Via Cynthia, here’s a case of how “know your customer” laws and a bank’s indifference can derail a small business.
Blue Moon Fiber Arts, a small West Cost company, runs a ’sock club’ service: a yarn of the month club for knitters who want to work with cool, speciality yarns. The sock club grew popular. And that made Blue Moon’s credit card processor suspicious. The Yarn Harlot (seen here with Cynthia) continues the story of how Blue Moon found themselves without a payment processor, and forced to refund loyal customers.
Lesson: knowing your customer means having some understanding of their business, so you won’t have a OMG! Money Laundering! reaction when one of your small business customers becomes successful.
