chargeback on my merchant account?
Sep 15, 2009
in
Small Business Merchant Accounts
I have an online business and I was recently hit with a very large charge back. It turns out that it was a fraudulent transaction. I do not have the funds to pay the credit card company back, does anybody know what will happen from here?
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One comment
stymiee on September 15, 2009 at 1:34 pm
Unfortunately nothing good.
Here’s what is likely to happen:
1) Your merchant account will be terminated.
2) All funds currently being processed will be held.
3) You will be added to the Terminated Merchant File (TMF) which means you and your business will NEVER be able to get a true merchant account again. This means you’ll be stuck with services like Paypal or worse.
4) You will probably end up in collections and may take a hit to your personal credit.
If at all possible you may want to see if they’ll set up a structured payment plan where they take and keep your processing until you pay off the chargeback.
Good luck.