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Stripe Payments Competitors And Alternatives

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Stripe isn’t quite a household name the way some other companies are, but it’s safe to say this online payment processing company has done a lot to change the way people pay online. It’s opened up the potential for merchants all over the world to sell online and reach customers almost anywhere. But even if you don’t aspire to run a global empire, Stripe has powerful tools for billing and subscription management, customized online checkouts, and plenty more.

Like its competitor Square, the company has expanded its services and grown massively over the years, to the point that Stripe says there’s an 89% chance any given credit/debit card has been used on the Stripe network previously, even if your business has never processed that card before. Stripe’s client list includes giant companies in all kinds of industries, from retail to software and so much more, which no doubt plays into that statistic.

But what is Stripe? How is it different from other processors? And is it good for your business? Let’s start with the basics, and then we’ll talk about whether Stripe is actually a good fit for your business.

What Is Stripe?  

Stripe is an online payments processor and gateway. While you can just connect a Stripe account to an assortment of ecommerce software/shopping carts, the real value is Stripe’s API, which allows for all sorts of custom payment setups and automation. This developer-centric platform makes Stripe the preferred choice for tech-focused businesses, such as Software as a Service (SaaS) companies, as well as online marketplaces. It’s also great if you need a secure and customizable checkout form for your website.

I recommend reading our full Stripe review for a more detailed breakdown of all of the company’s services, but here are the basics:

  • Payment Processing: With Stripe you can accept multiple payment forms through a website, through a mobile app, and now even in-person with a point of sale system.
  • Customizable Checkout: Stripe’s checkout features include a ready-made drop-in form, or you can build your own with pre-made elements. You can totally customize the look of the checkout page to match the branding of your app or website.
  • Billing & Subscription Management: This includes recurring and one-off invoices, metered billing, etc.
  • Marketplace Tools: Stripe Connect can help with managing payouts to sub-merchants.
  • POS Integration: Stripe Terminal is a fairly new addition to the lineup, but you can integrate Stripe Payments with web-based, iOS, or Android POS apps to accept in-person payments. Stripe offers ready-to-go hardware and competitive in-person rates along with its SDKs as well.
  • Fraud Management Tools: Merchants who sign up for Stripe also get access to Stripe Radar, the company’s fraud monitoring platform. Radar goes beyond AVS and CVV checks, relying on machine learning to identify patterns and signals that indicate potential fraud, and Stripe adjusts the algorithms to cater to different types of businesses, rather than applying a one-size-fits-all approach.

In addition, Stripe provides white-label payment processing for companies. For example, Stripe powers Shopify Payments, the ecommerce platform’s native payments solution.

Finally, on top of payment processing, Stripe offers tools for business intelligence using custom SQL queries. In essence, if you can ask questions in SQL, Stripe will pull the data from its system for you. While this doesn’t relate strictly to payment processing, it’s definitely interesting and useful for merchants, especially the ones who rely heavily on data for making decisions.

Stripe’s Supported Payment Methods

One of the more interesting aspects of Stripe is that it doesn’t just support card transactions. Merchants who sell online can also accept a host of other payment options:

  • Credit & Debit Cards: Stripe processes all cards as credit, obviously. But you can accept all major card brands at the same processing rate.
  • Mobile & Online Wallets: With Stripe you can implement payments from the most common digital wallets, including Amex Express Checkout, Masterpass, and Visa Checkout; Apple Pay, Google Pay, and Microsoft Pay; and even Alipay and WeChat Pay.
  • ACH (US Merchants): US merchants can offer ACH bank transfers for a much lower price than credit card payments, right alongside other payment options.
  • Local Payment Options: Merchants outside the US can access popular payment options in their regions, such as GiroPay (Germany), iDEAL (the Netherlands), and Bancontact (Belgium).

Plus, Stripe offers the ability to display prices in local currency if you sell internationally. Stripe will automatically convert those funds to your preferred currency and deposit them in your bank account automatically. If you plan to sell internationally and really want to appeal to global buyers, Stripe is without question one of the best platforms to do it.

