ProPay Review

Overall Rating Breakdown
Sales & Marketing Tactics
Costs & Contract Terms
Complaints & Service
BBB Rating

ProPay Overall Rating

"A" Credit Card Processor Rating

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Jump to: Sales & Marketing | Costs & Contract | Complaints & Service | BBB Complaints

ProPay Overview

ProPay Logo

ProPay Logo

Founded in 1997 and based in Lehi, Utah, ProPay ( is a merchant account provider that shares attributes of both a traditional credit card processor and services like PayPal, Stripe2Checkout, and Google Checkout. ProPay was acquired by TSYS in late 2012 and now operates under the ProPay name as “a TSYS Company.”

ProPay’s similarities with a traditional merchant account include the ability to swipe credit cards at the point of sale, which can result in a lower processing fee, as well as the ability to accept payments for other purposes such as e-commerce and mail order/telephone order sales. Unlike a traditional merchant services provider, ProPay does not support the use of desktop credit card terminals like the type used at most retailers. However, like PayPal and 2Checkout, ProPay has an easy signup process and is open to non-traditional merchants such as direct sellers and micro-merchants. Like PayPal, ProPay acts as its own holding account and merchants must manually transfer their money to a linked checking account.

ProPay offers several ways to accept credit card payments, including mobile options. The first, “ProPay Jak,” is a service similar to that of GoPayment, Square, and Pay Anywhere in which merchants can use a card reader with a smartphone to accept credit cards. However, unlike the other three options, ProPay Jak includes a variety of other services which are not offered by its competitors, such as access to a virtual terminal.

The second mobile option that ProPay offers uses a small skimming device called the “ProPay FLASH Card Reader” (formerly known as the MicroSecure Card Reader) which allows merchants to collect credit card data by swiping the card’s magnetic strip and storing it for later charging when the merchant has access to an internet-connected computer. Merchants can also use the ProPay FLASH device to process real-time sales through ProPay’s virtual terminal once the device is connected to the Internet. Lastly, ProPay offers an automated phone system where merchants can call in to process real-time sales.

Click to see a video introduction to ProPay Jak

ProPay Sales & Marketing Tactics | A+

Key Points – Sales & Marketing
Uses independent resellers? No
Promotes deceptive rate quotes? No
Discloses all important terms? Yes

ProPay does not use any deceptive marketing or sales tactics that were apparent to this reviewer. The entire signup process is handled in-house and on the company’s website. Additionally, ProPay’s displayed pricing is transparent and does not hide fees. We are not seeing any merchant complaints at this time that accuse the company of deceptive advertising strategies.

ProPay Marketing Example

ProPay Costs & Contract Terms | A-

Key Points – Costs & Contract Terms
Swiped rate: 2.60%
Keyed-in rate: 3.40%
Termination fee: None
PCI compliance fee: None
Equipment lease: None

One standout benefit of ProPay is that the company has a month-to-month contract and no cancellation fee. ProPay also has no monthly minimum processing fees, and merchants can eliminate all other monthly fees by keeping their accounts active and opting for electronic statements. We have found some evidence that the company charges a variable annual fee, although it is unclear whether this fee is charged to all merchants.

Since this review’s initial publication, ProPay has made it difficult to locate the pricing of all of its services on its website; however, the company offers simple processing fees with a single rate that is set by how the card is transacted, either typed-in or swiped through a card reader. For instance, the company’s “Merchant Account” page currently lists a fixed swiped rate of 2.60% and a fixed keyed-in rate of 3.40%, and we have found no merchant complaints indicating that these fees are deceptively quoted. One exception to this rate structure is American Express Cards, in which the rate is the same under both transaction types. Fees and rates also vary based on the account type the merchant chooses with ProPay. Additionally, ProPay can customize rates for high-volume businesses. This page appears to be ProPay’s current pricing for its merchant account options.

ProPay’s rates and fees are competitive with most traditional three-tier merchant account setups, and probably less expensive in many cases. However, ProPay is more expensive versus Interchange Pass-through rate pricing.

ProPay Complaints & Service | A

Key Points – Complaints & Service
Total complaints: 25+
Live customer support? Yes
Most common complaint: Contract length

ProPay has very few complaints for a company of its size. Many of the complaints that it does have appear to be filed by merchants that have a limited understanding of how credit card processing fees are assessed and would experience the same issues with any provider.

The one common theme in the legitimate complaints filed against that company is that ProPay has a tendency to hold funds and freeze accounts if a merchant starts making charges that differ from its normal transaction history, or if the merchant suffers a Chargeback. It some cases, it appears that ProPay will suddenly terminate an account without notice, thereby leaving the merchant without a way to accept credit cards. Understandably, these same merchants complain of receiving poor customer service.

ProPay appears to be very cautious about how much risk it is willing accept from a merchant, so higher risk businesses may want to look elsewhere. It is also wise to avoid chargebacks at all costs if you choose to go with ProPay.

Generally, we do not count complaints regarding fund holding against a providers unless there is a clear pattern of abuse or deception. It is a standard industry practice for providers to hold funds in the event they suspect high risk transactions or fraud. In ProPay’s case, it appears that it is operating within normal guidelines when choosing to hold funds. To learn more about fund holds, see this post: Why Credit Card Processors Hold Funds.

