Hi,

One of my customer's merchant account name was recently cancelled by a card processor gateway due to excessive chargebacks.

He recently came to know that his name is on Terminated Merchant File list. Will this affect his other merchant accounts purchased from different gateway company?

If yes, what are the alternatives for this?

Moved to E-Commerce Discussion.

Lois

It all depends. There are no balck & white answers. But we can give you generalities.

He can talk to some MAPs (merchant account processor) and he will need to explain the situation. Tell him to be honest with the MAP. The MAP will want to know what he has done to prevent chargebacks in the future. It might even be good to show a previous TOS and a new TOS to the MAP.

The MAP might charge him a higher discount rate or possibly require a reserve, usually 10% (depending on the charegbacks) for six months.

They might request both. He can still get a merchant account but being on the TMF is like having a bad credit report. You cannot expect to buy a new car and get a loan at 2.9%

Hi,

When they implemented modernbill (in mid of june), they didn't implemented fraud guaradian or verilogix call back feature. So, initially, the sales was good but limited number of that was fraud.

Since august, they have implemented FRAUD GUARDIAN + VERILOGIX Call back feature. Since then, there is no chargeback recorded (however, the sales is down almost 30%).

Apart from this, emregency contact number is published for billing (specifically for the customers who are not able to identify charge on thier card statement.)

We will try for your suggestions.

That will definitely help. Are they still processing? Or were they processing with another company and switched?

The TMF listing will be tied to his social security number, address, business address, urls, and show up on his credit report, so any other merchant accounts that he has signed for will show up on the TMF. It may take awhile for his other providers to pick up on it, but they will eventually, either thru periodic portfolio reviews or by his accounts sending up red flags for other reasons (increased chargebacks, average ticket or volume fluctuations, etc.).

Once his other providers pick up on the fact that he's on the TMF, there is a very high probability that they will terminate the accounts immediately, and hold whatever funds are in transit.

He should consider finding an alternative provider that accepts TMF merchants immediately, so that if his other accounts are terminated without notice, he is not left in the lurch with no processing capability. Also, he will have a better chance of approval if he applies now. If he waits until he gets terminated and it creates a gap in his processing history, approval will be more difficult.

Corey and Dave are absolutely correct. He is definitely at risk with his other merchant accounts any time a periodic audit is done or based on any other triggering event.

It is very difficult to find any ISO/MSP who will approve merchants placed on the TMF since a lot of sponsoring banks do not want to underwrite those kinds of accounts and thus a merchant on the TMF is often an auto-decline for the vast majority of processors.

But the sooner they start searching, the better.

So, You gusy have any suggestion for merchant processor who can approve their application?

I just checked with a processor who used to be able to approve them but they changed their policy to no longer do so.

So unfortunately, at this time I don't personally know of any U.S. merchant processor who can readily approve merchants on the TMF.

Originally posted by businessamerica
The TMF listing will be tied to his social security number

Is this true?

The TMF listing will be tied to more than just the SSN. They'll have the address on there and a lot more information.

Some MAPs will accept merchants on a case by case basis.

Yes,

Basically, it seems like they are accepting it on case by case basis.