Why does my merchant bank hold my sale proceeds in reserve & still debit funds from my business checking account for chargebacks?
Acquiring banks can lose large sums of money if merchants have insufficient funds in their business checking accounts to cover merchant account chargebacks, credits and fees due. Rather than deposit your entire credit card sales into your business checking account, the bank holds some or all of these funds to cover risk. Banks further reduce their risk by debiting your business checking account for chargebacks, credits and fees due on your merchant account, while continuing to hold reserves.
Related Questions
- Can such property be sold without the permission of Reserve Bank? Can sale proceeds of such property if and when sold be remitted out of India?
- Why does my merchant bank hold my sale proceeds in reserve & still debit funds from my business checking account for chargebacks?
- Why may it take up to 3 to 5 business days for funds loaded from a bank savings or checking account to become available?
