Unlocking funds
Case Study 4
A payment processor placed the funds of our client on hold. As a result, our client was not able to pay his rent and to maintain the operation of his business. Our client was seriously disturbed by the unexpected hold and contacted us and asked to act urgently.
We submitted a letter to the payment processor on the 2nd of November 2022. On the 11th of November 2022, we received a response informing us that our client’s account was closed in accordance with the applicable legal agreement. The payment processor told us that they are under no obligation to further explain their decision to close the account and are satisfied that they did so in accordance with the agreement and the applicable law.
The letter from the payment processor also stated that they will release our client’s funds within 1-2 working days and indeed released the funds.
This case shows that payment processors do not like to admit that they are wrong. It is unlikely to see a case where a payment processor acknowledges in writing that they have done something wrong. If they notice that they might have locked your funds without a proper justification, they may just deny your claims, but release the funds.
