Leanne
Calabasas,#2UPDATE Employee
Mon, January 12, 2009
It is important to note that just because a customer does not understand clearly what is being done does not make it contrary to the contract or illegal in any way. When an account is approved for credit card processing it is within the limits (average ticket and monthly volume) that are provided by the merchant. The account, if approved, is given what is somewhat like a "credit limit", similar to a credit card. When the customer exceeds this "credit limit" another review of the merchant's account must be completed to determine if an extension of that credit can be made. This is done per the bank's requirements as well as the card associations. If the account cannot receive a limit increase, sometimes a deposit will be required so that credit card processing may continue and to protect against loss due to chargebacks or other financial hardships that may occur. And indeed, the Merchant Agreement is very clear on these points and it is the merchant's responsibility to be aware of this contract as he/she has accepted and agreed to the terms within the contract.