Are credit card processors instituting excessive reserve deposits due to Covid19?
We've been a very happy Payjunction merchant for 8 years. We are a retail/wholesale tile distributor. Our total MCV volume > $6M in 2018 & 2019. Rarely do we have disputes and/or chargebacks. In 2019, we had 2 chargebacks totalling $5,250, .08% of our total volume. Unexpectedly, we had a request for terms and conditions of sales and subsequently a phone call with their risk management department at 4:00PM on 3/31. At 4:45pm on the same day, we were told that a $56,500 reserve deposit is immediatlely placed on our account. The next day, after a lengthy phone discussion we were told that this was due to credit card association directives and we had no recourse. If we decided to terminate then we would not get our $56,500 back any sooner than 180 days. I would be interested to know if this is happening to other businesses with their processors and do I have recourse to recover my funds sooner than 180 days.
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