Key Facts About Stripe

  • Merchant Account Or Third-Party Processor: Third-Party
  • Supported Payment Channels: Online, in-app, POS payments
  • Global Friendly: Yes
  • Pricing Model: Flat-Rate Pricing
  • Processing Costs: 2.9% + $0.30 for most transactions (other fees may apply)
  • Suitable For Low-Volume Businesses: Yes

Should You Use Stripe?

Stripe’s developer tools are the unifying element in the Stripe platform. The entire system is designed first and foremost for developers — which means being able to code is essential to getting the most out of Stripe. To be honest, I find it hard to recommend Stripe over other online processors if you just want to integrate with an ecommerce platform. If you simply want to process online payments with a shopping cart and want an easy solution, you should check out our list of top online credit card processors, many of which offer much simpler platforms.

However, if you do want something that you can set up and forget about, and still think Stripe might be a good fit for you, you will be happy to learn that Stripe supports more than 300 ready-made third-party integrations with ecommerce platforms, invoicing and recurring billing systems, accounting, and other kinds of software.

Two important aspects of any credit card processor are processing costs and account stability. Stripe is suitable for businesses of all sizes because it has no monthly fees, no monthly minimums, and all of Stripe’s services are pay-as-you-go. For the most part, Stripe’s processing rates are straightforward and predictable:

  • 2.9% + $0.30 per card-not-present transaction (website or in-app)
  • 0.8% per ACH transaction (capped at $5)
  • 2.7% + $0.5 per card-present transaction (via Stripe Terminal)

However, using Stripe Billing, Stripe Connect, or Stripe Atlas may incur additional fees. This change in pricing has made Stripe slightly more costly for merchants who do plan to use all of these extra features. I certainly don’t think it’s unreasonable to charge more for some very advanced tools, but it is a departure from Stripe’s previous approach, which was to include all of these features in the cost of processing transactions.

Stripe’s pricing is competitive with many others in the online payments space, especially for low-volume merchants. However, larger businesses may find that a traditional merchant account offers lower rates, which offset any monthly fees and yield cost-savings. As I’ve said many times here at Merchant Maverick, you can’t just look at the numbers and make assumptions about what will be the best value. You need to do some math and see how different rates will actually play out based on your volume and transaction size.

Like PayPal and Square, Stripe is a third-party payment processor. It operates by maintaining one (very) large merchant account in its own name, then onboarding merchants as sub-users and aggregating their payment processing. This is a common practice, and not an inherently bad one. But it does mean merchants using these services have to deal with one major concern: account stability.

Third-party payment processors can onboard merchants very quickly, almost instantly in some cases. A traditional merchant account takes a bit longer to set up because the company does extensive underwriting beforehand. However, that underwriting translates to more stability after the fact. Signing up with a third-party payment processor means you’ll face greater scrutiny after opening your account, and you could face an account hold or termination with little to no warning. This is a universal risk with third-party processors — and there’s a very good chance you’ll find a clause in your processing agreement that says that the processor can terminate the agreement for any reason or no reason at all, as they see fit. It doesn’t mean your account will be terminated, despite the multitude of comments on the internet that will claim as much. It just means there’s a risk — and it’s up to you to decide how comfortable you are with that.

The reality is that, like most processors, Stripe isn’t right for all businesses. If you just need basic payment processing, Stripe’s complexities might be too much for you. And obviously, certain industries are banned from using Stripe entirely. Some businesses may not find the risk of a third-party processor something they are willing to take on, while others may be looking for the lowest processing costs. And while we can say that Stripe does have an extensive array of features and capabilities, you might be looking for a particular combination of features and pricing.

Starting with Square, let’s take a look at six of the most promising Stripe competitors and see how they stack up for merchants.

Alternatives To Stripe

What is cheaper than Square?

