CC and Subscription processing
- Thread starter Xpander17
- Start date
(O_o)
H̨̼̩͐̑͆̀̚&
What type of website are you trying to launch? Offers like biz opp for example are considered high risk, and as a result solutions like Stripe would not be appropriate. Fees would also be significantly higher.
Anything that involves any kind of recurring monthly fee may also be considered more risky by the underwriter.
I personally use nmi.com as my gateway and load balance between 4 different merchant accounts.
I think you should be more concerned about a payment service provider that has some degree of chargeback tolerance rather than going to a place with the lowest possible processing fees. Processors that have rock bottom processing fees tend to also have zero tolerance towards chargebacks, and in some cases may be even stricter than Visa and Mastercard themselves.
I suspect you're not shipping a physical product, so you will be encountering chargebacks. You should also keep your eggs in more than one basket and load balance with multiple merchant accounts.
Finally don't forget that in the US, the chargeback ratio cap is 1% (2% for international) and that it's calculated every month based on the number of transactions you ran.
With a more tolerant payment service provider, you can go over 1% on your chargeback ratio as long as you are under 1% the next month provided that you are under 100 chargebacks a month with Visa and under 150 chargebacks a month with Mastercard for that particular merchant account. This is why it's very important to load balance merchant accounts and have tolerant PSPs.
Also if you want a referral to someone that can provide high risk merchant accounts (domestic and international), feel free to PM me.
I concur 100% with bluechinagroup. Chargebacks are going to be your biggest financial burden when it comes to credit card transactions. Choose a merchant account(s) that will play nicely with you regarding your chargebacks.
This. I remember my merchant account with Moneris (Royal Bank), and it got closed down due to a pretty low chargeback ratio. I can't remember, but it was low enough that I didn't see the concern. I'm quite sure it was well under 2%.
But fuck, not my fault instead of opening a quick support ticket to request a refund, some people run directly to the bank to issue a chargeback. They could have just asked for a refund, and 90% of the time they would have got it.
Stripe then when you get banned from Stripe, Braintree.
We pushed mid six figures through stripe over the course of a year and had a single chargeback a month ago for a charge that took place six months ago (was an insignificant amount of money like $200) and they nixed our entire account with zero explanation. They even took it upon themselves to go and refund all our clients payments for the month.
Apparently $200 is worth more than a solid business relationship.
Also the $200 was obvious friendly fraud but they did jack shit to fight it with the asshat's bank even though we provided thorough documentation, emails, signed contracts etc. Never again.
We pushed mid six figures through stripe over the course of a year and had a single chargeback a month ago for a charge that took place six months ago (was an insignificant amount of money like $200) and they nixed our entire account with zero explanation. They even took it upon themselves to go and refund all our clients payments for the month.
Apparently $200 is worth more than a solid business relationship.
Also the $200 was obvious friendly fraud but they did jack shit to fight it with the asshat's bank even though we provided thorough documentation, emails, signed contracts etc. Never again.
No idea what the MATCH file is, so no idea if I was placed on it. I know I tried to open another account with Moneris about 18 months later, and was flat-out refused. No discussion about a rolling reserve or anything allowed, and it was just a flat out no.
And I was just selling software. Granted, it was expensive software at $700 - $2500 a pop, but still just software. It's not like I was slinging weight loss pills or biz opps on that merchant account.
That's actually one thing I have to give credit to PayPal for. Sometimes instead of requesting a refund, customers will just rush over to PayPal and file a dispute. PayPal seems to understand people do this, and as long as you stick with your 30 day refund policy, and approve refunds for the appropriate disputes, they seem to be fine with it. Moneris on the other hand gets pissy about it.
The MATCH file is a blacklist that makes it almost impossible for you to ever obtain a merchant account again in the future with most payment processors because almost every PSP checks your name against the MATCH. Only the worst PSPs with the worst rates will take your business if you are on the MATCH. They will know you are vulnerable too, so they'll fuck you extra hard in the ass by doing things like never releasing your rolling reserve.
You DO NOT want to be on the MATCH file. You also should not be ignorant of this stuff. It's pretty clear you didn't read the contract with your processor. This is not a smart move for any kind of financial or business matter, especially when it comes to credit card processing.
It's very easy to be placed on the MATCH, but very difficult and expensive to remove yourself from it.
^^^If that is true, then Stripe is complete shit. It's only good for the most milktoast site on earth. They have a nice API, but honestly the NMI.com is really sweet too and you can use real merchant accounts with it.
The concept of stripe is great. I think the team there really does have the best intentions but because they approve pretty much anyone their backing bank is farrrrr to strict if even a tiny slip up happens.
Braintree is an actual merchant account you apply for that has a stripe like api and interface sitting on top of it. They understand that a single chargeback is not the end of the world.
Stripe's backing bank also stipulates that if they cancel your account for any reason you can never use another stripe account. We started up a separate unrelated venture at a new company (incorporated) processed some payments and stripe nixed our account because I was listed as one of three partners. I was more than a little shocked.
Stick to Beanstream or Braintree.
And if you are doing rebills etc pm bluechinagroup