Can I sell my existing database of recurring clients to a 3rd party?

[Jocus]

Despite only 0.04% in disputes, major bank (40% marketshare) in the country where I am operating, decided to block their cards from be used with my company/website. Means future recurring on my existing database of clients is dead for these clients.

1. Can I "sell" or otherwise transfer my existing active portfolio of clients, so that they will continue to be billed (and recurred) from another company/setup? Ansd if so, is that legal?
2. Another idea is to just change the name of the current billing so that said bank does not have a flag - at least right away. But I'd like 1. more, if that's legal.

Any 3. option or alternative thinking is highly appreciated. Thanks!

 

[Sols]

Jocus said:
Despite only 0.04% in disputes, major bank (40% marketshare) in the country where I am operating, decided to block their cards from be used with my company/website. Means future recurring on my existing database of clients is dead for these clients.
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If it's not because of disputes, what's the reason they are blocking you?

Jocus said:
1. Can I "sell" or otherwise transfer my existing active portfolio of clients, so that they will continue to be billed (and recurred) from another company/setup? Ansd if so, is that legal?
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That sounds like a question for an attorney to make sure the details are sorted out correctly. You'll need to be careful with GDPR if you are in EU/UK.

But in principle, this is completely fine.

Jocus said:
2. Another idea is to just change the name of the current billing so that said bank does not have a flag - at least right away. But I'd like 1. more, if that's legal.
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It depends on what about your business is on the bank's block list. If you don't get around that, you're still stuck.

Jocus said:
Any 3. option or alternative thinking is highly appreciated. Thanks!
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Depending on scope and reason for the bank blocking you, you could could look into setting up subsidiary payment agent companies and open merchant accounts with those companies instead.

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This is the probably the answer to your question.

 

[Jocus]

Sols, your reply and input is appreciated.

You ask why? No idea. Could be a number of reasons. We're not doing or selling anything illegal.

The banks are in their right to shut down any capture of card at will, without explanation or warning. So even talking to a lawyer will not help I'm afraid.

Thinking more about this particular case, - as I have other, several accounts with gateway provider (Stripe), I'm afraid that if I ask Stripe to transfer the existing database of clients for that particular site to another provider/gateway and company, Stripe might think "something is up", and decide to block or or mess with my other accounts with them. I don't want to rock the boat. I'm not ready to take that risk.

I rather just take the hit, and think of a more clever way of setting up a structure that can be easily implemented moving forward, so if ever a bank again for whatever (unreasonable) reason decides to block their cards with us, I should be able to have a 2nd, 3rd, 4th or even 5th solution, that could be implemented fast, so the business can keep on running. I wouldn't mind different payment provider(s), Stripe is already charging us 6%.

Now if you have any ideas how that setup might work, I am all ears. I do have some ideas of my mind, but creative input is always welcome.

Thanks.

 

[Jocus]

Anyone? I'm willing to pay for some good, working advice 🙂