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  • Stripe Paused Payouts: Why and How to Save Your Business

    Stripe Paused Payouts: Why and How to Save Your Business

    Stripe is a powerful payment processing platform that allows businesses to accept various payment methods online. It’s incredibly popular among ecommerce companies, SaaS providers, and more—which are the types of businesses that should avoid it!

    Why? Because sometimes Stripe puts a hold on your payouts. This means the money from your sales doesn’t reach your bank account as expected.

    When this happens, it can really throw a wrench in your cash flow and disrupt your operations. You might struggle to pay your bills, inventory costs, or even your employees. It’s a stressful situation that no business owner wants to face.

    https://youtu.be/R8pEE3Yn_eM

    AVOID STRIPE FREEZES AND GET EVEN MORE POWERFUL PROCESSING

    Why Stripe Pauses Payouts

    We have seven reasons why Stripe pauses payouts, freezes, accounts, prevents payments, and more.

    Missing Account Details

    When you sign up for a Stripe account, you need to provide some essential information about your business. This includes things like your tax ID number, business address, and banking details.

    Stripe uses this info to verify your identity and make sure you’re legit.

    If you fail to provide any of these documents or if the information is inaccurate, Stripe will pause your payouts. They might ask for additional verification documents, like a copy of your driver’s license or a recent utility bill, to confirm that you are who you say you are.

    It’s super important to keep your account information up to date and accurate. If Stripe requests any verification documents, make sure to provide them promptly. The longer you wait, the longer your payouts will be on hold, and that’s not good for business.

    GET BETTER PAYMENT PROCESSING

    High Dispute, Return, and Chargeback Rates

    Another major reason Stripe might pause your payouts is if your business has a high rate of disputes, returns, or chargebacks. Disputes happen when a customer questions a charge on their credit card statement and asks their bank to investigate.

    Returns occur when a customer sends a product back for a refund. Chargebacks are similar to disputes, but they’re initiated by the cardholder’s bank.

    If your business racks up too many disputes, returns, or chargebacks, Stripe sees this as a red flag. It could mean that there’s something fishy going on with your sales practices or that you’re not delivering on your promises to customers. As a result, Stripe may pause your payouts to protect themselves and their users from potential fraud or financial losses.

    To avoid this situation, it’s important to maintain low rates of disputes, returns, and chargebacks. You can do this by being transparent about your products or services, providing excellent customer service, and promptly addressing any issues that arise.

    It’s also a good idea to keep an eye on your chargeback ratio – that’s the percentage of transactions that result in a chargeback. Aim to keep this number below 1% to stay in Stripe’s good graces.

    If you do experience a high volume of disputes or chargebacks, take action immediately. Reach out to your customers to resolve any misunderstandings and work with Stripe to provide evidence and fight fraudulent claims. The sooner you tackle the problem, the better your chances of getting your payouts reinstated.

    KEEP CHARGEBACK RATES LOW

    Your Business Niche

    The industry or niche your business operates in can have a significant impact on whether Stripe considers you high-risk and potentially pauses your payouts. Certain industries are inherently riskier than others due to factors like higher chargeback rates, fraud incidents, or regulatory scrutiny.

    High-risk industries often face greater challenges when it comes to maintaining a stable Stripe account. These businesses may experience more frequent account reviews, requests for additional documentation, or even sudden account terminations.

    Some examples of industries that Stripe and other payment processors typically categorize as high-risk include:

    Vaping/e-cigarettes: Due to strict FDA regulations and the potential for underage sales, most payment processors consider this industry high-risk.

    Adult entertainment: Factors like age restrictions, reputational risks, and higher fraud rates contribute to this industry’s high-risk status.

    Gambling and fantasy sports: The association with gambling and high chargeback rates often lead to payment processing challenges for these businesses.

    Nutraceuticals and supplements: Lack of clear regulations and potential for deceptive marketing practices make this industry risky for payment processors.

    Cryptocurrency and forex trading: The unregulated nature of cryptocurrency and the high risk of fraud place these businesses firmly in the high-risk category.

    Other industries that may face heightened scrutiny include telemarketing, debt consolidation, online auctions, and travel booking. If your business falls into one of these high-risk categories, it’s essential to have a clear understanding of the potential challenges you may face with payment processing and to work proactively to mitigate risks.

    MOST ONLINE BUSINESSES ARE HIGH RISK, LEARN MORE

    Scaling Too Quickly

    Every business dreams of rapid growth and success, but scaling too quickly without proper risk management can actually lead to paused payouts on Stripe. When your business experiences sudden spikes in transaction volume, it can trigger red flags in Stripe’s fraud detection system.

    Rapid growth can strain your business’s resources and make it challenging to maintain the same level of customer service and order fulfillment. If you’re not prepared to handle the influx of sales, you may see an increase in customer complaints, disputes, and chargebacks. As we discussed earlier, high rates of these issues can lead to paused payouts.

