Wise closed without explanation: An e-commerce seller's story
An Amazon FBA seller using Wise for multi-currency payments had their account closed. The real issue: high-volume transactions without proper business documentation.
Background
- User Type
- E-commerce Seller
- Business Model
- Amazon FBA (private label products)
- Structure
- UK sole trader, later UK Ltd
What Happened
Account frozen during a routine review. Wise requested proof of business, supplier invoices, and explanation of fund sources. Account closed 2 weeks later.
Timeline: 2 weeks from freeze to closure
META Analysis
High volume of international transfers to Chinese suppliers. Large deposits from Amazon followed by immediate outgoing transfers looked like money laundering to automated systems.
Started as sole trader, incorporated too late. The transition period had messy documentation.
VAT registration delayed. Some inventory imported without proper customs documentation.
Supplier invoices were in Chinese with no translations. Amazon payouts weren't clearly documented. The money trail was hard to follow.
Resolution
Funds eventually returned after 90 days. Seller moved to a traditional business bank account with higher fees but more stability.
Key Lessons
- ✓High-volume international transfers need clear documentation
- ✓Keep translated copies of supplier invoices
- ✓Incorporate before scaling, not after
- ✓Maintain clear records of inventory and customs
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