DirectPayNet

Category: PAYMENT AGGREGATOR

  • 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

  • STEL Aggregation Is Destroying Your Business!

    STEL Aggregation Is Destroying Your Business!

    When you process customer payments through a third-party aggregator like Stripe or PayPal, the charge may appear on credit card statements as coming from the aggregator instead of your business name. Hence, “STEL Aggregation”. Customers don’t recognize it, assume it’s fraudulent, and dispute it, resulting in costly chargebacks for you.

    STEL aggregation can wreak havoc on your online business, causing lost revenue, upset customers, and damage to your reputation. While STEL aggregation is a major challenge, you can take steps to fight back and protect your business.

    AVOID CHARGEBACKS, SAVE YOUR BUSINESS

    What is STEL Aggregation?

    STEL aggregation is a payment processing method that combines multiple transactions from different merchants into a single, larger transaction. It’s commonly used by third-party payment processors like Stripe, PayPal, and Square.

    How STEL Aggregation Works

    Here’s how STEL aggregation typically works:

    1. A customer makes purchases from multiple merchants on the same day.
    2. The payment processor, such as Stripe, collects these transactions.
    3. Instead of processing each transaction individually, the processor groups them into a single, larger transaction.
    4. The issuing bank receives this aggregated transaction for processing.

    Why STEL Aggregation Exists

    STEL aggregation exists primarily to simplify payment processing for banks. By bundling multiple transactions together, it reduces the number of individual transactions banks need to process. This can help:

    • Streamline account reconciliation for banks
    • Reduce the risk of overdrafts
    • Lower processing costs for banks

    However, while STEL aggregation offers benefits for banks, it can create challenges for merchants and customers. On bank statements, the transaction may appear as “stel payment aggr”, “stel aggregation”, “eea stel aggregation”, or “stripe eea stel aggregation” instead of the merchant’s name. “EEA” stands for “European Economic Area” and likely appears when customers make a purchase from a company in Europe—but not always. This can confuse customers, leading them to dispute charges they don’t recognize.

    For merchants, STEL aggregation can make it difficult to track sales by cardholder. It can also lead to increased chargebacks if customers don’t recognize the transaction on their bank account statement.

    GET A REAL MERCHANT ACCOUNT TODAY

    The Dangers of STEL Aggregation for Online Businesses

    While STEL aggregation may simplify payment processing for banks, it can wreak havoc on your ecommerce business. Here are some of the biggest dangers to watch out for.

    Increased Risk of Chargebacks

    When customers see a charge from “STEL Aggregation” on their statement instead of your business name, they may not recognize it and dispute the transaction. This leads to costly chargebacks, where you lose the sale and get hit with chargeback and extra card processing fees from your payment processor.

    With over $20 billion in chargeback losses for merchants annually, this is a huge financial risk.

    Difficulty Tracking Sales by Customer

    STEL aggregation bundles multiple transactions together, so you may not receive full details on each individual purchase. This makes it challenging to track which customers bought what, hurting your ability to manage customer relationships and analyze sales trends.

    Damaged Customer Trust and Relationships

    Customers feel frustrated and even deceived when they see a strange “STEL Aggregation” charge instead of your business name. This erodes their trust in your brand and makes them less likely to purchase from you again. Damaged customer relationships are devastating for any business.

    Increased Customer Service Demands

    Confused customers might contact you to ask about the mysterious “STEL Aggregation” charge if they don’t create a chargeback first, increasing the workload on your customer service team. You may need to devote more resources to customer service to handle the influx of STEL-related inquiries.

    Reputational Risk

    If STEL aggregation frequently appears on your customers’ statements, it can make your business look less transparent and trustworthy. This negative perception can spread, deterring potential new customers from buying from you and harming your brand’s reputation.

    Distorted Business Analytics

    When multiple transactions are lumped together, it skews your data on sales volume, average order value, and customer buying patterns. This leads to inaccurate business insights that can result in misguided decisions. You need clean data to make smart strategic choices.

    STRIPE WILL HARM YOUR BUSINESS, DIRECTPAYNET WON’T

    7 Strategies to Prevent STEL Aggregation from Harming Your Business

    Now that you understand the risks of STEL aggregation, let’s explore some powerful strategies you can implement to protect your online business. By being proactive and making smart choices, you can minimize chargebacks, maintain strong customer relationships, and keep your revenue flowing smoothly.

