Why Big Name Processing Companies Might Not Suit Your Business

Discover why big name processing companies may not be the right choice for your business.

Rolling Reserve

Big name processing companies often implement a rolling reserve policy, which can have detrimental effects on low-risk businesses already under financial pressure. The rolling reserve allows these companies to hold a certain percentage of funds from each transaction to mitigate potential risks. However, for small businesses, this can be problematic as it restricts their cash flow and makes it even more challenging to manage their finances.

This policy can be especially burdensome for businesses that heavily rely on immediate access to funds, such as those in the retail or service industry. The funds held in the rolling reserve are typically released after a specific period, but many merchants have reported delays in receiving their funds even after the stated release date. This can create significant cash flow issues and hinder the growth and stability of small businesses.

Customer Service

One of the common complaints about big name processing companies is their customer service. Many merchants have reported unrealistic timelines and delayed response times when reaching out for assistance. This can be frustrating and detrimental to businesses that rely on prompt and efficient customer support.

When issues arise with payment processing or account management, it is crucial for businesses to receive timely and helpful support. However, big name companies often fall short in this aspect, leaving merchants feeling frustrated and unsupported. This lack of reliable customer service can lead to prolonged downtime, loss of sales, and ultimately, a negative impact on the overall success of a business.

Account Deactivation

Another issue that merchants encounter with big name processing companies is the sudden deactivation of their accounts. This can happen for various reasons, such as suspected fraud or violations of the company's policies. While it is essential for payment solution companies to maintain security and compliance, the process of account deactivation can be problematic for businesses.

When an account is deactivated, merchants are often notified via email that their funds will be held for a specific period, typically 90 days. However, numerous reports suggest that many merchants have not received their funds even days or weeks after the stated release date. This can cause significant financial strain and uncertainty for businesses, especially those that rely on a steady cash flow to cover operational expenses and investments.

Limited to Credit Card Processing

Big name processing companies are often focused solely on credit card processing, which can be limiting for businesses that require additional payment options. While credit card payments are widely accepted and convenient for customers, there are instances where businesses need to offer alternative payment methods.

For example, certain age-restricted products like cigarettes may only be sold with a card-present swipe, dip, or tap payment, as per the terms of these big name companies. This can be problematic for businesses that operate in industries where cash payments or other forms of payment are common. The inability to cater to these different payment preferences can result in missed sales opportunities and potential customer dissatisfaction.

Inflexibility with Certain Businesses

In addition to limited payment options, big name processing companies may also have restrictions on the types of businesses they support. Certain industries, such as those involved in adult entertainment or high-risk products, may face difficulties in finding a suitable processing company.

These big name companies often have strict policies and regulations in place to mitigate potential risks associated with these industries. However, this inflexibility can create challenges for businesses that operate within these sectors. It is essential for companies to have access to reliable payment solutions that align with their business model and industry requirements to ensure smooth operations and growth.

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