From my previous blog post "Using the wrong Processor Type" I discussed some issues that you could face using a PSP verse a traditional merchant account. In this post, I want to show you some additional gotcha's.
I spent a little time researching some of the terms from a couple of the most popular PSPs that you have probably heard of....both names start with "S".
1
Company 1
plane figure with four equal straight sides and four right angles
2
Company 2
a long narrow band or strip, typically of the same width throughout its length, differing in color or texture from the surface on either side of it
Both companies have a role in the free market and depending on your business, maybe adequate...or maybe not. You are big boys and girls and can make that determination. I am just trying to give you the insight, do with it what you will!
So, in no particular order, here are blurbs from the previously mentioned PSP) terms. Notice I am not making them a smaller font so that you have to squint to read them.
In certain circumstances, we may require you to place funds in reserve or to impose conditions on the release of funds (each a “Reserve”). We may impose a Reserve on you for any reason if we determine that the risk of loss to Stripe, Customers, or others associated with your Stripe Account is higher than normal. For example, we may hold a Reserve if: (i) your or your Customers’ activities increase the risk of loss to us or to your Customers, (ii) you have violated or are likely to violate this Agreement, or (iii) your Stripe Account has an elevated or abnormally high number of Disputes. If we impose a Reserve, we will establish the terms of the Reserve and provide you Notice of the amount, timing, and conditions upon which the funds in the Reserve will be released to you. In many cases, the Reserve amount will be the entire amount of Charges processed using the Payment Processing Services. We may change or condition the terms of the Reserve based on our continuous assessment and understanding of the risks associated with your Stripe Account, if required to do so by Payment Method Providers or Payment Method Acquirers, or for any other reason. We may fund the Reserve with funds processed through your use of Payment Processing Services, by debiting the Payout Account or another bank account associated with your Stripe Account, or by requesting funds directly from you.
Frightening
Questions
When people are searching for digital payment options here are a couple of standard questions we see:
1. Uh, what does "suspended payouts" mean? Let's break it down old school
- Suspended:
- to cause to stop temporarily //suspend paying you
- to set aside or make temporarily inoperative //suspend the account
- to hold in an undetermined or undecided state awaiting further information //suspend providing you with the money that was paid to you by your consumer and causing additional stress and anxiety...business owners don't need money until the powers that be say they need it. Ok, that is a little dramatic, but in essence, that is what is happening!
- Payouts:
- the act of paying out // You know, giving you the lifeline of your business
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I know that I said that there were a couple of standard questions, but if the information I just provided you on the first question isn't enough to cause you sleepless nights, weight gain, and hair loss....well, I will give you the 2nd most asked question in my next post. As a heads up, it has to do with the scary subject of "Holding Funds/Freezing Accounts". Yeah, now you see why I don't dump it all on you in this one post!