I hear from my MSP all the time about security improvements that need to be made, changes to visa/etc networks, rate changes, etc. The number of times I've had

I hear from my MSP all the time about security improvements that need to be made, changes to visa/etc networks, rate changes, etc. The number of times I've had an MSP call me to discuss fraud in the past 14 years I've had one or more merchant accounts: 0 The number of times I've had an MSP establish a reserve line for my account: 0 The chargeback rate for an ecommerce site I've run for 14 years: 0.1% (about 1 every 1000 orders) MSPs don't normally contact their customers to discuss fraud. They don't normally require reserves. Every time they contacted you about the chargeback rate was a warning. When they set the reserve line that was a warning. You didn't negotiate the right to the chargeback rate.. you negotiated how severely their anti-fraud control would impact your business. These were HUGE red flags. Possibly the biggest red flags you could have gotten, short of a legal notice or the immediate closure of the account. And while it sounds like PayPal should have been more direct with you about the consequences here... I can tell you that every MSP agreement I've ever seen specially talks about these actions as negative actions they may take to mitigate the risk of fraud.