July 18, 2009
merchant account issue?
Chiquita asked:
For unknown reasons our business merchant has put a block on our account so no money is being transferred into our checking account (since the 28th). No one will talk to us regarding what is going on. They’re telling us have your lawyer call we’re not allowed to talk to you.
Is it legal that without knowing what is going on to shut down this merchant and find a new company to run our business? We have checks going out of the account and we need the money. Also any idea why a merchant company would put a hold on the funds and not willing to talk unless its through a lawyer?? thank you
For unknown reasons our business merchant has put a block on our account so no money is being transferred into our checking account (since the 28th). No one will talk to us regarding what is going on. They’re telling us have your lawyer call we’re not allowed to talk to you.
Is it legal that without knowing what is going on to shut down this merchant and find a new company to run our business? We have checks going out of the account and we need the money. Also any idea why a merchant company would put a hold on the funds and not willing to talk unless its through a lawyer?? thank you
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Comments on merchant account issue?
Sounds like FDR or a divsion of first data. What type of business do you have. I have had this happen in business. They do have to send the owner of the business a letter as to why they are are not funding. It is usually for security issues. If you manually key many cards, or take phone orders and a person complains they will totaly stop funding you. I was delivering rental cars to high end clients and taking credit card numbers over the phone. The held almost 5G of my money for 6 months. What i did was set up another bank account and signed uo with a new company. I have always kept a seperate credit card account from the general business account so the only thing they don’t have access to all your money. When the money clears i would go on line and transfer it over to the main account. Its a real hassel its just like a IRS audit. If your transaction activity is outside the curve they set for your type of industry the automatically freeze funding. With my company I was set up as a retail store with a average ticket of 150 when i delivered about 30 cars on long term per pays my average ticket jumped to about 900 each. I set up with a new company when i could not resolve the issues easley. If you wait too long to do so they will report you to Master/Visa and no one will be able to turn you on untill their security issue is resolved. They can not make you get a lawyer talk to the person who set you up and call Visa security department directly . Not the bank and not the credit card processing house. Visa international themselves.