Frozen or Shut off High Risk Merchant Account

Best Tips to Avoid Frozen Accounts with Your High Risk Merchant Account Provider


In the world of online sales, there are a lot of things written on the page but are left unread between the lines. In other words, you go about selling your products and services but there are lots of things high risk merchant account providers don't tell you. Not because they could not or would not, but because they would not discuss the issues with you until you have experienced them. A good example is going through possible freezing of your merchant account.

If, as a high risk merchant, you have not exerted an effort to make a research concerning frozen accounts, then you're in BIG trouble. I'll keep it short. Once your merchant account is frozen, your present and future business is put under horrible risk. First, because you will lose the ability to process credit cards online. Second, you will be denied merchant account if you applied for another one. You certainly cannot allow this to happen and it will never if you are smart enough to take preventive measures.


Okay, so what gives? You would think if you made a mistake in stating your processing limits or ticket size, there is an easy way to get out of the mess. But underwriters and high risk merchant account providers are realistic. If you make more profit than you have actually stated during the assessment period, you will be likely incurring more chargebacks. When this happens, your underwriter is liable to pay the issuing bank the losses. Obviously, the little mistake you made spelled trouble to your provider.

How do you prevent this? Find a high risk merchant account provider that is flexible with your monthly processing volume limit. This means that as soon as your ticket size grows, you can negotiate an adjustment on the discount rate and other fees.


Another issue that will most likely cause you trouble with your merchant account provider is your niche product or service. This is pretty easy to figure out and it's lot like choosing a domain name. Define your product or service in the broadest way possible. Pick pharmaceuticals instead of hoodia. That way if you expand your catalog or change into a different but related product/service in the industry, then it will be easier for the provider to adjust.


This issue will speak for itself. Is giving refunds to your customers a bad practice? Sure it may hurt your business, but a business also has to maintain a good reputation. One way to keep it is to make sure dissatisfied customers are able to return your products and get their money back, if only because you would want them to buy again and not spread ill words about your company. Above all, you do not want them to commit fraud against your business.


Two merchant accounts? To some business owners, having one alone can be a pain especially with high discount rates. But there's also an advantage in obtaining a back up merchant account. There is if your business relies solely in processing credit cards online! If one provider halts processing or encounters a glitch, you have support that will not put inconvenience to your business or customers. Having a backup merchant account is quite tricky but it always serves its purpose.

Frozen merchant accounts are horrible for your business. Now is the time you find out the issues with your high risk merchant account provider before your business goes down the drain!

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