Propay - Reserve Required ?

[angrypug]

Hey guys, I signed up for propay this week and received the following email which i was not expecting and to me, seems strange.

Thank you for opening a ProPay Account.

After a careful analysis of the business for which your ProPay Account will be used, ProPay has determined that in order for us to support this account, a reserve of $1000.00 will be required. This determination was made in part because of the high-risk nature of the business and the relative newness of the account.

The reserve will be funded with the first $1000.00 in the ProPay balance. The reserve will be set aside for a minimum of 180 days while a processing pattern and account history are established. After 180 days, the reserve requirement will be re-evaluated.

This seems odd. Just wondering if this is common? I don't like the idea of giving them interest free money to hold on too.

 

[ProTech Support]

Well that sucks, I was considering using them - I'd like to see how this turns out. Seems a lot of techs around here use them.

 

[angrypug]

Iemailed them back and will post the reply/outcome. I'm just a basic computer repair/graphic design shop with no internet or merchandise sales. Not sure how that would be considered high risk??

 

[angrypug]

well here is my response, any suggestions on this? shoudl i go with some other company?

“Computer Repair Web and Graphic Design” is an area that ProPay considers to be high-risk based on our past history with merchants in this area of business. Since you plan on using a ProPay card reader, these transactions would be slightly less of a high-risk, so we would be willing to lower the reserve to $500.

Please let me know how you wish to proceed.

Sincerely

 

[ProTech Support]

I still think that is crazy. I recently got a quote for Chase Paymenttech (I think that was the name). The only requirments they had was $25.00 monthly minimum. The thing I did not like about it was a (3) yr contract.

I belive you can opt for a shorter contract, but of course the rates then go up per charge.

 

[angrypug]

yea, I'm not liking this. I have heard lots of positive statements concerning propay on this board but I just don't think this is something I'm interested in.

This is basically charging me $500 to start an account. Not cool.

 

[paidsupport]

You should not need a reserve for Computer repair services, etc. The business is fairly low risk since alot of it is face to face, and you are getting a signature from the customer as well as a signed invoice.

My company does billing for Tech Support Phone calls called PaidSupport.com and we don't hold a reserve on client support calls.

You should find a merchant company that can offer you several banks to choose from. This way you can get the best rates and terms for payment. Make sure to compare them as you will find alot of variation between rates. If the provider is stuck on one bank then your options are limited. If anyone needs a contact company for a reliable merchant company feel free to contact me directly.

 

[frostbyte5014]

ACG, I second Intuit. Very easy to deal with.

 

[angrypug]

Thanks for the suggestions everyone. I cancelled the ProPay account yesterday and will be researching your suggestions. Thanks again.