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| | #1 |
| Spartan Warrior War Room Member Join Date: Jul 2008 Location: PH
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One of my web design clients got his funds frozen for a refund claim, Paypal says he needs to prove he shipped the item before they release the funds... My question is since Paypal pretty much have a "valid" reason for freezing accounts, what's the situation like if we use a real merchant account like Authorize.net? Will they also freeze our account for chargebacks like those? |
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| | #2 |
| Active Warrior Join Date: Jun 2009 Location: Northeast USA
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That's a good question. Can't answer it as we have not received any chargebacks on our merchant account.
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| | #3 |
| Spartan Warrior War Room Member Join Date: Jul 2008 Location: PH
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Yeah, I want to know if it's worth getting a merchant account if they won't freeze the account in case of refunds like Paypal does. Anyone can shed a light? |
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| | #4 |
| Senior Warrior Member War Room Member Join Date: Jan 2009 Location: Orangeville, Ontario
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My private merchant account deposits money into my business bank daily. When I have a refund request it doesn't go to the bank it comes to me. Only chargebacks go through the bank and they don't allow those very much anymore. The buyer has to make a strong case for non delivery. THey will freeze the chargeback funds for sure |
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| | #5 |
| John Burnette War Room Member Join Date: Aug 2007 Location: S.E. USA
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Brad, Who/what are you using for a merchant account? Thanks, John |
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| | #6 |
| Active Warrior Join Date: Jun 2009
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Hi, I think they will freeze the amount that is disputed. Not the whole account (is this the case with your client? If only the funds disputed got frozen then it is pretty normal and it will probably happen even with merchant accounts. |
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| | #7 |
| DIY Internet Marketing War Room Member Join Date: Jul 2002 Location: Brisbane
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What will happen with a merchant account is if you get to many complaints they will ask for it to be underwritten. What this means is you will be asked to put a certain amount into an account to cover any discrepencies. This is what they did to us and why we use 3rd party merchants like Paypal etc. Its a lot easier with Paypal as all you have to do is prove the products were delivered and in most cases they will approve or act on your behalf. So when you send out the product make sure you keep a receipt. If digitally delivered we keep the ip and download times for the product and send it in PDF. It has their name, email, IP and number of times they downloaded it. Quentin |
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| | #8 | |
| Active Warrior Join Date: May 2009 Location: USA
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Your right about that Brad, Like any other payment processor, Chargebacks have to be covered and paid by somebody ... and it's not the "Payment Processor" ... lol Have a Great Summer Everyone ! . | |
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| | #9 |
| Senior Warrior Member War Room Member Join Date: Jan 2003 Location: , , USA.
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Authorize.net is a GATEWAY(TO a merchant account), NOT a merchant account! They FACILITATE accepting credit cards, but do NOT actually do it! Merchant accounts WILL hold funds, and handle chargebacks, like paypal! They may EVEN shut down your account entirely if you don't show the proper concern, or have too many. Steve |
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| Tags |
| account, accounts, chargebacks, freezes, merchant, paypal, refunds |
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