ProPay BBB Report | A- (CPO Adjusted)

Key Points – BBB Report
Product/service: 21
Billing/collection: 11
Advertising/sales: 2
Guarantee/warranty: 0
Delivery: 0

As of this update, ProPay is accredited with the Better Business Bureau (BBB) and holds an “A+” rating. The company has 34 reports filed in the last 36 months versus 36 reported as of the last update of this review. Of the 36 complaints, 21 are due to problems with products and services, 11 with billing and collections disputes, and two regarding advertising or sales issues. All complaints were resolved to the merchants’ satisfaction except two. We have adjusted the BBB’s rating for the purposes of our review based on our own rating criteria.

Bottom Line

ProPay is a great credit card processing option for small businesses looking to avoid a traditional merchant account or looking for ease-of-use and simple pricing. ProPay’s services are particularly well suited for mobile merchants, e-commerce merchants, service-based businesses, mail/telephone order companies, and single register retailers that have internet access. ProPay does not supply traditional credit card terminals or POS systems, so it may not be the best option for restaurants or busy retailers. High risk merchants and those that have a higher chance of chargebacks may want to look elsewhere because ProPay appears to act swiftly by freezing accounts that it suspects to be a threat for losses.

This review was originally published on 10/14/10 and was last updated on 6/17/14.

Leave your review of ProPay in the comment section below:

ProPay Review

Rated 4.375 Out of 5 Stars
Reviewed by Phillip Parker
Reviewed on 2014-07-21 13:11:58

The amount of ProPay negative reviews on various consumer protection forums is lower than expected, although some of these complaints accuse the company of being a ripoff or a scam… ProPay’s ( similarities with a traditional merchant account include the ability to swipe credit cards at the point of sale, which can result in a lower processing fee, as well as… Learn more in this ProPay review.

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About the author

Phillip Parker

Phillip Parker is a former merchant services agent turned small business advocate and the author of "Fee Sweep," which teaches merchants how to dramatically lower their processing rates, eliminate junk fees, and avoid fine-print scams. He founded to help merchants enact positive change in the credit card processing industry.

Phillip can help you find an ethical and honest processor that will offer you great rates. Click here to request a free provider consultation.

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  1. Davinci

    I have never encounter so many UGLY and SAD reviews about a company!

    I have had what so far continue to be a small business for the last five years. I have so far no problems with paypal, but I heard some complaints about similar issues, “the freezing of founds”. It scares me a little, but these complaints were not so many, and maily from people making a lots of money and multiple big transactions. No complaints from small growing or medium size co.

    But what I am reading here makes me angry. I feel so sorry for so many people trying hard to be successful with their busnesess for their families and basic need that is shameful on PRO PAY. I am starting a business that recommend Pro Pay as their preferred processor. But I am not only NOT use it (even if I have to quit before start, but I am going to make sure these complaints get to the top leadership of our company, because they bare very reputable and I am sure they don’t know aabout this. I am also to promote all of these reviews. It is frustrating just to read what these people have to endure because of dishonest BAD business practices from Pro Pay. We are living in very bad times and this is not the way to support each others in our bad economy.

    Again it is frustrating and it breaks my heart, but being a believer I will pray for all of you, because our God will make JUSTICE.


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  2. D

    Propay is now holding 1,000 dollars of mine, won’t release the funds until they see an invoice etc. etc. meanwhile my rent isn’t being paid, this is unbelievable and i’m losing money, can’t use any other services until they “check into things” what a crock, i’m pissed off and looking for another service!!!!

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    2 / 3 found this review helpful.
  3. Joseph

    Horrible experience. Thank you to this website for mis-guiding me, by giving these crooks an “A” rating. Started processing customer payments about a week ago. After accumulating $800 worth of a balance, they froze my account pending some “analysis”. As far as I’m concerned, Propay had business to do this analysis *prior* to the approval on my account – Not after I have already taken nearly a thousand dollars worth of customer payments. I now have the option of either “refunding” (where I’d basically take a loss on all the work I’ve done), or option 2: having Propay hold my money hostage for a period of 6 months. I believe the reason they do this is because if they tell you from the start that they require a $1000 security deposit, most people would walk away. But when your hands are tied (given these options), then you have no choice but to play by their rules. This is directly and substantially infringing on my small business, the cash flow, and my ability to even open for business or fund advertising.

    Not only are they holding MY money hostage for a minimum of 6 months, but also be aware that if you attempt to refund a payment, they DO NOT refund their portion of the fee. In other words, you probably have to mail out a check to your customer to cover the difference. Otherwise, they will be calling you to complain that the full amount wasn’t refunded. AVOID THIS COMPANY. Do yourself a favor and go with a reputable bank for merchant processing.

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    1 / 1 found this review helpful.
    1. Phillip Parker

      Hi Joseph,

      I’m sorry that you feel “mis-guided” by my review; however, I stand by the rating. This is because I rarely count complaints about fund holding against a provider unless there is a clear pattern of abuse. I’ve found that in most cases fund holding is merely an action brought on by an elevated risk of fraud or Chargebacks based on the type a transactions a merchant is running (high-risk). This is something that all providers do and in most cases the merchant get his/her money within a short time. I suggest reading this article to better understand the process behind holds: Why Credit Card Processors Hold Funds

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      3 / 3 found this review helpful.
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