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Category: STRIPE

  • Stripe for GoHighLevel: Pros and Cons

    Stripe for GoHighLevel: Pros and Cons

    Stripe and GoHighLevel are two powerful tools that have revolutionized the way businesses operate online.

    While both offer their own eases and functionalities, they may not be as compatible as you think. Let’s get into what the best solution for agencies and creators using GoHighLevel is in terms of payment processing.

    Start your dedicated merchant account app today!

    Stripe’s Restricted Businesses List and Content Creation

    In a recent update, Stripe added “Content Creation” to their restricted businesses list. This move has significant implications for content creators who rely on Stripe for payment processing—including agencies.

    Stripe’s restricted businesses list outlines industries and products that cannot use Stripe’s services. The addition of “Content Creation” to this list means that content creators now face heightened scrutiny and potential limitations when using Stripe.

    According to Stripe’s policy, the specific restriction for content creation is as follows:

    “Transactions that provide compensation to creators without an underlying piece of digital content associated. Examples include subscriptions to free, public content or a tip button on a profile page.”

    This means that Stripe prohibits transactions where users are asked to pay for subscriptions that do not provide any new or exclusive content, but rather just give access to content that is available online through continued payments for access.

    Content creators are considered high-risk by Stripe for several reasons:

    1. Content creation businesses often have high chargeback rates, as dissatisfied customers may dispute charges for content they deem unsatisfactory or not as described.
    2. The digital nature of content makes it harder to prove the actual delivery of goods or services, increasing the risk of fraudulent transactions.
    3. Some content creation niches, such as adult content, are inherently higher risk and more prone to chargebacks and legal issues.
    4. The proliferation of online scams and get-rich-quick schemes often masquerade as legitimate content businesses, making this category riskier for payment processors like Stripe.

    However, it’s important to note that not all content creation businesses are prohibited on Stripe. The key restrictions focus on transactions that lack a clear exchange of value, such as charging for access as opposed to ownership.

    Legitimate content creators who charge for access to exclusive, members-only content like paid newsletters, private videos, courses, or digital downloads can still use Stripe, but may face additional verification requirements. These businesses are still high risk and subject to Stripe account freezes.

    Sick of Stripe? Get better, FASTER payment processing here!

    Why GoHighLevel Offers Stripe Integration

    GoHighLevel, as an all-in-one marketing and sales platform, aims to provide its users with a seamless experience when it comes to accepting payments online. One of the key integrations offered by GoHighLevel is with Stripe, one of the most popular payment gateways in the world.

    Stripe has gained widespread adoption due to its ease of use, robust API, and extensive documentation. It allows businesses to accept various payment methods, including credit cards, debit cards, and digital wallets like Apple Pay and Google Pay.

    Recognizing the importance of Stripe in the online payment ecosystem, GoHighLevel has made it simple for users to connect their Stripe account and start accepting payments within the platform. This integration allows GoHighLevel users to create a seamless checkout experience for their customers without the need for complex coding or third-party tools.

    By offering Stripe integration, GoHighLevel enables users to:

    1. Quickly set up payment processing: With just a few clicks, users can connect their existing Stripe account or create a new one directly within the GoHighLevel platform.
    2. Accept payments in their funnels and workflows: GoHighLevel’s powerful clickfunnel builder and workflow automation tools can be enhanced with Stripe integration, allowing users to accept payments at key points in their customer journey.
    3. Manage subscriptions and recurring payments: Stripe’s subscription management features can be leveraged through GoHighLevel, enabling users to easily set up and manage recurring payment plans for their products or services.
    4. Ensure secure transactions: Stripe handles all sensitive payment information, providing a secure environment for both businesses and their customers. This allows GoHighLevel users to focus on their core business without worrying about the complexities of payment security.

    The Stripe integration in GoHighLevel is particularly beneficial for beginners who may not have extensive experience with payment processing. The user-friendly interface and step-by-step guides make it easy for anyone to set up and start accepting payments online.

    Moreover, the integration allows users to manage their payment processing directly within the GoHighLevel platform, eliminating the need to switch between multiple tools and dashboards. This streamlined approach saves time and reduces the potential for errors.

    The Risks of Relying on Stripe

    While Stripe is a popular and convenient payment processing solution, many online businesses should be aware of the potential risks associated with relying solely on Stripe for their business.

    One of the primary risks is that Stripe can suddenly terminate accounts that are deemed high-risk or in violation of their terms of service. Stripe’s automated risk assessment systems continuously monitor accounts for suspicious activity or potential violations. If an account is flagged, Stripe may take swift action, including account termination, without prior warning.

    If your Stripe account is terminated, you will lose access to your funds and be unable to process payments from your customers OR refund them. This can result in significant financial losses and damage to your reputation.

