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Merchant Account Cancelled - acai

by Johns_supps
6 replies
Hi Guys/Ladies,

I sell a range of supplements online. One of those supplements is ****. We do NOT run free trials on a negative option plan. They buy up front, if they want more they come back to order again. So no dodgy billing.

Anyway, our merchant account was frozen a few days back. It was frozen because we sell ****. We've sold to tens of thousands of customers (not just ****) and our chargeback % is something like 0.2% - so it's real low. Apparently Visa are doing a sweep of anyone selling ****, even if you are not screwing people over, and we've been unlucky enough to get caught in it.

I was wondering if anyone else has been hit by this visa sweep and had their merchant account restricted or closed down because you sell ****?

If so, what have you done about it? I don't think it's as easy as just going to a new bank and signing up with a new merchant account. But if you have, what bank did you go to?

Thanks

John
#acai #account #cancelled #merchant
  • Profile picture of the author seasoned
    OK, this sounds weird! HOW do they know you are selling ****? Do you have ANY idea how many sell it? DRUG STORES sell it! My local vitamin store sells it! The cafeteria at my current project sells it! Do I think that Visa is going to shut down vitamin shoppe, cvs, unidine, or walgreens? NO WAY!

    Steve
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  • Profile picture of the author moniez
    Dude, go over to Wicked Fire. Some of the guys over there might be able to help you out, but don't expect a warm welcome.
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  • Profile picture of the author Thomas Smale
    Originally Posted by Johns_supps View Post

    Hi Guys/Ladies,

    I sell a range of supplements online. One of those supplements is ****. We do NOT run free trials on a negative option plan. They buy up front, if they want more they come back to order again. So no dodgy billing.

    Anyway, our merchant account was frozen a few days back. It was frozen because we sell ****. We've sold to tens of thousands of customers (not just ****) and our chargeback % is something like 0.2% - so it's real low. Apparently Visa are doing a sweep of anyone selling ****, even if you are not screwing people over, and we've been unlucky enough to get caught in it.

    I was wondering if anyone else has been hit by this visa sweep and had their merchant account restricted or closed down because you sell ****?

    If so, what have you done about it? I don't think it's as easy as just going to a new bank and signing up with a new merchant account. But if you have, what bank did you go to?

    Thanks

    John
    Why dont you switch to something like 2checkout until you can get a longer term solution sorted?
    Signature
    I specialize in selling websites over $10,000 in value. No obligation, confidential valuation here.
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  • Profile picture of the author thewealthywiseman
    Originally Posted by Johns_supps View Post

    Hi Guys/Ladies,

    I sell a range of supplements online. One of those supplements is ****. We do NOT run free trials on a negative option plan. They buy up front, if they want more they come back to order again. So no dodgy billing.

    Anyway, our merchant account was frozen a few days back. It was frozen because we sell ****. We've sold to tens of thousands of customers (not just ****) and our chargeback % is something like 0.2% - so it's real low. Apparently Visa are doing a sweep of anyone selling ****, even if you are not screwing people over, and we've been unlucky enough to get caught in it.

    I was wondering if anyone else has been hit by this visa sweep and had their merchant account restricted or closed down because you sell ****?

    If so, what have you done about it? I don't think it's as easy as just going to a new bank and signing up with a new merchant account. But if you have, what bank did you go to?

    Thanks

    John
    John with all the rebill offers that have littered the affiliate marketing landscape recently it is no longer the percentage of charge backs but rather the number of chargebacks.
    The threshold is as low as 50 chargebacks. So if your doing thousands of sales you probably hit the number that can get you shut down.
    No its not fair.
    There are offshore places where you can get a merchant account but the rates will be high.

    Good luck

    The Wealthy Wiseman
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    • Profile picture of the author Johns_supps
      Hi,

      Thanks for the response everyone.

      Seasoned - Not sure why you have an attitude. Maybe you have never had a merchant account, but when you get a merchant account you need to show the bank your website(s). We have one product per site so from that they will know we are selling ****.

      Moniez - I'll check it out. Thanks!

      Thomas Smale - Will look into that for a short term solution. I was thinking the same thing

      The Wealthy Wiseman - Yep, offshore is definitely one of the options we are looking at. I have a few connections so we might head that way. Thanks.

      Cheers

      John
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  • Profile picture of the author Toby Lewis
    I think you need to talk to your bank.

    We've had loads more than 50 charge backs (and quite a high percentage), it just requires good communication and working with the bank to meet their requirements.
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