Chapter 16 - The merchant processor audit
Melissa’s payment processor completed review.
Findings:
Initial recurring authorization limited amount.
Variable higher charges lacked sufficient updated written authorization under processor’s merchant rules for several months.
Some transactions supported by separate texts.
Others not.
Result:
Processor required Melissa’s business to refund:
$19,400
through card network for transactions it deemed insufficiently authorized.
Additional disputed amounts had to be resolved outside processor.
Melissa’s merchant account remained open with restrictions:
No variable recurring billing without renewed authorization.
Higher reserve requirement for six months.
Not business death.
Compliance consequence.
Then my bank restored provisional credits subject to final dispute outcome.
I placed all restored money in a separate savings account.
Did not spend it.
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If Melissa won part back, I would repay.
That is what adults do when money is contested.