    Furthermore, when Stripe terminates an account, the funds associated with that account may be frozen for an extended period. This means that you may not have access to your hard-earned money for weeks or even months. In some cases, Stripe may even withhold funds permanently if they suspect fraudulent activity.

    Large and small businesses alike should consider diversifying their payment processing by using multiple providers, such as PayPal as a backup and dedicated merchant accounts as their primary solution.

    Don’t risk it! Connect with a powerful payment processor today.

    Building a Robust Payment Ecosystem with GoHighLevel

    To mitigate the risks associated with relying solely on Stripe, business owners can still build a robust payment ecosystem using GoHighLevel.

    The Importance of a Dedicated Merchant Account

    For high-risk businesses, having a dedicated merchant account is one of the most important things you can have. A merchant account is an account with an acquiring bank that allows you to accept payments directly, rather than relying on a third-party processor like Stripe.

    Benefits of a dedicated merchant account include:

    • Greater stability and reduced risk of sudden account termination
    • More control over your funds and faster access to your money
    • Ability to negotiate rates and terms based on your business needs
    • Enhanced credibility and professionalism in the eyes of your customers

    Choosing a Compatible Payment Gateway

    To connect your dedicated merchant account to GoHighLevel, you’ll need to choose a compatible payment gateway. A payment gateway is a technology that securely transmits payment information between your website and your merchant account.

    Some popular payment gateways that integrate with GoHighLevel include:

    1. NMI (Network Merchants, Inc.)
    2. Authorize.net

    When selecting a payment gateway, consider factors such as:

    • Compatibility with your merchant account and GoHighLevel
    • Transaction fees and pricing structure
    • Security features and fraud prevention tools
    • Customer support and documentation

    Connecting Your Merchant Account and Gateway to GoHighLevel

    Once you have your dedicated merchant account and compatible payment gateway set up, you can connect them to GoHighLevel. This process typically involves the following steps:

    1. Obtain your payment gateway API credentials (API key, token, etc.)
    2. Navigate to the payment settings within your GoHighLevel account
    3. Select your chosen payment gateway from the list of available integrations
    4. Enter your API credentials and configure any additional settings
    5. Test the integration to ensure smooth payment processing

    ALWAYS test your gateway and processor before launching.

    GoHighLevel provides detailed documentation and support to guide you through the integration process, making it easy to connect your merchant account and gateway.

    Open your dedicated merchant account now!

    When to Use Stripe with GoHighLevel

    While it’s important for businesses to be aware of the risks associated with relying solely on Stripe, there are still situations where using Stripe with GoHighLevel can be beneficial. The key is to understand when and how to use Stripe strategically to minimize potential issues.

    Ideal for Low-Risk Products and Services

    Stripe can be an excellent choice for businesses who offer low-risk products or services. These are typically items that have a clear value proposition, low chargeback rates, and do not fall into any of Stripe’s restricted categories.

    Digital products are seen as higher risk because of higher chargeback rates and customer dissatisfaction. In comparison, physical products (in stock, specifically; not dropshipping) are lower risk.

    Useful as a Secondary Backup Processor

    Even if you have a dedicated merchant account and primary payment gateway, Stripe can still be a valuable tool to have in your payment ecosystem. Using Stripe as a secondary backup processor can provide an additional layer of redundancy and ensure that you can continue processing payments if your primary system experiences issues.

    Here’s how you can use Stripe as a backup processor:

    1. Set up a Stripe account and connect it to your GoHighLevel account
    2. Configure your payment settings to route transactions to your primary gateway by default
    3. Set a small amount of your monthly transactions (below $1000 per order) to go through Stripe to avoid shut down.
    4. In the event that your primary gateway is unavailable or experiences technical difficulties, you can quickly switch to Stripe as a temporary solution
    5. Once your primary gateway is back up and running, you can switch back and continue processing payments as usual

    By having Stripe as a backup option, you can minimize downtime and continue serving your customers even if your primary payment system encounters problems.

    Avoid Using Stripe for Core High-Risk Offers and Subscriptions

    While Stripe can be useful for low-risk offerings and as a backup processor, it’s crucial to avoid using Stripe for your core high-risk offers and subscriptions. As mentioned earlier, many businesses can be considered high-risk, and relying on Stripe for these critical components of your business can lead to account terminations and frozen funds.

    When it comes to your main content offerings, subscriptions, and recurring revenue streams, it’s best to use a dedicated merchant account and compatible payment gateway. This approach provides greater stability, control over your funds, and reduced risk of sudden account closures.

