Tips for preventing funding delays!
If you’re running an unusual transaction and know of it beforehand, let your merchant provider know; sending an invoice in advance can cut processing time.
Make sure to give your most up to date information. Keeping provider in the loop on the fluctuations in your processing volumes will help tremendously, especially as your business grows.
Funding delays are an inconvenience, but being prepared can keep the delay to a minimum. If you keep these tips in mind, you’ll be processing without ever having to worry about delays again.
Flagged, Security and Review Process
Why some merchant accounts hold funds and others do not?
There are a number of reasons:
Underwriting merchant account is ongoing. Imagine a small business convenience store was set up and accidentally enters $1,000.000 should we transfer that or hold it?
One reason is something has gone with that particular business account.
Another reason could be that particular institution’s practices are more efficient than others.
Financial institutions use different payment processing systems, and they are not uniform in their practices. For this reason, some transactions are significantly faster than others.
Though there are other reasons funds get held, the main reason for this occurrence is when a payment is out of the ordinary patterns.
Unusual transactions are any transaction that vary from your typical processing patterns.
If It’s for security, an account will be flag as a way to reduce fraud as well as ensuring no one is using your account.
How do I know if I’m flagged?
Security checks are carried out by processing banks or processor. You’ll be contacted by a loss prevention officer. They’ll provide all details of the hold, including the review process as well as the next steps.
What’s the review process?
The review is simply to verify your transaction before delivering your funds. A typical review is confirming the transaction with yourself as well as your customer’s credit card company. You’ll speak briefly with a loss prevention officer to discuss the transaction. If further review is required, the loss prevention officer may ask you for a copy of the transaction’s invoice.
How can I speed up the process?
For an easy review, make sure to provide detailed documents. When an invoice is asked for, make sure it clearly shows the following:
- Product Description of Items Sold
- Your Customer’s Name
- Address
- Phone Number
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