Fear-inspiring stories abound regarding businesses that have had to shut down when their merchant account is put on hold. Fortunately, a little extra diligence on your part can reduce the likelihood of this happening to your business.
Reasons for merchant account holds typically fall into two categories—violation of the account service agreement and suspicion of fraudulent activity.
- Study your merchant agreement carefully when you first sign up for an account. Many credit card processing providers will ask you to declare the average volume your business will experience each month, as well as the expected average ticket amount. Be sure to make a note of the amounts you project, and be careful not to exceed them because this can cause your account to be frozen or cancelled.
- Never accept payment for goods or services other than those described in your merchant agreement. Again, it is a good idea to consider carefully what you agree to sell when you sign up for the account. If you own a carpet cleaning company, for example, listing your business as “floor care” will allow for the possible addition of related services. If you plan to sell items that are completely unrelated, you may need a separate merchant account.
- Excessive chargebacks can also constitute a service agreement violation and cause your account to be frozen. Good customer service and communication will prevent many chargebacks. Some merchants find it worth the effort to call their customers to verify each sale, and customers usually appreciate the extra security measure.
Suspicious processing activity can be more challenging to prevent, there are steps you can take to avoid having your account frozen for suspected fraud. Let your bank know ahead of time if you expect any changes in processing behavior such as a sudden increase in your average ticket amount or if you expect an unusually large single transaction. In this case, you should ask to speak to someone in your bank’s risk department.
Reputable credit card processing providers are as concerned about their customers as you are about yours, and finding such a provider will prevent many future frustrations. Plans and pricing differ, however, and most businesses find they need help sorting though all the variables.
Many businesses rely heavily on the ability to outsource certain operations to quality providers. For your business to run smoothly, it’s important to maintain a good relationship with your vendors. Part of the responsibility for smooth business relations lies with the vendor, of course. 
The federal government offers $400 billion in contracts annually to small business owners and vendors that can meet a specific need. Many small businesses can grow rapidly if they are able to obtain these federal contracts. In fact, many small businesses establish themselves with the goal of providing services uniquely to the federal government. However, getting federal contracts often requires a good bit of effort and knowledge that can take small business owners time to acquire.
What will your business be worth in three years? The sophisticated 
Since the dawn of the first fur trading businesses in the U.S., the business arena has been dominated by men. However, times – they are a-changing. In fact, 
Did you know that paying your bills early might actually save you money? Many businesses offer prompt pay discounts, or “