    If you do choose to use Stripe for certain aspects of your business, be sure to:

    • Carefully review Stripe’s terms of service and restricted businesses list
    • Ensure that your products and services comply with Stripe’s acceptable use policies
    • Maintain clear communication with your customers and provide excellent support to minimize chargebacks and disputes
    • Have alternative payment options available in case of any issues with your Stripe account

    By using Stripe strategically and in combination with a robust payment ecosystem, content creators can take advantage of its benefits while minimizing the potential risks. Always prioritize the stability and longevity of your business when making decisions about payment processing.

    SCALE YOUR BUSINESS ON GOHIGHLEVEL WITH A DEDICATED MERCHANT ACCOUNT

  • Will Stripe Ban Content Creators?

    Will Stripe Ban Content Creators?

    Stripe, one of the world’s leading online payment processors, recently updated its list of restricted businesses to include “content creation.”

    This addition raises concerns among content creators who rely on Stripe to process payments for their online businesses. The new restriction leaves many wondering if Stripe will start banning or shutting down accounts associated with content creation.

    Let’s take a closer look at what Stripe’s new content creation restrictions entail, why they’re implemented, and what it means for content creators.

    Avoid Stripe bans with a REAL merchant account.

    What Stripe Restricts Under “Content Creation”

    According to Stripe’s updated restricted businesses list, there are two main types of content creation activities that fall under scrutiny:

    1. Content-related tips and gifts
    2. Purchases of access to exclusive content or digital goods

    Let’s break down what each of these categories entails.

    Content-Related Tips and Gifts

    This restriction applies to platforms or creators who receive tips, donations, or gifts from their audience. Some examples include:

    • A “tip jar” or donation button on a creator’s profile or website
    • The ability for fans to send monetary “gifts” to creators during live streams
    • Recurring donations or patronage to support a creator’s overall work, without any exclusive perks

    Essentially, Stripe prohibits using their platform for direct fan-to-creator payments that could be interpreted as gratuities rather than purchases.

    Purchases of Access to Exclusive Content or Digital Goods

    The second restricted category pertains to selling access to gated or exclusive digital content. This might include:

    – Paywalled blog posts, videos, or podcasts

    – Members-only forums, chat rooms, or social media feeds 

    – Downloadable content like ebooks, templates, or graphics that are only accessible to paying customers

    Stripe allows the sale of digital products in general. However, they restrict models that charge for access to content without transferring full ownership to the customer. Subscriptions that unlock a library of content are still permitted.

    It’s important to note that these restrictions are somewhat open to interpretation and may require clarification from Stripe on a case-by-case basis. Content creators whose businesses revolve around these models need to carefully review their specific offerings and contact Stripe directly for guidance on whether they comply with the new rules.

    The Types of Businesses Considered “Content Creation”

    The term “content creation” encompasses a wide range of online businesses and entrepreneurs who produce and share original material to engage, educate, or entertain their audience. While the specifics may vary, these content creators typically monetize their work through ads, sponsorships, subscriptions, or selling related products and services. Here are some of the most common types of businesses that fall under the content creation umbrella.

    Artists 

    Artists of all kinds, including visual artists, musicians, writers, and performers, can be considered content creators when they share their work online. They may post images or videos of their art, release songs or albums digitally, publish written pieces, or live stream performances. Many artists use platforms like Instagram, YouTube, Patreon, or personal websites to showcase their creations and build a following.

    Coaches

    Coaches in various niches, such as business, health, relationships, or personal development, often create content to attract clients and establish their expertise. They may write blog posts, record podcasts, make videos, or share social media posts offering tips, insights, and motivation related to their coaching specialty. This content helps demonstrate the value they provide and builds trust with potential customers.

    Instructors

    Online instructors and course creators are content creators who share educational material in their field of knowledge. They may produce video lessons, write detailed guides, design infographics, or develop interactive exercises. Instructors can use learning platforms like Udemy or Teachable, or self-host their courses on a personal site. The content they create is the product they are selling to students.

    Influencers

    Influencers are content creators who have built a substantial following in a particular niche, such as fashion, beauty, fitness, gaming, or travel. They create engaging posts, photos, and videos to entertain and inspire their audience, while also promoting relevant products or brands. Influencers often monetize through sponsored content, affiliate marketing, or creating their own products. Their content is designed to be highly shareable and relatable to their target demographic.

    Other Online Content Creators

    There are many other types of online businesses that rely on content creation to attract an audience and generate income. Some examples include:

    • Bloggers who write articles on various topics
    • YouTubers who make video essays, reviews, comedy sketches, or vlogs  
    • Podcasters who discuss news, interview guests, or share stories
    • Streamers who broadcast live gaming sessions or creative projects
    • Photographers who take and edit photos for stock sites or prints
    • Graphic designers who make logos, infographics, or social media assets

    What unites all of these diverse content creators is the drive to produce original, valuable material that resonates with their specific audience. The content itself is the core product, even if money is made through other means like advertising or merchandising.

