Stripe Terminated Merchant My Account Without Notice! It is the message that all online businesses fear. You got the terrifying "Merchant Account Terminated" e-mail from Stripe Payments,and to add insult to injury it came after you integrated Stripe into your site and shopping cart,and processed hundreds of payments!
What's going on? Why were you approved with Stripe and then kicked out after a few weeks?
Keeping your payment processing active and having acess to hard-earned revenue isn't basic at all. Selecting an aggregator like Stripe (or PayPal, Square, Google Checkout, and Amazon) puts your ability to accept payments in a constant state of uncertainty.
Stripe's sales philosophy uses an automatic post approval boarding strategy, which is to "Get the merchant activated immediately, and then underwrite the application, if the merchant does not meet their criteria, Close them down quick and freeze the funds for 6 months"; with total disregard to the time the merchant took to intergrate the account or the lost revenue they were counting on. Is this they type of relationship you want and need for your e-commerce business?
In the event that you were lured in by Stripe, Let's take a look at essentials about payment aggregators, like Stripe in particular, and why a high risk online business should watch out for being shut off by them.
Aggregator Business Model Explains Setup and Shut Down
Payment aggregators process debit and credit payment card transactions for thousands even millions of businesses. They aggregate all of the processed sales into their own merchant account.
Money from cleared and settled sales remain in Stripe's bank account up until the funding procedure, when it's ultimately paid into the merchants bank.
The aggregator service design represents a low entry barrier to payment processing. On the plus side, it enables Stripe to activate merchant accounts on the spot, so you can begin accepting payments ( and Stripe can start earning fees) immediately. You will not have to deal with being shut off by Stripe, at least for right now.
The problem is that Stripe doesn't know anything about you or your company. Not who you are, your credit score, criminal background, what you truly sell, or how and if you deliver items as claimed.
Simply put, aggregators exposed to greater risk than standard merchant processors. Their only recourse if they see something questionable about your transactions, is to freeze your account and put a hold your funds.
Another thing to be mindful of is that Visa and MasterCard pay attention to aggregators. As soon as merchants volume exceeds $100,000 in sales per month, the business needs to have an individual merchant account.
As a business owner, this ough to be a clear indicator to you that using an Aggregator is not meant as a long term, scalable option to accepting payments.
Stripe in Particular
Stripe's promotes "Pay as you Go" with no setup, monthly,or hidden fees. At 2.9% + $0.30 per deal, Stripe's charge structure matches other aggregators like PayPal. Stripe charges an extra 1% for global cards, and another 1% for currency conversion.
The reality is, neither PayPal or Stripe provides the least expensive payment processing rates around ... You'd be much better off getting a trditional merchant account.
The most frequently-cited complaints about Stripe include:
Shutting off accounts,and holding funds.
Unresponsive customer support,and no phone support available.
Frequent, automatic chargebacks (at a cost of $15 per item).
Not a good solution for High Risk Merchants.
Stripe takes a relatively cautious technique to accepting online payments, which frequently results in account freezes and chargebacks. Their laxed underwriting results in much easier account openings, but higher abrupt account holds with and termination without notice.
On the Stripe site, you'll find a fairly robust list of prohibited companies. Broadly speaking, Stripe determines three reasons:.
Legal policies from payment networks (Visa and MasterCard), and Stripe's banking partners,.
Legal regulations from nations in which they operate, and.
Monetary threats (to Stripe) postured by particular organisations.
Stripe uses an explanation for their choices to ban particular markets in this short article published on their blog. If you're declined by Stripe the rationale's at least clear (if you read their site).
Not so for all merchants that have experienced account shut down or kept funds without warning. Search the Web, and you'll discover numerous stories and unfavorable comments about Stripe.
Which is why startups may wish to stay away from Stripe for cedit card processing so you do not find yourself saying Oh No! Stripe Terminated My Merchant Account Without Notice!
If you operate a high risk online cpmpany, most payment professionals recommend you'll be much better off with a traditional merchant account, and a processor that concentrates on working with high risk.
We couldn't concur more.
Choose the Better Way.
To avoid being teminated by Stripe-- or if it happens to you-- take the next step to get your payments processing up and running once again smoothly and perfectly. Reach out to FinTechMerchantAccounts.com .
We're a specialized high-risk payment processor with experience. We provide a secure, seamless, end-to-end processing service.
FinTechMerchantAccounts.com can help you land the merchant account you require, and will ensure that a safe and secure payment integration is up and running rapidly. You can start accepting credit card sales again.
We will not only provide the answer to the dreaded Stripe Terminated My Merchant Account Without Notice, Now What? We will not only answer the now what but also remain dedicated to make certain that your payment processing needs are met and provide future solutions for you to scale up and experience continued success.
Since we think of clients as our partners, We 'd like to be yours, so contact us today.