A Stripe Horror Story
A small business owner has reported in Reddit losing their entire operation after Stripe, a leading payment processor, abruptly banned their account and froze all associated funds.
According to the business owner, the past week had been their most successful to date, generating approximately $40,000 in revenue, with around 30% of that as profit. However, because Stripe does not offer immediate payouts, the funds were still pending when the company took action against the account.
The issue arose on March 18, when the business experienced a brief outage that resulted in service delays and a handful of customer disputes. Rather than working with the business to resolve the situation, Stripe allegedly categorized it as “high-risk” and permanently banned the account, effectively cutting off access to all earnings.
Despite multiple appeals and submission of requested documentation—including proof of invoices, bank statements, and corporate information—the business remains banned, and funds remain inaccessible. The owner states they now have no way to issue refunds, pay employees, or continue operations.
“This can’t be legal,” the business owner wrote, expressing frustration over what they perceive as Stripe’s arbitrary decision-making. “Stripe is literally killing businesses like mine without reason.”
The affected business specializes in placing restaurant and grocery orders directly with merchants, bypassing major delivery platforms to secure better pricing for customers and higher margins for vendors. The company utilizes partnerships, promotional strategies, and business rewards programs to optimize costs.
Following outreach to Stripe’s support team, the business owner received a response that they claim provided no substantive details or resolution.
As Stripe’s policies on account freezes continue to draw scrutiny from small business owners, this supposed case raises broader concerns about the power payment processors hold over independent merchants. Merchant of the Universe recommends you go with a local payment processor rather than a big one like Square or Stripe for the possibility of losing business like this business owner.
Mobile Card Machines for Small Businesses
Mobile card machines are essential for small businesses looking to enhance customer convenience while processing payments on-the-go. At Merchant of the Universe, we offer the best mobile card machines tailored to meet the unique needs of local businesses in central Ohio. Our advanced technology ensures secure transactions and seamless integration with your existing systems, allowing you to accept credit cards from virtually anywhere. With competitive rates and exceptional customer support, we empower small business owners to eliminate processing fees and boost their bottom line, making mobile payments simpler and more efficient than ever. Make the switch today and experience the difference in your payment processing journey!
Valor RCKT
The RCKT is a secure and convenient mobile payment solution. This perfect mini portable payment device accepts EMV and fits in your pocket. Additionally, it includes a PIN pad for added security
Lightweight, Easy-to-Hold
Contact/Contactless Swipe, Dip, Tap
Credit, Signature/PIN Debit & EBT Acceptance
Wireless Bluetooth Communication
Plug and Play
Long-Lasting Battery
PCI-PTS 5.0 Certified
Valor VL550
Engineered for businesses that demand efficiency, reliability, and advanced technology, the VL550 offers a suite of features designed to meet fast-paced businesses. It can significantly enhance your operations, streamline the customer experience, offer multifunctional capabilities, and optimize the checkout process for your business.
Android Operating System
5.5" Touchscreen PCI PTS 6.x Certified
2G/3G/4G LTE & Wi-Fi
Long-Lasting Built-in Printer Battery
Rear Camera
Valor VP800
The future is here with the all-in-one point-of-sale solution, the VP800. The dual touchscreens make it easy to speed up transactions and improve the customer experience. This powerful payment device is ready for all types of business environments.
Features
8"Merchant display
5" Customer display
Dual touchscreen
Cash Discounting, Dual Pricing, Surcharging
Bluetooth, WI-FI, and 4G connectivity
PCI PTS 6.X Certified
High-speed Printer
Front Camera
Long-Lasting Battery/Wireless
Digital signature capture with SMS & Email receipt options
Dejavoo P3
All-in-one terminal with keyboard and printer
• Quad-Core 1.3GHz CPU
• 4G, WiFi
• Large 5” touch screen
• USB port
• EMV Contactless or chip & PIN/chip & sign
• Replaceable battery
• Printer
• Keyboard
Dejavoo P5
Multi-functional new generation mPOS.
