International company that requested a business site in the US, the company checked out as an established toy company out of Hong Kong. Requested all the formal documentation for a company to start, EIN, credit score, LLC and established bank account. Process started in June of once all the necessary accounts were established, merchant and gateway, then a web site was established, support service with a US based phone number and an 800 number. As sales started to be booked the funds were to be transfered to an off shore account and in the beginning all the expenses were paid and tracking was done in a business manner. The merchant account froze the account in December due to the high rate of chargebacks, all of which were answered and handled promtly, the fraud division contacted me say that this was a scam, due to the volume and the dollar amount of the orders. I had ordered several times and had the items that I ordered shipped to me, I also researched the company and double checked as much as possible the company and the products and was sure that this was on the up and up.
The whole process started in June and was closed in December, everything about the company looked like it was a real business, including the request for a search for a wholesale warehouse to reduce the shipping costs and making sure that I was aware that I was a 1099 employee.
Beware of any companies that are off shore, that offer to pay a percentage of the sales and that want you to transfer funds to an off shore bank.
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