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.
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