CASE STUDY 3

A payment processor terminated the account of our client based on allegations that the business of our client “presents a higher than normal risk of loss”. The payment processor argued that the termination is in line with one of their legal documents and even referred to a specific section of that document. In addition to the termination of the account, the payment processor put the funds of our client on hold. 

Our client contacted us and requested us to help him. We received a written authorization from the client to act on his behalf before the payment processor and submitted a legal letter to the relevant legal department.

In about two weeks, the payment processor informed us that they released the funds to the client. However, the account of the client was not restored. 

This case study demonstrates that it is often easier to release the funds of a client than to restore a terminated payment account. We have observed this many times.