What to Do if Your Merchant Account Gets Shut Down

When a business relies solely on a merchant account to process customer payments, having the merchant account shut down can be financially painful. If a business’ account has been shut down, it’s critical to get up and running as quickly as possible to prevent total devastation to the business.

Credit card processors have reasons for terminating merchant accounts, and usually do it with little or no warning.

For some businesses, getting shut down isn’t a complete surprise. With excessive charge backs and a failure to settle with customers, it’s rather easy to get terminated. In these cases, businesses may land on the TMF (terminated merchant file) or MATCH list, which can prevent them from being approved for a new merchant account with other providers.

Sometimes a merchant’s business practices will lead to termination. If a merchant does not carry enough funds in their bank account to cover credit card processing fees, the bank immediately questions the financial viability of the business. In other cases, a merchant’s failure to adhere to guidelines, such as maximum monthly processing volume, may be a reason for termination.

In recent cases, some processing companies have simply done a reassessment of the risk involved with certain industries – and then chosen to no longer service those businesses that are part of that ‘high risk’ industry. This has happened to travel service businesses, electronic cigarette retailers and several other industries.

If your merchant account has been shut down, contact your credit card processing provider and request an explanation. Depending on the circumstances, there’s a possibility it can be reinstated quickly.

But if the processor is unwilling to reinstate your account, you’ll need to find another merchant account as soon as possible. Simply being terminated does not mean that you are a high risk merchant and you should be able to get approval from another provider. Collect the past six months of processing statements so that you’re ready to present them to a new processor upon request.

If you’ve been terminated based on risk but do not have excessive charge backs, you should be clear from the TMF. As a merchant selling products classified as higher risk, you will need to find a high risk provider. Getting approved is not that difficult, but as a high risk merchant, you can expect to pay slightly higher rates.

If your merchant account has been shut down and you need some advice, contact The Transaction Group (TTG). At TTG, we find merchant account solutions for all types of businesses throughout the world.

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Why do businesses choose to work with The Transaction Group? 

  • We aim for 100% customer satisfaction. We understand that the customer comes first. At the end of the day, if the customer is not happy, we’re not happy.
  • We offer a FREE rate analysis to every business. In most cases, we can save a business up to 25% on existing rates and fees. But if we can’t beat a customer’s rate, we’re upfront from the start. We don’t waste the customer’s time.
  • We are reliable and always available. If a customer has any concerns, we’re available even after business hours. We’ll address any issues immediately.
  • We don’t believe in one-size-fits-all.We provide solutions based on the specific requirements of each and every business. What’s best for one small business may not work for another.
  • We have a fast & easy setup process. In most cases, we offer a fast and easy approval and set up. While some high risk businesses can have longer underwriting times, we keep the customer informed throughout the process and work for fast approvals.
  • We have solutions for every business type. From low-risk card-present credit card processing solutions to payment processing solutions for high risk e-commerce stores, we’ve got it all.

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At The Transaction Group, customer satisfaction is our priority. Allow us to show you what we can do for you.

Let’s Work Together.

At The Transaction Group, customer satisfaction is our priority. Allow us to show you what we can do for you.

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