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Payment processor holding all funds!

     
5:44 pm on Sep 5, 2013 (gmt 0)

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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.
6:34 pm on Sept 5, 2013 (gmt 0)

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Is it Payscampal ?

Or 2checkscam ?

Try Stripe ! Thy seem more honest and instant setup !
12:42 am on Sept 6, 2013 (gmt 0)

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We only get 1 or 2 chargebacks per month ...


I dunno; that seems high. How many is that as a percentage of total orders?
3:12 am on Sept 6, 2013 (gmt 0)

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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.
2:58 pm on Sept 6, 2013 (gmt 0)

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In most "western" jurisdictions processors have obligations to guard against possible money laundering. This is grossly inconvenient for the honest customer and I doubt very much if it is effective.
5:57 pm on Sept 6, 2013 (gmt 0)

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I guess I must be lucky in my niche... I've only had one charge-back in over 10 years. I'm probably not doing the same volume as a lot of people though.
6:09 pm on Sept 6, 2013 (gmt 0)

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This not high at all.

Depends on if they went from 10 to 20 orders per month, or from 1000 to 2000 orders. What *percent* of his orders result in chargebacks?
11:26 am on Sept 7, 2013 (gmt 0)

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Is it Payscampal ?

Or 2checkscam ?

It's neither of these. It's a more conventional merchant account.

What *percent* of his orders result in chargebacks?

Orders doubled from about 30 per day to about 60 per day so it's roughly .1%.
6:06 pm on Sept 9, 2013 (gmt 0)

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It's probably not your chargeback rate.

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.
6:12 am on Sept 10, 2013 (gmt 0)

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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.
7:31 am on Sept 11, 2013 (gmt 0)

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They now have about ~$50K of mine and literally no one there will even talk to me about it.


I have heard this many times before in the software and gaming industry, and it was by the merchant who you would suspect last.