Tons of chargebacks - consequences? - GoFuckYourself.com

Dr.Manhattan · 11-06-2012, 10:07 AM

If you have your own merchant account (not just IPSP) and you get TONS of chargebacks (20% or more), what will happen?
My friend said that you just lose your merchant account.

But I'm pretty sure, you will get a big fine or something like this.
I'm right?

LiveDose · 11-06-2012, 10:10 AM

Both plus good luck getting a merchant account again if you lose it for that reason.

20% is off the charts.

Dr.Manhattan · 11-06-2012, 11:35 AM

Any other opinions?

lucas131 · 11-06-2012, 11:37 AM

dont use stolen ccs to generate sales

Vapid - BANNED FOR LIFE · 11-06-2012, 11:46 AM

They will impose fines up to $50k for that.

xeris · 11-06-2012, 11:48 AM

Depends on your merchant, but yeah BIG fines and loose your merchant accounts

Itchy · 11-06-2012, 11:51 AM

Yea that's crazy 5% is too high even

Dr.Manhattan · 11-07-2012, 02:03 PM

Thanks you guys

kcampbell1 · 11-07-2012, 02:25 PM

The rule is if you have over 1% AND over 100 chargebacks in any given month you may be fined and terminated. It depends on the bank..

EddyTheDog · 11-07-2012, 02:29 PM

Quote:

Originally Posted by kcampbell1

The rule is if you have over 1% AND over 100 chargebacks in any given month you may be fined and terminated. It depends on the bank..

I saw it was 1% before - That seems very low for a high risk product.

I suppose that is why the billers are so quick to give refunds.

_mC_ · 11-07-2012, 02:37 PM

MC is 1% but trying to be more flexible.
Visa is about 1.5% but staying near 1% is best!
And yes, IPSP risk is a tricky gig!

kcampbell1 · 11-07-2012, 02:38 PM

That is the Visa rule...
MasterCard recently changed theirs to 100 ( used to be 50 ) and 1.5% instead of 1%.

I hope that helps..

sperbonzo · 11-07-2012, 06:09 PM

If you have that many, you could end up on the terminated merchant file, and never get a merchant account again. Give me a call tomorrow and lets talk about it. I would be happy to give you some advice about this situation.

.

tony286 · 11-07-2012, 06:11 PM

I heard it also kills your credit that happens.

Aquarius · 11-07-2012, 06:11 PM

That's way too high

RapidFinancialSolutions · 11-12-2012, 10:21 PM

Have you figured out why you are getting so many chargebacks?

I'm surprised they haven't shut you down, as the others are right, it's between 1-1.5%, & most merchants don't know this as whoever got them their account never bothered to tell them.

That's why it's very important you choose a merchant account consultant you can trust, not just some agent or ISO out to set you up so they make money.

Everyone wants to make money, but customer service & knowledge is VERY important & unfortunately in this industry it's almost unheard of.

Let me know if you need any help with understanding the industry & merchant accounts.

I'm here to help people financially with their businesses.

Michelle
Rapid Financial Solutions
www.rapidfinancialsolutions.com

11-06-2012, 10:07 AM	#1
Dr.Manhattan Registered User Join Date: Oct 2009 Posts: 97	Tons of chargebacks - consequences? If you have your own merchant account (not just IPSP) and you get TONS of chargebacks (20% or more), what will happen? My friend said that you just lose your merchant account. But I'm pretty sure, you will get a big fine or something like this. I'm right?

