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. :1orglaugh
But I'm pretty sure, you will get a big fine or something like this.
I'm right?

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

20% is off the charts.

Any other opinions?

dont use stolen ccs to generate sales :)

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

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

Yea that's crazy 5% is too high even

Thanks you guys :winkwink:

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 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!
:upsidedow

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..

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.





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I heard it also kills your credit that happens.

That's way too high

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