Payment Processor Response SOP¶

Owner: Solo Operator Last Updated: 2026-02-26 Review Cadence: Quarterly Systems: ACH Processor (Paycron), Card Processor (future), BTCPay Server, Mercury, Medusa Admin

1. Types of Processor Inquiries¶

Payment processors and acquiring banks may contact you for the following reasons:

Inquiry Type	Urgency	Typical Source	Deadline
Compliance review	High	ACH/card processor, acquiring bank	5-14 days (stated in notice)
Product clarification	Medium	Processor risk team	3-7 days
Chargeback dispute	High	Processor (automated)	7-21 days (per card network)
Reserve adjustment	Medium	Processor, acquiring bank	Informational (may not require response)
Account review / audit	High	Processor, acquiring bank	As stated in notice
Excessive chargeback notice	Critical	Card network (via processor)	Immediate action required
Account hold / freeze	Critical	Processor	Immediate -- see Section 7
Termination notice	Critical	Processor, acquiring bank	See Section 8

Rule: Respond to ALL processor inquiries within 24 hours, even if only to acknowledge receipt and state you are gathering documentation.

2. Response Principles¶

Every response to a payment processor MUST follow these principles:

2a. Be Truthful About Product Category¶

DO: Describe products as "research-grade peptides and research chemicals sold for in-vitro research use only (RUO)."
DO: Acknowledge that your products are chemical compounds.
DO NOT: Describe products as "supplements," "health products," "wellness items," or any category that implies human consumption.
DO NOT: Obscure or downplay what you sell. Processors have risk teams that will catch inconsistencies, and dishonesty is grounds for immediate termination.

2b. Emphasize RUO Compliance¶

In every response, highlight these compliance measures: 1. All products are labeled "For Research Use Only." 2. Website displays RUO disclaimers on every product page. 3. Checkout requires explicit acknowledgment that products are for research use only. 4. Terms of Service explicitly prohibit non-research use. 5. Packing slips and inserts include RUO disclaimers. 6. Customer inquiries about non-research use are declined (per Support SOP).

2c. Provide Documentation Proactively¶

Do not wait to be asked twice. Include supporting documentation with your first response. Over-documentation demonstrates good faith.

2d. Be Professional and Concise¶

Use clear, professional language.
Number your points.
Attach documents rather than pasting long text inline.
Respond to every specific question asked.
Do not volunteer information about potential risks or issues they did not ask about.

3. Documentation to Have Ready¶

Maintain a "Processor Response Kit" folder with these documents, updated quarterly:

3a. Business Description Document (1-2 pages)¶

Prepare and maintain a document covering:

RESEARCH RELAY LLC -- Business Description

1. COMPANY OVERVIEW
   - Research Relay LLC is a California limited liability company
     that sells research-grade peptides and research chemicals
     for in-vitro research use only (RUO).
   - Products are sold to researchers, academic institutions,
     and private laboratories.
   - All products are accompanied by Certificates of Analysis (COA)
     from third-party analytical testing.

2. PRODUCT CATEGORY
   - Research Use Only (RUO) peptides and chemical reagents.
   - Products are analytical reference standards and research
     reagents, not consumer goods.
   - No products are marketed, labeled, or sold for human
     consumption, veterinary use, diagnostic use, or
     therapeutic application.

3. CUSTOMER BASE
   - Independent researchers
   - Academic and university laboratories
   - Private research institutions
   - Biotechnology companies

4. COMPLIANCE MEASURES
   [See Section 3b below]

5. OPERATIONS
   - Based in California
   - Ships via USPS and UPS
   - Accepts payment via ACH, credit/debit card, and Bitcoin
   - All orders include COA documentation and RUO disclaimers

3b. Website Compliance Documentation¶

Prepare screenshots and/or URLs demonstrating:

Product page disclaimers: Screenshot showing the RUO disclaimer on a product page.
Terms of Service: URL to published ToS, highlighting the RUO and prohibited use sections.
Checkout acknowledgment: Screenshot of the checkout flow showing the RUO acknowledgment checkbox or statement that customers must accept before completing purchase.
Footer/site-wide disclaimer: Screenshot showing any site-wide RUO notice.
About page / FAQ: If it exists, screenshot showing your description of the business.

Update these screenshots quarterly or whenever the website changes.

