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  1. #1
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    Advice about current delima

    Okay, my company received a merchant account though NOVA around 2-3 weeks ago.

    To make a long story as short as possible, we never got 1 deposit from them and they decided to close the account, because they thought we were someone else, even though we complied with everything they requested.

    This is the delima. They closed our account on Oct 28th. We had told NOVA that we were going to refund all of the customers that we haven't received payment for, whcih was all of them at that time because they were holding the money. Around 10am that day we had went in authorize.net and sent refunds to the customers.

    Here is the problem. they closed our account around an hour before the batch settled and we just found out that our customers never got their refunds becuase of it around 3-4 days ago.

    Our customers, understandably are looking at us for their refund, but we SENT it already. We even contacted authorize.net and asked them what should we do. They told us that nova should unlock the accuont for 24 hours to let the batch settle, which nova wont' do, meaning that nova is holding on to the funds that we have already sent out payment for.

    Luckliy it's not too much money and we can come out of pocket to pay back the customers if we have to, but why should we? It's also enough to cover our rent check for the next 2 months, which it would be better spent on.

    Any advice would be greatly appricated.

  2. #2
    SitePoint Wizard silver trophy
    beley's Avatar
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    I would contact Nova again and talk with someone else. Go as high up as the company president or CEO if you have to. If you are just trying to refund the money, they shouldn't have a problem with it. I'm sure they can refund the money without allowing you access to charge anything else, so there's no risk for them. And if all the customers have refunds, there's no risk of a chargeback.

    If they won't comply, file a complaint with Authorize.net and even Visa, Mastercard directly. They rely on both credit card companies and processors for business, so making some noise with them might get you somewhere.

    Sorry for your situation, it must be pretty hard. We've had something similar happen but it was the opposite, we had already shipped product and customers had paid but we had no money. The processor held the money for 90 days before turning it over to us. We finally got our money, but it was not a pleasant experience. I feel your pain

  3. #3
    Texan at Heart Corey Bryant's Avatar
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    Welcome to the forums horizonpc!

    You might want to contact an attorney & get them to write a letter. There are a lot of those pre-paid services that might be able to help you. Nova is a pretty large corporation & with it just being a corporation - you are going to run into a lot of problems.

    Don't get authorizenet.com involved yet. They are only your connectivy to First Data, visanet, etc to help verify funds. Nova is the one who has your money. Do you know where this money is? It just sounds like they ae holding your money. Does your contract stipulate that you must use their services for specified amount of time? Find that out immediately because you might be subject to a fine from Nova.


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