    1. Get a Dedicated Merchant Account

    One of the most effective ways to avoid STEL aggregation is to open your own dedicated merchant account instead of relying on a third-party aggregator. With a merchant account, your business name will appear clearly on customer statements, reducing confusion and disputes. Plus, you’ll have more control over your billing processes and customer communications.

    2. Customize Your Billing Descriptor

    If you do use a payment aggregator, customize your billing descriptor to make it crystal clear that the charge is coming from your business. Include your company name and a brief description or order number. Aggregators like Stripe allow you to modify your descriptor and provide helpful plugins to optimize it for fewer chargebacks.

    3. Proactively Notify Customers

    Don’t leave your customers guessing about potential STEL aggregation charges. After each purchase, send an email receipt that includes a screenshot of exactly how the charge will appear on their statement. Explain any unfamiliar descriptors or charge amounts so they know what to expect. This proactive communication can go a long way in preventing disputes.

    4. Only Schedule Large Transactions

    Consider only using the charge scheduling feature for large transactions over a certain dollar amount, and process smaller ones normally. Breaking up larger charges into multiple scheduled payments can also help prevent STEL aggregation. Just be sure to clearly communicate the payment schedule to your customers.

    5. Educate Customers on Your Billing Process

    Be transparent with customers about how your checkout and billing processes work, especially if you’re in a high-risk industry prone to chargebacks. Explain what online payment methods you accept (credit, debit, Visa, Mastercard, ACH, etc.), what third-party processors you use, and how charges will appear on their statements. Include this information in your FAQs, Terms of Service, and post-purchase emails.

    6. Choose a Payment Processor That Avoids Aggregation

    When selecting a payment processor, look for one that doesn’t use aggregation or charge STEL transaction fees. Merchant service providers generally don’t aggregate transactions, so working with one can help you steer clear of these issues altogether. Do your research and ask potential processors about their aggregation practices before signing up.

    7. Invest in Excellent Customer Service

    Even with all these preventative measures, you may still encounter some customer confusion about STEL aggregation. That’s why you need to invest in responsive, helpful customer service. Train your support team to handle STEL-related inquiries with care and empathy. The faster you can resolve these issues, the less likely they are to turn into chargebacks.

    By implementing these strategies, you can dramatically reduce the negative impact of STEL aggregation on your online business. It may take some extra effort, but it’s well worth it to protect your hard-earned revenue and customer relationships. Don’t let STEL aggregation catch you off guard – take action today to safeguard your business for the long run.

    AVOID STEL AGGREGATION WITH A DEDICATED MERCHANT ACCOUNT

  • Is your business type restricted from using Stripe?

    Is your business type restricted from using Stripe?

    Stripe Restricted Businesses – Are You on the List?

    Stripe maintains a list of business categories that they are unable to serve due to various legal, regulatory, and risk-related reasons. Stripe is a payment aggregator, so the company is unable or unwilling to support certain business models.

    For current and potential Stripe users, the information here ensures compliance and avoids disruptions in your ability to accept payments. Let’s dive in and explore Stripe’s restricted businesses policy in more detail.

    Connect with a Processor That Backs Your Business

    Why Stripe Restricts Certain Businesses

    Stripe is committed to maintaining a safe, trustworthy, and compliant platform for both businesses and their customers. To achieve this, they must carefully manage financial risk and protect the integrity of their services. Restricting certain types of businesses is one way Stripe upholds these standards.

    By prohibiting businesses that engage in illegal, deceptive, or harmful practices, Stripe shields itself and its users from potential legal and financial repercussions. This proactive approach helps maintain the stability and reliability of the platform.

    Complying with Legal and Regulatory Requirements

    As a global payment processor, Stripe must comply with a complex web of laws and regulations that vary by jurisdiction. These rules often prohibit or restrict certain types of businesses from using payment processing services.

    By adhering to these legal and regulatory requirements, Stripe avoids potential fines, penalties, and legal action that could result from facilitating transactions for prohibited businesses.