We’ve established that Stripe isn’t for everyone. And if you want just basic online credit card processing, there are plenty of great providers to choose from. However, if you are looking for features that are comparable to Stripe’s, or maybe even a bit more targeted, we’ve put together a list of the best options, including merchant accounts and other third-party providers. The entries on this list had to have some combination of the following features: extensive developer tools for custom online payments, support for payment types beyond credit cards (such as ACH), recurring billing or subscription management tools, or marketplace tools.

Square

Square (read our review) started as a mobile POS app, but these days it’s become an entire business ecosystem with support for in-person and online sales. It offers seamless advanced inventory management at no additional charge, plus online order management, invoicing, a customer database, and very solid reporting tools.

Square doesn’t support in-app payments the way Stripe does, and it only supports credit card and mobile wallet payments; however, the biggest drawback is that Square is only available to merchants in a handful of countries, whereas Stripe (and many of the other options on this list) has a much more global reach. In addition, Square is a third-party processor just like Stripe, meaning merchants can get set up quickly, but face a potential for funding holds and account terminations.

Square’s eCommerce Solutions At A Glance

WebstoreIntegrationsDevelopers

Build Your Webstore Quickly & Easily

Integrate With Popular eCommerce Software

Developer-Friendly Tools For Customization

Get Started

Get Started

Get Started

Highlights:

  • No coding required
  • Free personalized URL
  • Premade customizable themes
  • No hosting fees
  • Manage from your Dashboard
  • Mobile-ready storefront
  • Integrate with your in-person store

Integrate with:

  • WooCommerce
  • BigCommerce
  • Ecwid
  • 3dcart
  • OpenCart
  • Zen Cart
  • Weebly
  • WordPress.com
  • Wix
  • +More

Highlights:

  • API for custom solutions
  • In-person solutions
  • Online solutions
  • Card reader SDK
  • Customer management solutions
  • PCI and EMV compliance
  • End-to-end encryption
  • Dispute management
  • Fraud detection

Instant Account Setup

Fast Funding

No Monthly Fees

2.90% + $0.30 for online sales

Instant Account Setup

Fast Funding

No Monthly Fees

2.90% + $0.30 for online sales

Instant Account Setup

Fast Funding

No Monthly Fees

2.90% + $0.30 for online sales

With that said, Square’s documentation and APIs allow you to build a system that can easily accommodate online and in-person sales, reporting, inventory, and more, using Square’s already robust tools. The APIs aren’t limited just to payments, but also include inventory and catalog management, employee management, and customer database management. This adds some serious value, because you don’t need to pay for third-party add-ons to handle inventory, customer engagement, and other tangential tasks. Square doesn’t match Stripe in number of available integrations, but it does have many options spanning a huge assortment of merchant needs, from ecommerce and accounting integrations to healthcare management, recurring billing, marketing, and plenty more.

It’s not exactly common to find service providers that work seamlessly with online and in-person sales. Square is one of the few that does it exceptionally well, especially when you consider the extras that get thrown in at no charge. The lack of iOS/Android payment support is disappointing, but not necessarily a deal breaker if you don’t have a native app.

Square Key Facts

  • Merchant Account or Third-Party Processor: Third-Party
  • Supported Payment Channels: Online, POS payments
  • Global Friendly: No
  • Pricing Model: Flat-Rate Pricing
  • Processing Costs: 2.9% + $0.30 for online transactions, 2.7% for swiped/dipped/tapped transactions
  • Suitable For Low-Volume Businesses: Yes

Braintree Payment Solutions

Braintree (read our review) is the most direct and obvious alternative to Stripe. Its product offerings are nearly identical, documentation is quite good, and pricing is comparable. That means you get access to a pre-built payment form, a customizable checkout form, subscription and recurring billing tools, marketplace tools, an API for custom reporting, and more. However, if you’d like to incorporate in-person payments, you’ll need to also set up a PayPal account, as Braintree is owned by PayPal. The two do link up seamlessly and there are some advantages to this setup.

