Category: STRIPE

  • 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

  • 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

  • StripeShutMeDown! How to Recover and Keep Your Business Running

    StripeShutMeDown! How to Recover and Keep Your Business Running

    You wake up one morning, excited to check your Stripe account and see the latest sales figures, only to find a gut-wrenching email stating that your account has been terminated.

    Panic sets in as you realize your primary payment processor is no longer available, putting your entire business at risk. Sound familiar? You’re not alone.

    Too many people are searching “stripeshutmedown” in an effort to find a solution to their once profitable store. Let’s not waste any more time and get right into it.

    AVOID STRIPE SHUTDOWNS PERMANENTLY

    Too Common Devastating Stripe Shutdown Scenarios

    There are many scenarios where stripeshutmedown comes into play, but there are two categories we can file them all under. Here are two examples:

    The High-Risk Merchant

    John runs an online store selling CBD products. Despite his best efforts to maintain a low chargeback ratio and provide excellent customer service, Stripe deems his business high-risk and shuts down his account without warning.

    Not knowing what constitutes a high-risk merchant nor being familiar with his merchant category code(s), John is left scrambling to find a new payment processor. Not only is he worrying about the funds Stripe is withholding, but also how to get his store back up and running.

    The Unexpected Termination

    Sarah’s e-commerce store has been running smoothly for years, with a steady stream of sales and happy customers. Recently, her store has had a sudden burst in sales, doubling her normal monthly volume.

    Out of the blue, she receives an email from Stripe stating that her account has been suspended with no reason stated. Despite having no history of fraudulent activity, Sarah is now facing the daunting task of finding a new payment processor to keep her business scaling and losing access to her hard-earned money.

    SOUND FAMILIAR? WE CAN HELP!

    Your 3-Step Plan to Recover from a Stripe Shutdown

    If you find yourself in a similar situation, don’t panic. Follow these three steps to get your business back on track.

    1. Open Another Account with a Popular Payment Aggregator

    While it may be tempting to put all your eggs in one basket, you need to have a backup plan.

    Open an account with PayPal, Shopify Payments, or Square. These popular payment aggregators can help you continue processing transactions while you work on a long-term solution.

    NOTE: These are payment aggregators, NOT payment processors. What’s the difference? An aggregator or payment facilitator or 3rd-party payment service provider (they all mean the same thing) doesn’t give you a merchant account. These services have their own merchant account and then give you a sub account within their own.

    The positive thing is that you get setup really quickly and can start operating within 24 hours. The downside is that they are highly risk averse, meaning they can shut you down in an instant.

    2. Find Your Merchant Category Code and Apply for a Real Merchant Account

    Determine your merchant category code (MCC) and start researching payment processors that specialize in your industry.

    High-risk merchants may need to work with specialized payment processors that understand their unique challenges. Applying for a real merchant account will provide more stability and support than relying solely on third-party processors like Stripe.

    You may fall under several MCCs. Don’t try to cheat and use a low-risk one because it won’t work out in your favor. Instead, compare and contrast the codes you do fall under to see what the going rate are between them. You cannot change your merchant category code once your account is open.

    3. Contact Stripe Support and Request a Partial Refund

    If Stripe is withholding your funds, don’t be afraid to advocate for yourself. Contact Stripe support via email and direct mail, explaining your situation and requesting the release of 50% of your funds.

    Be persistent and professional in your communication, and don’t give up until you receive a satisfactory response. If your negotiation is 50% of what they’re holding, they’re more likely to give in. Stripe doesn’t usually need all of your funds, but they do need enough to cover fees, returns, refunds, chargebacks, etc.

    You won’t get 100% of your funds right away, so don’t go in with that expectation.

    CONNECT WITH A PAYMENT PROCESSOR THAT SUPPORTS YOUR BUSINESS

    Don’t Let a Stripe Shutdown Derail Your Business

    A stripeshutmedown situation can be a devastating blow to any business, but it doesn’t have to be the end of the road. By acting quickly and following these three steps, you can minimize the impact on your operations and get back to serving your customers.

    Remember, diversifying your payment processing options and having a solid backup plan can help you weather any storm. Don’t wait until it’s too late – start exploring your options today and protect your business from the unexpected.

    APPLY FOR YOUR NEW PRIMARY PAYMENT SOLUTION

  • Stripe Tokens, How to Migrate Them Before It’s Too Late

    Stripe Tokens, How to Migrate Them Before It’s Too Late

    If you’re running a subscription-based business and using Stripe for payment processing, you’ve likely encountered Stripe Tokens. These tokens, also known as network tokens, represent encrypted customer payment data stored in a secure vault.