• Quad-Core 2.0GHz A53
• Bluetooth, WiFi & 4G
• Large 5” touch screen
• USB port
• EMV Contactless, chip & PIN/chip & sign or swipe
• Lightweight, easy to operate single-handed
Dejavoo QD2
5.5”touch screen
E SIM world coverage
7.4V, 2 x 2600mAh batteries
All-In-One DejaPayPro
Use alone or as a pin pad
Pax A920 & Pro
The A920 is the revolutionary terminal that started it all. A strikingly beautiful and ergonomically designed terminal, this SmartMobile delivers elegance, style, and security to every payment experience. The A920 combines the full features of an Android tablet with a powerful payment terminal, all in a sleek and compact design. The A920 delivers an integrated camera, high-speed thermal printer, and a high-capacity battery to meet the daily demands across all dynamic Retail or Hospitality environments.
Traditional Pricing Only
PAXBiz® powered by Android™
5″ IPS Touchscreen
2″ Thermal Printer, 80mm/sec
PCI PTS 5.x
The A920Pro is designed for all vertical markets and special projects such as public transport, home delivery, queue busting, petrol. Thanks to its fast processor and double memory, it is the ideal solution to run multiple applications simultaneously to manage table orders, payments and loyalty programs. All perfectly integrated to accept any payment method.
Powered by Android 8.1 or 10
Cortex A53 processor
5.5" capacitive touchscreen
4G + WiFi + Bluetooth
Contactless + chip & PIN + magstripe
PIN on glass technology
5MP front + 8MP rear camera
Professional scanner
5150mAh / 3.7V long-lasting battery
Fast-speed printer
PCI PTS 5.x (Android 8.1) or 6.x (Android 10) SRED
Dual Pricing vs the Cash Discount Program
It all begins with an idea.
In the realm of payment processing solutions for businesses, two new strategies are the cash discount program and the dual pricing program. While both aim to offset processing fees associated with credit card transactions, they employ distinct methods to achieve this goal.
Cash Discount Program: The cash discount program involves automatically adding a small fee to all credit card transactions while offering a discount to customers who pay with cash. This approach enables businesses to recoup some or all of the processing fees typically incurred when customers use credit cards. By incentivizing cash payments through discounts, businesses can reduce their overall payment processing expenses.
Dual Pricing Program: On the other hand, the dual pricing program goes a step further by displaying both the cash and credit card prices to customers at the point of sale. This transparent approach informs customers of the price discrepancy between cash and credit card transactions upfront. While the dual pricing program also encourages cash payments to avoid higher prices associated with credit card transactions, it does not involve adding an automatic fee to credit card purchases.
Key Differences:
Fee Structure: The cash discount program adds a fee to credit card transactions, whereas the dual pricing program shows separate prices for cash without the fee and credit card with the fee.
Customer Perception: While both programs promote cash payments, the cash discount program emphasizes discounts for cash transactions, whereas the dual pricing program focuses on price transparency for both payment methods.
Implementation: Implementing a cash discount program typically involves setting up automatic adjustments to reflect fees and discounts, while a dual pricing program requires displaying dual prices prominently for customer awareness.
In summary, while both the cash discount program and the dual pricing program aim to reduce processing fees for businesses by encouraging cash transactions, they differ in their fee structures, customer perception strategies, and implementation methods. Businesses can choose the program that aligns best with their preferences and goals for managing payment processing costs effectively.
Why Manually Adding A Fee, Surcharging, Is Frowned Upon
It all begins with an idea.
Why should you, as a business owner, not simply and manually add a fee on top of each credit card transaction to offset processing costs? That is surcharging, and it will put your merchant services account at risk.
Surcharging, the practice of merchants manually adding a fee on top of a transaction when customers use credit cards, is not compliant with regulations in many states. This practice can result in legal consequences and fines for businesses that choose to surcharge their customers. Sometimes merchant payment services accounts can be shut down for surcharging.
On the other hand, the cash discount program offers a compliant alternative that automatically applies a discount to transactions made with cash. This program is universally and electronically applied, ensuring that businesses remain in compliance with state regulations in all 50 states, including Ohio. By implementing a cash discount program, merchants can avoid the risks associated with surcharging while still effectively offsetting processing fees.
