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Joined: 23 Oct 2005
Posts: 2

Posted: Mon Oct 24, 2005 12:50 am    Post subject: Question about merchant  

What happend if your merchant account closed you down for 8% chargeback rate?

Will i be able to open another merchant account?
any help will help me!
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Joined: 20 Feb 2005
Posts: 1979
Location: Cowlitz County, Washington

Posted: Mon Oct 24, 2005 1:04 am    Post subject: Re: Question about merchant  

newagecare, first, welcome to PSU.

I'm sorry for your frustration. I know how it is to take a risk and have it backfire. Having $1,200.00 in assets frozen must be terribly stressful.

Most newbies aren't aware that PowerSellersUnite is comprised of sellers of all levels, not just powersellers. This probably has a lot to do with the lack of response you're experiencing.

Many of the regular posters have not yet waded into having a merchant account, myself included. Therefore, we're not able to competently answer your question.

Might I recommend that you visit several merchant sites, look for and read their chargeback policies? Or, call some and talk to CS. Consider speaking with your current banking institution, too.

There's a good chance that someone will come along in the next couple of days (the forums are usually pretty quiet over the weekends) and be able to answer your questions, or point you in the right direction for assistance.

I wish you well, and hope that everything is sorted out very quickly.
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Joined: 25 Aug 2005
Posts: 1674
Location: Sunny Florida

Posted: Mon Oct 24, 2005 2:16 am    Post subject: Re: Question about merchant  

One thing I know is, they cannot just walk over
and shut you down without allowing you to present your side of the
story. Pick up the phone and call them and provide them the proof as

We all know the "sad" story of how people abuse and misuse, and some
wild cases out there ... but it all isn't just doom and gloom.

Please be aware, make sure your auction / store items are clearly
defined, and if any warranties, refund, et cetera applies, or "All Items
Sold As Is"... lots of those small little things that takes up space and
sort of clogs the description and information actually is of benefit for
the Seller.

Many of the investigations go to the website and read them carefully,
and if it's clearly defined and specified, many times chargebacks would
be denied.

BUT - while I know - this isn't always the case unfortunately, such as
buyer buying something like a vintage radio, which worked for a couple
of weeks then finally died, and then threats the Seller a negative if they
didn't refund, and Seller states, item sold as is ... then Buyer's unhappy,
runs off and makes a chargeback and with a false claim of "item was
not as described and received broken".

This is why I recommend to a lot of people to WRITE AN EMAIL to the
buyer a day or two after they received such item (that's functional)
with a follow up of something like:

Dear Buyer,

Greeetings, I noticed you've received the ABC 1973 Phono Record Player,
on 10/10/10, and I'm sure you're excited and would like to make sure
all is well and is working.


Then buyer writes back:

Hey You! This is awesome, I've been so busy playing with my records
and plus the sound's great!

Happy Buyer

KEEP THIS on your files (Make sure Internet Details and all that headers
and footers are available) .... so if the item becomes non-functional, they
have no case!

THIS METHOD IS GREAT on Rare Items, Expensive China Collectibles
& Plates, etc ... as well.

NOTE: I've only had to use 2 buyer's emails against them, when 2
different buyers tried to claim otherwise - all I provided was proof of
mailing, proof of reception, and proof that they were happy and it was
perfect, working, etc ...

That will KILL anything that they tried to claim!

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Joined: 20 Feb 2005
Posts: 1979
Location: Cowlitz County, Washington

Posted: Mon Oct 24, 2005 10:26 am    Post subject: Re: Question about merchant  

That's really good advice, Southie! I'm glad that I read it before I opened a merchant account

Another post by newagecare explains their situation more fully. It appears to be a little more complex than excessive chargebacks:

newagecare wrote:
"OK i used verisign as my gateway, and merchant e- solutions a the merchant account. Now they closed my account because i was not allowed to sell on ebay."

reference complete post: http://www.powersellersunite.com/viewtopic.php?t=2348

I'm wondering if there is a solution for outright breaking the merchant account provider rules.

Thanks again for the great tip! I already do a follow up e-mail - and I find the "Track Packages" PSU provides, a handy reminder to trigger the event - but I didn't even think about opening the headers to prove that I didn't write it myself!
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Joined: 25 Aug 2005
Posts: 1674
Location: Sunny Florida

Posted: Mon Oct 24, 2005 8:18 pm    Post subject: Re: Question about merchant  

While this is an old one - I've removed headers and footers, this will
give you a general idea .... (Buyer was arrested later for fraud, as
they did this to other Sellers all over the place at different auction sites)

Hello (name removed), Just a follow up email to let you know that I checked and found that you've gotten your item, and I'm sure you're
happy too! I would love to hear a response from you in regards to
the item, and also, a feedback has already been left for you and would
appreciate one in return! Thanks again for your business!

(buyer responds within 3 days after sending email)

We are so thrilled having this old ge clock alarm. It's so loud that my
hubby was able to wake up since his hearing has gone bad. You're right
they don't make them like they used to! Will leave feedback! (name removed)

(buyer never leaves feedback - nearly 2 months later)

Hi, I purchased the vintage ge alarm clock and it no longer works. I
request that you refund all our moneys immediately or I will have no
choice but to leave you a bad report on your negative. Please refund
moneys within 24 hours. (name removed)

(seller immediately notified PayPal & eBay's Safe Harbor and sent entire
emails - past and present)

(I wrote back - forwarding the original email)

Hi there! I'm sorry about what happened to your alarm clock, but
unfortunately, I'm in reception of your email below, dated (removed)
on this day (removed) where you've stated how it worked great. See
below forwarded email.

(buyer responds)

EFFECTIVE IMMMEDIATELY (censored - censored).

(I forwarded it to Safe Harbor and PayPal - using the case number

Buyer then leaves me a profanity negative and gives me bad rap.

(Safe Harbor removes the negative within 5 hours later - and the
buyer became NARU'd. PayPal also shut the party's account down
as well.)

See how critical a simple email can do for you?
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Joined: 23 Oct 2005
Posts: 2

Posted: Mon Oct 24, 2005 9:08 pm    Post subject:  

OHH WOW, southie , What a great advice.
I am young I was making around 7-10k a month at the age of 17. I am 20 years old now, all these problems arise I dont know how to handle them.

They froze all my account. On ebay in october i make close to $3,000 selling Clarks Wallabes . My new site Which i am prmoting trying to get it off the ground All these merchant account hassle is really stresseful. I look at this a Learning,

the site which brought income but also trouble was newsneaker.com I spoke to a business broker about selling it They said I shoud around $75,000 - $100,000 . Not bad for a 20 year old.

My partner invest over$2000 in SEO so we are ranking high and orders ar coming in.

I know you dont want to hear this from. Just a background information. So people know who i am.
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Joined: 29 Sep 2005
Posts: 301
Location: Wisconsin

Posted: Mon Oct 24, 2005 9:33 pm    Post subject: Re: Question about merchant  

Southie, you are a pro! We all have a lot to learn from you and I want to thank you for telling us your stories!
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Joined: 01 Jan 2006
Posts: 15

Posted: Sun Jan 01, 2006 5:33 pm    Post subject: Re: Question about merchant  

There is a really easy to use Merchant Account out there that does not cost an arm and a leg and the money is in your bank account within 3 days.
I use Quickbooks for my businesses and you can now get a merchants account through them. It is 24.00 a month plus the card fees which aren't anymore than some of the others I have used.
You can also hook it up for an invoice that will let them pay by paypal or credit card.
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