3c. Chargeback Prevention Measures¶

Document these measures in writing:

CHARGEBACK PREVENTION MEASURES

1. Clear billing descriptor: "RESEARCH RELAY" appears on
   customer statements.

2. Order confirmation emails sent immediately upon purchase
   (via SendGrid).

3. Shipping confirmation emails with tracking number sent
   upon fulfillment.

4. Signature confirmation required for orders over $100.

5. All shipments include tracking via USPS or UPS.

6. Responsive customer support (24-hour response target)
   to resolve issues before they escalate to chargebacks.

7. Clear refund policy published on website and communicated
   during checkout.

8. RUO acknowledgment at checkout ensures the customer
   understands what they are purchasing.

CURRENT CHARGEBACK RATE: [X.XX]% (updated monthly)

3d. Customer Verification Procedures¶

CUSTOMER VERIFICATION PROCEDURES

1. All customers must create an account with a valid email
   address to place an order.

2. Email verification is required before the first order
   can be placed.

3. RUO acknowledgment is required at checkout -- customers
   confirm the product will be used for research purposes only.

4. Orders are reviewed for fraud signals before fulfillment
   (address verification, payment method validation, order
   pattern analysis).

5. Suspicious orders are held for manual review.

6. Customers who indicate non-research intended use are
   refused service.

3e. Fulfillment Procedures Summary¶

FULFILLMENT PROCEDURES

1. Orders are processed within 1-2 business days of
   payment confirmation.

2. All products are picked from climate-controlled storage.

3. Every shipment includes:
   - Certificate of Analysis (COA) for each product
   - RUO disclaimer insert
   - Packing slip with order details

4. Temperature-sensitive products are shipped with cold
   packs via expedited service.

5. All shipments include tracking numbers, which are
   communicated to the customer via email.

6. Inventory is managed through our commerce platform
   (MedusaJS) with real-time stock tracking.

4. Response Templates¶

4a. Compliance Review Response¶

When a processor asks for a business description or compliance review:

Subject: Re: Compliance Review - Research Relay LLC / [Merchant ID]

Dear [Processor Contact / Risk Team],

Thank you for your inquiry. Please find below our response
to your compliance review request.

BUSINESS DESCRIPTION
Research Relay LLC is a California LLC that sells research-grade
peptides and research chemicals for in-vitro research use only
(RUO). Our products are analytical reference standards and
research reagents. No products are marketed, labeled, or sold
for human consumption, veterinary use, diagnostic use, or
therapeutic application.

COMPLIANCE MEASURES
1. All product pages display "For Research Use Only" disclaimers.
2. Our Terms of Service explicitly prohibit non-research use
   (see attached).
3. Checkout requires customers to acknowledge that products
   are for research use only before completing a purchase.
4. All shipments include COA documentation and RUO disclaimer
   inserts.
5. Customer inquiries about non-research use are declined.

DOCUMENTATION ATTACHED
- Business description document
- Website compliance screenshots (product page, checkout
  acknowledgment, Terms of Service)
- Current chargeback rate summary
- Fulfillment procedures summary

Please let me know if you need any additional information.
I am happy to provide whatever documentation is helpful.

Regards,
[Your Name]
Research Relay LLC
[Phone number if appropriate]

4b. Product Clarification Response¶

When a processor asks what you sell:

Subject: Re: Product Clarification - Research Relay LLC

Dear [Processor Contact],

Thank you for reaching out. I am happy to clarify our
product offering.

Research Relay LLC sells research-grade peptides and
chemical reagents for in-vitro research use only (RUO).
These are analytical reference standards used by researchers,
academic laboratories, and biotechnology companies.

KEY POINTS:
- All products are labeled "For Research Use Only"
- Each product ships with a third-party Certificate of
  Analysis (COA) documenting purity and identity
- Our website, Terms of Service, and checkout process
  all emphasize RUO status
- We do not sell consumer goods, supplements, food
  products, or items intended for human/animal use

I have attached screenshots of our website showing product
page disclaimers and checkout acknowledgment flow.

Please let me know if you need further clarification.

Regards,
[Your Name]
Research Relay LLC

4c. Chargeback Dispute Response¶

See Refund SOP Section 6 for detailed chargeback response procedures. When a processor asks about your chargeback rate or prevention measures:

Subject: Re: Chargeback Inquiry - Research Relay LLC

Dear [Processor Contact],

Thank you for your inquiry regarding our chargeback activity.