    While using Stripe Tokens for subscriptions may seem convenient, relying solely on them can put your business at risk. In this blog post we explore alternative tokenization services and guide you through the process of migrating your tokens out of Stripe to maintain control over your subscription data.

    AVOID STRIPE SHUTDOWNS FOR YOUR SUBSCRIPTION BUSINESS

    What are Stripe Tokens and Network Tokens?

    Stripe Tokens represent encrypted customer payment data used as a secure substitute for sensitive information like credit card numbers. These tokens, also known as network tokens, allow businesses to process payments without directly handling or storing customers’ primary account numbers (PANs).

    When a customer provides their payment details, Stripe generates a unique token that replaces the actual PAN. This token acts as a nonsensitive equivalent that can only be used by the business that collected the card information. Stripe works with card networks like Visa, Mastercard, and American Express to create and maintain these tokens.

    The original sensitive payment data is stored securely in a central vault, while the token is used in its place for transactions. This process, called tokenization, helps protect customer data and reduces the risk of data breaches since stolen tokens cannot be used by fraudulent actors.

    By using Stripe Tokens or network tokens, businesses can minimize their PCI compliance burden and safeguard their customers’ payment information in a secure token vault. Stripe’s network tokens solution is available for users worldwide in various countries, with ongoing expansion as more issuers adopt this technology.

    TOKENIZE YOUR SUBSCRIBER DATA

    Do You Need to Use Stripe Tokens for Subscriptions?

    While tokenizing subscription data within Stripe offers convenience if you’re already using their payment processing services, it’s important to consider the potential risks of relying solely on Stripe Tokens.

    You Are Not Forced to Use Stripe Tokenization

    Stripe Tokens are not mandatory for managing subscriptions. You can choose to store customer payment information using alternative tokenization services or vaults, which we’ll discuss in the next section.

    This approach gives you more flexibility and control over your subscription data.

    If you decide to use Stripe Tokens exclusively, keep in mind that any issues with your Stripe account could directly impact your subscriptions. For example, if Stripe suspends or terminates your account, you may face difficulties accessing your customers’ tokenized payment data. In such cases, Stripe may not release the tokenized data, putting your subscriptions and revenue at risk.

    Stripe Shouldn’t Be Your Only Payment Service Provider

    Moreover, if you later decide to switch payment processors, migrating your subscriptions from Stripe can be challenging. Stripe allows a one-time migration of tokens, but the process requires careful planning and execution to ensure a smooth transition without disrupting your subscription billing.

    To mitigate these risks, consider using a separate token vault to store your customers’ payment data. This approach offers greater flexibility, allowing you to switch payment processors if needed while maintaining control over your subscription data.

    CONNECT WITH A 3RD-PARTY VAULT

    Alternative Tokenization Services and Vaults

    When it comes to storing tokenized payment data, you have a wide range of options beyond Stripe Tokens. Numerous third-party vaults specialize in securely storing and managing tokenized customer information, giving you greater control and flexibility over your subscription data.

    Benefits of Using a Separate Token Vault

    By using a separate token vault, you can enjoy several key benefits:

    1. Processor Independence: With your payment data stored in a separate vault, you gain the ability to switch payment processors without losing your valuable subscription data. This independence allows you to adapt to changing business needs, negotiate better rates, or take advantage of new features offered by other processors.
    2. Risk Mitigation: Relying on a single provider for both payment processing and token storage can create a single point of failure. By using a dedicated token vault, you reduce your dependency on any one provider, minimizing the risk of disruptions to your subscription billing.

    Key Considerations for Choosing a Token Vault

    When evaluating token vault providers, keep the following factors in mind:

    1. Payment Gateway Integration: Look for a token vault that seamlessly integrates with popular payment gateways like Authorize.net, NMI, and others. This integration ensures a smooth transition and minimizes the need for custom development work.
    2. PCI Compliance: Ensure that the token vault provider is fully PCI compliant and follows strict security standards for handling sensitive payment data. This compliance helps protect your customers’ information and reduces your own PCI compliance burden.
    3. Scalability and Reliability: Choose a token vault that can scale with your business growth and offers reliable uptime. Consider factors like API performance, data backup and recovery processes, and customer support responsiveness.