With Braintree, you also get access to a huge assortment of supported payment methods, including both PayPal and Venmo. Braintree actually outperforms Stripe in terms of global reach for merchants, with more supported countries. You can choose to display prices in local currencies and Braintree will handle automatic conversion for you. But whereas Stripe will charge you for access to features such as Billing and Radar, Braintree charges absolutely nothing beyond processing costs to use its services, which does make Braintree marginally more cost-effective.

Braintree doesn’t quite compare to Stripe as far as integrations, but there are some very good options on the list. In addition, Braintree offers each merchant their own merchant account, which translates to much greater account stability than you get with Stripe. And despite being a PayPal company, reports indicate that Braintree is a little bit better about working with higher-risk businesses. Decisions are made on a case-by-case basis and you may be required to implement a reserve fund, but Braintree is certainly an option if you’ve had trouble with other processors. Braintree also promises “white glove” support, and with a few exceptions, merchant experiences support this claim.

Check out our Stripe vs. Braintree article for an in-depth comparison of the two services.

Braintree Key Facts

  • Merchant Account or Third-Party Processor: Merchant Account
  • Supported Payment Channels: Online, in-app, POS payments (through PayPal)
  • Global Friendly: Yes
  • Pricing Model: Flat-Rate Pricing
  • Processing Costs: 2.9% + $0.30
  • Suitable For Low-Volume Businesses: Yes

Adyen

Adyen (read our review) isn’t exactly a big name. In fact, the company only has about 5,000 merchants signed up for its services. But despite the small customer base, it had a payment processing volume of €108 billion in 2017, which is an absolutely massive sum for any company. And that’s because Adyen built its business by chasing after the big fish. For example, Adyen’s first major client was Groupon. It currently powers payments for the crafting marketplace Etsy, and it even wooed eBay away from PayPal. However, now that it’s established itself, the company is starting to court smaller businesses.

Despite providing merchant accounts (which historically translates to better stability), Adyen has one stipulation that makes it very unsuitable for high-risk businesses: a chargeback threshold. The industry standard is 1% (and that includes Stripe) but Adyen will terminate an account or implement holds if it exceeds a 0.5% chargeback rate. Adyen is also unsuitable for low-volume businesses because of its monthly minimum of 1,000 transactions or $120 per month in processing fees.

However, when you get past those concerns, you’ll find that Adyen is most similar to Stripe in its global reach and support for localized payment methods across Europe, the Asia-Pacific region, and North and South America. Adyen even supports PayPal transactions, which is something rarely available from companies not owned by PayPal. There’s a decent list of supported partners and integrations, though unsurprisingly, you’ll find many of them are tailored to enterprise-scale businesses.

Adyen has very powerful marketplace tools (it would have to, given the big marketplaces it’s landed as clients), but also a secure, customizable checkout form. It also has advanced tools to reduce chargebacks, increase success rates of transactions, and analyze your business data, all at no additional charge. Plus, Adyen has incorporated support for in-person payments into its package, making it an all-in-one solution. All of that makes it a powerful contender for growing businesses that need advanced technology to power their payments system.

Adyen Key Facts

  • Merchant Account or Third-Party Processor: Merchant Account
  • Supported Payment Channels: Online, in-app, POS payments
  • Global Friendly: Yes
  • Pricing Model: Blended (interchange-plus for Visa, MasterCard, Discover; flat-rate for Amex)
  • Processing Costs: 0.6% + $0.12 markup for Visa, MasterCard and Discover; 3.95% + $0.12 for Amex; $0.25 + $0.12 (totaling $0.37) for ACH Direct Debit
  • Suitable For Low-Volume Businesses: No

PayJunction

PayJunction (read our review) is one of the most developer-friendly traditional merchant account options. While its business model and product offerings aren’t exactly innovative, Payjunction does offer interchange-plus pricing with no additional fees if you process more than $10,000 per month. (Below that threshold, a $35 monthly fee applies). The markup is a little high, but with no per-transaction fee and no other fees, it balances out and can still yield savings. And then consider that you get access to all of PayJunction’s developer tools and extra features at no additional cost.