CURRENT METRICS:
- Chargeback rate: [X.XX]% (trailing 6 months)
- Total chargebacks: [N] out of [N] transactions
- Chargebacks won: [N]
- Chargebacks lost: [N]

PREVENTION MEASURES IN PLACE:
1. Clear billing descriptor ("RESEARCH RELAY")
2. Order and shipping confirmation emails with tracking
3. Signature confirmation for orders over $100
4. 24-hour customer support response target
5. Published refund policy on website
6. Proactive refund processing for legitimate complaints

RECENT ACTIONS TAKEN:
[If applicable, describe any recent changes to reduce
chargebacks, such as updated billing descriptor, added
signature confirmation, improved product descriptions, etc.]

Documentation attached for your review.

Regards,
[Your Name]
Research Relay LLC

4d. Account Review / Audit Response¶

When a processor requests a formal account review:

Subject: Re: Account Review - Research Relay LLC / [Merchant ID]

Dear [Processor Contact],

Thank you for conducting this review. I appreciate the
opportunity to provide comprehensive documentation of
our business and compliance practices.

Please find attached:

1. Business description document
2. Website compliance screenshots
   a. Product page with RUO disclaimer
   b. Checkout acknowledgment flow
   c. Terms of Service (relevant sections highlighted)
3. Chargeback prevention measures document
4. Customer verification procedures
5. Fulfillment procedures summary
6. Sample Certificate of Analysis (COA)
7. Sample packing slip with RUO disclaimer insert

SUMMARY:
Research Relay LLC operates a compliant RUO research
chemical supply business. All products are clearly
labeled and sold exclusively for in-vitro research use.
Our website, checkout process, documentation, and customer
support procedures all reinforce this classification.

I am available for a call if that would be helpful.
Please let me know what additional information you need.

Regards,
[Your Name]
Research Relay LLC
[Phone number]

5. Escalation: When to Involve an Attorney¶

Contact your attorney BEFORE responding if:

The inquiry references specific legal statutes or regulations (FDA, DEA, state pharmacy board, controlled substances).
The processor uses language like "investigation," "violation," or "regulatory action."
You receive a subpoena or legal hold notice from or through a processor.
The processor asks about a specific customer by name (this may indicate a law enforcement inquiry routed through the processor).
You are asked to sign an affidavit or certification about your business practices.
The inquiry comes from a card network (Visa, Mastercard) directly, not just your processor.
Multiple processors contact you about the same issue simultaneously.

While waiting for attorney guidance: - Acknowledge receipt of the inquiry to the processor: "Thank you for your inquiry. I am reviewing this with my compliance advisor and will provide a complete response by [date]." - Do NOT provide substantive responses. - Do NOT admit fault or agree to changes. - Preserve all communications.

6. Proactive Measures¶

6a. Monthly Self-Audit (30 minutes)¶

Perform the following checks on the first business day of each month:

Website compliance:
Visit each product page. Verify RUO disclaimer is visible.
Test the checkout flow. Verify the RUO acknowledgment step works.
Review the Terms of Service page. Confirm it loads and is current.
Review the refund/return policy page. Confirm it is accurate.
Chargeback / ACH return rate:
Log in to your ACH processor dashboard (and card processor dashboard when applicable).
Calculate dispute rate: (disputes in trailing 30 days) / (transactions in trailing 30 days).
Target: Below 0.5%. Warning: Above 0.75%. Critical: Above 1.0%.
If above 0.75%, review causes and implement additional prevention measures immediately.
Billing descriptor:
Verify in your processor dashboard settings that the statement descriptor reads "RESEARCH RELAY" or your configured descriptor.
Processor communications:
Review any emails or notifications from your ACH processor, card processor, acquiring bank, or Mercury.
Respond to anything outstanding.

6b. Quarterly Documentation Update (1 hour)¶

Update the Processor Response Kit (Section 3):
Refresh all website screenshots.
Update chargeback rate statistics.
Review and update business description if product line changed.
Verify all attached documents are current.
Save the updated kit in an easily accessible location (e.g., a dedicated folder in cloud storage or your local file system).

