Insights about merchant accounts · GoHighLevel w/ Robb Bailey

Insights about merchant accounts

You know how with Stripe, setting up is as easy as ordering a pizza online? That's because there's hardly any vetting, or as the finance gurus call it, "underwriting." It's like being let into a club without a bouncer checking your ID. Sounds cool, right? Not so fast pal.

The "No Bouncer" Problem with Stripe

Imagine this: You're in the club (aka using Stripe), having a great time, and suddenly, the music stops, and the lights come on. You're told to leave, no explanation given. That's what happens when Stripe shuts down accounts at the drop of a hat. Since they didn't check your ID at the door, they might suddenly decide they don't like your dance moves and kick you out.

Why Does This Happen?

Stripe's approach is like a fast-food chain that prioritizes speed over account security. They let everyone in quickly to keep the line moving. But when something looks a bit off (maybe your business spikes in sales quickly, or you're in a high-risk industry), their automated systems might flag your account. And just like that, you're out in the cold, possibly with your funds frozen, and damn is it ever cold.

You Want to be friends with the bouncer

Now, let's compare this to having a real merchant account setup through a payments agency. With your own merchant account, imagine there's a friendly bouncer at the door (the underwriting process). They check your ID, get to know a bit about you, and then let you in with a handshake. This initial process takes a bit more time (24-48 hours), but once you're in, you're in. They know you, you know them, and there's mutual trust.

The Benefits of Being Known

With an owned merchant account, because they've taken the time to understand your business upfront, you're waaaaay less likely to face sudden shutdowns or have funds frozen. Your account is less vulnerable because the provider has done their homework and decided you're a good fit for their club, and actually WANT your business. And if issues do pop up, you get a conversation with a human that can reason instead of an automated "account disabled" email.

So, What's the Move?

It's all about knowing the trade-offs. With Stripe, you're getting convenience, but you're also at the mercy of their automated, one-size-fits-all risk management. With a merchant account, you're taking the time to build a relationship that offers stability, security, and often, cost savings in the long run. Ideally, you want to have 2 merchant accounts, because if one goes down, it is very, very hard to get a 2nd after the fact.

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