Sadly, PayJunction is not global-friendly like some of the other processors on this list, but US merchants get support for card payments, ACH, and NFC payments.

In addition to the developer features, the PayJunction platform includes a hosted checkout page as well as more than 80 third-party ecommerce integrations. The customer vault stores card information so you can keep cards on file and charge them via virtual terminal as needed, as well as implement recurring billing and invoices. There’s also support for in-person transactions so you can sell everywhere.

One of the more interesting features PayJunction offers is the ability to capture signatures on emailed receipts. Customers need only open the email and they can sign the receipt on almost any device. This is a great option especially for businesses that accept orders via phone, social media, and other non-traditional channels.

PayJunction isn’t clear about its stance on high-risk businesses, but if you’re not qualified you’ll be told up front, rather than after you’ve already set up your account and started accepting orders. In addition, the whole system is not quite as full-featured as you get with Stripe, but it can handle all the essentials. Really, the account stability and pricing are the biggest perks of processing with PayJunction. It certainly doesn’t hurt that the company has an excellent reputation for customer service, either.

Payjunction Key Facts

  • Merchant Account or Third-Party Processor: Merchant account
  • Supported Payment Channels: Online, POS and mobile POS payments
  • Global Friendly: No
  • Pricing Model: Interchange-plus
  • Processing Costs: Interchange + 0.75%
  • Suitable For Low-Volume Businesses: No

PayPal

PayPal (read our review) probably comes to mind when most people think of online payment processors. The commerce giant has made itself a trusted household name among consumers. And it’s a great option for merchants who want to sell globally, since PayPal is available in just about every country around the world.

But the fact that online transactions redirect and are completed on PayPal’s site means that it isn’t a great solution for every merchant these days. PayPal does offer hosted payment pages, but they come at a cost of $30/month in addition to payment processing. Recurring billing also comes at a cost of $10/month.

PayPal does offer a suite of developer tools for businesses interested in a custom setup. In addition to providing access to Checkout with contextual commerce tools, PayPal offers tools for invoicing, mass payouts, and marketplaces. However, despite being the parent company of Braintree, it seems that PayPal and its infrastructure haven’t quite kept pace. For starters, PayPal’s marketplace tools are fairly new (introduced in 2017) and they are only available after you go through an application and vetting process. And while the developer tools exist, most of the chatter says they don’t match Stripe for quality.

On the plus side, PayPal also supports a wide assortment of third-party integrations for merchants, including ecommerce and POS integrations. It’s easy to create an all-in-one setup that addresses in-person and online payments. However, the default structure is a little bit cumbersome and getting access to features such as a hosted checkout page will cost quite a bit compared to other providers who offer them at no additional cost.

In addition, like Stripe and Square, PayPal is a third-party processor, so some merchants will run a greater risk of encountering a funding hold or account termination. PayPal certainly has most of the tools merchants need and a widely recognized name. It probably isn’t the best solution if you have extremely specialized needs, but if you want an all-in-one payments experience with some great add-ons thrown in, PayPal could be a good choice.

PayPal Key Facts 

  • Merchant Account or Third-Party Processor: Third-Party
  • Supported Payment Channels: Online, in-app, POS and mobile POS payments
  • Global Friendly: Yes
  • Pricing Model: Flat-rate
  • Processing Costs: 2.9% + $0.30 for online transactions; 2.7% for swiped/dipped/tapped transactions
  • Suitable For Low-Volume Businesses: Yes

WePay

WePay (read our review) isn’t built for merchants who want to accept payments online. It’s actually a payments service for platforms that want to build white-label payments into their apps or services. That means shopping carts that want to offer a seamless payment processing option, along with crowdfunding, event management, SaaS products, and of course marketplaces. Even though merchants can’t sign up for processing directly, WePay makes the cut because platform payments are one of Stripe’s core offerings, too.

