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.