    Protecting Customers from Potential Harm or Fraud

    Stripe’s restricted businesses policy also serves to protect customers from potential harm or fraudulent activities. By banning businesses that engage in deceptive, unfair, or predatory practices, Stripe helps prevent unsuspecting customers from falling victim to scams or other malicious schemes.

    Furthermore, by restricting businesses that sell counterfeit goods, illegal products, or products that could cause harm, Stripe demonstrates its commitment to customer safety and well-being. As well as for its own benefit. This stance enhances trust in the platform and the businesses that use Stripe for payment processing.

    Categories of Restricted Businesses

    Stripe’s restricted businesses policy encompasses a wide range of industries and activities. These categories are determined based on legal requirements, regulatory standards, and Stripe’s own risk assessment. Let’s explore some of the main categories and provide examples for each.

    Content Creation

    • Tips and gifts
    • exclusive content

    Stripe is not a tipping platform. Nor does it want to support certain sites and services. This doesn’t mean you can’t sell digital content and use Stripe as your checkout. It just means you can’t put up a paywall behind access as opposed to ownership.

    Financial Services and Professional Services

    • Investment, brokerage (including real estate), escrow services, or funded prop trading
    • Lending services or money services
    • Bank account funding, crowdfunding, ATMs, P2P money transfers, or check cashing
    • Payday loans
    • Buy now pay later
    • Insurance
    • Neobanks, challenger banks, shell banks, or payable-through accounts
    • Selling bearer shares
    • Payment facilitation and aggregation
    • Cryptocurrency and crypto exchanges
    • NFTs
    • igaming and online casinos
    • Preloaded payment cards

    Stripe restricts certain types of financial and professional services due to the heightened regulatory scrutiny and potential for fraud or abuse. This category includes businesses offering investment and credit services, such as payday loans, bail bonds, and debt collection.

    Money and legal services, like money transmission, virtual currency, and court-ordered payments, are also restricted. These services often require specialized licenses and are subject to strict regulations.

    Intellectual Property or Regulated Goods

    Businesses that deal with intellectual property or regulated goods face restrictions on Stripe. For example, 18+ content and services are subject to varying legal requirements and age restrictions across different jurisdictions.

    Stripe strictly forbids the sale of counterfeit goods. It violates intellectual property rights and can lead to legal action. Online pharmacies are also restricted, as they are heavily regulated and require special licenses to operate legally.

    Unfair, Predatory, or Deceptive Practices

    Stripe takes a strong stance against businesses that engage in unfair, predatory, or deceptive practices. Get-rich-quick schemes, such as pyramid schemes or Ponzi schemes, are prohibited due to their fraudulent nature and the harm they can cause to participants.

    Mug shot publication sites, which charge individuals to remove their arrest photos, are also restricted. Stripe considers this practice unfair and exploitative. Similarly, no-value-added services that charge excessive fees without providing meaningful benefits to customers are not allowed.

    High Brand Risk

    Businesses that pose a high brand risk are restricted on Stripe. This includes hate or harmful content, such as products featuring racist, sexist, or discriminatory material. Illegal activities, like the sale of stolen goods or services that facilitate illegal behavior, are strictly prohibited.

    Drug paraphernalia, including equipment used to manufacture or consume illegal drugs, is also restricted. Stripe avoids association with these high-risk businesses to maintain its reputation and prevent potential legal issues.

    DirectPayNet Specializes in High-Risk Businesses

    Options for Restricted Businesses

    If your business falls under one of Stripe’s restricted categories, you may be wondering what your options are for accepting payments. While Stripe may not be able to serve your business directly, there are alternative solutions available. Let’s explore two main options: dedicated merchant accounts and third-party payment processors.

    Open a Dedicated Merchant Account

    The best option for Stripe restricted businesses is to open a dedicated merchant account. This involves a more extensive underwriting process. However, suspension or account closer are rare with a dedicated merchant account.

    Acquiring banks that specialize in high-risk merchant accounts are more willing to work with businesses in restricted categories.

    Dedicated merchant accounts allow you to process higher-risk transactions and provides more stability for your payment processing. This is especially important for businesses with high sales volumes or those that rely heavily on credit card transactions.

