A lot of merchants think finding the perfect online merchant account providers is just a matter of depending on word of mouth and signing up with the provider that everyone is raving about. However, the actual truth is that you still need to take time to research properly in order to locate a really good merchant account provider and payment processor, instead of blindly taking in other people’s recommendation. Trying to spot and anticipate merchant account problems before they happen can also save you a lot of time without running around in circles, as well as help you save your earnings. Here are some basic problems and ways to counter them:

Disaster #1: Beware of providers who freeze your account if you made too much money!
Yes, you read it right. Merchant account providers have been known to freeze business owners’ accounts if they made too much money in a short period of time. Apparently a lot of merchant account owners have reported that they face immense problems when it comes to this issue. They claimed that the merchant account providers withhold their money until they are certain that all the customers have gotten their card statements in the mail, and that no complaints of fraud were reported. This could mean that business owners could have their hard earned cash frozen up to six months at length! An Internet marketer who earned $4 million in a short period of time found that his provider blacklisted him and took half of his profits as fees. That’s $2 million lost for not doing anything wrong at all!

This is quite a hassle for people who do not know how much money is too much. Plus, won’t you all agree that it’s preferably to be MAKING money rather than LOSING them? Should there be a limit as to how much an e-Commerce business owner should be earning?

The solution: The answer to your problem lies in seeking the right merchant account provider that will not set a limit to the amount of money you can earn from month to month. It is almost impossible to anticipate just how much cash rolls in so if you were asked to estimate how much you will earn in a month, politely decline and look for another merchant account provider who is more sensitive and understanding to your needs.

Disaster #2: Sell something different and you could be shut down
One online marketer who began selling pressed flowers to complement her scrapbook supplies business found that her merchant account provider decided to freeze her account. The reason? She was “veering” away from her initial business plan without their approval!

The solution: Even if you cannot foresee additions to your business plans in the future, you should be able to be as general as possible when submitting the original plan to your merchant account providers. Don’t say you’re selling “jam” but instead, tell them you’ll be selling “food”. Also, if you decide to sell two or more completely different products, be prepare to enlist help from separate providers.

Disaster #3: Too many charge backs can lead to fraud accusation
When and if too many charge backs occur, you may find yourself being accused of heading fraudulent activities. When this happens, you may find yourself being blacklisted not only by merchant account providers but also by your local banks.

The solution: Ensure you have a no-questions-asked refunds policy in place. Try to call up or email your customers to verify the sale and if they cannot be reached, refund them anyway. Your credibility and profits are on the line.

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