business.

A Static Descriptor is often called Hard Descriptor. If you have a business that sells one kind of goods or service then you can go for this. A static descriptor generally contains the company and location in form of the zip code.

Whereas, the Dynamic Descriptor may change with each transaction as it contains product specific details. If you own a store that sells a variety of products then you should choose the dynamic descriptor.

THE TRANSACTION DESCRIPTOR OR MERCHANT DESCRIPTOR

Contact Information – Say the customer wants to contact the merchant but she is unable to because of the lack of contact information available to her. She may look at the credit card statement, if she finds the contact information there, it would save the merchant from one chargeback. Adding the contact number is considered as a clever move for a merchant.

Company Name/Business Name – This is a must as the customer is most likely to identify the merchant on the basis of the company name. Never forget to add the company name to the merchant descriptor.

Website Information – The merchant can also put the Website address to the transaction descriptor. This also helps the merchant to identify the transaction.

Merchant Address – You are not required to add the complete address. However, the zip code can also work for the merchant.

We also provide other merchant processing services and high-risk merchant account services. Also, you can try our toll-free number +1 (888) 622 – 6875 and try the 24/7 email support.

What is Rolling Reserve & Why is It Important to Merchants?

Rolling Reserve Merchant Account: When it comes to new merchants and high-risk businesses, the bank takes all the possible caution to avoid any loss in their business. Due to which they have created a robust network of rules that need to be followed at all times so that economic and financial aspect of the business never sees any downfall.

This is the reason that bank introduced the concept of Rolling Reserve Merchant Account.

WHAT IS ROLLING RESERVE MERCHANT ACCOUNT?

Rolling Reserve is a fixed percentage (generally 5-10%) of a merchant’s transacted amount reserved by the bank which can be used in case of an excessive chargeback. This happens for only a short time interval (6-12 months) until the business gets some stability.

Upon completion of this time interval, the bank releases the amount to the merchant on the scheduled dates.

WHAT IS THE PURPOSE OF ROLLING RESERVE?

As we discussed, rolling reserves are applied for the merchants having a high-risk business. The idea of introducing the rolling reserve is to avoid any loss of revenue in case of excessive chargeback in the business.

What are the traits that result in high-risk business?

Excessive Number of Chargebacks – Most of the credit card networks have established 1% criteria where chargeback ratio of more than 1% will state as an excessive chargeback. Upon exceeding this limit, again and again, can make the business as a high-risk business.

Merchant With Poor Personal Credit– If you are a merchant with a history of bad credits in previous terms then you can face consequences while getting the merchant account. This means might be denied from a merchant account or get the Rolling Reserve Merchant Account for your business.

There are some businesses that are considered as the high-risk businesses, for example:

• Online Gambling Or Casinos
• Computer Software And Hardware Business
• Bitcoins Or Forex Trading
• Dating Services
• VoIP Or Telemarketing
• Pharmaceuticals Or Drug Stores
• E-Commerce
• Adult Materials, Products Or Services
• Airline Tickets
• Magazine Subscriptions

If you are a merchant of those businesses or similar businesses then you will be provided with Rolling Reserve Merchant Account.

Merchant Stronghold offers account services for the merchants with high-risk businesses. You can contact our experts by placing a call at the toll-free number.

If you have a high-risk business then rolling reserve is inevitable. However, you can work on other strategies to maximize the profit so that it won’t affect as bad as it may seem.

Furthermore, you can work on strategies to minimize the chargeback in the business. And finally, use the best business practice to eliminate any situation that can harm the reputation of business in any way.

Accept American Express Card For Your High-Low Risk Business

You can say American Express as Amex. It is a multinational financial service that also happens to be a popular card network. Along with that, American Express Merchant Services is a division of the Amex that works with merchants to process the various transactions in their business.

Amex operates as both card issuer and acquirer which results in slightly different rules for the merchants if you are comparing with Visa or MasterCard.

Just read the following article which helps you to understand the American Express Merchant Services before getting them.

AMERICAN EXPRESS FEES & RATES

The first question most of the merchant asks before getting merchant services is often related to fees. The prices set for the Amex are transparent and follows a robust plan.

Also, American Express is continuously working to promote small businesses with their new ventures like opting Blue Merchant Services.

In exchange for the payment processing network, American Express charges fees. However, the breakdown of these charges can be too much for users sometimes to understand. To understand these charges, you can simply contact the American Express Customer Services and ask for the details.

AMERICAN EXPRESS CHARGEBACK DISPUTE

When going for the American Express Merchant Services, you should gather as much information related to chargeback as possible. As we discussed the chargeback reason code for the Amex are different than the other card networks.

However, a merchant should know about chargeback and related rules if the Amex card is going to be used in the business.

Study the various reason codes of the American Express and get as much information as possible. Unlike Visa and MasterCard who outsource merchant services, American Express manages most of their services inside.

