HitPay has to uphold the interests of our banking partners and the companies that help us process our payments. In other words, we have to play by their rules if we want to continue existing. For HitPay users, this means that to process payments on your behalf, your account has to comply with the policies that we are bound to. By creating a HitPay account, you are therefore subject to our terms of service and acceptable use policies, where we all agree that HitPay can suspend and refund your sales if and when necessary (Section 5.1 of the acceptable use policy).
We encourage you to read through these Terms before creating an account because if your account violates these policies, it will, unfortunately, have to be suspended. Your existing balance may be refunded, depending on the policy that we are enforcing or the chargeback threats that we see from your sales.
We understand that from a business owner's standpoint, a suspension may seem arbitrary, unfair, and cold. We do our best to bring humanity, empathy, and honesty to the relationships that we have with our merchants, but sadly, in the world of online payments, there is no nice way to end a payment processing relationship.
This page offers concise explanations for why an account will be suspended.
We, unfortunately, have to stay rather general on this page, because giving away specific policy details may compromise our strategies to manage online fraud and scams.
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Violation of HitPay's Terms of Service and Acceptable Use Policy
HitPay's Terms of Service outline the guidelines and rules that users must adhere to while using our platform. You can find the complete Terms of Service here and the complete Acceptable Use Policy here.
If you are found using HitPay in a manner that violates our Terms of Service or selling products that we are not authorised to process payments for, your account may be subject to suspension.
To maintain the integrity of our platform, we have a responsibility to combat misuse. If it appears that your account is being used to manipulate search engine results, or provides misleading or incomplete information during your registration process, it may also lead to the suspension of your HitPay account.
It's crucial to review and comply with our Terms of Service and prohibited product/activity lists to ensure a smooth and secure experience on HitPay. If you have any questions or concerns, feel free to reach out to our support team.
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High Risk or Fraudulent Transactions
Account Review Process on HitPay
At HitPay, every account undergoes a thorough review by our Risk team before payouts can commence. This stringent process is in place to ensure that we only process payments for secure and legitimate accounts.
Suspension due to Fraudulent Activities
In cases where an account is marked by high rates of suspicious payments or shows evidence of sales made fraudulently, such as using compromised payment sources (e.g., stolen credit cards or hacked payment accounts), HitPay may need to suspend the account or withhold payouts temporarily. Unfortunately, we cannot process payouts for sales associated with fraudulent activities.
For new accounts, we may sometimes have to take extra precautions that result in payout delays in order to get adequate data to review your account. For example:
- You may not have enough sales
- Some of your sales may appear suspicious from a risk standpoint
- The sales you have made are not legitimate (i.e. you've been buying your own products)
- You may have made multiple sales, but they're all to the same person
- It's unclear what exactly your customers are paying you for
Whatever the reason, we have not been able to confidently review your sales and hand you over to our banking partners.
Understanding Account Suspensions
You might wonder, "Why is my account suspended when I haven't done anything wrong? Why should I be penalized for my customers' actions?" We understand this concern. Even if your products or services are entirely legitimate, if your account becomes a source of fraudulent payments, we must take necessary actions to prevent further issues and uphold the policies of our partners.
An analogy to consider is that of an employee in a supermarket managed by HitPay:
Imagine you're a new employee at HitMart, organized a section of the store, and invited someone to make a purchase. Unfortunately, that person engaged in theft, caused damage, and fled. In such a situation, the store management (HitPay) may have to take corrective action, which may include firing you as the line manager.
While this analogy might not be perfect, it illustrates the necessity of acting decisively to prevent fraudulent activities and maintain the integrity of our payment processing services. If your account is the source of high amounts of fraudulent payments, then the only thing we can do to enforce the policies of our banking and payment partners is to cut off the fraud at its source, which in this case would be your products.
HitPay has to uphold the interests of our banking and payment processing partners and adhere to their their rules if we want to continue existing.
For more details on HitPay's policies and account management for high risk transactions, you can access the page here.
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Excessive Chargeback Amounts on HitPay
To understand how HitPay handles excessive chargebacks, please refer to our comprehensive article here and here. These resource provides insights into avoiding chargebacks and outlines steps to assist us in case your customer issues one.
Chargeback Policy
In summary, if your HitPay account accumulates a high number of chargebacks for the transaction processed, it is classified as high-risk, and we may be unable to process further sales or payouts from your account or have to impose limitations on your account payment or payout activity.
Why This Occurs
For instance, if you generate $1,000 in sales and encounter $100 in chargebacks, your chargeback-to-sales volume rate is 10%. According to our Terms of Service, HitPay absorbs the associated penalties linked to chargebacks. Continuing to process your sales under such circumstances would result in accumulating penalties on your behalf.
From Our Partners' Perspective
Our partners view a high chargeback rate as unsustainable, leading to the suspension of your sales. While it may seem unfair that you are being affected by your customers' actions, it is essential to enforce the risk policies of our partners quickly and effectively. The chargebacks originate from your account, and suspension is deemed the necessary measure to address the issue.
Account Suspension and Payout Hold
If your HitPay account is suspended due to a high chargeback rate, we are obliged to retain your balance for up to 120 days from the transaction date to accommodate any potential further chargebacks in accordance with our high risk transaction policy. After this waiting period, we will proceed to pay you the remaining balance in your account, provided we receive clearance from our banking and payment partners.
We understand the frustrations associated with this situation, and we appreciate your cooperation in helping us maintain a secure and reliable payment processing environment.
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Rejection by HitPay's Payment Partners
When you enter your payout information, you are establishing an account with our partners for processing card or BNPL payments. These partners also conduct a risk assessment on your account, and if they have encountered issues in the past, they may restrict us from processing payments to you.
Examples of Partner Issues
- You have a history of suspension from these partners and create a new account with HitPay.
- Your bank account has been associated with fraud in the past, leading to complications with Stripe.
Resolution Process
In the event of such issues, we will escalate your case to the support staff of the relevant partner, such as Stripe. This may involve initiating an email thread to address any questions they may have.
Potential Outcomes:
If, unfortunately, our partners do not grant approval for us to pay you even after appeal, we are left with no means to transfer funds to you. In such cases, a possible solution would be to refund your sales and communicate with your customers to arrange alternative payment methods outside of our platform.
We understand the challenges this situation may present, and we appreciate your understanding and cooperation in finding alternative solutions to ensure you receive the funds you are owed.