9 {{ upvoteCount | shortNum }}
9 {{ upvoteCount | shortNum }}

anybody using two merchant accounts as a safeguard for operations continuity?

by beginner warrior
7 replies
Hello,

I've read stories where a merchant account like Paypal will shut down a seller's account due to high sales volume or some other factor. And then it takes like six months to resolve. There are too many stories like this for me to feel comfortable just walking into this stuff blindly.

Has anybody opened up two merchant accounts?

If legal/practical, I'm thinking of opening two merchant accounts. Keep one dormant and just pay its monthly service fee of about $25.

Then if the active merchant account gets shut down, or I'm being mistreated by this account, I can quickly pivot to the other one.

My reasoning is this: open up more than one merchant account while your account record is clean. It would be (I imagine) harder to open up a second, new merchant account if they knew you were in dispute with a different one.

I'm not talking about being shady or illegal here. I'm talking about taking preventative measures so you don't get railroaded by a merchant account.


Any thoughts/recommendations regarding this idea?
#accounts #continuity #merchant #operations #safeguard
  • Profile picture of the author Entrepreneur Stream
    No matter what you're selling, always have a back up at the ready if you're using Paypal since you always run the risk of triggering one of the speculated hundreds of automatic triggers that will limit your account.

    If you're selling information products, one good back up is 2CO and if possible, should actually be your primary means and Paypal your backup unless you think your prospective customers would just feel more comfortable using Paypal.
    {{ DiscussionBoard.errors[2980420].message }}
  • Profile picture of the author Jesus Perez
    Yes, I pay for an Authorize.net account just in case.
    Signature

    {{ DiscussionBoard.errors[2980432].message }}
    • Profile picture of the author mcmahanusa
      Yes, I have three merchant accounts, in addition to PayPal.
      Signature

      Success is not to be pursued; it is to be attracted by the person you become - Jim Rohn

      Visit our beautiful gardens

      {{ DiscussionBoard.errors[2980496].message }}
      • Profile picture of the author beginner warrior
        That's cool.

        I don't plan to use Paypal at all. I guess I could, but it seems too riddled with problems for vendors. I'm going with major credit cards only.

        It probably seems like a waste to have a merchant account lying dormant for $25 a month. But it won't seem so wasteful if/when the primary merchant account provider gets overly protective and shuts down an account for no good reason.

        Kind of like the mastercard commercial:

        Cost of setting up an extra merchant account: about $100 + 2 hrs paperwork
        Monthly cost of maintaining extra merchant account: $25
        Being able to switch to a different merchant account immediately when you are getting railroaded: priceless.
        {{ DiscussionBoard.errors[2980714].message }}
  • Profile picture of the author GR Marketing
    I too am suffering with Paypal's unethical business practices. After a surge of sales from a recent WSO I ran they slapped a limitation on my account. I have about $2,000 frozen for 180 days while they "investigate."

    I'm now using Google Checkout and 2Checkout with eJunkie as my shopping cart.

    I would NOT recommend anyone solely depending on Paypal to process payments.

    If you're doing this please get another merchant account or two right now.
    {{ DiscussionBoard.errors[2980728].message }}
    • Profile picture of the author donhx
      I have to say I have heard all the PayPal horror stories, but I have been with them since 2002 with no incidents so far. I got rid of my regular merchant account about 5 years ago.

      On thing I have done is to call PayPal before a launch and tell them what I was doing and the income I expected. I had huge income surges over a few weeks in each instance, and I had no issues with PayPal. PayPal is all about managing risk and anything you do to help them do that helps you.

      Also, keep in mind that regular CC companies have risk management departments too. If they or your bank suspects fraudulent activity, you can expect problems from them too.

      I think it's a good idea to have a backup plan, but communicating with PayPal is a good thing to do. They have a special support number for businesses and they are very easy to contact.
      Signature
      Quality content to beat the competition. Personalized Author Services
      {{ DiscussionBoard.errors[2980943].message }}

Trending Topics