Will I Drive Away Customers With The Cash Discount Program?
It all begins with an idea.
Why Customers Will Embrace Our 4% Cash Discount Program
In today's competitive market, businesses are constantly seeking ways to minimize costs and offer competitive pricing to their customers. Our cash discount program is designed to help businesses in Central Ohio achieve these goals without driving customers away.
Customer acceptance of cash discount programs has been steadily increasing as consumers become more accustomed to this pricing model because of the shift during the 2020 pandemic, facilitated by a myriad of delivery fees. The fee added on top of the price is transparent and easily understandable for customers, who appreciate the option to save money by paying with cash.
Moreover, many customers view cash discounts as a fair way for businesses to recoup some of the costs associated with credit card processing. Payment processing fees pay for the customer’s rewards and benefits programs. Why should your business pay for their rewards? By offering a cash discount program, businesses can lower their overall operating expenses and potentially pass on savings to customers through lower prices.
Think about it. If a customer pays $20 for a meal at a restaurant, he is only charged 80 cents more. Is that amount enough to drive anyone away? No, many customers do not even look at the receipts anymore.
It is important for businesses to communicate the cash discount program effectively to customers to ensure understanding and acceptance. Clear signage, POS notifications, and staff training can all contribute to a positive customer experience and acceptance of the 4% fee.
Overall, customers are unlikely to be driven away by our cash discount program. Instead, they are likely to appreciate the transparency and cost-saving benefits it offers, ultimately fostering customer loyalty and satisfaction.
What Is The Cash Discount Program?
It all begins with an idea.
Traditional merchant processing, which is frequently observed in local businesses, involves the payment of a significant 3-4% fee for every transaction to credit card companies. Over time, these fees can greatly impact the business's finances, slowing down growth and profits.
In contrast, the cash discount program transfers this cost to the customer who opts to pay with a credit card, while granting a discount to those using cash.
Through the adoption of a cash discount program, businesses in Central Ohio have the opportunity to minimize or eradicate processing fees, thereby saving costs and enhancing profitability.
Understanding the Cash Discount Program: A Comparison to Traditional Merchant Processing
As businesses strive to optimize their revenue streams, exploring different methods of transaction processing becomes crucial. One alternative gaining popularity is the cash discount program. In contrast to traditional merchant processing, this approach offers a unique way for businesses to reduce or eliminate processing fees associated with credit card transactions.
Traditional Merchant Processing:
Traditional merchant processing involves businesses accepting credit or debit card payments from customers. In this model, the merchant pays interchange fees to banks and credit card companies for processing each transaction. These fees can vary based on card type, transaction amount, and other factors, resulting in a significant cost for businesses that accept card payments. As a result, many small businesses find themselves burdened by these processing fees, eating into their profit margins.
Cash Discount Program:
On the other hand, the cash discount program presents an innovative solution to this issue. With this program, businesses can offer customers a discount on purchases made with cash while applying a service fee to card transactions. By implementing a cash discount program, businesses can offset the cost of processing fees incurred with card transactions. This approach effectively shifts the cost of card processing from the business to the customer choosing to pay with a card.
Key Differences:
Fee Structure: In traditional merchant processing, the merchant absorbs the cost of processing fees. In contrast, the cash discount program allows businesses to pass on the cost to customers who choose to pay with a card.
Customer Perception: While some businesses may worry about customer perception of added fees, many consumers have become accustomed to such charges in various industries. By transparently implementing a cash discount program, businesses can educate customers about the cost differences associated with varied payment methods.
Cost Savings: By implementing a cash discount program, businesses can potentially eliminate processing fees entirely, resulting in significant cost savings over time. This can directly impact the bottom line and improve profitability.
In conclusion, the cash discount program offers an alternative payment processing solution for businesses looking to reduce or eliminate processing fees associated with card transactions. By understanding the differences between traditional merchant processing and the cash discount program, businesses can make informed decisions on choosing the most cost-effective method for their operations.