Chargebacks911® COO is a Leading Expert on Chargebacks
Chargebacks911® co-founder and COO Monica Eaton is one of the industry’s most sought-after thought leaders on chargebacks. As a result, her expertise is regularly called-on to answer a number of questions on the subject, both from business figures as well as the media.
In the most recent edition of her weekly Your Business Credit column on CreditCards.com, Elaine Pofeldt sought Monica’s insight to address one concerned business owner’s chargeback problems.
The Problem:
The merchant lamented that the funds in his merchant account were frozen after sustaining thousands of dollars in sudden chargebacks. Despite providing all requested documents, the remaining money in the merchant’s account was withheld.
My bank account is in the red and bouncing checks…Do I have any rights? Should I contact an attorney? Please help me.”
Reporter Elaine Pofeldt asked for Monica’s assistance. Is there anything this merchant can do to minimize the damage done by this sudden revenue hold?
The Reality:
Unfortunately, this merchant has little in the way of real options to minimize the damage resulting from his current predicament.
“You are currently perceived as a risk,” Monica said, explaining why the acquiring bank placed the hold on the merchant’s account. “In order to reduce potential liability, the bank is retaining your revenue to cover expenses associated with any chargebacks you might receive in the future.”
Of course, as Monica pointed out, a revenue hold is only the tip of the iceberg in terms of the potential ramifications of exceeding the card networks’ prescribed chargeback thresholds. If the acquirer determines that the merchant represents a significant long-term risk to the financial institution’s profitability, processing capabilities will simply be revoked.
More Information About Revenue Holds:
What to Do When Your Merchant Account Has Been Closed
Can Banks Implement a Revenue Hold?
What is a Merchant Account Reserve?
Don’t Give Up Hope
Fortunately, Mario’s predicament does not necessarily spell doom for his business. By taking quick action to pinpoint and address the root causes of the organization’s chargebacks, it is possible to bring his business back from the edge of disaster and return it to a state of thriving profitability.
That’s what Chargebacks911® is all about. Our one-of-a-kind services enable merchants to quickly reduce their chargeback instances, then implement customized solutions to ensure long-term business sustainability.
