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Warning: our payment processor froze payouts for 11 days and we almost missed payroll
Quick heads up for anyone running a small fintech here. Two weeks ago our processor flagged a batch of Interac e-transfer payouts as high risk and froze roughly $40k with no warning at all. We found out on a Tuesday morning when three merchants messaged asking why their settlements were late. Turns out a spike in new signups from one Ontario city tripped their fraud rules and nobody told us because our account rep was on vacation. I spent the next 11 days on the phone and had to pull from our line of credit to cover payroll that Friday. Keep a backup processor set up and test a small batch through it every month, that is the part we skipped. Has anyone here gotten a straight answer out of a processor about what actually triggers these freezes?
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