    To avoid this situation, it’s essential to have a solid risk management plan in place before you start scaling your business. This might include:

    Gradually increasing your advertising spend and sales targets, rather than going all-in at once

    Investing in customer service and support to handle increased demand

    Implementing fraud prevention measures, like AVS and CVV checks, to weed out suspicious transactions

    Regularly monitoring your chargeback ratio and addressing any issues promptly

    Communicating with Stripe about your growth plans and working together to manage risk

    GET A PROCESSOR THAT SCALES AS QUICKLY AS YOU DO

    Restricted or Prohibited Business Lists

    Stripe maintains lists of restricted and prohibited businesses to ensure compliance with legal requirements and to manage risk on their platform. These lists outline the types of businesses and activities that are either completely prohibited from using Stripe or require additional scrutiny and approval before being allowed to process payments.

    The prohibited businesses list includes categories that Stripe does not support under any circumstances due to legal or ethical concerns. Some examples of prohibited businesses include:

    • Illegal products and services
    • Adult content and services
    • Debt relief and credit repair services
    • Gambling and gaming
    • Pharmaceuticals and supplements
    • Weapons and explosives

    Operating in a prohibited category can result in immediate account termination and loss of access to Stripe’s payment processing services.

    On the other hand, the restricted businesses list includes categories that may be allowed to use Stripe after undergoing additional review and receiving explicit approval. These businesses typically face heightened regulatory scrutiny or present increased financial risks. Examples of restricted businesses include:

    • Crowdfunding and fundraising
    • Financial services and money transfers
    • Marijuana dispensaries (in jurisdictions where legally permitted)
    • Subscription services
    • Travel agencies and timeshares

    To operate in a restricted category, businesses must provide detailed information about their operations and undergo a thorough vetting process. Stripe assesses factors such as the company’s compliance with applicable laws, its risk management practices, and its overall financial stability.

    Failing to disclose that your business falls under a restricted category or operating in a prohibited category can lead to severe consequences. Stripe may freeze your funds, terminate your account, and report your business to relevant authorities if necessary. This can result in significant financial losses and legal repercussions for your company.

    GET A MERCHANT ACCOUNT THAT TRULY BACKS YOUR BUSINESS

    Foreign Merchants

    Stripe’s global reach is impressive, but foreign merchants may still face unique challenges when using the platform. These hurdles can complicate the already complex process of running an international business.

    One of the primary challenges foreign merchants encounter is navigating the different legal and regulatory requirements in their home countries. While Stripe strives to comply with global regulations, businesses are ultimately responsible for ensuring they adhere to local laws related to online transactions, data protection, and consumer rights.

    Currency conversion is another potential obstacle for international businesses. Although Stripe supports transactions in over 135 currencies, there may be additional fees associated with converting funds to your local currency. These costs can add up over time and impact your bottom line. It’s crucial to factor in currency conversion fees when pricing your products or services and setting your budget.

    Moreover, foreign merchants may be subject to additional verification requirements to comply with Stripe’s global anti-money laundering (AML) and know-your-customer (KYC) policies.

    This enhanced due diligence process can involve providing extra documentation, such as proof of business registration, identification of beneficial owners, or information about your company’s source of funds.

    The verification process can be time-consuming and may delay your ability to start processing payments. In some cases, Stripe might even request periodic updates to ensure ongoing compliance, adding an administrative burden to your operations.

    While you likely won’t convert as much, it’s better in the long run to open a local Stripe account and convert the currency from yours to your target market. This is opposed to opening a Stripe account in your target market directly.

    SELL GLOBALLY WITHOUT RISK OF TERMINATION

    Statement Warnings

    Before Stripe takes the drastic step of pausing your payouts, they often provide warning signs that your account is at risk. One of the most common indicators is a statement warning.

    Statement warnings are notifications that appear on your Stripe dashboard or direct on your Stripe statement, alerting you to potential issues with your account. These warnings can range from minor concerns, like a sudden change in your sales volume, to more serious problems, like a high chargeback rate or suspicious transactions.

    When you receive a statement warning, review the notification and understand the issue Stripe is flagging. Some common reasons for statement warnings include:

    • Unusual transaction patterns or sudden spikes in sales volume
    • High rates of disputes, refunds, or chargebacks
    • Incomplete or outdated account information
    • Selling products or services that fall under Stripe’s restricted or prohibited categories

    The bad news is that when Stripe gives you a statement warning, your account is 9 times out of 10 shut down.

    However, the information on the warning can tell you what type of merchant account to open. Or at the very least, it will tell you what to look out for in your merchant services provider.

