Thread: first time credit card processor

Does anyone have any experience when it comes to jumping directly into your own credit card processor and merchant account with an online startup? I know some merchant accounts require you are already generating revenue so some websites start with paypal, but other than that is there any reason not to setup an account right away?

get the merchant account at paypal or google check out.

Originally Posted by lalasd

get the merchant account at paypal or google check out.

why?

I here so many horror stories about paypal withholding balances from businesses?

This is why I have looked towards auth.net and a merchant account.

Originally Posted by sk24iam

why?

I here so many horror stories about paypal withholding balances from businesses?

This is why I have looked towards auth.net and a merchant account.

Yes they did that to me ... and 20 minutes after i provided my info like ssn, bank account verification and some other stuff the unblocked me. Paypal is the best and will remain the best.

PAYPAL = BAD IDEA...

There is another post on this where I supplied a lot of information on payment processors. Try the search bar and it should come up.

I second that Paypal = BAD IDEA! I had $12,000 locked up in them that they wouldn't release. I provided ssn, bank acct info, a letter from my bank, pay stubs, govt issued ID, and more - and they still refused to release the funds. they (thankfully) refunded the money to my buyer, but they still "permanently locked my account". meaning - i cant even close the acct, and they refuse to close it as well.

In short -- i hate paypal and they hate me.

Originally Posted by sk24iam

why?

I here so many horror stories about paypal withholding balances from businesses?

This is why I have looked towards auth.net and a merchant account.

We like Authorize.net! we use it for multiple online stores & also recommend it to our clients.

Originally Posted by fishman042002

We like Authorize.net! we use it for multiple online stores & also recommend it to our clients.

Would you find it to be a feasible solution for a business in it's startup stage?

Talk to the bank where you do most business, they can usually sort you out. The pricing is a bit more than you may find with online providers but there wont be any problems like paypal

I had this problem with paypal as well. Them locking up my money. Happened twice with 14k and 5k. What I do now is simple and it works.

When I have ~2-4k in my account, I transfer it to my bank account that's linked with Paypal, and then I transfer it again to one that's not linked to Paypal. This way they cannot touch your money (disputes and other issues) or lock much of it. If you have a business that is vital and needs paypal to work at all times, you can setup a second account as a backup.