What happens when I shut a merchant account down?

We’ve been with BofA Merchant Services for 10 years and now want to close the account. What is the law, or policy with regard to what happens when that account is shut down? Can they call in a reserve for past orders “in case” there are charge backs?

If so, how far back in time can they go? Hypothetical: A customer purchased something from January and decides for whatever reason that he will dispute the charge… What happens in this case if my merchant account is closed?

Are all obligations ended once the account is closed? All fees are, and have always been paid…


There is a time limit for a customer doing a charge back; this varies between providers but is usually around 90 days. Once you close the account you are liable for charge backs up to 120 days; again this will vary with providers. Just simply call BofA and see what their policy is.

Ok, thank you very much, I will contact them

I have the 47 page merchant agreement. For some reason, I cannot copy text from it, here it is:


Page 12 of the agreement, section 10.2

“such debits shall not be subject to any limitations of time specified elsewhere in the Agreemment…”

Is that what I should refer to?