    Scale your content creation business with DirectPayNet.

    Which Content Creation Business Models Stripe Allows

    While Stripe’s new restrictions on content creation may seem broad, there are still several viable business models that creators can use to monetize their work while complying with Stripe’s policies.

    The key is to focus on selling content outright or providing subscription access to a catalog of content that customers can keep, rather than gating exclusive content or perks behind a paywall. Here are some content creation business models that are generally allowed on Stripe:

    Selling Content Outright for a One-Time Purchase Price

    Content creators can sell individual pieces of content, such as ebooks, courses, templates, or media files, for a one-time fee. In this model, the customer pays once and receives full ownership of the content, which they can download, keep, and use indefinitely. This is similar to a typical e-commerce transaction and is permitted on Stripe.

    Examples:

    • An artist sells digital prints of their artwork for a set price
    • A coach sells a comprehensive course teaching their methodology
    • A writer sells an ebook version of their novel or non-fiction book

    Subscription Access to a Catalog of Content

    Another allowed model is offering a subscription that grants access to a library or catalog of content. In this case, subscribers pay a recurring fee to maintain access to the full collection, but they do not necessarily own the individual pieces of content. The key distinction is that subscribers can view and use all of the content in the catalog for as long as they remain subscribed, rather than unlocking exclusive content or perks.

    Examples:

    • A fitness instructor offers a monthly subscription to a database of workout videos and meal plans
    • A stock photographer sells a subscription to their entire photo library for commercial use
    • A learning platform provides a subscription to all of its courses and resources

    Not Allowed: Selling Access to Exclusive Content or Perks

    What Stripe prohibits is using their platform to charge for access to gated content or exclusive perks that customers do not fully own or cannot freely access after purchase. This includes models like:

    • Paywalling specific blog posts, videos, or podcast episodes 
    • Selling tiered memberships that unlock exclusive content or community access
    • Offering paid upgrades or bonuses within a course or program

    Essentially, Stripe wants to avoid being used as a middleman for transactions where the value is primarily in the form of exclusive access, rather than the transfer of ownership of digital goods. Content creators who rely on these gated content models will need to find alternative payment processors or restructure their offerings to focus on selling content outright or providing catalog-based subscriptions.

    Stripe Has Always Banned Content Creation

    While the clarification on Stripes website is new, content creation has always been restricted.

    Stripe bans these businesses due to the risk to their own business. Stripe is a payment aggregator. That means they give you a slice of their own merchant account to operate under. Your risk is their risk, and the riskier your business is, the higher the likelihood Stripe ruins their relationship with banks.

    It’s all about saving their own business in the end and rarely is there anything wrong with your own.

    How Content Creators Can Adapt and Thrive

    If your content creation business currently relies on a model that is now restricted by Stripe, don’t panic. There are steps you can take to adapt and continue thriving as a creator, even if it means making some changes to your payment processing setup. Here’s what we recommend:

    Don’t Rely on Stripe as Your Payment Processor

    If your business model involves selling access to exclusive content or offering content-related tips and gifts, it’s clear that Stripe is no longer a viable option for processing those payments. Continuing to use Stripe for restricted transactions could result in account suspensions, frozen funds, or even legal issues. It’s best to proactively seek out alternative payment solutions that align with your specific business needs.

    Open a Dedicated Merchant Account That Supports Your Content Business Model

    For content creators who want to maintain maximum control and flexibility over their payment processing, opening a dedicated merchant account is often the best solution. A merchant account is essentially a business bank account that allows you to accept credit and debit card payments directly, without relying on a third-party processor like Stripe.

    When choosing a merchant account provider, look for one that specifically supports content creators and understands the unique needs of your business model.

    By working with a merchant account provider that is friendly to content creators, you can continue using your preferred business model without worrying about sudden account restrictions or closures.

    Only Use 3rd-Party Processors Like Stripe, PayPal, and Square as a Backup

    While third-party payment processors like Stripe, PayPal, and Square can be convenient and user-friendly, they are not always the most stable or reliable option for content creators. These platforms have broad, one-size-fits-all terms of service that can change at any time, leaving certain business models out in the cold.

    That’s why we recommend using these processors only as a backup or secondary option, rather than relying on them as your sole payment solution. By diversifying your payment methods and prioritizing dedicated merchant accounts, you can protect your business from potential disruptions and maintain a steady cash flow.

    Adapting to Stripe’s new content creation restrictions may require some upfront work and changes to your payment setup. But by being proactive and seeking out payment solutions that support your unique business needs, you can continue to thrive as a content creator and focus on what you do best: creating valuable, engaging content for your audience.

    CONNECT WITH A PROCESSOR THAT TRULY BACKS YOUR BUSINESS

    TL;DR

    – Stripe recently added “content creation” to its list of restricted businesses, specifically targeting content-related tips and gifts, as well as purchases of access to exclusive content or digital goods.

