Your thoughts on signing a Personal Guarantee when getting a merchant account? - GoFuckYourself.com

PhillipB · 07-28-2005, 01:46 PM

Did you sign one? Or did you find an alternative? Are they a necessity? Have you ever been burned by one?

Chio The Pirate · 07-28-2005, 02:53 PM

YARGH! I have something like 15 merchant accounts, and never had to sign one. Is this a new thing?

EDIT: Oh yeah.... BUMP for a business thread.

PhillipB · 07-28-2005, 03:09 PM

thanks for the bump chio!

vicki · 07-28-2005, 03:15 PM

Philip

I'm in the business of setting merchant accounts up for people and business'
I'd question the reason the bank asks for it

we can talk via icq, email or phone if you want some answers

DaddyHalbucks · 07-28-2005, 03:37 PM

It's usually required. If you have a merchant account without a personal guarantee, I'd be surprised.

The point is to prevent fraud. Credit card money is normally wired into your merchant account (business bank account) within 48 hours. However, it takes far longer for the banks to collect the money from the card holder. Consumer credit card statements usually go out monthly, and consumers take time to report any improper charges.

Hence, there is an opportunity for fraud where an unscrupulous merchant could ring up alot of phony charges, collect the funds in a day or two, and then head south, leaving the banks with the headache. If the only offset is a drained or non-existent corporate bank account, and the only guarantor is a worthless or defunct corporation.. I think you can see the point.

If you aren't going to commit fraud, there are few risks. Definitely talk with your lawyer though.

At least this is how is used to work.

vicki · 07-28-2005, 03:46 PM

Many US banks have a standard clause in their contracts that are personal guarantees .. it all depends on the individual bank
a lot of the offshore banks do not have this

Ycaza · 07-28-2005, 04:05 PM

hey phillip give me a call asap 714 717 5813 we should talk

07-28-2005, 01:46 PM	#1
PhillipB Just a Simple Carpenter Join Date: May 2003 Location: Your mom's house... Posts: 1,338	Your thoughts on signing a Personal Guarantee when getting a merchant account? Did you sign one? Or did you find an alternative? Are they a necessity? Have you ever been burned by one?

07-28-2005, 02:53 PM	#2
Chio The Pirate Confirmed User Join Date: Oct 2002 Location: YARGH! On me big sailboat with the skull flags * * ICQ: 39-183769 Posts: 946	YARGH! I have something like 15 merchant accounts, and never had to sign one. Is this a new thing? EDIT: Oh yeah.... BUMP for a business thread. __________________ Need to get a site indexed in a few days? Want thousands of targeted, quality hits to your site? Want to beta test something that will revolutionize the way companies, and individuals advertise online.? Click here to take a look at Bliggo

07-28-2005, 03:15 PM	#4
vicki Confirmed User Industry Role: Join Date: Feb 2002 Location: Deep in the heart o' Texas Posts: 1,478	Philip I'm in the business of setting merchant accounts up for people and business' I'd question the reason the bank asks for it we can talk via icq, email or phone if you want some answers __________________ If at first you do succeed - try to hide your astonishment. HR merchant accounts from 3.45% solid biz since 98 victoriakozub AT gmail.com skype: victoria.kozub \| ICQ: 74296746

07-28-2005, 03:37 PM	#5
DaddyHalbucks A freakin' legend! Industry Role: Join Date: Feb 2004 Location: Las Vegas, Nevada USA Posts: 18,975	It's usually required. If you have a merchant account without a personal guarantee, I'd be surprised. The point is to prevent fraud. Credit card money is normally wired into your merchant account (business bank account) within 48 hours. However, it takes far longer for the banks to collect the money from the card holder. Consumer credit card statements usually go out monthly, and consumers take time to report any improper charges. Hence, there is an opportunity for fraud where an unscrupulous merchant could ring up alot of phony charges, collect the funds in a day or two, and then head south, leaving the banks with the headache. If the only offset is a drained or non-existent corporate bank account, and the only guarantor is a worthless or defunct corporation.. I think you can see the point. If you aren't going to commit fraud, there are few risks. Definitely talk with your lawyer though. At least this is how is used to work. __________________ Boner Money

07-28-2005, 03:46 PM	#6
vicki Confirmed User Industry Role: Join Date: Feb 2002 Location: Deep in the heart o' Texas Posts: 1,478	Many US banks have a standard clause in their contracts that are personal guarantees .. it all depends on the individual bank a lot of the offshore banks do not have this __________________ If at first you do succeed - try to hide your astonishment. HR merchant accounts from 3.45% solid biz since 98 victoriakozub AT gmail.com skype: victoria.kozub \| ICQ: 74296746

07-28-2005, 03:09 PM	#3
PhillipB Just a Simple Carpenter Join Date: May 2003 Location: Your mom's house... Posts: 1,338	thanks for the bump chio!

07-28-2005, 04:05 PM	#7
Ycaza Confirmed User Industry Role: Join Date: Feb 2005 Location: the 805 Posts: 4,290	hey phillip give me a call asap 714 717 5813 we should talk __________________ Caz Thrush Head Honcho [email protected] http://thrushtech.com ICQ: 304883574 do people still icq?