My revenue doubled recently and this has caused my payment processor to hold all funds I process until they have "reviewed" my account. We only get 1 or 2 chargebacks per month and our average ticket size hasn't increased at about $40. We sell simple home decor items. I'm scrambling to set up with a new processor but I'm wondering if anyone has any advice for me? A business can not live on expenses alone.
Msg#: 4607606 posted 3:12 am on Sep 6, 2013 (gmt 0)
We only get 1 or 2 chargebacks per month
This not high at all. Too many shoppers use Paypal because they believe that they can easily make a claim and get something for nothing. Years ago our bank realised this and starting charging a claim fee which quickly slowed the phoney claims. Recently Paypal revised their shoppers money back guarantee and the changes are mostly to curb false claims.
The processor is floating you a loan until they receive the payments from Visa/MC. They want to make sure you ship the product. Did they give you a date that they would release the funds? This happened to us many years ago. It was a surprise at the time, but we made it through. It hasn't happened since.
Msg#: 4607606 posted 6:12 am on Sep 10, 2013 (gmt 0)
I have not been given a date. They say there is only one person I can discuss it with and I called, emailed, even called his department and asked them to give him a message to contact me and I heard nothing back. They now have about ~$50K of mine and literally no one there will even talk to me about it.