    OPEN A MERCHANT ACCOUNT THAT SUPPORTS YOUR BUSINESS

    3 Steps to Save Your Business

    Alright, so your Stripe account is in hot water, and you’re facing the dreaded payout pause. Don’t panic! Here are three steps you can take to get your business back on track.

    1. Open a Local Stripe Account

    If you’re operating in a different country than where your Stripe account is registered, it’s time to go local. Opening a Stripe account in your physical location can work wonders for mitigating payout issues.

    Here’s why: Stripe has different risk tolerance levels and compliance requirements for each country. By having a local account, you’re playing by the same rules as other businesses in your area. This can help reduce red flags and keep your payouts flowing smoothly.

    2. Open a Merchant Account

    A merchant account is a special type of bank account that allows you to accept credit and debit card payments. Stripe, contrarily, is a payment aggregator.

    Having a dedicated merchant account as your primary can be a lifesaver when Stripe payouts go awry. It provides an more secure route for your funds, ensuring you can still process payments and keep your cash flow stable.

    Plus, merchant accounts often have higher transaction limits and more customization options than Stripe alone. It’s like having a backup generator for your business – you’ll be glad you have it when you need it most.

    3. Communicate with Stripe

    As soon as you see that your payouts are paused, reach out to Stripe’s support team first by email. Explain your situation clearly and concisely, and provide any relevant documentation they request.

    Then, send a physical letter to Stripe’s legal department. This letter should be sent with tracking and require a signature. That way, you know when it gets delivered and who signed it. Knowing who signed it allows you to request that person in emails and over the phone.

    Stripe is never too willing to release funds. It’s up to you to be aggressive about getting it back and keeping your store running.

    PROTECT YOUR BUSINESS WITH A DEDICATED MERCHANT ACCOUNT

  • Chargebacks from Poor Customer Service Is Killing Your Business — Solution

    Chargebacks from Poor Customer Service Is Killing Your Business — Solution

    Did you know that your customer service team can play a huge role in reducing chargebacks?

    That’s right – many chargebacks derive from poor customer service, so the obvious solution is to improve your customer service. But that might not be as easy as it sounds.

    In this post, we’ll dive into the basics of chargebacks customer service and explore practical strategies your customer service team can use to prevent them. From clear communication to streamlined returns, a few simple tweaks can make a big difference.

    GET REAL-TIME CHARGEBACK ALERTS NOW

    The High Cost of Chargebacks for Businesses

    Chargebacks are the silent killer for businesses.

    They’re not just annoying, they’re also seriously expensive. For every dollar lost to a chargeback, businesses end up paying an average of three bucks in fees, lost products, and other costs. That’s crazy, right? It’s throwing money down the drain.

    And it gets worse. Chargebacks don’t just hurt your bottom line – they also mess up your relationships with customers. When a chargeback happens, it acts as a wedge between you and your customer. They might not trust you anymore, and they probably won’t come back to buy from you again. That means you’re not just losing the sale you already made, but future sales too.

    So, as you can see, chargebacks are a huge deal. They’re costly, they’re damaging, and they’re only getting more common. If you want your business to succeed, you need to get serious about preventing them.

    PREVENT CHARGEBACKS WITH BETTER PAYMENT PROCESSING

    Understanding the Causes of Chargebacks

    Alright, so now that we know how bad chargebacks can be, let’s talk about why they happen in the first place. There are a few main reasons, and understanding them is the first step to preventing chargebacks.

    Fraudsters Using Stolen Credit Cards

    First up, we’ve got fraudulent transactions. This is when some scammer gets their hands on a stolen credit card and goes on a shopping spree. When the real cardholder sees the charges, they dispute them, and bam – you’re hit with a chargeback.

    Customers Not Happy with Products or Services

    Next, there’s customer dissatisfaction. Maybe the product wasn’t what they expected, or the service wasn’t up to par. If the customer feels like they didn’t get what they paid for, they might file a chargeback to get their money back.

    Confusion Over Policies and Billing

    Another big reason for chargebacks is confusion over return policies or subscription billing. If your policies are unclear or hard to find, customers might not know what to do when they want to return something or cancel a subscription. So, they dispute the charge instead.

    Unrecognizable Merchant Names

    Finally, there’s the issue of merchant names on bank statements. If your business name doesn’t match what shows up on the customer’s statement, they might not recognize the charge. They might think it’s fraudulent and dispute it, even if it was a legit purchase.

    DECREASE CHARGEBACKS WITH CUSTOM ALERTS

    How Customer Service Can Reduce Chargebacks

    Now it’s time to get into how you can reduce chargebacks through better customer service. Remember, you’ll never get chargebacks down to zero. That’s an unrealistic goal.

    Provide Clear Policies and Communication

    If you want to keep chargebacks at bay, you’ve got to make sure your customers know what’s up. That means having clear, easy-to-find policies and keeping communication on point.

