WePay Review

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

WePay Overall Rating

"C" Credit Card Processor Rating

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WePay Overview

WePay Logo

WePay Logo

Founded in 2008, WePay, Inc. (wepay.com) is a merchant account alternative similar to ProPay and PayPal. The company provides an online payment service that primarily serves peer-to-peer money transfers, but can be used by businesses and organizations to collect payments from customers and charity donors (through websites like GoFundMe.com). WePay allows virtually anyone to set up an account to collect payments via ACH bank transfers and credit card. The service has no setup fees, no monthly fees, and no service length requirement. The company collects a fee of 2.9% plus $0.30 for credit card payments and 1% plus $0.30 for bank transfer payments, and provides several tools for collecting payments. WePay’s headquarters can be found at 380 Portage Ave, Palo Alto, California, 94306.

WePay Sales & Marketing Tactics | C+

Key Points – Sales & Marketing 
Uses independent resellers? No
Promotes deceptive rate quotes? No
Fails to disclose all terms? Yes

WePay appears to primarily use its website to market itself as a peer-to-peer payment processing option. The website quotes two rates: 2.9% + $0.30 for credit card payments or 1% + $0.30 for direct payments from bank accounts. By and large, merchants do not dispute whether these rates are the company’s effective rates. Additionally, the company does not appear to engage in any deceptive advertising strategies in its official materials.

By far the most common complaints about WePay are related to its policies regarding reserves and high-risk businesses. This is a problem that can be characterized as either a sales issue or a service issue. To the extent that this problem is related to sales and marketing, it seems that the company’s application/setup process does not do an adequate job of screening out merchants who will ultimately have their account terminated after they have been allowed to process transactions. We were able to locate numerous WePay reviews by merchants who were told by either the company’s website or one of its representatives that their business type qualified for processing through WePay, only to find out after processing large payments that their accounts had been canceled and their funds returned to customers. It seems that this common issue could be more easily avoided if the process for signing up for a WePay account were a more thorough and guided one. For the benefit of merchants, we have included a link to WePay’s “Prohibited Activities” list here (see item 7); if your business type is one of these industries or is similar to one of these industries, be aware that you may be subject to sudden cancellation of your account even after fully completing the account setup process.

WePay Marketing Example

WePay Costs & Contract Terms | C+

Key Points – Costs & Contract Terms
Credit card rate: 2.9% + $0.30
Bank transfer rate: 1.0% + $0.30
Termination fee: None
PCI compliance fee: None
Equipment lease: None

In addition to its flat processing rates, WePay’s website lists a $15 chargeback fee, which is standard for the industry. The company’s most contentious policies, however, are not clearly listed, and they have to do with reserves and prohibited activities. As a fraud prevention measure, WePay has been known to enforce a standard withdrawal limit of $2,500 per business per seven days, with payments above that figure being placed in a rolling 30-day reserve. This means that a merchant who routinely does over $2,500 per week in business might be unable to access more than that amount in any given seven-day span, and it also means that a variable amount beyond the initial $2,500 could be withheld in a reserve for up to 30 days. This policy is no longer mentioned in WePay’s terms and conditions, but the company does reserve the right to impose transaction limits at its discretion.

The amount placed in reserve is based on a number of factors, including “the transaction history in your account as well as the information you provide in your profile, your industry, and how you’re using WePay,” according to language formerly found on the company’s website. Although the withholding of reserves is a common fraud prevention tactic in the industry (Square makes extensive use of a similar policy), WePay does not appear to properly notify merchants that their withdrawal limit is approaching or has been exceeded, and merchants express frustration with an inability to recover the funds they are expecting to receive.

Also, as outlined in the section above, WePay does not appear to aggressively screen out merchants who fall within its “prohibited” industries until well after they have signed up and processed with WePay. It appears to be standard policy for WePay to cancel these accounts without much warning and return payments to customers or donors. This policy, coupled with what appears to be very poor customer service, seems to be leaving merchants out in the cold for engaging in what they thought to be approved transactions.

[Related: Get rate quotes from a provider with “A” rated contract terms]

WePay Complaints & Service | D

Key Points – Complaints & Service
Total complaints: 90+
Live customer support? Yes
Most common complaint: Fund holds

In the comment section of this review alone, we are currently able to find over 70 WePay complaints, many of which describe the company as a scam or a ripoff. We are also able to find roughly 20 complaints on other consumer protection websites. The common themes among nearly all of these complaints include the company’s reserve policy, its “prohibited activities” policy, and unreachable or unhelpful customer support. Many merchants describe waiting the full 30 days to receive substantial portions of large payments due to a reserve.

