I am revisiting this question in 2020. Its a question that is ageless because merchant accounts get closed down for many reasons. If the account is closed then it means that the processor will not allow the merchant to accept any more transactions. This also means that the merchant should try to recover the funds from the processor as soon as possible or get a written confirmation for the time line of settlements. The second this the merchant must do is to search for a new processor. this can be done easily by searching for the competitors of the previous psp. As they may have similar risk appetite.
When a merchant account is closed that means the processor is looking forward to close the relationship, either it can temporary basis. This means that the processor may review your account. In the case of temporary, it can be because of chargeback ratio, flagging from bank or various types of other reasons. But in the case of permanent closure, it means that it is not going to re-activate your account, and in this case the merchant may be marked as TMF. If TMF trigger is active, then you can approach alternative payment solutions like Echeck, Cryptocurrencies, ACH and like more.
If you get this message or any similar message like “Merchant account is deactivated What does it mean” then there can be 3 reasons. Lets look at each of those.
- The Merchant Account Is Permanently Closed. This may be a case if the processing company finds high chargebacks and substantial Fraud Transactions on your gateway. You should seek assistance from the gateway provider for the same.
- The Merchant Account Is temporarily Deactivated. This means the processing company has deactivated the account for some simple reasons and can be reactivated after you share the clarifications.
- You are not using the correct SALT and Access Key Or merchant Account Keys on your site. This may happen if you are using default secret keys on your api script or plugin. Check if you are using correct details as received by your credit card processor.
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