WePay supports both web-based and in-app payments for iOS and Android. In addition to cards and ACH transactions, you can implement Android and Apple Pay for the Web, so you have more options for payment methods. You can also use WePay to create a white-label mobile POS with the option for a branded card reader. However, WePay is primarily based in the US (with some availability in Canada), so you won’t see the localized payment methods you get with Stripe and some other providers.

As with Stripe, WePay is a third-party aggregator, which means that not all merchants who are onboarded via one of these platforms will be approved, and they may face sudden account holds or terminations. Also, pricing isn’t disclosed and it’s up to the platform builder to decide what sort of rates it wants to charge and whether it wants to take a cut of the processing costs. On the one hand, this could mean some providers could get a very good deal, while others may find the complexity a bit overwhelming.

WePay Key Facts 

  • Merchant Account or Third-Party Processor: Third-Party
  • Supported Payment Channels: Online, in-app, mobile POS payments
  • Global Friendly: No
  • Pricing Model: Not Stated
  • Processing Costs: Not Stated
  • Suitable For Low-Volume Businesses: No

What’s The Best Stripe Alternative?

Stripe is a great option for many businesses. The fact that there are no monthly minimums makes it great for startups, and the number of supported countries, supported payment options, and supported currencies make it a serious contender for global businesses, in particular. The available features make Stripe especially well suited to high-tech businesses that aren’t satisfied with the standard fare in a payments processor. And the company’s developer resources are second to none.

However, Stripe isn’t ideal for everyone, especially if you have concerns about account stability or your technical prowess. You will also pay more to access some of Stripe’s premium features, which isn’t unreasonable — but it does mean you might be able to find another provider with more competitive pricing.

There isn’t really a direct and obvious competitor to Stripe, but Square, Braintree, Adyen, PayPal, PayJunction, and WePay all offer enough similarities to merit being named alternatives to Stripe. They offer a mix of flexible payment options, account stability, and developer-friendly platforms, as well as competitive pricing for businesses of all sizes.

In the end, each one of these companies has its own benefits and drawbacks. What’s right for one business may be awful for another. That’s why you need to have a good idea of which features are absolute must-haves for your business. You don’t want to start the process of establishing an account and creating an integration only to find out that a processor lacks a key feature and there’s no workaround. You should also consult your developer (or developers, as the case may be), as they have hands-on knowledge that can help you make a decision.

And finally, you should consider what features you might need in the future as your business grows. Do you plan to expand your sales channels? Do you want to launch additional products or service plans? Think about where you want your business to grow in the future. If you find a processor that can handle everything you want now and in the future, you won’t need to worry about the hassle of switching processors further down the line.

If, after looking at the list, you’re still confused as to which solution is right for you, we recommend Square as an all-around go-to for merchants. There are plenty of ecommerce tools, including APIs to handle many aspects of Square’s services. However, it’s also very easy to use even if you aren’t technically inclined! Square integrates with a variety of third-party services as well.

As always, thanks for reading! Have questions? Experience using these processors? We’d love to hear from you so leave us a comment and weigh in with your thoughts!

A last look at Square’s eCommerce solutions

WebstoreIntegrationsDevelopers

Build Your Webstore Quickly & Easily

Integrate With Popular eCommerce Software

Developer-Friendly Tools For Customization

Get Started

Get Started

Get Started

Highlights:

  • No coding required
  • Free personalized URL
  • Premade customizable themes
  • No hosting fees
  • Manage from your Dashboard
  • Mobile-ready storefront
  • Integrate with your in-person store

Integrate with:

  • WooCommerce
  • BigCommerce
  • Ecwid
  • 3dcart
  • OpenCart
  • Zen Cart
  • Weebly
  • WordPress.com
  • Wix
  • +More

Highlights:

