Wait! Before you go online and add Stripe Payments to file a complaint with the BBB for terminating your merchant account or passing along chargeback fines, please read this. Stripe Payments is a great alternative payment processing solution—FOR LOW RISK MERCHANTS. Since 1999, I have been working with card-not-present merchants establish new merchant accounts for their online businesses. The payments business has become highly competitive and merchants such as yourself are being offered hassle-free merchant accounts with “unbelievable” terms that include no reserve, very low processing fees and same day set ups. Merchants who have been previously declined by other processors because of their business model are jumping on these easy merchant accounts such as Stripe Payments.
Stripe Payments is very easy to set up and you can start accepting payments within 24-48 hours. Why wouldn’t you jump on this opportunity? If you are a very low risk merchant who needs to accept payments, I would suggest adding Stripe Payments as an alternative payment option like Paypal. However, if you plan to scale your business or you know that you are considered higher risk such as an MLM, subscription service, biz opp, or any other model that wouldn’t be immediately approved at ALL credit card processing merchant banks, I would suggest not using Stripe Payments.
In the past six months, I have worked with more than 50 merchants who were approved and processing with Stripe Payments and then terminated because the business model is not supported or the merchant got several chargebacks in a given month. How does this make any sense? It’s simple. Stripe Payments has a high go live approval rate. However, it’s for accounts that do not cause even a small ripple in underwriting and risk—LOW RISK.
If you get terminated by Stripe Payments and do not have a stable alternative merchant account in place, your business is going to be jeopardy for the following reasons:
1. If you operate a recurring billing model, you will not be able to export those members to a new merchant account provider. Those rebills and revenue will be lost.
2. Any prospective merchant account provider will be concerned that you were terminated in the past regardless of reason behind it. It’s a huge red flag.
3. Your expectations will be too high to get back to reality! It’s true. You went live in 24 hours with low rates and no rolling reserve. Why would you expect anything different. Unless you sell handmade soaps online, you will pay decent pricing and have a rolling reserve.
IF YOU WERE TERMINATED BY STRIPE PAYMENTS, HERE IS YOUR MIGRATION PLAN
As a merchant account migration expert, I can tell you that this is a very critical point. Most merchants will get a termination notice and immediately start filling out applications online. This is the WRONG thing to do. Every application you submit will get sent to multiple banks. Agents will submit them with information that may not be consistent with your business model to try and get it approved. The banks are able to see how many times your credit and file has been submitted and it raises more concerns.
Work with an remedy group such as Patricia Carlin Consulting who will pull together your file in a strategic manner. This includes:
a. Full review of your website to find any potential risk triggers i.e. unchecked opt-in boxes, no visible support links, and additional red flags underwriters notice.
b. Review all decline reasons from previous banks so we can put together a proper case summary that addresses this issues before they arise. It’s called Getting to The Ear First”.
c. Map out expected volume and location of customer base. If you are growing at a rate of 20-30 percent month over month, we know that certain banks will not want this business.
d. There are literally 50 plus fraud and chargeback management tools in the market today. We know which ones work for YOUR specific business model.
And the list goes on. We WILL get you migrated to a stable merchant account solution with little to no down time.
The most valuable piece of information we can give you is this–Don’t Panic! Your business will survive. We will get you live when no one else can.
-Patricia Carlin – Card-Not-Present Merchant Account Expert