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Multiple Merchant Accounts May Help Save Money

To open a merchant account a business must sign a merchant service agreement. This agreement outlines the rules, fees, and limitations in respect to processing volume and average ticket size for the merchant account. If a business breaks any of the provisions in their merchant service agreement, the processing bank can hold or even terminate their account. In the case of an account being held, it will be unusable for as long as it takes the processing bank to investigate the breach of the agreement and make a ruling on whether or not to reinstate or terminate the account.

The following is a list of common reasons why businesses are found in violation of their merchant service agreement. Study these reasons so you can avoid making the same mistakes yourself and having Online Gaming, Casino and eSports Merchant Accounts held.

Excessive chargebacks – Chargebacks are taken very seriously by processing banks, and excessive chargebacks are a leading cause of merchant account holds and closures. A common misconception regarding chargebacks is that if they’re won they don’t count against you. That is simply not the case. Win or lose, a chargeback is a chargeback, and too many will lead to your merchant account being held, closed or worse. The best defense against chargebacks starts with a good offense. Be proactive in stopping chargebacks before they occur and develop a chargeback prevention plan for your business.
Processing in excess of declared processing volume and average ticket – When you apply for a merchant account, you have to declare your business’s average monthly processing volume as well as your average ticket. Many people forget about these numbers when they begin processing, but rest assured that processing banks don’t. These two figures are far more than a formality. Processing in excess of your declared volume or average ticket can lead to your account being held or terminated.
Using a merchant account to accept payment for undisclosed goods or services – Merchant accounts aren’t a free pass to accept credit card payments for whatever you’re selling on a particular day. When you applied for your merchant account, you would have had to provide a basic description of the goods or services that you’re selling. Using the account to accept payment for anything outside of this description would leave you in violation of you agreement and open to recourse by the processing bank.

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