    – This has raised concerns among content creators who rely on Stripe for payment processing, as they may face account bans or shutdowns.

    – Content creation businesses affected by these restrictions include artists, coaches, instructors, influencers, and other online creators who monetize through tips, exclusive content access, or gated perks.

    – To adapt and thrive under these new rules, content creators should:

     1. Avoid relying solely on Stripe for payment processing, especially if their business model involves restricted activities.

     2. Consider opening a dedicated merchant account with a provider that supports their specific content creation business model, such as CCBill, Segpay, or 2000Charge.

     3. Use third-party processors like Stripe, PayPal, or Square only as backup options rather than primary payment solutions.

    – Content creation business models that are generally allowed on Stripe include selling content outright for a one-time purchase price and offering subscription access to a catalog of content that customers can keep.

    – By proactively seeking out payment solutions that align with their unique needs and diversifying their payment methods, content creators can protect their businesses from potential disruptions and continue to thrive in the face of Stripe’s new restrictions.

  • 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

  • Stripe Embraces Crypto, USDC Stablecoin, for Real This Time

    Stripe Embraces Crypto, USDC Stablecoin, for Real This Time

    In a groundbreaking move that has sent ripples through the fintech and cryptocurrency communities, Stripe, one of the world’s largest payment service providers, has announced its decision to start accepting crypto payments.

    After a six-year hiatus since dropping support for Bitcoin (BTC) in 2018, Stripe is now ready to re-enter the crypto ecosystem, beginning with support for the USDC stablecoin on the Solana, Ethereum, and Polygon blockchains.

    This announcement marks a significant milestone in the journey towards mainstream adoption of cryptocurrencies. As a prominent player in the payment processing industry, Stripe’s embrace of crypto payments is expected to legitimize cryptocurrency as a viable payment method and solidify its position as a real asset class.

    The move is likely to encourage other major payment providers to follow suit, potentially leading to a domino effect that could accelerate the integration of crypto into everyday financial transactions.

    Stripe’s decision to support USDC, a stablecoin pegged to the US dollar, is a strategic choice that addresses the volatility concerns that led to the company’s previous departure from the crypto market. By offering a stable and secure payment option, Stripe is paving the way for businesses and consumers alike to experience the benefits of cryptocurrency without the associated risks.

    That’s the gist. Read on for the details.

    Start accepting crypto on your store today!

    Stripe’s Announcement: The Details

    On April 25, 2024, Stripe made a significant announcement revealing its plans to start accepting cryptocurrency payments, beginning with support for the USDC stablecoin on the Solana, Ethereum, and Polygon blockchains.

    This move marks the first time Stripe has accepted crypto payments since dropping support for Bitcoin (BTC) in 2018 due to its instability.

    Stripe’s decision to reenter the crypto market is part of the company’s broader strategy to open up its walled garden and integrate with competing payment providers. The announcement was made by Stripe co-founder and president John Collison at the company’s Connect developer conference in San Francisco.

    The initial rollout will be limited to USDC, a stablecoin pegged to the US dollar, which addresses the volatility concerns that led to Stripe’s previous departure from the crypto market. By focusing on a stable and secure payment option, Stripe aims to provide businesses and consumers with the benefits of cryptocurrency without the associated risks.

    This latest development follows Stripe’s cautious reentry into the crypto market in 2022, when the company announced support for USDC crypto payouts, partnering with Twitter as its marquee customer for the service. However, Thursday’s announcement did not include any specific customer names associated with the new crypto payment acceptance feature.

    Stripe’s Tumultuous History with Crypto

    Stripe’s relationship with cryptocurrency has been a rollercoaster ride over the years, marked by periods of enthusiasm, caution, and strategic pivots. The company’s journey with crypto began in 2014 when it became one of the first major payment providers to adopt Bitcoin (BTC) payments. At the time, however, Bitcoin proved to be a “pretty terrible payment method” due to its volatility and technical limitations.

    In 2018, Stripe made the decision to drop support for Bitcoin payments, citing concerns over the cryptocurrency’s instability and slow transaction times. This move signaled a shift in the company’s approach to crypto, as it took a step back to reassess the viability of cryptocurrency as a payment method.

    Despite this setback, Stripe didn’t completely turn its back on the crypto market. The company participated in Facebook’s ill-fated Libra project, although it eventually backed out under pressure from United States politicians. In 2021, Stripe began rebuilding its crypto engineering team, signaling a renewed interest in the space.

    Stripe’s cautious reentry into the crypto market took shape in 2022 when the company announced support for USDC payouts, partnering with Twitter as its marquee customer for the service. This move demonstrated Stripe’s willingness to explore the potential of stablecoins as a more stable and user-friendly alternative to volatile cryptocurrencies like Bitcoin.