6c. LegitScript Certification (Consideration)¶

LegitScript is a third-party certification service that verifies online merchants selling healthcare-adjacent products. Having LegitScript certification:

Proactively demonstrates compliance to processors.
May reduce the frequency of processor inquiries.
Is required by some ad platforms (Google, Facebook) for certain product categories.
Costs approximately $1,000-2,500/year depending on category.

Decision criteria: Consider LegitScript certification when: - Annual revenue exceeds $100,000. - You receive more than 2 processor inquiries per year. - You want to advertise on platforms that require it.

This is NOT required at launch. Revisit after 6-12 months of operation.

7. Account Hold / Freeze Protocol¶

If a processor freezes your account or places a hold on funds:

7a. Immediate Actions (within 1 hour)¶

Do NOT panic. Holds are common for new merchants in higher-risk categories.
Read the notification carefully. Identify:
What triggered the hold (chargeback threshold, compliance review, risk flag).
What they are asking you to provide.
What the deadline is.
Whether funds are being held, or whether processing is paused entirely.
Acknowledge receipt to the processor within 1 hour.
Assess the impact:
Can you still accept new orders? (If processing is paused, no.)
Can you still access existing funds? (If reserve hold, partial access.)
Do you have existing unfulfilled orders? (Fulfill them -- do not hold customer orders.)

7b. Response (within 24 hours)¶

Prepare a comprehensive response using templates from Section 4.
Include ALL documentation from Section 3.
Be proactive: provide more documentation than requested.
If the hold is due to chargebacks, include a detailed remediation plan.
If the hold is due to product category, emphasize RUO classification and compliance measures.

7c. Business Continuity¶

If ACH/card processing is paused:
BTC/Lightning via BTCPay Server: Still operational. No third-party risk.
Direct ACH via Mercury: You can manually send customers a Mercury payment link or provide wire transfer details.
Update the website to reflect available payment methods.
Do NOT attempt to open a new account with the same processor to circumvent the hold. This will result in permanent banning.
If the hold extends beyond 7 days, begin evaluating alternative processors (see Section 8).

8. Account Closure / Termination Protocol¶

If a processor terminates your account:

8a. Immediate Actions¶

Preserve all records:
Export all transaction data from the processor dashboard.
Download all dispute/chargeback records.
Save all communications with the processor.
Export customer payment data (not card numbers -- just transaction IDs, amounts, dates).
Do NOT delete anything from the processor dashboard.
Consult your attorney if the termination letter references MATCH listing (Mastercard) or VMAS listing (Visa). These are shared industry lists that can prevent you from getting a new processor.

8b. Customer Communication¶

Notify customers with pending orders that their orders will still be fulfilled.
Process any outstanding refunds before the account is fully closed (processors typically allow a wind-down period).
Update the website to remove the terminated payment method.

8c. Alternative Payment Processing¶

BTCPay Server: Unaffected by processor termination. BTC/Lightning remains fully operational.
Direct ACH via Mercury: Manual process but functional. Customer sends ACH to your Mercury account, you verify and create the order manually in Medusa (Draft Order).
Alternative card processors: Research alternatives. Higher-risk-friendly processors include:
Durango Merchant Services
PayKickstart
eMerchantView
Note: These typically charge higher fees (3-5% + per-transaction fees) and may require reserves.
Crypto payment options: Expand beyond BTC if needed -- BTCPay Server supports multiple cryptocurrencies.

8d. Steps to Set Up Alternative Processing¶

Apply to 2-3 alternative processors simultaneously (approval takes 3-14 days).
Be completely transparent about your product category and why the previous processor terminated.
Provide the full Processor Response Kit (Section 3) with your application.
Once approved, integrate the new processor with Medusa (build or configure a new payment provider module).
Update the storefront checkout to offer the new payment method.
Test end-to-end before directing real customer traffic.

9. Key Contacts¶

Maintain this list and update as contacts change:

Contact	Details	When to Use
ACH Processor (Paycron)	[Contact info TBD after signup]	ACH account questions
Card Processor	[Contact info TBD after signup]	Card processing, compliance reviews, holds
Mercury Support	Via Mercury dashboard	Banking questions, ACH issues
Attorney	[Name, phone, email]	Legal inquiries, MATCH listing, termination
Backup processor	[Name, account rep contact]	If primary processor terminates

10. Quick Reference: Processor Inquiry Checklist¶

When you receive ANY inquiry from a payment processor: