Some of the reasons why a sudden account termination may occur include
l Excessive chargebacks:
Merchant account providers may terminate your account if there are too many chargebacks against your business. Generally, you should try to keep your chargeback ratio to a maximum of 0.9% of your total transactions. Any amount higher than this and you risk having your account terminated.
l Fraud suspicions:
If your account is suspected or reported as fraudulent, your account may be terminated.
l A sharp increase in transaction volume:
While it is normal for transaction volume to increase steadily over time a sharp rise in activities on your merchant account might cause your account to get flagged.
l Your industry is no longer being served by the provider:
If businesses in your industry have been placed on a watchlist and are no longer being served by the merchant account provider, your account may be terminated even without a direct infringement on your part.
l Violations of card network regulations:
Online transaction processing depends on the collaborative efforts of various platforms including your card issuer. If reports of a card network violation on your account are sent to the account provider, your services may be terminated.
l PCI-DSS non-compliance:
Merchant account providers take security breaches seriously. Non-compliance with security specifications may lead to the termination of your account. Your merchant account may be terminated for any of these reasons as it increases the credit risk for your account provider. Typically, you can send a notification when this occurs. You must ask questions about the reasons for your account termination.