Many businesses choose Square or Stripe for their payment processing because they’re easy to set up and promise “no hidden fees”. But here’s the thing: they can shut down your account and hold your funds without warning, leaving you unable to accept payments from customers who want to buy. Keep reading to learn why payment facilitators like Square and Stripe are different from Independent Sales Organizations (ISOs) and what that difference could cost you.
Why Stripe & Square’s Simplicity May Cost You More
Stripe and Square are payment facilitators (“PayFacs”), which means they bundle thousands of merchants into one account instead of giving each business its own merchant account. Here’s why this matters for your business:
Instant Account Shutdowns
PayFacs use automated systems to monitor your:
- Credit card transactions
- Debit card transactions
- Online transactions
- In-person transactions
- Card-not-present transactions
- Transaction volume
A single “unusual” transaction can lead to an account closure. When this happens:
- You can’t accept payments while they investigate
- There’s no timeline for a resolution
- Even worse, your account can be shut down without warning
- When this happens, your undeposited money is usually held for up to 6 months
Why ISO Agents Are Safer
ISO agents thoroughly review your business operations before setting you up with a merchant processing account. Once you’re approved, you have a dedicated merchant account and a relationship with a bank that won’t disappear overnight.
Why PayFacs Aren’t Built for High-Risk Processing
PayFacs like Square and Stripe are great for low-risk business models, but they have a low tolerance for business needs that fall outside of their risk profile. Here are some issues merchants may face:
They Can’t Handle Your Chargebacks
If your business is at risk of chargebacks, then a payment facilitator’s system may flag your account and close it. Once your account activity is flagged, you become high-risk to their automated systems, and there is no formal appeal system.
They Don’t Specialize in High-Risk
ISO agents use different pricing models, such as interchange-plus pricing, also known as wholesale pricing, to help compete against high pricing and fees. The real advantage though is industry expertise. At AllayPay, we specialize in high-risk industries that Stripe and Square are not built for. Some of these businesses include:
We have real people who know your business. We understand that every industry has unique challenges, and we build processing solutions around those specific business needs.
What AllayPay Offers That Stripe & Square Don’t
We provide payment processing solutions as well as expertise that protects your business. Here are a few of the services we offer that payment facilitators don’t:
Free Cost Analysis
We will review your current payment processing costs and point out where you may be overpaying. Your current merchant account provider most likely is overcharging you with a host of transaction and miscellaneous fees that include, but aren’t limited to:
- Setup fees
- High monthly fees
- High chargeback fees
- Assessment fees
- Inflated interchange fees
- No identification of L2/L3 Savings
- And more…
We find specific areas to net you savings by calculating your true effective rate and provide you with a detailed side-by-side proposal.
Month-to-Month Contracts
We offer flexible contracts with no early termination fees. You get the stability of a merchant account without being locked into long-term commitments.
Better Customer Support
We give you real, personalized support, including over the phone, when you have questions about your account. You’ll get help with technical issues and fraud prevention and have your own account manager to support your business growth.
With Square or Stripe, their customer service number is not listed, and it’s nearly impossible to reach a real person when you need help with your account or payment issues. Save yourself hours of frustration and headaches working with a dedicated account representative.
Account Stability
Setting up a regular processing account usually takes a few hours or a day longer than with a PayFac, but once you’re approved, you have the peace of mind knowing your account was properly underwritten prior to getting approved. We also make sure your business is PCI compliant. The advantage of working with an ISO is not having the stress that any little thing can cause your processing account to get shut down.
High-Risk Business Support
Some businesses get rejected by Square and Stripe immediately. This includes high-risk industries like vape shops, pawn shops, and more.
We work with a variety of processors and banks to find solutions for all types of companies.
AllayPay: The Smartest Choice for Accepting Credit Card Payments
Square and Stripe might seem convenient, but convenience doesn’t matter if your account gets closed during your busy season. The risk of a sudden account closure or money hold is too high for any serious business.
At AllayPay, we give you a real merchant account with personalized customer service, pricing that can save you money per transaction, PCI compliance, and concierge-level support for your business. We work with companies of all sizes worldwide.
We have the right solutions for your businesses that need to process transactions, accept online payments, send payment links and invoices, set up in-person payments with a card reader, or prevent chargebacks.
Ready to protect your business with stable payment processing? Contact us today to speak to our expert account reps. Learn how we can reduce your processing costs and the risk of surprise account closures.
