I’m excited to tell you how to avoid having your merchant account holding funds. So if you’ve ever been in a place where you’ve done so much business, you’re so excited, you suddenly wake up the next day, and the money hasn’t hit your bank account, and all of a sudden, now you’re sweating. Or you’ve closed the big contract with the client in the funds they paid that you’re going to use for material for their project, and all of a sudden, the money hits your account, so you can’t start working on that project you’ve committed to. This happens all the time.
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How to Avoid fund holds?
My goal is to give you some ways to avoid that happening for your business. All right, so let’s get into it. The first thing you want to do is if you know you’re going to grow your business or end up, your sales will change. So you’re averaging $3,000 a month, and all of a sudden, you know, next month, you’re going to hit 20,000. You’re expecting to Facebook you to an Instagram influencer, or you know, you’re going to have a big trade show or road show. Or if you know that you will end up doing a great course or an online class and expecting a large volume based on your waiting list? Notify your merchant service company ahead of time. It’s essential because they hope it once they know what will happen when the money comes in.
Update Merchant Service Company
Now there are other things you want to update your merchant service company with. of time. That could be if your pricing changes. So you’re approved to take a transaction for $200 Is your high ticket. The highest transaction is going to take us 200. Now it’s going to be 500. Tell them ahead of time, so your money is not put on hold. And also, you want to ensure that the new price you’re offering is for the same industry.
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What does that mean to update the merchant service company?
What that means is, and this, this honestly happened, we had a client, who was approved for his shoe shop, right he sold shoes, all of a sudden he had a $3,000 transaction he was approved for $180 as a high ticket calling and said hey, man, what’s going on where the $3,000 come from? Do you sell a lot of shoes? He says no, that’s my friend’s catering business. He needed a merchant service company. So he asked to use money. Send us the invoice for his buddy’s business; unfortunately, they couldn’t give him the money. And the reason why is because.
He was using it for someone else.
He was using his merchant service account for a business he needed to be approved for. So if you have multiple companies, we always recommend having a separate merchant account for every one of your businesses. So if you own a restaurant, use your merchant account for the restaurant. If you own an auto shop, use the merchant service account for your auto shop and don’t blend them.
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How to avoid merchant service companies?
Right. Another thing that you also want to think about to avoid I’m excited to tell you how to avoid having your merchant account holding funds. So if you’ve ever been in a place where you’ve done so much business, you’re so excited, are you also want to have your client agreement client contract? For anything that can vert further validate the transaction, it’s always essential to make sure that if asked about any transaction, you do have the proof not only to mitigate chargebacks if they happen but, again, in situations like these, to make sure your merchant service funds don’t get put on hold.
So if your funds get put on hold, take a deep breath. Don’t worry; as long as you have the proper paperwork put in place, and you can validate where the funds come from and where you can at least explain it, then you should be good to go. You shouldn’t have any problems. So again, this is Rick here at 5 Star Processing. I’ve gone over some excellent tips on avoiding having your merchant service company hold your funds.
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We can help you with this process here at 5 Star Processing.