    By carefully selecting a reputable and feature-rich token vault provider, you can enjoy the benefits of secure payment data storage while maintaining the flexibility to adapt to changing business needs.

    SECURE YOUR SUBSCRIPTION BUSINESS FROM STRIPE

    How to Migrate Tokens Out of Stripe

    If you’ve decided to move your tokenized payment data out of Stripe, it’s crucial to understand the migration process and take the necessary steps to ensure a smooth transition. Here’s a detailed guide on how to migrate your tokens from Stripe to a new vault provider.

    One-Time Token Migration

    Stripe allows a one-time migration of your tokenized payment data to a new vault provider. This means you have a single opportunity to transfer your tokens, so it’s essential to choose your new provider carefully and follow through with the migration process.

    Stripe’s Token Release Process

    When you initiate the token migration, Stripe will release the tokens directly to your chosen third-party vault provider. The tokens will not be released to you personally. This process ensures the security of the sensitive payment data and complies with PCI standards.

    Migrating Customer Data vs. Subscription Data

    It’s important to note that Stripe will only transfer the customer payment data (tokens) during the migration process. Subscription-related information, such as plan details and billing cycles, will not be included in the migration.

    To maintain your subscription billing, you’ll need to manually re-enter the subscription data in your new system. This includes associating the migrated customer tokens with their respective subscription plans and updating any relevant billing information.

    Requesting Token Migration from Stripe

    To start the token migration process, submit a request to Stripe using their data migration request form. Provide the necessary details about your new vault provider and the scope of the migration.

    Be prepared for potential resistance from Stripe, as the migration may lead to a loss of revenue for them. However, Stripe cannot legally deny your request to migrate your tokens.

    Once your request is approved, work closely with Stripe and your new vault provider to coordinate the token migration. Ensure that you have a plan in place to re-enter your subscription data and thoroughly test your new setup before fully transitioning away from Stripe.

    By following these steps and carefully planning your token migration, you can successfully move your payment data out of Stripe and into a new vault provider while minimizing disruptions to your subscription billing.

    SCALE YOUR SUBSCRIPTION BUSINESS WITH DIRECTPAYNET

  • Maximizing Revenue Recovery for Failed Subscription Payments in GoHighLevel and Stripe

    Maximizing Revenue Recovery for Failed Subscription Payments in GoHighLevel and Stripe

    Subscription businesses inevitably face failed payments, which can lead to involuntary churn if not addressed. Here’s how to optimize your failed payment recovery process when using GoHighLevel as your CRM and Stripe as your payment gateway.

    AVOID SUBSCRIPTION CHURN

    Stripe’s Default Failed Payment Handling

    Stripe offers a built-in feature called “Smart Retries” that automatically retries failed subscription payments for you. Out of the box, Stripe will intelligently retry a failed payment 3 times over a 2 week period before canceling the subscription. This default behavior provides a solid foundation for recovering failed payments without any additional setup.

    But the reality behind Smart Retries is that Stripe uses machine learning trained on billions of data points to determine the optimal time to retry each failed charge. This is sold as a way to maximize your chances of successfully recovering payments. However, it’s more about Stripe reducing the level of risk.

    If you need even more robust retry behavior, Stripe allows you to extend Smart Retries to a maximum of 8 retry attempts over a 2 week period. This can be easily configured right in your Stripe account settings. With up to 8 well-timed retries powered by Stripe’s intelligent retry logic, you’re giving failed payments the best chance to ultimately succeed out of the box.

    CONNECT WITH A MORE POWERFUL PAYMENT GATEWAY

    Strike the Right Balance with Payment Retries

    While it may be tempting to retry failed payments as frequently as possible, such as every day, to maximize revenue recovery, it’s important to consider the potential downsides of excessive retries.

    Retrying failed payments too aggressively can actually harm your overall payment approval rates over time. Payment processors and credit card issuers monitor decline rates closely. If they see an unusually high number of declines from your business, it may trigger risk alerts and lead to more scrutiny on your transactions. This can result in even valid payments being declined more often.

    Additionally, customers whose payments are finally approved after 5 or more retries may be more likely to dispute the charges or request refunds. These customers may not have intended for the payment to ultimately go through, and excessive retries can lead to a poor customer experience.

    The key is to find the right balance between maximizing revenue recovery and maintaining a healthy payment profile. By using Stripe’s intelligent Smart Retries and configuring your settings thoughtfully, you can optimize your retry strategy to recover revenue effectively while keeping your overall approval rates strong.