Therefore, you should expect transparency with their fees structure and their performance as well.

Technical Support Team 

As we said, Amex handles most of their service in order to offer comfort to their users along with the complete trust in the brand. Also, American Express is known to offer great customer service to their users. And the same criteria are applied to the American Express Merchant Services.

In case you are still confused then feel free to contact the Merchant Stronghold and get all the information regarding the Amex and their services. For that, you can place a call at the toll-free number i.e. +1 (888) 622 – 6875 or simply try the 24/7 email support.

High-Risk Merchant Services For Collection Account Business

What kind of things to working with collection Account/Agencies?

Different determinant that prompt this negative conclusion held by Merchant account suppliers are the number of chargebacks that a business encounter. As most gathering office proprietors can let you know, there are a lot of individuals who guarantee to make an installment, and afterward call sometime later to their bank or Mastercard or Credit card Company and cross out it. Since this includes a considerable measure of income to and from business, banks get stressed that the gathering organization won’t have enough cash to pay its clients and that reimbursement will turn into the bank’s concern.

The chargeback factor additionally prompts the danger of strength for debt collecting offices. Many have high representative turnover, caused to a great extent by work-related anxiety. Since numerous gathering organization representatives’ pay is attached specifically to rewards, many will leave in a hurry if a steadier open-door tag along.

What type of merchant account providers accepts high-risk business solution?

In any case, while some typical Providers see just “high-risk business”. A lot of others see group organizations as authentic organizations. Keep running by genuine individuals out to give an administration that is unmistakably there. Particularly in the current scene where misrepresentation is always there. Also, individuals appear to have unending methods for purchasing things without each really being responsible for paying for them.

It is regularly the little trader account suppliers who will fill in as the waypoint for accumulations charge card preparing. In light of the fact that they themselves have encountered a comparative circumstance. Being too little, new, or “deceitful” to secure finances or credits from gigantic foundations.

High-Risk Merchant Account for your Subscription & Membership

A Result, it can be a bit tricky for merchants starting up a membership site to do the very thing that makes the endeavor lucrative: collect membership fees from clients via a high-risk credit card processing account.

Why subscription/Membership Sites are considering “High Risk”?

Before MasterCard’s compact rules were implemented (Visa has also issued similar guidelines), several membership sites used techniques that were extensively regarded as misleading, or even deceptive.

“Harmful decision” enrollment – in other words, the client makes a single payment for a product or service, but in doing so they are automatically signed up for a paid monthly subscription which they must actively cancel or opt out of to avoid being charged.

“Free trials” that aren’t free – the client or member is promised something for “free” (including “conceded charging” or “just pay to ship!”), but the process of obtaining the “free” thing or service results in them unknowingly being signed up for a paid membership or subscription.

Covering terms in the fine print – the Membership site makes the terms of its charges and refund policy approach hard to discover by concealing them amidst an extensive client assertion, or in modest content in some dark corner of the site.

Membership/ Subscription can Affect Your Business?

Your Membership site may be absolutely clear and genuine with its people about any charges to their cards, yet being a bit of an industry with a reputation for precariousness makes it harder to secure an enlistment site portion taking care of record – especially one with respectable rates and conditions. Your best decision is to work with a credit card processing with the association that has some skill in high-risk merchant accounts. A part of the portion processors willing to offer you a record may charge high costs or keep down a senselessly broad level of your compensation as a “moving store” to cover the risk of chargebacks and diverse hardships from harried people.

While dealing with associations are taking a wager by offering speaks to enlistment districts and need to secure them, these high rates can be troublesome for privately owned businesses. Merchant Stronghold-Merchant Services is cheerful to work with High-Risk Merchant and tune in to their requirements to give sensible participation site accounts.

Online Credit Card Transactions Cross-Checking Authenticity

The issue of fraudulent online transactions, which has been increasing exponentially with e-Commerce growth, is a problem for merchants. Thus, online merchants need to be vigilant about detecting the use of stolen credit card details and misuse of the chargeback system. Monetary losses due to chargebacks alone can have serious consequences for merchants.

CAREFULLY OBSERVE BUYER BEHAVIOR

It’s not as easy to observe buyer behavior online as it is when purchases take place in-person; however, it can clear effectively. The first step is automatically taken when cardholder information is verified by a payment processor at the time an order is placed. Merchants need to take this a step further by scrutinizing orders for signs of suspicious activity during the fulfillment process.

Signs of suspicious activity include anything out of the ordinary. Such as unusual order sizes, the frequency of orders from the same buyer, different billing and shipping addresses, subsequent attempts to resubmit an order using different cardholder details after the decline, and multiple orders to the same delivery address using different credit cards. Sometimes a call given to the buyer is all that’s just to clear up any questions and confirm an order.

Cross-checking means it will take a little more time to process some orders. But, considering the consequences of a possible fraudulent transaction, it can be worthwhile.