When choosing a merchant processor for Visa and MasterCard (also called a credit card processor, merchant bank, merchant account, transaction processor) you have many options. When Wells Fargo Merchant Services comes calling you should consider this - especially if you're an Internet merchant. Merchant processors handle chargebacks in very different ways. An appropriate way of handling them is to contact the merchant and work with the merchant to reduce chargebacks. When you sell goods on the Internet, there is no way to prove that a customer has received merchandise; therefore, if a customer wishes to file a credit card chargeback, a merchant will lose and be out the merchandise.
Our company has a long Internet processing history, good customer service and established business procedure, good credit and ample cash reserves and yet when our chargeback rate when up for 2 months due to circumstances largely outside of our control, Wells Fargo Merchant Services sent us a letter of cancellation and the very day we received the letter, they turned off our merchant account - no warning letters, no phone calls, no explanation in the letter why we were being cancelled. Furthermore, they held our funds from the prior several days of processing, causing us to scramble to pay our obligations.in addition, they pulled funds from our bank account with no explanation. Neither my account executive nor the person who wrote me the letter will receive my phone calls nor return my voice mails.
WARNING to new businesses! We've been operating continuously for several years - if this would have occured when we were a new company, we'd be out business. If you are an internet merchant of any kind & you are playing Russian roulette if you even consider doing business with Wells Fargo Merchant Service. Learn from me.
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