    First things first – your return and refund policies need to be straightforward and simple to understand. Don’t hide them away in some tiny link at the bottom of your website. Put them front and center, so customers can easily find them when they need to. The easier it is for customers to return or get a refund, the less likely they are to file a chargeback.

    Next up, let’s talk about subscriptions. If you’ve got customers signed up for recurring payments, you need to keep them in the loop. Send them a heads up before you process each renewal charge. That way, they won’t be caught off guard when they see the charge on their statement. And if they want to cancel, make it easy for them to do so.

    Finally, make sure your merchant name is clear and recognizable on billing statements. If customers see a charge from some random company they’ve never heard of or a series of random numbers, they might panic and dispute it. If they can easily tell it’s from your business, they’ll be less likely to file a chargeback.

    Offer Proactive Customer Support

    First and foremost, make it super easy for customers to get in touch with your support team. Don’t make them jump through hoops or hunt for contact info. Put your support channels front and center, whether it’s a phone number, email address, or live chat. The faster customers can reach you, the quicker you can solve their issues and prevent chargebacks.

    But don’t stop there – sometimes you need to be the one to reach out first. If a product is backordered or a shipment is delayed, don’t leave your customers in the dark. Give them a heads up and let them know what’s going on. They’ll appreciate the transparency, and it’ll show that you’re on top of things.

    And when it comes to shipping, keep your customers in the loop every step of the way. Provide tracking numbers and send shipping confirmations, so they know exactly when to expect their order. If there are any hiccups along the way, let them know ASAP. The more informed your customers are, the less likely they are to dispute a charge.

    Streamline Returns and Cancellations

    If you want to keep chargebacks to a minimum, you’ve got to make returns and cancellations a breeze. The easier it is for customers to get their money back or cancel a subscription, the less likely they are to dispute a charge.

    When it comes to returns, don’t put customers through the ringer. You’ll pay way more for a chargeback than you will for a return. Offer hassle-free returns with no questions asked. If a customer isn’t happy with their purchase, let them send it back without a fuss. The smoother the return process, the less likely they are to get frustrated and file a chargeback.

    The same goes for subscriptions. If a customer wants to cancel, make it easy for them to do it themselves. Don’t make them call customer support or send an email. Give them a simple, self-service cancellation process that they can do with just a few clicks. The less friction there is, the better.

    And finally, when a customer does request a refund, don’t drag your feet. Process that refund ASAP, before they get impatient and dispute the charge with their bank. The faster you get their money back to them, the less likely they are to escalate things to a chargeback.

    Leverage Chargeback Alerts and Prevention Services

    If you really want to up your chargeback prevention game, you’ve got to get tech-savvy. There are tons of tools and services out there that can help you stop chargebacks before they even happen.

    First, let’s talk about chargeback alert services. These tools give you a heads up when a customer disputes a charge, so you can jump in and resolve the issue before it turns into a full-blown chargeback.

    Then, there are tools that can automatically update expired or canceled card numbers. This is a big one for subscription businesses – if a customer’s card expires or gets canceled, these tools can update the info so you don’t get hit with a chargeback.

    And finally, don’t be afraid to partner up with your payment processor on fraud prevention. They’ve got tons of experience dealing with chargebacks, and they can help you put together a solid strategy. They might have some tools or services of their own that you didn’t even know about, so it’s always worth reaching out and seeing what they can do for you.

    CONNECT WITH A PROCESSOR THAT WILL LOWER YOUR CHARGEBACK RATE

    TL;DR

    • Happy customers are way less likely to dispute legit charges, so focus on keeping them satisfied
    • When you provide top-notch service, you build brand loyalty and keep customers coming back for more (ka-ching!)
    • By preventing chargebacks, you’re protecting your hard-earned sales revenue and boosting your bottom line
    • Chargeback alert services, a better payment processor, and attentive customer service are key
  • Stripe or National Processing: Which Payment Service Provider Is Best?

    Stripe or National Processing: Which Payment Service Provider Is Best?

    Your payment processor is the backbone of your financial transactions, and it can make or break your customer experience and bottom line. With so many options out there, it can be overwhelming to decide which one is the best fit for your unique needs.

    Two popular payment service providers are often juggled: Stripe and National Processing.

    Both of these companies offer a range of features and benefits that cater to different types of businesses. Both offer flat-rate, near same-day activation. So which is better?

    CONNECT WITH A PROCESSOR THAT SUPPORTS YOUR BUSINESS

    Overview of Stripe

    Stripe Benefits

    One of the biggest benefits of Stripe is its ease of use. The platform is designed with developers in mind, offering a ton of APIs and extensive documentation that make integration a breeze.

    Stripe also allows you to apply and start accepting payments within 24 hours, which is great for those who need processing fast.