    Open a dedicated merchant account with DirectPayNet

    Use an Alternative Third-Party Processor (Temporarily)

    Another option is to use an alternative third-party payment processor, such as PayPal or Square. These platforms have their own restricted businesses policies, which may be more lenient than Stripe’s in certain categories.

    It’s important to note that these processors also have limitations and may not be suitable for all restricted businesses. For example, PayPal and Square often have lower monthly sales volume thresholds than Stripe.

    Additionally, these platforms may prohibit certain high-risk transactions or large ticket sizes. It’s crucial to review their services agreement and acceptable use policies carefully to ensure your business is compliant.

    We recommend opening a PayPal, Square, or Stripe account as a backup solution or a temporary solution only.

    Using a third-party processor can be a temporary solution while you apply for a dedicated merchant account. This allows you to continue accepting payments while you work on meeting the requirements for a more stable, long-term payment processing solution.

    Process Payments Securely with DirectPayNet

    Importance of Transparency and Compliance

    When seeking payment processing solutions as a restricted business, it’s crucial to prioritize transparency and compliance. Be upfront about the nature of your business and adhere to the rules set forth by payment processors. You can increase your chances of finding a suitable solution and maintaining a stable payment processing relationship.

    Disclose Nature of Business Openly

    One of the most important steps in securing payment processing for a restricted business is to disclose the nature of your business openly and honestly. Provide detailed information about your products, services, and target market to potential payment processors.

    Hiding or misrepresenting the true nature of your business can lead to account terminations, frozen funds, and difficulty finding alternative processing solutions in the future. Transparency builds trust and allows payment processors to accurately assess your business’s risk profile.

    Adhere to Terms of Service and Acceptable Use Policies

    Once you’ve found a payment processor that can work with your business, thoroughly review and adhere to their terms of service and acceptable use policies. These documents outline the rules and restrictions that apply to your business, including prohibited activities and transaction types.

    Violating these terms can result in account suspensions, terminations, and even legal action. Regularly review these policies and ensure that your business practices remain compliant, as terms can change over time.

    Implement Fraud Prevention Best Practices

    To maintain a positive relationship with your payment processor and protect your business from potential losses, implement strong fraud prevention measures. This includes using tools like address verification, CVV verification, and 3D Secure authentication for online transactions.

    Regularly monitor your transactions for suspicious activity and promptly report any potential fraud to your payment processor. Implementing these best practices demonstrates your commitment to maintaining a safe and compliant payment processing environment.

    By prioritizing transparency, compliance, and fraud prevention, restricted businesses can navigate the challenges of finding and maintaining suitable payment processing solutions. This proactive approach helps build trust with payment processors and ensures the long-term stability of your business’s ability to accept payments.

    SECURE YOUR BUSINES WITH A DEDICATED MERCHANT ACCOUNT TODAY

  • How to Add Payment Options to Shopify: A Step-by-Step Guide for Online Merchants

    How to Add Payment Options to Shopify: A Step-by-Step Guide for Online Merchants

    As a Shopify store owner, offering multiple payment options is crucial for providing a seamless checkout experience and maximizing conversions. In today’s ecommerce landscape, customers expect the flexibility to choose their preferred payment method, whether it’s a credit card, digital wallet, or even cryptocurrency.

    Whether you’re a new Shopify merchant setting up your payment options for the first time or an established store owner looking to expand your payment offerings, this post will equip you with the knowledge and tools necessary to make informed decisions and streamline your checkout process.

    We can connect you with the right solutions!

    Understanding Payment Processing on Shopify

    When a customer places an order on your Shopify store, the payment goes through a process called payment processing. This involves the customer’s payment method (such as a credit card) being verified, the funds being authorized, and the money being transferred to your merchant account.

    Shopify simplifies this process by integrating with various payment gateways and providers. A payment gateway is a service that facilitates the secure transfer of payment information between your store, the customer’s bank account, and your merchant account.

    When a customer enters their payment information and confirms their order, the payment gateway communicates with the issuing bank to ensure the payment method is valid and has sufficient funds. If approved, the issuing bank sends authorization of the payment, and the funds are captured and transferred to your merchant account, minus any applicable fees.

