If 2CO is not an option, most merchant account processors will also reduce or waive the monthly minimums.
I was migrated over to a so-called merchant account, and everything still seems to be working for me (knock wood), but I still have nothing to be happy about. The rate on this so-called merchant account is 5.5%, plus they withhold 7% for a reserve. I applied for a true merchant account today, one with a 2.9% rate and no reserve, and as soon as it’s approved, I will drop PS like a hot potato. I urge everyone to avoid PS like the plague.
If their regular merchant accounts have a rate of 5.5% and a reserve they really are the ripoff kings!
Yes and yes. Their fees and rates did not change when they migrated IBA accounts to what they call merchant accounts, so we get the worst of both worlds.
Spridel,
What merchant account provider you apllying know? May I know the name?
I need merchant account right know. 
Thank you.
Hi,
Yup. Paysystems hold my fund. I don’t when I receive it. 
AARRGGG…
2.9% is quite a bit if you are an US merchant
So Spridel, once you have your merchant account, what online utility will you use to get the transaction detail from your shopping cart to your bank account? Is there any alternative to authorize.net anyone?
Authorizenet.com is only the gateway. Two other gateways are LinkPoint & Verisign
My brother in law is in the same boat and he’s really worried…lot’s of cash at stake. How many people are going to be looking for their money and does that mean that nobody will get it?
They just have a page up that says “this merchant account is closed” or something when you click on the link from his website.
He’s setting up with Internetsecure (they didn’t charge a setup fee because he told them about the Paysystems jerks and the problems he’s got). But he had to have a cdn address and it takes a couple of weeks.
My attorney said it is unlikely I will see my money. It is possible, but in situations like this, it isnt common. He said I can file a lawsuit in my state of Ohio, or in Montreal where Paysystems is located. The cost of a lawsuit would probably be more than what they owe me, and there is no guarantee I would even get my money if I sue them.
This has been a huge problem for me bc I am a small business with a very small backup fund, which I have already gone through. I had a couple of big emergency expenses last month, like my poor little dog needing emergency care and a major car repair, so I was really relying on my money from Paysystems. I am now having to call my creditors and explain why I cant pay them. So far people have been very nice and working with me until I can get everything back on track.
I have 25 orders to fill from the month of July that I have never been paid for. The bad press I would get if I refused to fill the orders would do more damage, so I am going ahead and filling them and losing even more money.
Now I am trying to recover and set up temporary PayPal order links while I get my own Merchant acct and set up my new shopping cart system.
This is why I do not trust any 3rd party processors. So many of them have gone out of business in the past few years, leaving all of the merchants stranded.
Mark
A lot of people are able to set up something depending on where they are. If they are located in the US - it is a lot easier. But third party procesors are a lot easier for some.
This is true but many just start with a third party processor so they do not have to fill out paperwork to get a merchant account. In that case it is pure laziness that often leads to disaster. Not to mention, the fees are usually much higher as well.
Mark
An update from Paysystems:
Dear Merchant,
I would like to update you on the situation regarding the termination of the myPaySystems IBA Services. We have been communicating with many of our affected merchants and we have been monitoring online postings. We are deeply sympathetic to the undue hardship this situation may be causing to your business. Like our merchants, we have been prejudicially affected by the sudden termination of our accounts by Pago eTransactions Services and are suffering its consequences. We are committed to assisting you through this situation and plan to issue updates. As of now, these are the most frequently asked questions on a regular basis.
July 29th and August 5th Settlements
myPaySystems did not receive the last two scheduled merchant settlements. We have been informed that all funds are being held pending account risk review. We are making every effort to accelerate the release of these funds in order to settle all merchants that have outstanding sums due to them. As soon as funds are released to us, we will begin releasing them to our merchants. We expect this process to begin within the next few days.
Rolling Reserves
As well, Pago eTransactions Services has not yet released any merchant reserves. We are also working to have these funds released to merchants on their scheduled release dates. Your funds are not being forfeited and will be released in due course.
Future Processing Capabilities
At this time we can only offer Internet merchant accounts to U.S. based merchants. We are working at establishing alternative payment processors than can process for non-U.S. merchants. We expect to be able to communicate possible alternatives by tomorrow. We will be sending a detailed email with alternatives to all merchants that may require ongoing services.
Processing Refunds & Chargebacks
You will continue to have access to your online MCC portal to view all of your historical transactions. While account termination does not allow you to process refunds, consumers may still be able to chargeback any unfulfilled order. We will not be levying any fines against your account for accrued chargebacks after the date of termination. Transactions which have been subject to a chargeback and are unfulfilled may be reprocessed through a new processing account should your client wish to still receive the goods.
I would like to thank you for your continued patience in this matter. We are working around the clock to resolve all issues affecting our merchants. Sincerely, Philip Fayer President and CEO PaySystems Corporation
When you log in, what do you get? I get
Processing Status: live
yet yesterday it said I was offline.
These guys are on crack! I think I’ll stay with PayPal!
Paysystems going down for us was i think a blessing in disguise. Ive been trying to make time to integrate WorldPay into our site, but we always delayed it, because there was no urgency.
We obviously didnt have that luxury anymore, and made the switch. (We were lucky to have applied for the WorldPay account months in advance).
The switch has been an overall major improvement thus far. Ive noticed our orders have gone up, mainly i think, because WorldPay allows for much more seamless integration, i.e. the Order page looks exactly like our site, so cart abandonment has dropped by at LEAST 20% i would say. It looks way more professional also, as the Paysystems order page looked crappy to say the least.
I ahve been getting all sorts of LIES for a week now, and still no money. They owe us £18,000 and will proberably close us down.
Any one know of a GOOD processor?
Welcome to the forums hotcolin!
Did you convert to a merchant account hotcolin or were you on their 3PP platform?
Word is that Paysystems has known for 4 months that their IBA accounts were being terminated. The only issue was that they thought that they had until September to get their clients moved to their own merchant accounts.
Visa and MC have been cracking down on IBA vendors who are not compliant with their rules and/or too high risk. Rule #1 is that an IBA provider can only acquire business in their own region (ie Canada, US, EU, etc). You can look for a replacement offshore but you can bet that you will be back in the same boat again in 6 months.
If you have money with Paysystems you will probably have to wait 6 months to a year to get it back. It is not uncommon for vendors to try and hold your funds as long as possible to offset the risk of chargebacks. Those who complain to their “legal” department will probably get their money faster.