    Stripe Pricing

    When it comes to pricing, Stripe keeps things straightforward with a flat-rate model. For most online transactions, you’ll pay 2.9% + 30¢ per charge. There are some not-so hidden fees but no long-term contracts.

    Stripe Payment Methods

    Stripe also supports a wide range of payment methods, so you can cater to customers’ preferences. From credit and debit cards to digital wallets like Apple Pay and Google Pay, Stripe has you covered.

    You can even accept ACH payments and offer “Buy Now, Pay Later” options through Affirm.

    Who Is Stripe For?

    Stripe is a great fit for startups or businesses just opening up that have no processing history. It’s also great for those who need to process credit cards quickly. Whether that means you’re previous solution has fallen through or you simply need to start selling ASAP, Stripe is there for you.

    GET LONG-TERM PAYMENT PROCESSING THAT WON’T DROP YOUR BUSINESS

    Overview of National Processing

    With over 15 years of experience, National Processing built a reputation for providing reliable, transparent payment solutions that can help businesses grow.

    National Processing Benefits

    One of the key benefits of National Processing is their technology on offer. They offer advanced software and hardware that keeps lines moving, shoppers happy, and payments flowing smoothly – even during peak sales times.

    Plus, their platform is versatile enough to meet the needs of businesses across various industries.

    National Processing Pricing

    When it comes to pricing, National Processing keeps things simple and affordable. They charge a flat fee of $9.95 per month, with competitive processing rates starting at 2.5% + 10¢ for in-person transactions and 2.9% + 30¢ for online sales.

    National Processing Payment Methods

    National Processing supports a wide range of payment methods, so you can accept whatever works best for your customers. Whether it’s credit/debit cards, mobile payments, or online transactions, they’ve got you covered.

    They also offer customizable payment options, so you can tailor their solution to fit your specific business needs (for an added cost).

    Who Is National Processing For?

    In my opinion, National Processing is a great fit for brick-and-mortar businesses that want a reliable, affordable payment processing solution.

    If you’re looking for a processor with transparent pricing, advanced technology, and a track record of success, National Processing is definitely worth considering. They’re quickly becoming one of the fastest-growing payment providers out there, and it’s easy to see why.

    NEED POWERFUL ONLINE PROCESSING? WE CAN HELP!

    Head-to-Head Comparison: Stripe vs. National Processing

    Pricing and Fees

    When it comes to pricing, both Stripe and National Processing offer competitive rates. Stripe uses a flat-rate model, charging 2.9% + 30¢ per transaction for online payments and 2.7% + 5¢ for in-person transactions.

    National Processing uses an interchange-plus pricing model, which starts at 2.5% + 10¢ for in-person transactions and 2.9% + 30¢ for online sales.

    While this may seem similar to Stripe’s pricing at first glance, it’s important to note that interchange-plus pricing can be more complex. Both will likely include charges for services you don’t need, however National Processing may be willing to negotiate where Stripe is not.

    Both processors charge a monthly fee – Stripe’s starts at $0 per month, while National Processing charges $9.95 per month. However, it’s worth digging into the fine print to uncover any hidden costs, such as chargeback fees or PCI compliance fees, which can add up over time.

    Payment Methods

    Stripe and National Processing both support a wide range of payment methods, making it easy for businesses to accept payments from customers around the world. Here’s a quick breakdown.

    Stripe supports:

    • Credit and debit cards
    • Digital wallets (Apple Pay, Google Pay, etc.)
    • ACH payments

    Buy Now, Pay Later options (Affirm)

    National Processing supports:

    • Credit and debit cards
    • Digital wallets
    • ACH payments

    Ease of Setup and Integration

    One of the biggest differences between Stripe and National Processing lies in their setup and integration processes. Stripe is known for its developer-friendly APIs and extensive documentation, which make it easy for tech-savvy businesses to integrate the platform into their existing systems.

    This can be a huge advantage for businesses that want to customize their payment experience or build unique features on top of Stripe’s platform.

    National Processing, on the other hand, offers a more simplified application process and dedicated support to help businesses get up and running quickly. While this may be less flexible than Stripe’s approach, it can be a good fit for businesses that want a more hands-off, plug-and-play solution.

    Customer Support and Service

    When it comes to customer support, both Stripe and National Processing offer 24/7 assistance – but with some key differences.

    Stripe provides 24/7 email, chat, and phone support, which can be a lifesaver for businesses that need help outside of regular business hours. However, it’s worth noting that Stripe’s support has been criticized in the past for being slow to respond or unhelpful in cases where accounts are shut down or frozen.

    National Processing, on the other hand, offers 24/7 technical support and additional support during weekday business hours. While this may not be as comprehensive as Stripe’s offering, it can still be a valuable resource for businesses that need help troubleshooting issues or navigating the platform.