    The role of payment providers is to handle the complex process of securely accepting, verifying, and processing payments on your behalf. They ensure compliance with various financial regulations and protect both the merchant and customer from fraud. By using Shopify’s integrated payment providers, you can start accepting payments quickly without the need for a merchant account or extensive technical setup (though this is risky!).

    It’s important to note that while payment processing is largely automated, there may be a delay between when a customer places an order and when you receive the funds in your account. This delay can vary depending on your payment provider and their payout schedule. For example, Shopify Payments typically transfers funds to your account within 2-3 business days.

    Why Consider Alternative Payment Options?

    While Shopify Payments is a convenient and integrated solution, there are several compelling reasons why Shopify store owners should consider offering alternative payment options.

    Firstly, providing a diverse range of Shopify payment methods caters to the varying preferences of your customers. Some shoppers may prefer using digital wallets like Google Pay, Apple Pay, or Shop Pay for their convenience and added security features, while others might feel more comfortable with traditional credit card payments. By accommodating these preferences, you can create a more inclusive shopping experience and potentially attract a wider customer base.

    Moreover, certain industries or business models may benefit from using alternative payment gateways and processors. For example, high-risk businesses, such as those selling CBD products, adult content, or subscription-based services, may face challenges when using Shopify Payments due to stricter regulations and higher chances of chargebacks. In such cases, partnering with a high-risk payment processor that specializes in these industries can provide more stable and reliable payment processing solutions.

    Offering alternative payment options can also help you tap into emerging trends and technologies. As cryptocurrency gains mainstream adoption, accepting digital currencies like Bitcoin or Ethereum can attract tech-savvy customers and demonstrate your brand’s innovation. Similarly, providing buy now, pay later options like installment plans or subscription-based payments can make your products more accessible to budget-conscious shoppers and encourage larger purchases.

    Another benefit of integrating multiple payment gateways is the added resilience it brings to your checkout process. In the event that one payment provider experiences technical issues or downtime, having backup options ensures that your customers can still complete their purchases without disruption.

    Lastly, while Shopify Payments offers competitive rates, some alternative payment processors may provide lower transaction fees or more favorable terms for your specific business model. Many businesses save thousands from switching. By comparing the costs and features of different providers, you can optimize your online payment setup to maximize your profit margins.

    Online businesses are high risk! Get the right payment solutions today.

    Step-by-Step Guide: Adding Payment Options to Your Shopify Store

    Adding payment options to your Shopify store is a straightforward process that can be completed in a few simple steps. Follow this guide to set up Shopify Payments and integrate alternative payment methods.

    1. Accessing payment settings in your Shopify admin:

    • Log in to your Shopify account and navigate to the admin dashboard.
    • Click on “Settings” in the bottom left corner and then select “Payment providers”.

    2. Setting up Shopify Payments (if desired):

    • If you want to use Shopify Payments, click on “Activate Shopify Payments” in the Shopify Payments section.
    • Follow the prompts to provide your business and banking information for account setup and authentication.
    • Once approved, Shopify Payments will be automatically enabled as your primary payment method.

    3. Add payment methods:

    • In the “Payment providers” section, click on “Choose third-party provider” to view a list of additional payment methods and gateways that Shopify supports.
    • Select the desired payment provider (e.g., PayPal, Amazon Pay, or cryptocurrency gateways) and click “Activate”.
    • Follow the instructions provided by the payment gateway to set up your account and authenticate your business information.
    • Configure the checkout experience by customizing the display name, logo, and other settings for the new payment option.

    4. Activating and testing new payment options:

    • After configuring your alternative payment methods, make sure they are enabled in your payment settings.
    • Place a test order on your Shopify store to ensure that the new payment options are functioning correctly and that funds are being processed and transferred to your account.
    • Monitor your payment settings regularly to track the performance of your payment methods and make any necessary adjustments.

    By following these steps, you can easily add Shopify Payments and alternative payment options to your online store, providing your customers with a variety of convenient and secure ways to complete their purchases.

    Tips for a smooth payment setup process:

    • Ensure that your business information and banking details are accurate and up-to-date to avoid delays in account approval and payouts.
    • Carefully review the terms, conditions, and fees associated with each payment provider before activation.
    • Customize your checkout experience to reflect your brand and create a seamless user experience for your customers.
    • Keep your payment settings organized by deactivating any unused payment methods and regularly reviewing your transaction history for any discrepancies or errors.

