Merchant account termination is a painful experience for any merchant. But it can be reversed with the help of some relevant and effective ways applicable to this situation. Termination of an international merchant account is more common in the case of high-risk businesses. But don’t worry, if you are going through the same experience and need a solution, you need to read below. We are sharing some practical ways of post-termination strategy.
Find out the reason for termination
To reach the destination, you should know the right direction. After the termination of your merchant account, your first job is to find the reasons behind the termination. Only then you can work on the relatable solution. Here are the common reasons for termination.
- Fraud – It is a serious concern for an acquiring bank. The major fraud incidents involve fraudulent transactions, misuse of credit card details, overcharging customers, and several more.
- Chargebacks – Oh, how can we forget about it as a merchant is always afraid of chargebacks? A chargeback ratio higher than the ideally acceptable ratio of 1-2% can cause termination.
- Suspicious activity – This can include activities like maintaining multiple merchant accounts by a merchant. Depositing transactions for other merchant accounts is also illegal.
- Compromised payment security – If the acquirer finds any glitch in the security provided by a global Payment gateway to a high-risk merchant, termination can happen.
Methods to bring back your business after merchant account termination
Termination is a serious problem but it should not be a permanent situation. There are ways that can bring your business back to action.
- Gather your statements – Once you receive the notification of termination, gather all your processing statements of at least the last six months. They can be used as your shield to prove that you were genuine in transaction management. If it is due to a high rate of fake chargebacks, you will have your transaction descriptors attained from monthly reports.
- Ask your acquirer for a reason – Even if you are clear about the reason for termination, send a mail to your acquirer asking for the reason. When you will need to apply for a new international merchant account, you need this as a statement from the previous acquiring bank. It is always necessary to have ample documents and proof from your last merchant account provider. The new acquirer will have many questions and the more details you have, the easier will be the process to get approved for a new account.
- Check if you are in the MATCH list – Yes, as you know the merchants who experienced a termination are listed in the MATCH list. You need to check whether your business is on the list. The procedures for the listed and non-listed merchants for a new merchant account are different. You can also talk to a merchant account expert about the MATCH list and its effect on a business after termination.
- Look for a new acquirer – Well, the terminated account is past and now you have to move on with a new merchant account. This time, it is better to keep a more practicable vision and accept the realities. A bitter fact about termination is that financial bodies deny working with a terminated merchant account. In such a situation, you need a high-risk merchant account provider like Webpays that also provides fraud prevention and chargeback protection services.
- Be transparent with the new account provider – When you apply for the new merchant account, it is your professional and moral responsibility to be true. There will be questions about the reasons for termination and much more in the name of formalities. Also, let the new account provider know about the indiscretions by the previous merchant account provider.
How Webpays help merchants with a terminated merchant account?
Webpays accept requests from businesses with a previously terminated merchant account. The provider has a vast network with acquiring banks and it also offers payment gateway solutions. It means, if you reach out to Webpays, you will not be disappointed.
The account provider has its formalities and you just need to follow the procedure smoothly. The dedicated team makes all the efforts to get you through the formalities of a high-risk merchant account provider. Webpays have helped many merchants with the same condition. Remember, your goodwill in the past months can be a strong shield in getting approved for the new account.
The only purposeful conclusion in the case of termination can be the second chance that every merchant deserves. However, those who commit wrong things should certainly remain devoid of all facilities as they spoil the hard-earned goodwill of other merchants. If something goes wrong, not only a business but also an industry loses its trustworthiness in the customers. As long as, you are following the right methods in business operations, termination is a rare thing to happen. If you are worried about fake chargebacks, then work on your security methods.