While we don’t tend to penalize processors for engaging in what is a common fraud prevention measure, it appears that there is very little warning or communication between WePay and merchants in these cases. Similarly, merchants who have had their accounts cancelled and their pending payments returned seem to only find out about these developments after contacting WePay to ask why they can’t find their money. Merchants commonly express frustration when dealing with WePay customer support, which is available by phone or by live chat, reporting a lack of meaningful assistance and a policy of deflection. A company representative has been very active in responding to many of the complaints in the comment section of this review, but in the majority of cases, it does not appear as if the merchants’ complaints can be resolved to their satisfaction. Generally speaking, most negative WePay reviews do not speak highly of the company’s customer service.

WePay BBB Report | C+ (CPO Adjusted)

Key Points – BBB Report
Product/service: 42
Billing/collection: 20
Advertising/sales: 5
Guarantee/warranty: 0
Delivery: 9

As of this review, WePay has been accredited with the Better Business Bureau (BBB) since December 2009. The BBB is currently issuing WePay an “A” rating despite 76 complaints in the last three years, up from 69 at the time of our last update. Of the total, 42 have to do with the product or service, 20 are regarding billing and collection issues, nine are attributed to delivery problems, and five have to do with advertising or sales. Sixty of the complaints have been resolved with BBB assistance while 16 merchants were left unsatisfied with the resolution. In light of these figures, we have adjusted the BBB’s rating to a “C+” for the purposes of this review. For more on why we adjust BBB ratings, please see our rating criteria.

Bottom Line

WePay rates as an average payment processor according to our rating system. The company appears to offer transparent rates and no hidden fees, but its fraud prevention and prohibited activities policies are the cause of numerous WePay complaints. Like Square, WePay’s terms are initially appealing, but its overall rating suffers from its poorly communicated fraud prevention policies and inadequate customer support. Merchants are advised to be absolutely sure that their business is not prohibited by WePay before setting up an account with the company.

This review was originally published on 7/12/12 and was last updated on 7/10/14.

Leave your WePay review in the comment section of this review:

WePay Review

Rated 2.25 Out of 5 Stars
Reviewed by Phillip Parker
Reviewed on 2014-07-10 13:04:56

We were able to find over 150 negative WePay reviews, many of which describe the company as a scam or a ripoff. WePay, Inc. (wepay.com) rates as an average payment processor according to our rating system. The company appears to offer transparent rates and no hidden fees, but… Learn more in this WePay 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 CardPaymentOptions.com 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. Karla

    http://www.wepay.com and http://www.youcaring.com are basically the same company and they are scams

    we need to contact the authorities because for all we know they are STEALING under the name of CHARGEBACK. I was trying to raise some funds for college. My tuition rates are outrageous so some friends said they would help me. One of them sent me some funds two amounts. WEPAY had it going to my account but then all of a sudden it was BACK in the account of WEPAY and this time locked. they said it was for CHARGEBACKS just in case I got some. I was like WHAT?? that’s Crazy.

    The 2nd amount went thru a long process and finally i wrote them daily and complained and asked them to call me but NOTHING. They try to make it seem like it’s YOUR fault or you’re the crook or the card is stolen.

    I asked what info they needed from my friend. My friend sent them the info and etc. but seriously we all probably need to file a police report in case these people try to steal our identity. Seriously they are frauds. it’s been 10 days and my friend has not recieved his money. I had them to close my account I told them I won’t ever use their service they are lowsy.

    Also they get upset if you ask too many questions. Ask them for a phone number yet they want your informatin. We need a lawyer and to sue these people under class action. how many people do we have on here and all the rest of the sites who haven’t gotten their money???

    they basically are crooks. they let you raise money. then they steal it and say it was a chargeback. I am going to close my bank accounts. One will be closed tomorrow..


    fax: 781.577.1017
    380 Portage Ave.
    Palo Alto Ca 94306

    Do not trust these people. also the phone number it just goes to messages.

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    9 / 9 found this review helpful.
  2. Francisco R

    I used Wepay.com without problems for about 6 months. My needs were very simple and was happy. Then the “enhancements” started to happen to the bill form and with every change they broke some functionality. And I don’t mean something stopped working or was crashing, but that the changes they were making changed the workflow and it slowly stopped been what I needed. Ok.. so not what I want anymore.. but at least it was still working.

    I had already started to plan to switch to another provider, but was in no rush. Then the email came… in about a month and a half they were shutting down all their forms and going strictly API. They could not even be bothered to give us their subscribers more time. If you used wepay like I did to bill clients on net30 giving us less than 2 months basically meant I could not use their service anymore.. What happened if a client took longer to pay and the forms were gone? So I basically had to scramble to find a replacement.

    I am unhappy I had so little time to find a replacement, but I am happy to not having to deal with this company anymore.

    Did you find this review helpful? Yes   No

    1 / 1 found this review helpful.

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