    Remember, a slightly lower recovery rate on failed payments is preferable to jeopardizing the success rates of all your transactions, no matter the payment method. By striking the right balance, you can maintain strong approval rates while still recovering a significant portion of failed payments.

    BOOST YOUR APPROVAL RATIO

    Supercharge Your Decline Recovery with 3rd-Party Salvage Services

    If you find that failed payments are a significant challenge for your business, you can take your decline recovery to the next level by leveraging specialized third-party decline salvage services.

    These powerful services go beyond Stripe’s built-in capabilities, allowing you to fully customize your retry schedules and strategies. With granular control over retry frequency, timing, and logic, you can fine-tune your approach to maximize recovery rates while minimizing any negative impact on your overall payment health.

    Imagine being able to automatically adjust your retry schedule based on each customer’s unique payment history and behavior. Or dynamically adapting your retry logic based on real-time decline codes and trends. That’s the level of optimization that third-party salvage services can provide.

    By intelligently leveraging these advanced capabilities, you can supercharge your decline recovery efforts and recapture a significant portion of revenue that would otherwise be lost. You’ll be able to recover more failed payments while still maintaining strong approval rates and a positive customer experience.

    If failed payments are a notable drag on your business, integrating a third-party decline salvage service could be a game-changer. You’ll be able to take your revenue recovery efforts to new heights, all while keeping your payment processing running smoothly. It’s a worthwhile option to explore if you want to maximize your success in tackling failed payments.

    SECURE BETTER PAYMENT PROCESSING

    Effortlessly Keep Customer Cards Up-to-Date with Visa and Mastercard Automatic Updates

    It is easy to integrate with Visa Account Updater (VAU) and Mastercard Automatic Billing Updater (ABU) services. These powerful tools automatically update your customers’ expired or replaced card details, ensuring you always have the most current payment information on file for recurring invoices.

    While there is a small fee per card update, the benefits far outweigh the cost. By meaningfully reducing payment failures, you’ll recover revenue that would otherwise be lost. You’ll also save time and resources that would be spent reaching out to customers to update their card details manually. It’s a smart investment in smoother payments and a better customer experience.

    Best of all, enabling VAU and ABU in your Stripe account couldn’t be simpler. You just need to toggle them on in your account settings and Stripe handles the rest. There’s no complex payment integration or development work required. Within minutes, you can start enjoying the benefits of always having your customers’ most up-to-date card information.

    In a nutshell, Visa Account Updater and Mastercard Automatic Billing Updater are your secret weapons for slashing payment declines due to outdated cards. Stripe makes it effortless to harness the power of these tools, so you can focus on growing your business while they handle the tedious task of updating card details. Enable them today and watch your successful payments soar.

    CONNECT WITH A PROCESSOR SPECIFICALLY FOR SUBSCRIPTIONS

    Proactively Notify Customers and Streamline Card Updates with GoHighLevel

    Take control of your customer communication and seamlessly guide them through updating their payment information with GoHighLevel’s powerful automation capabilities.

    First, configure GHL to send automated emails immediately when a payment fails. Don’t let a declined payment go unaddressed. Proactively reach out to the customer, alerting them to the issue and providing clear instructions on how to resolve it.

    Craft your email to direct the customer straight to their client portal, where they can easily update their card details. Make the process as frictionless as possible by providing a direct payment link and simple, step-by-step guidance. The easier you make it for customers to update their payment information, the more likely they are to do so promptly.

    Take this as an opportunity to offer more payment options like bank transfers, PayPal, Google Pay, Apple Pay, debit, and more. Credit cards do rule the ecommerce world, but your customers might have other preferences.

    But don’t stop there. Take full advantage of GoHighLevel’s automation power to close the loop and collect payments effortlessly. Set up your system to automatically retry any outstanding charges as soon as a new card is added to the customer’s account. No need for manual intervention or follow-up.

    By implementing this seamless card update flow, you’ll not only recover failed payments more effectively but also provide a smooth, hassle-free experience for your SaaS customers. They’ll appreciate the proactive communication and the ease of updating their payment information, fostering greater trust and loyalty.

    With GoHighLevel’s robust automation features, you can turn a potentially frustrating situation into an opportunity to showcase your commitment to customer service and efficiency. Streamline your payment recovery process, reduce churn, and boost customer satisfaction, all while saving your team valuable time and effort.

    SAFEGUARD YOUR GOHIGHLEVEL PRODUCTS TODAY