From 20% Chargebacks to 1% in 90 Days
Frozen Accounts & Revenue Loss
An American CBD merchant with a specialization in high end hemp products fell prey to a payment processor shutdown and restart cycle of financial turbulence. Despite dealing legally under the 2018 Farm Bill amendments, they suffered debilitating reputation damage in the industry, portrayed through constant issues with payment. Their chargeback ratio had shot to 20%-almost three times the tolerable threshold for most processors mainly due to criminal activity and customer complaints arising from misunderstood communication about the product.
It will now reach a crisis: having suddenly frozen $85,000 in processed revenue without any explanation while invoking vague “policy violations,” the current payment gateway has issued this crippling hold. Oh yeah, and it just happened to be placed this week in the midst of their busy selling season, instantly cutting cash flow off from possible vendor payments. Conventional banking partners all adamantly refused to underwrite an account. Even the most reputable high risk payment processors, who would usually underwrite such accounts, would only accept suffocating 30% rolling reserves that would have stunted their growth.
Conclusion
This success story showcases how the right payment partner can transform operations for restricted industries. Where traditional processors see only risk, we deploy smart technology and financial innovation to create opportunities. The 1% chargeback rate – achieved through our dynamic 3DS2 implementation and machine learning fraud filters – doesn’t just meet compliance standards; it fundamentally changes the economics of high-risk processing. Fewer disputes mean higher profitability and sustainable banking relationships, Our offshore merchant account solution addresses one of the most painful constraints for growing businesses: frozen capital. By eliminating reserve holds and ensuring 48-hour fund releases, we restore what conventional processors take away – control over your cash flow. The $450,000/month processing volume isn’t just a number; it represents regained working capital for marketing, inventory, and expansion. This financial flexibility, combined with our AI-driven approval optimization, creates a virtuous cycle where every dollar processed generates more value.