July 25, 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?
They legally can only speak to you not a lawyer unless you tell them previously that all conversations must go through your lawyer.
Next a merchant account can be suspended for numerous reasons. The most common is suspected fraud. This doesn’t mean it is happening, or that it’s being done with the businesses knowledge, but that there’s reason to suspect fraud. ie numerous chargebacks, numerous compliants about the wrong amount being charged, numerous chargebacks from people who never had business with you, etc.
In some cases they may wait (thus the we need to talk with your lawyer stall) till they’ve contacted the police so not as to alert whoever at the company might be resonpible for the fraud