A merchant account provider has the right to terminate a merchant account at any time and without warning. The closure of a merchant account may not be permanent. Sometimes after the situation is looked at carefully with proper documentation from the merchant their account can be turned back on.
To avoid any possible terminations it is best to know the most common reasons why a processor will terminate a merchant account.
1. High chargeback ratio.
2. Processing for an undeclared business or person.
3. Processing over the declared average ticket amount.
4. Processing over the monthly volume amount.
5. Excessive ACH (automated clearing house) rejects.
6. Selling undeclared products or services on the merchant account.
7. Selling unacceptable products or services on the merchant account.
8. Any fraudulent activity involving the merchant account.
To avoid termination ensure that all transactions are processed in accordance with the MPA (merchant processing agreement). Merchants should contact their providers immediately if there are any changes to the account, such as an increase in average ticket, monthly volume, or product declarations. Keep chargebacks and ACH rejects to a minimum, and never process a transaction for anyone else.
For more information on merchant services, next day funding, or PaymentMax visit www.paymentmax.com