A rare, vital subject not often spoken about concerning merchant account credit card freezes. It’s considered an unbearable set-back when it comes to your finances. It is also a hindrance to your business.
The second your merchant account experiences a hold, you cannot access any of your funds until they feel the issue is resolved. The problem with this is you will not be able to send or transfer funds or allow transactions involving a credit card. This could take days, weeks, months, or even years.
You may have heard of some off-the-wall merchant account stories leaving you with an endless means of questions in your mind. A portion of Internet users feel that the merchant accounts are responsible for the development of stories, others beg to differ.
There is a root to every cause attached with some form of an effect—either positive or negative. In such cases, the banks are the entities that place holds on the merchant accounts until issues are resolved.
This is to ensure their security and safety of invested funds made by the banks. You can avoid experiencing a freeze on your account and having your funds tied up restricting you from having complete access to your personal finances.
Fraudulent activities are often the reason why merchant accounts are put on hold. Heavy situations involve deep investigations and further research as to why there is a red flag on the account. Normally, if an individual chooses to activate his or her own merchant account with the purpose of intent to use the account to manipulate the system, the first line of defense makes the providers aware of the situations.
Any transaction made through a merchant account that is not legitimate can hold you accountable for any form of faulty business trades. Providers continually monitor all of their business clients for signs that a merchant account is being abused. Either one of two things can happen. You can get your account off hold and your funds released or you can experience losing the funds in your account for a certain period of time.
You could encounter further measures as a result of a closed account. This is based on the reason for termination of a person’s account and the level of investigation taken place.
It may involve having the department of treasury contacting you and asking detailed questions. There is a chance of having to pay costly fines or face criminal charges for engaging in fraudulent activity on the Internet. It will create what is called a Terminated Merchant File. If I were you, I’d do your best to affiliate yourself with a good merchant account.
In the event your bank ties up your account, it’s pretty much out of your control. You have to let it run its course. Most processes involving investigations take time and require legal help and advice. Be sure you have your i’s dotted and your t’s crossed.