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Credit Card Processing Opportunities

By: Mark Favel
President
National Transaction Corporation

Small Business Owners: Beware of Extreme Reserve Funds!

As your strive to keep your business afloat in this rough economic climate, the last thing you need is to have to come up with a large sum of cash just so you can continue accepting credit cards from your customers. That is exactly what many large banks – a Reserve Fund, are requiring. It is no secret that some large banks are attempting to push “high risk” businesses out the door by demanding a hefty reserve fund for merchant credit card accounts.

If your business is the type that tends to have a high volume of charge backs, you can be certain that the bank has you on their hit list. In the past, charge backs were considered part of the regular course of doing business; now they are risky and subject to arbitrary penalties. Many of the larger have banks have decided that they don’t want to deal with you.

It has become common practice for large banks to require a reserve fund for merchant accounts. The reserve is often outrageously large and out-of-line with the risk that the bank assumes by processing your credit card transactions. Imagine being notified that the bank will no longer process your credit card transactions unless you come up with thousands or even hundreds of thousands in cash for the bank to hold in reserve. This can happen suddenly, even if your account is in good standing, and you’re given little time to secure the funds for the reserve.

Besides the reserve fund, banks can use other tactics to push you out. They can charge higher rates and even withhold funds owed to you from previous credit card settlements. They take money that is owed to you and hold it in reserve!

If you are feeling under attack from these threats to the financial health of your business, you may see no other option than to close up shop. But that is not your only option! Call National Transaction at 1-888-996-2273 and we’ll help you sort it all out. If you have issues with your current merchant account or you’re concerned that you will, we can process your credit card transactions and work with you to mitigate the chance that you’ll run into a precarious situation again. If we require a reserve fund for your account, it will be a fraction of that required by the bank that is trying to run you out the door.

National Transaction wants your business to succeed! All you need to do is give us a call.