Payment Hold And Third Party Merchant Account
The Merchant Acquirer or the 3rd party payment provider or any acquiring institution is supposed to wire funds to merchant’s business bank account as per the schedule in the merchant account agreement. Unfortunately, this does not go the same way with many high-risk merchants. There may be many reasons behind the delay of payments from the third party processor. Here are a few of them.
- Not Touching Minimum Wire Volume
Many processing companies place a clause about minimum funds that must be in the merchant account to initiate the wire. In case if your account does have funds lower than the minimum wire volume, then you may have to wait for the next payment run.
- Setup And Other Charges.
Many High-risk merchants have to accept a setup charge. This amount is deducted from the first payout. Please keep in mind that the payout may not be executed till the time the setup charge and minimum wire volume are achieved. Also, keep in mind if there are Rolling reserve/MDR/Transaction Charges.
- To Many Chargebacks
If your account experiences too many chargebacks or returns, then the credit card processor may place a hold on the settlement till the time they are done with a review and rule out any future massive credit risk. Its vital for High-Risk Merchants all across the world, including those in the USA and European Union to keep a track on returns and chargebacks. If you need chargeback notification services, then talk to us. We have solutions that may help.
- Wrong Banking Information
In a rare situation, this may happen. To rule out the possibility of wrong bank credentials cross-check with the processor is they have the correct account information.
- Spike In Sales Volume And Transactions. Not Hitting The Projected Sales Graph.
A sudden spike in sales or sudden loss may indicate some serious problems. These days merchant acquirers proactively monitor accounts and utilise various tools including some that are backed by Artificial Intelligence.
- Account Under Audit/Processor Under Audit
If the risk team puts your account under audit or if the card schemes put the PSP/IPSP/Aggregator under scrutiny then sometimes the settlements may get delayed.
- Working With A Fake Company.
We are still very new to the industry(4 Years plus) but have come to know about may sites that stopped offering support to merchants. These sites probably make payments for the first few weeks, but they shut down any time. After that, there is no easy way to get hold of them. When you find Sites that offer Zero Chargeback Payment Gateway, NO Rolling Reserve for High-Risk Merchants And Credit card processing to merchants from all industry then ask twice are they stable and safe. Your Chargeback ratio must be below 1%, and you can not get approved from prohibited industries. Luckily the number of these fake processors is meagre, but still, always investigate where you are joining hands. Read the agreements. Check reviews.
Contact us today if you need a High Risk Merchant Account.