    With a well-configured payment setup, you can streamline your checkout process, reduce cart abandonment, and ultimately boost your online sales.

    Popular Payment Gateways and Processors for Shopify

    In addition to Shopify Payments, there are several popular third-party payment gateways and processors that integrate seamlessly with the Shopify platform. These providers offer unique features and benefits that may cater to specific business needs or preferences.

    1. Stripe
      • Stripe is a widely-used payment processor known for its developer-friendly APIs and customizable checkout experience.
      • It supports a wide range of payment methods, including credit cards, digital wallets, and local payment options.
      • Stripe offers competitive transaction fees and advanced fraud prevention tools.
      • Shopify Payments is powered by Stripe.
    2. PayPal
      • PayPal is a well-established payment gateway that offers a trusted and recognizable checkout option for customers.
      • It provides a secure and user-friendly payment experience, with support for multiple currencies and countries.
      • PayPal’s buyer protection program can help build trust with customers, but it may also lead to a higher risk of chargebacks for merchants.
    3. Square
      • Square is a popular choice for businesses that have both online and offline sales channels.
      • It offers a comprehensive suite of tools, including point-of-sale hardware, inventory management, and customer engagement features.
      • Square’s transaction fees are competitive, and it provides instant access to funds for eligible merchants.
    4. Authorize.net
      • Authorize.net is a reliable payment gateway that has been in the industry for over two decades.
      • It offers a secure and stable platform for processing payments, with support for a variety of payment methods and currencies.
      • Authorize.net provides advanced fraud detection tools and detailed reporting features, making it a good choice for established businesses.

    We’re happy to help find the best gateway and processor for your business.

    Some factors to consider when choosing a backup payment provider include:

    • Supported payment methods and currencies
    • Transaction fees and pricing structure
    • Fraud prevention and security features
    • Ease of integration with your Shopify store
    • Customer support and dispute resolution processes

    By carefully evaluating your business needs and comparing the offerings of different payment providers, you can create a robust and diversified payment setup that optimizes your Shopify store’s performance and customer experience.

    Optimizing Your Shopify Checkout Experience

    Once you have set up your preferred payment options on your Shopify store, it’s crucial to optimize your checkout experience to maximize conversions and reduce cart abandonment. Here are some tips to streamline your checkout process and provide a seamless experience for your customers.

    1. Offer multiple payment options
      • Provide a variety of payment methods to cater to different customer preferences and needs.
      • Include options like credit cards, digital wallets, and alternative payment methods to create an inclusive checkout experience.
      • Clearly display your accepted payment options on your product pages and during the checkout process to build trust and confidence with your customers.
    2. Simplify your checkout process
      • Minimize the number of steps required to complete a purchase by offering a guest checkout option and reducing unnecessary form fields.
      • Use a progress indicator to show customers how close they are to completing their purchase.
      • Provide clear and concise error messages to help customers quickly resolve any issues that may arise during the checkout process.
    3. Optimize for mobile devices
      • Ensure that your checkout page is mobile-responsive and easy to navigate on smaller screens.
      • Use large, touch-friendly buttons and clear calls-to-action to guide customers through the checkout process.
      • Minimize the need for scrolling and zooming by presenting important information and fields in a clear and concise manner.
    4. Offer flexible payment options
      • Consider offering installment plans or subscription-based payments to make your products more accessible to budget-conscious shoppers.
      • Integrate with buy now, pay later services like Klarna or Afterpay to provide customers with more flexibility and encourage larger purchases.
      • Clearly communicate the terms and conditions of these payment options to ensure transparency and build trust with your customers.
    5. Provide clear communication and support
      • Display security badges and trust seals on your checkout page to reassure customers that their payment information is safe and secure.
      • Provide clear and accessible customer support options, such as live chat or a dedicated support email, to assist customers with any questions or issues they may encounter during the checkout process.
      • Send confirmation emails and order updates to keep customers informed about the status of their purchase and build post-purchase engagement.
    6. Monitor and analyze your checkout performance
      • Use Shopify’s built-in analytics or third-party tools to track your checkout funnel and identify areas for improvement.
      • Monitor key metrics like cart abandonment rate, conversion rate, and average order value to gauge the effectiveness of your checkout optimization efforts.
      • Continuously test and refine your checkout experience based on customer feedback and data-driven insights.

