• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
logo
  • Processing Solutions
    • POS
    • In-Store
    • Mobile
    • Online
    • All Payment Services
  • Business Solutions
    • Grocery
    • Restaurants
      • Full Service Restaurants
      • Quick Serve Restaurants
      • Food Trucks
    • Retail
      • Smoke Shops
    • Salons & Spas
      • Health & Wellness
    • Automotive
    • Professional Services
  • More Tools
    • Capital
    • Business Credit Card
    • Payroll
    • Marketing
    • Loyalty
    • Inventory
    • Team Management
    • Gift cards
    • Cash discounts
    • Dashboard
    • Websites
    • Scan Data – Velocity ProPak
    • QR Codes
    • All Tools
  • Resources
    • FAQs
    • App Marketplace
    • Client Support
    • EBT Update
    • YouTube Videos
  • Blog
  • About Us
    • About Us
    • Affiliate Program
    • Careers
    • Update my TIN
    • Order Supplies
Client Login Contact Us Free Custom Quote

5 Tips to Avoid Merchant Account Holds, Freezes and Terminations

April 18, 2018

frozen_merchant_account

 

Nothing will result in a more complete standstill for your business than an issue with your business’s payment processing abilities. Regardless of whether it is a freeze on your processing ability, withheld funds or the termination of your processing account, these situations can often result in devastating effects for your business. The good news is there are some things you can do to avoid issues related to merchant account holds, freezes and terminations, with five tips found here.

 

Choose the Right Processor

There are two types of agreements: a direct agreement and third-party agreement. In some cases, merchants operating in specific industries may also require a unique direct agreement, which is called a high-risk merchant account. It is important that you get to know the options available to determine which one is right for your business. After all, a small retail shop and a large box store will not need the same processing power or abilities.

 

Set Expectations and Stick to Them

Did you know that making too much money may become an issue? Processors want to see stability. They expect you to have a steady processing volume from one month to the next.

When filling out a traditional merchant account application, you will present information about your average transaction size and expected volume. This information is then used to identify any suspicious activity.

If you want to avoid issues, make sure to let your processor know if you are going to have a busy month and take in more sales and transactions than usual. This will help prevent the aforementioned flags for suspicion.

 

Sell What You Said You Would Sell

If you misrepresent your business and don’t sell what you said you would, this may lead to having your account terminated. You should never try to lie or “fudge” the details on an application because you may be considered a high-risk industry that would require higher interchange fees. While it may be tempting to try to bend the truth to reduce the fees you have to have, in the long run this is going to backfire.

 

Don’t Mix Accounts

Another way you may have your merchant account closed is by using it for several types of business. Any type of suspicious or unusual activity can result in a review.

If you have several transactions that don’t “fit” the type of business you claim to be doing, it can indicate something inappropriate. It may also affect your processing limits.

 

Minimize Chargebacks and Fraud

While chargebacks are inevitable for most businesses, they also represent a fast way to freeze, hold or terminate an account. This is a clear indication that the processors aren’t delivering the services or goods promised.

To avoid chargebacks, provide customers with the high-level product or service promised, or provide gift cards rather than a chargeback to the credit card processor.

 

Handling Problems: Prevention Is Key

If you do face merchant account holds, freeze or termination, you will have to work with your processor to have it reinstated. The best option is to avoid this from occurring to begin with by using the tips found here. You can also contact us at Velocity Merchant Services to receive help and guidance with choosing the right processor of find us online at getvms.com

Categories: Chargeback, Freezes and Chargebacks, Merchant Holds

Primary Sidebar

Payment Solutions

  • Terminals / In-person
  • POS
  • Websites

Business Solutions

  • Grocery
  • Restaurants
  • Full Service Restaurants
  • Quick Serve Restaurants
  • Salons & Spas
  • Retail
  • Health & Wellness
  • Professional Services

More Tools

  • Capital
  • Cash discounts
  • Payroll
  • Marketing
  • Loyalty
  • Inventory
  • Team Management
  • Gift cards

Resources

  • FAQs
  • EBT Update
  • Client Support
  • YouTube Videos

About Us

  • About Us
  • Affiliate Program
  • Join Our Team

Velocity Merchant Services

3051 Oak Grove Rd. 2nd Floor
Downers Grove, IL 60515
Phone: 888-902-6227
Fax: 888-902-6229
info@getvms.com

Velocity Merchant Services (VMS) is a registered ISO of Deutsche Bank Trust Company Americas. The Clover® trademark and logo are owned by Clover® Network, Inc., a First Data company. EMV® is a registered trademark in the U.S. and in other countries, owned by EMVCo, LLC. Apple Pay®, Apple, the Apple logo, and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. All other trademarks, service marks and trade names referenced in this material are the property of their respective owners.

Copyright © 2023, All rights reserved, Velocity Merchant Services Privacy Policy|Terms of Use

This website uses cookies to improve your experience. Accept Reject
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
Disclaimer

By providing your contact information, you consent to receiving calls and/or text (“SMS”) messages from us including those made by use of an automatic telephone dialing system (“ATDS”) about our relevant content, products and services. Standard messaging & data rates apply.

Clover Station 2.0 Point-of-Sale

This all-in-one POS solution includes everything you need to streamline your business. 

More counter room thanks to a space-saving design: The 14-inch, HD display and screen swivel feature keep customer engagement clean and simple.

Faster apps and business: Let the 8-core, state-of-the-art Qualcomm® Snapdragon™ processor and 4GB memory handle the toughest tasks.

Modern payment technology: Accept mag stripe cards, EMV chips, contactless payments and more.

A versatile app market: Use Clover’s robust apps to give your business endless possibilities.