Common Sense eCommerce

If you have a website that sells products and uses a merchant account, did you know that your merchant account comes with limits? Bad things can happen when you exceed your limit. Did you know that your bank may freeze your funds under some conditions?

Here is an article that gives some insight into this seldom discussed part of merchant accounts. Establishing a limit on an account is part of the Merchant Bank’s risk management process. The criteria for actually freezing funds varies from bank to bank, but it’s generally based on a certain amount over that monthly limit and other risk management criteria. Generally what they’re looking for are sudden spikes that may signify fraud.

The month of December is particularly problematic for this because sales for products are generally much higher due to the holidays. The first step in avoiding any funds freeze disaster is to know what your monthly limit is.

If December sales look like they’re going to push you over that limit, don’t be afraid to contact your merchant bank and tell them your having a good month. They should record this information and in most cases, they’ll understand that sales tend to spike this time of year.

Tags: Online Merchant Accounts, Merchant Account Limits, Merchant Account Funds Freeze

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