    By implementing these optimization strategies and leveraging the power of multiple payment options, you can create a frictionless checkout experience that boosts conversions, increases customer satisfaction, and drives long-term success for your Shopify store.

    GET A POWERFUL GATEWAY AND PROCESSOR FOR YOUR SHOPIFY STORE

  • Stripe Holding Funds? 2 Steps to Get Your Money Back in 2024

    Stripe Holding Funds? 2 Steps to Get Your Money Back in 2024

    Stripe is notorious for holding funds from merchants. As soon as you start scaling, when your business is going well and the road ahead looks smooth, BAM you sign into your Stripe account and see funds on hold.

    No notification, no email. Nothing. Just frozen funds and a feeling of dread. The amount varies, too.

    So, here’s what it means when Stripe holds funds and what to do to secure your business in just 2 steps.

    businessman pleading with bag of sad cash in jail
    Please, can I have my money back?

    First: Why is Stripe holding funds?

    Stripe holds funds in accordance with their services agreement. You can read Stripe’s terms on their website, but it is very long and very unfriendly to anyone who isn’t a lawyer or payments expert. Stripe typically reserves funds to protect against any type of fraudulent activity and unexpected charges that may occur when businesses raise red flags.

    Online Businesses Are High-Risk Businesses, Period

    Whether you know it or not, as an ecommerce business owner you are high-risk (most likely, anyway). Most online business models are high-risk, and high-risk businesses are not supported by Stripe. Therefore, they are not able to use Stripe.com’s payment services. High risk means there is a higher risk of chargebacks and fraud.

    Some common high-risk business types and business models include:

    • Subscription services
    • Digital products
    • Dropshipping
    • Coaching, teaching, consulting
    • CBD, pharmaceuticals, nutraceuticals
    • SaaS
    • Marketing services

    The trick is that Stripe approves every business that applies initially without performing any due diligence. That is until that business starts selling around $20k/month.

    This makes Stripe nervous. As a payment aggregator, they don’t give you a merchant account with which you can scale your business, instead they allow Stripe users to operate under their own merchant account. So as soon as you do start scaling, it becomes time for them to transition the risk away from their own merchant account and into your own, which means putting your business on hold while they figure out the next steps.

    Funds Are Held as a Security Measure

    The funds held are to protect Stripe from having to pay fees and reimbursements on your behalf. It’s a pool of funds that covers things like returns, refunds, and chargebacks.

    They won’t hold all of your funds, but they will hold 20% – 30%. But we get it; it sucks and it’s scary to not be able to receive your well-deserved payouts.

    Withheld funds harming your business? Get better payment processing here!

    How to Get Your Money Back from Stripe Holding Funds

    It can be difficult to get your funds back from Stripe depending on your situation. The payments giant won’t tell you why your funds are withheld nor give you a timeline for when you can receive them.

    Legally, however, they are only able to hold funds for 180 days.

    This post today is specifically for merchants who can still operate their store using Stripe but have a percentage of their funds withheld. If all of your funds are frozen or your shop is shut down, you can find answers here and here.

    When your shop is still operational and a portion of your Stripe account balance is frozen, then the following 3 steps are what you need to do to get that money back.

    Step 1: Find an Alternative Payment Processor

    Yes, we know how this sounds. But before you start emailing Stripe and calling lawyers and whatnot, you need to get something set up that will support your business.

    Your best option would be to open a merchant account for your business. At least start the process. While that’s under way, you can open an account with PayPal or Square. Be warned: using PayPal and other alternatives to Stripe like that will lead you down this same road—they will all freeze funds, shut down your account, and create problems for you in the future.

    Step 2: Request Your Funds BEFORE the Release Date

    Stripe will notify you of the proposed payout schedule of your withheld funds in the email or letter that you’ve received.

    DO NOT WAIT UNTIL THAT DATE TO TAKE ACTION!

    It will only hurt you if you wait that long. Instead, you need to contact Stripe support. They have no customer support team phone number and using their online chat or support email won’t get you anywhere.

