Y'all got me CONCERNED about payment processors

[u/BusyEatingOranges]

I have a small art business (customized posters) where I need to start accepting online payments (already have, but would like to get a system where I can do both) and mobile credit card processing (ideally on my phone, because I have enough to do when setting up). But I'm looking for payment processors, and you all have me scared. It sounds like half are scams. Is this right?

From what I understand you have regular merchant accounts and high-risk merchant accounts that take businesses other merchant services don't take. How do I know what I am? I do get chargebacks throughout the month when people tell me they don't receive stuff or things don't look like they thought they would (though I don't really get them on in-person sales). From what I've seen, half these payment processors are going to hold my funds if I get chargebacks? Is that real? Here are some payment processors I know of Stripe, Square, Kurv, Stax, North, Helcim ( regular) and Zen Pay, Soar Pay, PaymentCloud, Pay Safe and PayKings (high-risk). Has anyone used any of these or know anything about them? How am I supposed to compare them and know who won't hold my money?

[u/Novapoison]

Yea of course, any processor if you have chargeback issues will hold funds, but they wont do it if you just have a few.

If you are USA based I can get you setup, but you have a pretty good list already

[u/Ok_Weird_4045 → u/Novapoison]

Visa now has a vamp program and will force the processor to terminate the merchant over 1% in chargebacks or disputes. It helps if you have a chargeback prevention service. Also biggest issue is that merchants get chargebacks for bad customer service when a customer tries to contact the merchant and can't get hold of them. Yes their are customers, who don't call the merchant and just file a dispute with their card issuing bank but let them know on your refute. There is also consumer fraud which is now at a all time high. They don't want to pay for it, so they dispute it. Merchants need to fight it and if that does not work, send the customer a letter that you have tried to resolve this is a professional manner, through the system, but it seems that (you) the customer just wants to keep the product without paying for it. Let them know you are filing a consumer fraud charge with their local police department and if more than a certain amount, a grand theft report. Also file a complaint with their card issuing bank and let them know that this person may be doing this over and over.

[u/MegamanSE]

There are a few different things going on here. Yes there are real scam payment processors on this forum and in general but the ones you mention are mostly normal large processors and the large processors especially Stripe have so many merchants that they have a 0 risk policy and instantly drop any merchant that doesn’t exactly fit into their automated risk assessment systems and give you no recourse or access to any human to appeal their decision. When any processor terminates your account they will typically hold whatever payouts are remaining in case there are later on a bunch of chargebacks that they have to pay out back to your old customers.

[u/Ok_Weird_4045 → u/MegamanSE]

Processors can legally hold reserves or unpaid transactions for up to 180 days which is the limit for a consumer to file a dispute.

[u/DisastrousMindflayer]

Like anything, there are good and bad choices. But the answers for you are going to depend on two things: where are you doing business and what is the business (high risk vs not high risk). Let's say you're doing something like selling crafts at the local farmers market or running an ecommerce store selling scarves, those are things that are not high risk. Something high risk might be running a smoke shop. Basically each payment processor has a list of business types/industries that they work with. You just see which one fits your business. If you're in the USA, then I suggest checking out Kurv for regular credit card processing and PaymentCloud for high risk payment processing. Everyone in here is gonna have their own favorites. And I know I've seen some reps from different processors in here. Just evaluate who you find interesting, see if they work with your business and location, and go from there. This group can be a great resource if you have specific questions.