Monday, September 3, 2012

Stop Your Merchant Services Account from Experiencing A Freeze!

By John Adams


A rare, vital object not often spoken about is merchant account credit card freezes up. 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.

Have you heard about merchant accounts that make you want to learn more about them? Some internet users think merchant accounts have made up these stories, others disagree.

There can be good and bad effects. Banks are typically the ones who put holds on merchant accounts to secure the funds invested at the bank. Freezes can limit your funds and prevent you from accessing your account.

Merchant accounts are often limited because of fraud. Investigations and other research are needed to understand a flag, and if the purpose is deemed to be to manipulate the system, providers are often aware and use this as a defense.

A merchant account can only be used for legally permitted transactions. Any illegal transactions can provoke serious consequences. Transactions through your merchant account are all the time monitored by the institutions that provided your account. If they think that your account is being used for undesirable activities, they may either close or freeze your account. If your account is closed, you get whatever money is in your account and if it is frozen, you won't be able to operate your account until all their suspicions are cleared.

If an account is closed, you could be in trouble because of an investigation that takes place. You could even be contacted by the Department of the Treasury wanting to know a lot of details about why the account was closed. Heavy fines could be incurred or even criminal charges if they think you've been conducting fraudulent business online. You don't want a Terminated Merchant File started on you, so it's best to become affiliated with a quality merchant account.

If your bank account gets frozen, you can't do anything to unfreeze it. The investigation process takes time and you need legal advice. Make sure you cross all your t's and dot your i's.




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