    Send a physical letter to:

    354 Oyster Point Boulevard

    South San Francisco, CA 94080

    This is the mailing address for Stripe’s US office. Send it through a paid certified letter and require a signature as well as add tracking. This way, you know where in the country it is, when it has arrived, and who received it.

    The letter should be made on a professional letterhead and contain the following information:

    • account details
    • business name
    • business address
    • account number
    • your name
    • your address
    • how much money they are holding
    • when they told you it would be released
    • ways you’ve tried to get in touch with them
    • lack of responses to multiple inquiries (if applicable)

    If you’re sending this before the proposed release date, request 50% of the funds. If after, request 100% of the funds.

    Do not write an emotionally-charged letter. Keep the emotions out. Get it all out of your system first, then write the letter in a professional manner. Explain that your business and employees are in jeopardy due to this hold, so immediate action is necessary.

    Sign it in wet ink.

    Scan, copy, and email this letter to: [email protected].

    businessman holding up hand to stop thief from stealing briefcase
    Stop right there!

    What can I do to stop Stripe from holding funds again?

    We have 3 easy steps for you to ensure that Stripe can NEVER hold money from you again. These steps are something you should follow, anyway, but if Stripe has already gotten a hold of your account then you need to ACT NOW.

    1. If Stripe Has a Temporary Hold on Your Money…

    open a backup processor account. We know we said this before, but it is the first step in every scenario.

    Stripe is holding your money temporarily for now. In the future, it won’t be temporary. It will lead to your gateway being inaccessible, your store getting shut down, and your small business destroyed. We’ve seen it happen before. Act now before Stripe takes another step closer to ruining your business.

    Finding another credit card processor is the most important thing you can do right now. Any processor will do, as long as you open it ASAP. DirectPayNet can help, it’s what we do best. But if you’re looking for something quick (as in a temporary solution), you can open another aggregator account.

    This is a warning, DO NOT continue operating as if nothing has happened.

    2. When Opening a Backup Account…

    …don’t let it sit there, empty. You need to put some of your sales volume into the new payment processing account. Even just 20%.

    The account needs to be put to work, plus it looks good to have credit card processing history with multiple processors. You want those bank statements to look full so when you start up a new business in the future or want to negotiate processing fees, you’ll have some leverage.

    You can be smart about what you put through your second processor. Some of the red flags Stripe looks for include:

    • high order values
    • overseas orders
    • too many orders in a small amount of time

    You could set up your backup account to only handle big-ticket items or order values over $900. You could set one up to be solely for foreign transactions so it doesn’t handle anything in USD. You can have it activated only for Visa shoppers, or ACH, debit cards, or any other payment method. There are limitless options. But pick a path and stick to it.

    3. Transferring Your Customer Data to a New Processor…

    …can be done easily by contacting Stripe and asking them to send it to the new processor. Note that they will never send you the data, they will always send it to the other processor.

    Customer data is tokenized, so for Stripe they are called Stripe Tokens. But that tokenized data can be used with any processor. They can’t send that data unencrypted to you because it contains sensitive credit card payment information, account information, and more. It’s just part of being compliant.

    This is how you can preserve important customer data without asking them to reenter their information for things like saved shipping addresses or subscriptions.

    Bonus! Customer Data Doesn’t Have to Be Stored with the Processor…

    …you can use a vault instead. Tokenized customer data is always stored in a vault, but most of the time business owners don’t realize it and they use 1st-party vaults. For example, a Stripe Token is held in the vault built and maintained by Stripe. Your new processing company and gateway will also have a vault where that data is stored.

    BUT you could use a 3rd-party vault and keep that data outside of those processors. The benefit would be that you don’t have to worry about losing the data or corrupting it when transferring to new processors. It would always be in your hands and under your control.

    Never get your funds held by Stripe again!

    Stripe payment processing might be easy to sign up for, but it’s not so easy to keep a business running on.

    Get a PCI-compliant payment processor and payment gateway now through DirectPayNet. We connect you with a payment provider that works for your business—no hidden fees or threats. Just a processor and a gateway that work exactly how you need it with all the functionality that will take your business to new heights.

    Speak with us today to open your own, real merchant account.