I was planning on opening a Yahoo Store and their preferred Merchant account provider is Paymentech.
I was wondering if people are generally pleased or not pleased with them. Any feedback about them would be great.
I read an article online that this guy wrote that said his experiences with them are really bad. I didn't want to base my entire decision with that story though. Here is the URL to it, but I imagine a lot of people may have seen it already.
If you asked around enough, you could find merchants with similar horror stories from every single processor out there. All merchant processing agreements contain the same language allowing the processor to hold funds in the manner described in the article.
Using a Yahoo Store narrows your choices a bit since you have to run on the FDR platform, but you should be able to find a pretty wide variety of options to pick from on the web, if you are not comfortable with Paymentech.
Paymentech is a very conservative merchant processor who has historically been the processor for a lot of very high volume retail & enterprise-level merchants in various vertical markets.
I would not say that small business Internet merchants are really a good match for what they specialize in so it is not that surprising to hear about a story like this pop up once in awhile.
In terms of handling risk issues, it is not uncommon for a merchant processor to ask for additional documentation if a merchant exceeds their processing volumes substantially.
However, holding funds for 10 months on a merchant with a stellar track record and virtually no chargebacks seems quite extreme.
That is one of the reasons why it is very important to select a merchant processor who is willing to grow with your business when you get to those incrementally higher levels... some processors really start to shy away when an Internet merchant hits $20K or $50K/month.
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