    Throughout its tumultuous history with crypto, Stripe has maintained a measured approach, balancing its desire to innovate and stay at the forefront of financial technology with the need for stability and security for its customers. As the company continues to navigate the evolving landscape of cryptocurrency and fintech, its latest announcement to accept USDC payments marks a significant milestone in its ongoing dance with the crypto world.

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    The Significance of Stripe Accepting Crypto Payments

    Stripe’s decision to accept cryptocurrency payments is a significant milestone in the journey towards mainstream adoption of digital assets. As one of the world’s leading payment service providers, Stripe’s embrace of crypto payments is expected to have far-reaching implications for the entire fintech and web3 ecosystem.

    Firstly, Stripe’s move legitimizes cryptocurrency as a viable payment method and asset class. By integrating crypto payments into its platform, Stripe is sending a clear signal to businesses and consumers alike that digital assets are here to stay and can be used for everyday transactions. This endorsement from a major player in the payment processing industry is likely to boost confidence in cryptocurrencies and encourage more widespread adoption.

    Secondly, Stripe’s acceptance of crypto payments has the potential to drive innovation and growth in the broader fintech and web3 ecosystem. As more businesses begin to accept cryptocurrency payments through Stripe, it could create a domino effect, with other payment providers and financial institutions following suit to remain competitive. This, in turn, could lead to the development of new products, services, and use cases built around cryptocurrency and blockchain technology.

    Moreover, Stripe’s focus on stablecoins like USDC addresses one of the main barriers to mainstream adoption of cryptocurrencies: volatility. By offering a stable and secure payment option pegged to the US dollar (USD), Stripe is making it easier for businesses and consumers to transact in crypto without the risk of significant price fluctuations. This could pave the way for greater integration of cryptocurrency into everyday financial transactions, such as online shopping, remittances, and peer-to-peer payments.

    Finally, Stripe’s move into the crypto space could have significant implications for financial inclusion and access to global markets. By enabling businesses to accept payments in cryptocurrency, Stripe is opening up new opportunities for merchants and consumers in regions where traditional banking infrastructure is limited or unavailable. This could help to level the playing field and promote economic growth in underserved communities around the world.

    The Future of Crypto Payments on Stripe

    As Stripe embarks on its journey to integrate cryptocurrency payments into its platform, starting with USDC stablecoin, speculation is rife about the company’s future plans and the potential implications for the broader crypto and fintech ecosystem.

    One of the key questions on everyone’s mind is whether Stripe will expand its support for other popular cryptocurrencies beyond USDC. Given the growing demand for crypto payment options and the increasing mainstream acceptance of digital assets, it seems likely that Stripe will eventually broaden its horizons to include other major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). This would not only provide businesses with more flexibility in terms of the cryptocurrencies they can accept but also cater to the diverse preferences of consumers in the crypto space.

    Another area of speculation is how Stripe’s move into crypto payments will impact the user experience and integration with existing financial services. As a company known for its user-friendly interface and seamless integration with various payment methods, Stripe is well-positioned to bridge the gap between traditional finance and the crypto world. By offering a streamlined and intuitive platform for businesses to accept and manage crypto payments, Stripe could help to demystify the process and make it more accessible to a wider range of merchants and consumers.

    Moreover, Stripe’s acceptance of crypto payments could open up new opportunities for businesses to tap into the growing crypto economy and leverage the unique features of blockchain technology. For example, businesses could use crypto payments to facilitate cross-border transactions, reduce transaction fees, and enhance security and transparency. As the crypto ecosystem continues to evolve and mature, Stripe’s platform could become a key gateway for businesses to access new markets, customers, and revenue streams.

    Looking ahead, the future of crypto payments on Stripe is likely to be shaped by a range of factors, including regulatory developments, technological advancements, and shifting consumer preferences. As governments around the world grapple with the challenges of regulating cryptocurrencies and stablecoins, Stripe will need to navigate a complex and evolving regulatory landscape to ensure compliance and protect its customers.

    At the same time, the rapid pace of innovation in the crypto and blockchain space could present new opportunities and challenges for Stripe as it seeks to stay ahead of the curve. From the emergence of new cryptocurrencies and stablecoins to the development of decentralized finance (DeFi) and non-fungible tokens (NFTs), Stripe will need to remain agile and adaptable to keep up with the changing landscape.

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  • Why 7-Figure Businesses Should Avoid Stripe as Their Primary Payment Processor

    Why 7-Figure Businesses Should Avoid Stripe as Their Primary Payment Processor

    Stripe, the Silicon Valley fintech darling, has become the go-to payment processor for countless startups and small businesses. With its sleek API, user-friendly dashboard, and straightforward pricing, it’s no wonder that entrepreneurs across America have flocked to Stripe to power their online businesses.