  • API for custom solutions
  • In-person solutions
  • Online solutions
  • Card reader SDK
  • Customer management solutions
  • PCI and EMV compliance
  • End-to-end encryption
  • Dispute management
  • Fraud detection

Instant Account Setup

Fast Funding

No Monthly Fees

2.90% + $0.30 for online sales

Instant Account Setup

Fast Funding

No Monthly Fees

2.90% + $0.30 for online sales

Instant Account Setup

Fast Funding

No Monthly Fees

2.90% + $0.30 for online sales

Melissa Johnson

Melissa Johnson

Melissa Johnson has been writing about payment processing and mobile payments since 2014, and has been quoted in articles for Credit Karma and The Next Web, among others. She graduated from The University of Kansas in 2010 with bachelor's degrees in English and journalism.
Melissa Johnson

Latest posts by Melissa Johnson (see all)

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2 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Brian Johnson

    I don’t have a review but rather a question about this subject that is new to me. Until recently I didn’t know an acquiring bank from an issuing bank and would have guessed chargeback was something a football player did. Then a friend of mind fell victim to a free-offer/ recurring billing scam that cost her $1000 and nearly put her on the streets. Needless to say she isn’t the sharpest knife in the kitchen and I had to take the lead in trying to resolve this.
    When she contacted the merchant their service representative told her that the terms were explicitly presented and had been agreed to so they would not refund the payments. I told her to contact her bank, close the account and file a fraud complaint. Meanwhile I visited the web site and scoured it specifically looking for the terms and she was correct, they were not there. So I placed an order taking screen shots at every step.
    Long story short 6 weeks later her bank said they could find no errors and let the charges stand. Her bank is an online bank where her social security checks are directly deposited. The only way to deal with them is through their call center and it’s like pulling teeth. They would not discuss the matter with me nor permit a three way call and my friend doesn’t know enough about the process.
    I suspect that the merchant offered as evidence a web page where the terms are clearly displayed and requires a check box affirming acceptance. In a letter her bank offered a copy of all documents and exhibits that they based their ruling on yet they never delivered on the request. I decided that it would be better to pursue action on our own; however cardholders are not provided with any information about who your bank sent the money to. I requested at a minimum the ID of the acquiring bank and the merchant ID number which were terms that the bank service reps had never heard of.
    So what are the rules about this, does a card holder have a right to that information and assuming I got the ID number of the bank /processor and managed to translate that into a company name and address how helpful would the acquiring bank be in helping to identify the merchant?
    There exists a multimillion dollar industry based on credit card fraud that goes unopposed. They rely on tricks like multiple accounts, load balancing and making small inside sales to lower chargeback ratios. They split the criminal operation among numerous businesses each one engaging in what they can argue is a legal service. The place where the provable crimes occur is at the payment processing point and connects to the person who owns the account unfortunately that is the most shielded point in the operation.
    I uncovered the name of the man running this particular operation and the names of at least eight businesses he owns including the call centers, drop shipping service, chargeback mitigation, third party marketing services etc. but its bank fraud that brings them down because one cannot run an operation like this for long without at some point falsifying information on bank documents. They get away with it because it’s not worth the time and effort just to recover a few hundred dollars.
    But I’m on a mission.

      Jessica Dinsmore

      Hi Brian,

      If the dispute with the card-issuing bank was decided in favor of the merchant, there’s not much else that can be done. After that, chances of getting the money back go way down. The cardholder is not entitled to information about the merchant’s bank or merchant account. But if a chargeback was filed, information would have been exchanged between the merchant’s bank and the customer’s bank. At this point, you can bring this information to the attention of the attorney general in your state and the state you believe the person is doing business in. Beyond that, you can just try to make the person’s life difficult by posting online scam warnings with the offending party’s name and business information on complaint sites and doing whatever else you can to get the word out. In either case, it’s not very likely that a refund will be issued without starting legal proceedings, which would be too expensive given the amount of money at stake.

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