    Security and Fraud Prevention

    Finally, let’s talk about security and fraud prevention. Both Stripe and National Processing take these issues seriously and offer a range of tools to help businesses protect themselves and their customers.

    Stripe uses advanced machine learning algorithms to detect and prevent fraudulent transactions in real-time. This is a great advantage, though Stripe is known to be trigger happy and flagging transactions as fraud when they’re not.

    National Processing also offers fraud and chargeback management tools, including customizable filters and alerts that can help businesses stay on top of suspicious activity.

    GET FRAUD ALERTS FOR YOUR BUSINESS TODAY

    When to Use Stripe or National Processing

    Both offer near-instant setups, so if you’re looking to get online quickly then just take your pick. We like having Stripe as a quick and easy backup solution. But because it’s so risk averse, it’s not a good long-term solution for most online businesses.

    National Processing may not offer as much in terms of features, but you likely don’t need all of those features anyway. They’re support is also more reliable and willing to hear your business out if your chargeback ratio gets too high or you start processing over $30k per month (albeit with a pause on your account).

    The Best Solution?

    Both are great backups. If it’s solely for a backup, then go with Stripe as there’s not monthly fee. If you plan to use it semi-regularly, then go with National. But the best solution is not one that will set you up within minutes. It’s one that learns about your business and provides a real merchant account that won’t shut you down.

    Connect with a real payment processor (not a PSP) today. DirectPayNet helps thousands of merchants get the processing power they need to scale.

    SCALE YOUR BUSINESS WITH DIRECTPAYNET

  • GoHighLevel Payment Processing Hack: AVOID Shopify, PayPal, Stripe, Square

    GoHighLevel Payment Processing Hack: AVOID Shopify, PayPal, Stripe, Square

    GoHighLevel is an all-in-one platform that gives businesses the power to capture leads, nurture them, and close deals like never before. But here’s the thing – while GoHighLevel is packed with amazing features, it’s not a one-stop-shop when it comes to payment processing (even though it looks that way).

    Choosing the right payment solution is critical for any business—especially if you’re dealing with high-risk products like THC Delta 9, vapes, CBD, etc.

    Trust me, I’ve seen firsthand how the wrong payment processor can lead to frozen accounts and major headaches.

    GIVE CUSTOMERS THE CHECKOUT EXPERIENCE THAT CONVERTS

    GoHighLevel’s Integration with Stripe

    Stripe is one of the most popular payment gateways out there, and for good reason. It’s user-friendly, has a powerful API, and comes with tons of helpful documentation. Plus, it lets you accept all kinds of payment methods, from credit cards to digital wallets like Apple Pay and Google Pay.

    GoHighLevel recognized how important Stripe is in the online payment world, so they made it a breeze to connect your Stripe account and start accepting payments right within the platform. This integration lets you create a seamless checkout experience for your customers without needing to mess around with complex code or third-party tools.

    By using Stripe with GoHighLevel, you can:

    • Quickly set up payment processing by connecting your Stripe account in just a few clicks
    • Accept payments directly in your sales funnels and automated workflows
    • Easily manage subscriptions and recurring payments using Stripe’s built-in features
    • Keep transactions secure, since Stripe handles all the sensitive payment info

    This integration is especially great for beginners who neither have knowledge about payment processing nor payments history. The user-friendly interface and step-by-step guides make it simple for anyone to get up and running with accepting online payments.

    Plus, being able to manage your payment processing right inside GoHighLevel saves a bunch of time and reduces the chance of making mistakes, since you don’t have to keep switching between different tools and dashboards.

    However, it’s important to note that Stripe does have some limitations, especially for certain types of businesses. If you’re selling high-risk products or services, have high chargeback rates, or fall into one of Stripe’s restricted categories, relying solely on Stripe could put your account at risk of being frozen or terminated.

    Digital products in particular are seen as higher risk compared to physical goods. So if your business model involves selling digital products or services, you may want to consider using Stripe as a backup processor rather than your primary payment gateway.

    PROTECT YOUR BUSINESS WITH A TRUE MERCHANT ACCOUNT

    The Pitfalls of Popular Payment Processors

    I’ve seen firsthand how popular payment processors like Stripe, PayPal, and Shopify can really put the squeeze on high-risk businesses.

    Sure, these big-name processors might seem like the easy choice when you’re just starting out. They’ve got slick interfaces, quick setup, and everyone knows their names. But if you’re in a high-risk industry like CBD, THC, digital products, subscriptions, or anything else that raises eyebrows, you could be in for a rude awakening.

    First off, these processors have some seriously strict policies and regulations when it comes to what kinds of businesses they’ll work with. They’re not fans of anything that’s even a little bit controversial or risky. So, if you’re selling products that are on their naughty list, good luck getting approved.