    However, as your business grows and reaches the coveted 7-figure milestone, relying solely on Stripe can become a liability. In this post, we’ll explore the potential pitfalls of using Stripe as your primary payment processor and why 7-figure businesses should consider alternative solutions to ensure smooth and uninterrupted payment processing.

    What is Stripe, Actually?

    Stripe is a popular online payment processing and credit card processing platform for businesses. It serves as both a payment gateway and a payment processor, providing a complete ecosystem for accepting payments online. Stripe allows businesses to efficiently process customer payments via credit card (Visa, Mastercard, Discover, and American Express), debit card, bank account transfers, and various digital wallets like Apple Pay and Google Pay.

    Stripe is not a merchant account, though. It is a payment aggregator or a 3rd-party payment platform. Similar solutions include PayPal and Square.

    One of the key advantages of Stripe is its ease of use and setup. Its user-friendly API and customizable checkout process make it simple for existing and new businesses to integrate Stripe into their existing websites or apps, even without extensive technical knowledge. Stripe payment software seamlessly connects to the purchasing page of your shop platform, securely handling sensitive financial information and transferring funds to your account once a sale is completed.

    Stripe is trusted by businesses of all sizes, from small startups to large enterprises like Amazon, Shopify, Uber, and Google. It is particularly popular among entrepreneurs, freelancers, and ecommerce business owners who value its simplicity, reliability, and versatile payment options.

    It also offers Stripe Connect as the “fastest way” for platforms and marketplaces like Amazon or Shopify.

    In addition to its core payment processing functionality, Stripe offers advanced features such as subscription billing, recurring payments, automatic refunds, invoicing, and fraud detection. It is also known for its developer-friendly documentation and customization options, making it a flexible solution for businesses with unique payment processing needs.

    With its focus on security, Stripe is a certified Level 1 PCI Service Provider, adhering to the stringent compliance requirements set by the Payment Card Industry Security Standards Council. This ensures that sensitive customer data is handled safely and securely throughout the payment process in real time.

    Stripe’s Limitations for 7-Figure Businesses

    While Stripe has become a go-to payment processor for many startups and small businesses, it may not be the best fit for 7-figure businesses due to several limitations:

    1. Low risk threshold and account freezes
      • Stripe has a low tolerance for risk and may flag, freeze, or cancel accounts processing over $25,000 per month.
      • This can be particularly problematic for high-volume merchants, as sudden account freezes can disrupt cash flow and business operations.
    2. Poor customer support for high-volume merchants
      • Stripe is known for its lack of responsive customer support, especially for larger businesses.
      • 7-figure businesses often require dedicated account management and timely issue resolution, which Stripe may not provide.
    3. Lack of a dedicated merchant account
      • Stripe is a third-party payment processor, meaning that businesses don’t have their own dedicated merchant accounts.
      • This can lead to a higher risk of account termination and less control over the payment processing experience.
    4. Restricted businesses and prohibited activities
      • Stripe maintains a list of restricted and prohibited businesses, which may include some 7-figure businesses depending on their industry and products.
      • Violating these restrictions can result in account termination, even for successful businesses.
    5. Limited customization and flexibility
      • While Stripe offers a range of features and integrations, it may not provide the level of customization and flexibility that some 7-figure businesses require.
      • Larger businesses may need more control over the checkout process, fraud prevention, and reporting to optimize their payment processing.

    These limitations can make Stripe a risky choice for 7-figure businesses that rely heavily on stable payment processing. High-volume merchants may be better served by a dedicated merchant account with a more risk-tolerant provider that offers personalized support and greater control over the payment experience.

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    The Risks of Relying Solely on Stripe

    While Stripe has become a popular choice for many online businesses due to its ease of use and developer-friendly API, relying solely on Stripe as your payment processor can expose your business to several risks, particularly if you’re a 7-figure business:

    1. Sudden account freezes and terminations
      • Stripe has been known to suddenly freeze or terminate accounts without warning, especially for businesses processing high volumes or deemed high-risk.
      • This can lead to significant disruptions in cash flow and business operations, as you may be unable to process payments or access funds.
    2. Limited recourse and support
      • When issues arise, Stripe’s customer support can be lacking, particularly for larger businesses.
      • Account terminations and freezes can be difficult to resolve, leaving businesses with limited options and potentially significant financial losses.
    3. Strict adherence to prohibited and restricted businesses
      • Stripe maintains a list of prohibited and restricted business models, which can change over time.
      • If your business falls into one of these categories, even unknowingly, you risk account termination and loss of access to payment processing.
    4. Dependence on a single platform
      • By relying solely on Stripe, your business becomes dependent on a single platform for payment processing.
      • If Stripe experiences technical issues, changes its policies, or decides to terminate your account, your ability to process payments and maintain business continuity can be severely impacted.
    5. Potential for chargebacks and fraud
      • While Stripe offers some fraud protection, businesses are ultimately responsible for chargebacks and fraudulent transactions.
      • High chargeback rates can lead to account termination, leaving businesses vulnerable to financial losses and reputational damage.

