He was angry at the bank for holding his funds.

In this case, the merchant was approved to process $500 per average sale.

He received and charged an order that was more than 15X the average ticket he was approved for.

The bank acted appropriately by placing a hold on the funds and requiring the merchant to show financial docs including bank statements and P&L to prove he could absorb the damage a charge back would do to his account and that he had the money to cover it.

He refused to provide the docs, calling it a ridiculous request and was wanting me to move his processing and get him approved for that high average ticket.

First of all, any approval for an average ticket over $1000 is normally going to come after a bank has reviewed your financials and other docs required to minimize their risk. They simply will not just “trust” that you can handle the chargeback if it comes. Just as the monthly volume limit comes under watch and similar docs are requested when volumes over 75K are sought, it is the same with the amount of each sale. The bigger the sale in a card not present, internet environment, the larger the risk.

Second – almost no bank will approve average tickets (we are talking internet here, not a card present merchant) of $5000 and higher because of the amount of risk associated with an order of that size. They just simply will tell you that you cannot take charges of that amount.

I have some that will, but they require full financial docs just like are required of merchants processing $250,000 or more per month.

Some merchants (one of mine in particular I am thinking of) are able to gradually ramp up single charge amounts with good history, without further holds after some initial verifications are done as long as those charges don’ t normally exceed $4000.

So, if it ever happens to you, ask yourself, “What was I approved for?” That is what the bank goes by. Merchant accounts are nothing more than an unsecured line of credit with a bank, subject to the same conditions as an other line of credit in what you can and cannot do.

Responding promptly and politely, providing requested docs, will get your funds released sooner than later. If you have sold something to a city, large organization, or government, just provide docs including purchase order and contact info so the bank can verify that they have received the order and you should get a prompt release.

I will also suggest that your AGENT is the best friend (should be) you have in this situation and they should act on your behalf to assist.

Feel free to respond or call with any questions.

Top Ten Reasons You Need A New Merchant Account Provider

1. The thought of opening your statement gives you indigestion.

2. You have to hire a PHD to read your statement.

3. Your personal rep is named “Pot Luck”.

4. Your rates creep up worse than a pair of old underwear.

5. Your agent sends you email full of spelling and grammatical errors.

6. You keep hearing what an “Extra Special” deal you have, but have never seen it.

7. You pay for customer service with your agent but have not experienced it.

8. Your agent is out of the office spending your money, not taking your calls.

9. You ask a simple E-Commerce question and hear the sound of “DUH”.

10. All the people in your Agent’s office are smarter than your Agent!

If any of this rings true…. Consider a “Real” Professional Merchant relationship.

Our rates rock, merchants love us, been in business since 89, all the references you can eat, and we have a staff that speaks FLUENT E-Commerce.

Reach out and get to know us!

I learned today that a merchant had nearly $8000 in batches held after they emailed me in a panic wondering where their money was.

Reaching out to Risk Management to find out what was up, I learned that the bank’s mail to the merchant was being returned, that the Risk Department had then called the Merchant, left a message on the owners phone (that was not returned) and called the business to find the number disconnected.

Merchant was not out of business…. Merchant moved and didn’t tell me, the bank, anyone, and they got their money held.

Good news is that their money was released immediately upon receipt of the new address.

If things change in your organization, let your merchant bank or agent know, request the change of address form and make sure they send and confirm.

International Telex Verification

To use it, call the normal card authorization phone number (800) 228-1122 and hold for an agent.

Don’t press ANY selection for a destination or you will get trapped and eventually dumped. Just wait. I waited nearly three minutes. Your mileage may vary.

Once an agent comes on, state that you have an International Address to Verify.

The agent will request cardholder information and will ask for the address you have. They will also ask for your merchant number.

If the Issuing Bank is available at the time of the call, the Issuing Bank will be contacted by a telex operator.

If the Issuing Bank is NOT available or cannot be reached via phone, the telex operator will take down all appropriate information & contact the merchant/representative once the Issuing Bank has responded to the inquiry.

In this case, they stated that they would Telex the bank in Tasmania, Australia that served the customer I was verifying and return with a verification call within 24 hours. They did exactly that and confirmed the address.

This service is not for any particular provider or bank. If you are a merchant on the First Data Platform, which most of us are, you can use it now to verify those international orders you want to ship.

There is no cost to use this service.

If you use this and find that the verification info routine has changed or you find a new number, please comment this post for the benefit of others.

We recently had 5 merchants move to our processing.

One saved $813 per year.

One saved $1360 per year

One saved $1900 per year

One saved over $3000 per year

One will save over $10,000 per year (all their sales were falling into the Rewards and Non-Qualified Category.. a big problem that their agent had not taken the time to correct. Told them there was nothing that could be done.. NONSENSE!

All these merchant’s rates were not “bad” to start with, but our wholesale rates created substantial savings for them, resulting in the savings shown above.

Would you fax me your recent merchant statement and let me show you the money?

The only person I cannot help is the one that does not take the time to reach out and that is a blunder considering the economy and the sales expected in 4th quarter.

Why not give yourself a bonus this Christmas?

Fax your statement in confidence to 818-286-1968 or pick up the phone and call me. I don’t bite, you will enjoy the call, and you won’ t be pressured to switch.

I let the numbers do the talking. If you are in a contract, we will cover your cancellation fee.