    Even if you do manage to slip through the cracks and get an account set up, it’s only a matter of time before they catch on. And when they do, watch out! They’ll freeze your account faster than you can say “payment processing”. Suddenly, you can’t accept payments, access your funds, or do anything to keep your business running.

    I’ve seen it happen time and time again. These processors just don’t want to deal with the potential headaches and legal issues that come with high-risk industries. They’d rather play it safe and stick with the boring, vanilla businesses.

    And don’t even get me started on the hoops you have to jump through to try and get your account reinstated. It’s like trying to navigate a maze blindfolded. You’ll spend hours on the phone, sending emails, and filling out forms, all while your business is hemorrhaging money.

    So, if you’re in a high-risk industry, do yourself a favor and steer clear of these big-name payment processors. They might seem like the easy choice, but trust me, they’re more trouble than they’re worth. Instead, look for a specialist who understands your business and can give you the support you need to thrive.

    CONNECT WITH A PAYMENT PROCESSOR THAT BACKS YOUR BUSINESS

    The Case for Dedicated Merchant Accounts

    Alright, so we’ve talked about why popular payment service providers like Stripe, PayPal, and Shopify can be a real pain for high-risk businesses. But what’s the alternative?

    A dedicated merchant account is basically a special type of bank account that lets you accept credit and debit card payments directly, without going through a third-party processor.

    Now, I know what you might be thinking. “Why would I want to deal with a bank when I can just use a provider like Stripe?” Well, my friend, let me tell you why dedicated merchant accounts are the way to go, especially for high-risk businesses.

    Stability and Reliability

    First off, dedicated merchant accounts offer way more stability and reliability than those finicky third-party processors. When you have your own merchant account, you’re not at the mercy of some big corporation’s policies and whims. You’ve got a direct relationship with the bank, which means you’re less likely to get your account frozen or terminated out of the blue.

    Tailored and Negotiable

    Plus, dedicated merchant accounts come with tailored solutions for high-risk businesses. These banks and providers understand the unique challenges that come with certain industries and they’re equipped to handle them. They can offer you customized pricing, higher volume limits, and even chargeback protection to help you mitigate risk and keep your business running smoothly.

    Of course, not all merchant account providers are created equal. You’ll want to choose a provider that has experience working with high-risk businesses and a track record of good customer support.

    APPLY FOR A DEDICATED MERCHANT ACCOUNT TODAY

    Integrating a Dedicated Merchant Account with GoHighLevel

    Alright, so you’ve got your dedicated merchant account all set up and ready to go. Now it’s time to connect it with GoHighLevel and start processing payments like a pro. Here’s how you do it:

    Step 1

    First things first, you’ll need to get your hands on your payment gateway API credentials.

    This usually includes an API key or token that lets GoHighLevel securely connect to your gateway. Don’t worry, your merchant account provider or payment gateway will give you all the info you need.

    Step 2

    Next, head over to your GoHighLevel account and navigate to the payment settings. This is where the magic happens. Look for your payment gateway in the list of available integrations and select it. If you don’t see it listed, don’t panic! GoHighLevel is always adding new integrations, so just reach out to their support team for guidance.

    Now it’s time to enter those API credentials you got earlier. Paste them into the designated fields and double-check that everything is correct. You might need to configure a few additional settings, but GoHighLevel’s documentation will walk you through it step by step.

    Step 3

    Before you start celebrating, there’s one crucial step left: testing the integration. Trust me, you don’t want to find out there’s a problem when a customer is trying to give you their hard-earned cash.

    So, run a few test transactions and make sure everything is working smoothly.

    Once you’ve got the green light, you’re ready to start managing your payments and transactions like a boss. GoHighLevel makes it easy to keep track of everything right from your dashboard. You can see all your transactions, issue refunds, and even set up recurring billing for your subscription-based services.

    Best Practices

    To make the most of your new payment setup, here are a few best practices to keep in mind:

    • Keep your API credentials safe and secure. Don’t share them with anyone who doesn’t need access.
    • Stay on top of your transactions and reconcile them regularly with your merchant account statements.
    • Communicate clearly with your customers about your payment policies, including refunds and chargebacks.
    • Make sure your payment process is seamless and user-friendly. The easier it is for customers to pay, the more likely they are to complete the transaction.

    By following these steps and best practices, you’ll be able to integrate your dedicated merchant account with GoHighLevel and start processing payments with confidence.

    And if you ever run into any issues or have questions, don’t hesitate to reach out to GoHighLevel’s support team or your merchant account provider. They’re there to help you succeed!

    CONNECT YOUR GHL TO A MORE POWERFUL PROCESSOR NOW

  • Credit Card Surcharge Laws by State (as of Sept 2024)

    Credit Card Surcharge Laws by State (as of Sept 2024)

    Credit card surcharges are an additional charge that businesses can impose when customers choose to pay with a credit card instead of cash or debit. This fee helps merchants offset the costs they incur for processing credit card transactions.

