Ipayment, Inc Closed my merchant account without notice, witholding money properly collected from my customers Thousand Oaks, California

This company suspended my credit card processing facilities without notice. They are withholding payments properly collected from my customers though in 90 days they will think about giving them back. The amount is over $5,000.
Their excuse is that I am collecting money for annual memberships of a gym, a fact that was properly disclosed at the time of underwriting. They want me to refund members so I can collect payment in other ways, but haven't given me access to my funds to carry out this refund.  The idiot who terminated the account refuses to reply to my calls and explain to me what to do.
They say that if I was to go out of business (an event they are deliberately precipitating) they will have to refund the whole 12 months membership even if 11 months have passed since I collected the money.  This is ludicrous, all of you know that VISA will not refund the whole cost of a service that you have used 90% of, and anyway we are bonded to the state to cover this eventuality, something they never asked about.
This company is also dodgy in that the staff insist that they work for Ipayment, Inc, but a quick look at their SEC filings shows that entity to have no money, no real assets, and mountains of debt.  The filing clearly says they have negative current assets so they cannot meet their current obligations.  I would avoid dealing with them and definitely avoid working for them.