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It's called placing a reserve on the account and it is something any payment processor will do to a merchant account.
by thallium205 4y ago
It's called placing a reserve on the account and it is something any payment processor will do to a merchant account.
- wrycoder 4y agoSure, and OP understands that. But, there’s apparently no effective resolution process, especially one involving a human. What would you suggest the OP do to resolve their issue?
- deleted 4y ago[deleted]
- thallium205 4y agoThere is no "resolution" to the situation. His account has a reserve on it and it may stay there for the entire lifetime of the account. He has to just deal with it.
- wrycoder 4y agoReserve isn’t much of a problem. Never getting your funds is different.
- mission_failed 4y agoYes banks regularly seize money from accounts for hundreds of days and refuse to discuss it with paying customers /s
- thallium205 4y agoActually, they do. And they will hold reserves on accounts for many months to over a year if they suspect it may be fraud. The acquiring bank does this because the risk of a chargeback is high and their ability to recoup the funds may be diminished with a small account. I've been in high risk merchant processing for almost a decade. The merchant may never get the money back until they close the account completely and wait half a year for a check in the mail.
- joshmanders 4y agoA reserve is to make sure that the funds are there to cover the check in the event it may bounce. Checks do not take 120+ days to complete.
- thallium205 4y agoCredit card chargebacks can be initiated a half a year or more after a transaction has occured so yes, the reserve is in place to reduce the risk of losing money of the merchant bank from this event.