    To mitigate these risks, 7-figure businesses should consider diversifying their payment processing by using Stripe in conjunction with a dedicated merchant account or other payment processors. This approach allows for greater stability, support, and flexibility in the event of issues with any single platform.

    Additionally, businesses should carefully review Stripe’s terms of service and prohibited businesses list to ensure compliance and reduce the risk of account termination.

    The Benefits of a Dedicated Merchant Account

    For 7-figure businesses, a dedicated merchant account can provide a more stable and reliable payment processing solution compared to relying solely on Stripe. A dedicated merchant account is an account with an acquiring bank that allows businesses to process credit card transactions directly, rather than through a third-party processor like Stripe. Some of the key benefits of a dedicated merchant account include:

    1. Higher risk thresholds and more stable processing
      • Dedicated merchant accounts typically have higher risk thresholds than third-party processors like Stripe.
      • This means that businesses can process higher volumes and more complex transactions without the risk of sudden account freezes or terminations.
    2. Better customer support and account management
      • With a dedicated merchant account, businesses often have access to personalized customer support and account management.
      • This can be particularly valuable for 7-figure businesses that require timely issue resolution and proactive risk management.
    3. More control over payment processing and payouts
      • Dedicated merchant accounts give businesses more control over their payment processing, including the ability to customize the checkout experience and manage payouts.
      • This level of control can be essential for optimizing conversions, reducing fraud, and ensuring smooth cash flow.
    4. Reduced risk of account termination
      • While dedicated merchant accounts still have terms of service and prohibited activities, they are generally more flexible than third-party processors.
      • This reduces the risk of sudden account termination and allows businesses to work with their account manager to address any issues that arise.
    5. Improved brand image and customer trust
      • Having a dedicated merchant account can improve a business’s brand image and customer trust, as it demonstrates a level of legitimacy and stability.
      • This can be particularly important for 7-figure businesses looking to establish long-term relationships with customers and partners.

    While dedicated merchant accounts may have higher setup costs and more stringent application processes compared to Stripe, the long-term benefits of stability, support, and control make them a compelling choice for 7-figure businesses.

    By partnering with a reputable payment processor and acquiring bank, businesses can ensure reliable payment processing and focus on growing their business without the risk of sudden disruptions.

    How to Use Stripe Effectively as a 7-Figure Business

    While a dedicated merchant account should be the primary payment processing solution for most 7-figure businesses, Stripe can still play a valuable role in a diversified payment stack. By using Stripe strategically, businesses can take advantage of its unique features and benefits while mitigating the risks associated with relying on it as a sole payment processor.

    Here are some ways to effectively use Stripe as a 7-figure business:

    1. Implementing Stripe as a backup or secondary processor
      • Use Stripe as a backup payment processor to ensure business continuity in case of issues with your primary merchant account.
      • Route a portion of your transactions through Stripe to diversify your payment processing and reduce the impact of any single point of failure.
    2. Utilizing Stripe for low-risk transactions and subscriptions
      • Stripe’s user-friendly interface and robust subscription management tools make it well-suited for handling low-risk transactions and recurring payments.
      • Use Stripe for smaller transactions or subscriptions while reserving your dedicated merchant account for higher-value or higher-risk transactions.
    3. Leveraging Stripe’s developer tools and integrations
      • Stripe’s developer-friendly API and extensive integrations can be valuable for businesses with unique payment processing needs.
      • Use Stripe to quickly prototype new payment features or integrate with third-party tools that support your business operations.
    4. Implementing Stripe’s fraud prevention tools
      • Stripe’s built-in fraud prevention tools, such as Radar, can help businesses reduce the risk of fraudulent transactions and chargebacks.
      • Implement these tools in conjunction with your dedicated merchant account’s fraud prevention measures to create a more comprehensive risk management strategy.
    5. Utilizing Stripe for international transactions
      • Stripe supports payment processing in over 135 currencies and multiple payment methods, making it a useful tool for businesses with a global customer base.
      • Use Stripe to process international transactions and provide a localized checkout experience for customers in different countries.

    By using Stripe strategically and in combination with a dedicated merchant account, 7-figure businesses can create a robust and diversified payment processing stack that maximizes the benefits of each platform while minimizing the risks.

    This approach allows businesses to take advantage of Stripe’s unique features and benefits while ensuring the stability and reliability of their primary payment processing solution.

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