11-06-2012, 10:10 AM	#2
LiveDose Show Yer Tits! Industry Role: Join Date: Feb 2002 Location: Somewhere Out there... Posts: 25,792	Both plus good luck getting a merchant account again if you lose it for that reason. 20% is off the charts. __________________ Scammer Alert: acer19 acer [email protected] [email protected] Money stolen using PayPal

11-06-2012, 11:51 AM	#7
Itchy Datetronix.com Industry Role: Join Date: Jan 2001 Location: Chill-A-Wack BC Posts: 6,525	Yea that's crazy 5% is too high even __________________ ICQ: 2588560 Skype: Pornocop

11-07-2012, 02:25 PM	#9
kcampbell1 Confirmed User Industry Role: Join Date: Feb 2005 Posts: 100	The rule is if you have over 1% AND over 100 chargebacks in any given month you may be fined and terminated. It depends on the bank.. __________________ Karen Campbell VP OrbitalPay/GET [email protected] ICQ: 153467646 Phone: 888-776-8801 X 216 Skype: Orbitalpay.karen

11-07-2012, 02:37 PM	#11
_mC_ Confirmed User Join Date: Jun 2002 Location: Fort Lauderdale, FL Posts: 1,195	MC is 1% but trying to be more flexible. Visa is about 1.5% but staying near 1% is best! And yes, IPSP risk is a tricky gig! __________________ Process and Settle in USD/EUR/GBP KGreer at SegPay dot com ICQ~234-382-798

11-06-2012, 11:35 AM	#3
Dr.Manhattan Registered User Join Date: Oct 2009 Posts: 97	Any other opinions?

11-06-2012, 11:37 AM	#4
lucas131 ¯\_(ツ)_/¯ Industry Role: Join Date: Aug 2004 Posts: 11,475	dont use stolen ccs to generate sales

11-06-2012, 11:46 AM	#5
Vapid - BANNED FOR LIFE Barterer Industry Role: Join Date: Aug 2004 Posts: 4,864	They will impose fines up to $50k for that.

11-06-2012, 11:48 AM	#6
xeris Registered User Industry Role: Join Date: Aug 2012 Posts: 14	Depends on your merchant, but yeah BIG fines and loose your merchant accounts

11-07-2012, 02:03 PM	#8
Dr.Manhattan Registered User Join Date: Oct 2009 Posts: 97	Thanks you guys

11-07-2012, 02:38 PM	#12
kcampbell1 Confirmed User Industry Role: Join Date: Feb 2005 Posts: 100	That is the Visa rule... MasterCard recently changed theirs to 100 ( used to be 50 ) and 1.5% instead of 1%. I hope that helps.. __________________ Karen Campbell VP OrbitalPay/GET [email protected] ICQ: 153467646 Phone: 888-776-8801 X 216 Skype: Orbitalpay.karen

11-07-2012, 06:09 PM	#13
sperbonzo I'd rather be on my boat. Industry Role: Join Date: May 2003 Location: Miami, FL Posts: 9,748	If you have that many, you could end up on the terminated merchant file, and never get a merchant account again. Give me a call tomorrow and lets talk about it. I would be happy to give you some advice about this situation. . __________________ Michael Sperber / Acella Financial LLC/ Online Payment Processing [email protected] / http://Acellafinancial.com/ ICQ 177961090 / Tel +1 909 NET BILL / Skype msperber

11-07-2012, 06:11 PM	#14
tony286 lurker Industry Role: Join Date: Aug 2002 Location: atlanta Posts: 57,021	I heard it also kills your credit that happens.

11-07-2012, 06:11 PM	#15
Aquarius Confirmed User Join Date: May 2004 Location: Mom's basement Posts: 4,754	That's way too high

11-12-2012, 10:21 PM	#16
RapidFinancialSolutions Confirmed User Industry Role: Join Date: Mar 2003 Location: Las Vegas Posts: 106	Have you figured out why you are getting so many chargebacks? I'm surprised they haven't shut you down, as the others are right, it's between 1-1.5%, & most merchants don't know this as whoever got them their account never bothered to tell them. That's why it's very important you choose a merchant account consultant you can trust, not just some agent or ISO out to set you up so they make money. Everyone wants to make money, but customer service & knowledge is VERY important & unfortunately in this industry it's almost unheard of. Let me know if you need any help with understanding the industry & merchant accounts. I'm here to help people financially with their businesses. Michelle Rapid Financial Solutions www.rapidfinancialsolutions.com __________________ Merchant Accounts for the high risk industry. I turned visitor messaging off, since the site doesn't tell me when I have messages, so please e-mail me from my site. Thank you