    While surcharging has been a hot topic in recent years, Visa is now taking a firm stance against merchants who aren’t playing by the rules. They’ve started secret shopping to catch businesses that are non-compliant with surcharge regulations.

    If caught, these merchants face immediate fines, as Visa believes they’ve provided ample notice about the proper way to apply surcharges.

    Avoid landing in hot water with Visa and other card networks by following our guide for credit card surcharge laws by state.

    CONNECT WITH A BETTER CREDIT CARD PROCESSOR

    Visa’s Secret Shopping and Fines for Non-Compliant Merchants

    Visa is taking a proactive approach to ensure merchants are following the rules when it comes to credit card surcharges.

    They’ve deployed secret shoppers to visit businesses and catch those who aren’t complying with the regulations. If a merchant is found to be breaking the rules, they’ll face immediate fines, as Visa believes they’ve given plenty of warning about the correct way to apply surcharges.

    So, what kind of mistakes are these secret shoppers looking for? Some common issues include:

    • surcharging debit cards (which is not allowed)
    • failing to display proper signage about surcharges
    • charging more than the maximum allowed amount

    Penalties for non-compliance can range from $1,000 for a first offense up to a whopping $25,000 for repeat offenders. That’s a hefty price to pay for not following the rules!

    It’s important to note that Visa recently lowered its merchant surcharge cap to 3% effective April 15, 2023. This means that businesses can’t charge customers more than 3% extra for using a Visa credit card. Merchants need to stay on top of these changes and make sure they’re always in compliance to avoid those costly fines.

    STAY COMPLIANT WITH A DEDICATED MERCHANT ACCOUNT

    Credit Card Surcharge Laws by State

    As of September 2024, most states allow merchants to add a surcharge when customers pay with a credit card. This means businesses can pass along the cost of processing credit card transactions directly to the customer.

    However, there are a few states that still prohibit or restrict this practice. And things are changing fast.

    States Where Surcharging is Prohibited

    While most states allow businesses to add a surcharge when you pay with a credit card, a few states still say “no way” to this practice.

    1. California: The Golden State used to be okay with surcharges, but that all changed on July 1, 2024, when a new law called Senate Bill 478 went into effect. Now, businesses in California can’t charge extra for using a credit card.
    2. Connecticut, Maine, and Massachusetts: These three states in New England have put their foot down and completely banned credit card surcharges.
    3. Puerto Rico: Leave any notion of credit card surcharges at the door. This U.S. territory has also banned the practice altogether.

    States with Specific Surcharge Restrictions

    A couple of states have put their own spin on credit card surcharges. They allow businesses to charge extra for credit card payments, but with a few strings attached.

    1. New Jersey: In 2023, the Garden State passed a law that says merchants can only charge as much as it actually costs them to process your credit card transaction. So, if a business tries to make a profit off the surcharge, they’ll be breaking the law. The new rules also require businesses to clearly display their surcharge policy, so customers know what to expect before they pay.
    2. New York: NY also recently joined the anti-surcharge club. In December 2023, a new law was passed that says businesses can’t charge more than what it actually costs them to process your credit card payment.
    3. Washington: The state is considering a bill that would give the green light to credit card surcharges, but only if the business offers at least one way to pay that doesn’t have any extra fees. This means that if a store wants to add a surcharge for credit cards, they’d need to have an alternative payment method available, like cash or debit, that doesn’t come with a surcharge. The bill is still pending, so we’ll have to wait and see if it becomes law.

    States Where Surcharging is Permitted

    In the majority of states across the U.S., businesses are allowed to add a surcharge when a customer pays with a credit card.

    So, which states give the green light to credit card surcharges? Here’s the list:

    • Alabama
    • Alaska
    • Arizona
    • Arkansas
    • Delaware
    • Hawaii
    • Idaho
    • Indiana
    • Iowa
    • Kansas
    • Kentucky
    • Louisiana
    • Maryland
    • Mississippi
    • Missouri
    • Montana
    • Nebraska
    • New Hampshire
    • New Mexico
    • North Carolina
    • North Dakota
    • Ohio
    • Oregon
    • Pennsylvania
    • Rhode Island
    • South Carolina
    • South Dakota
    • Tennessee
    • Utah
    • Vermont
    • Virginia
    • West Virginia
    • Wisconsin
    • Wyoming

    So, if a customer uses a Visa card, the most a business can charge extra is 3% of the transaction amount, even if the state allows a higher percentage.

    Keep in mind that just because a state allows credit card surcharges doesn’t mean every business will charge them. It’s up to each individual merchant to decide whether or not to add a surcharge.

    AVOID HIGH FEES WITH A BETTER PAYMENT PROCESSOR