Is ProPay the Right Payment Processor for Your Business?

Founded in 1997, ProPay is a merchant account provider that shares attributes of both a traditional credit card processor and services like PayPal, Stripe, 2Checkout, and Google Checkout.  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 countertop 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. ProPay acts as its own holding account and merchants must manually transfer their money to a linked checking account.

ProPay was acquired by TSYS in late 2012, but in 2020 ProPay partnered with Global Payments Integrated, and they now have replaced the TSYS subheader with one for Global Payments. In addition, the BBB now conflates the ProPay profile with that of Global Payments, implying that Global Payments owns the company, though we can find no official announcement of the purchase.

Payment Processing

ProPay offers various methods for accepting credit card payments, including mobile solutions. One of their services, “ProPay JAK,” allows merchants to use a card reader with a smartphone to process credit card transactions, similar to Square. Additionally, ProPay provides tablet-based point-of-sale (POS) solutions and access to a virtual terminal.

Merchants with a ProPay account can purchase an EMV-compatible card reader that connects to their smartphone via Bluetooth for accepting chip cards. However, this EMV reader currently does not support Near Field Communication (NFC) contactless payments, Apple Pay, or Android Pay, although these features are planned for future updates. ProPay also offers an automated phone system for processing real-time sales transactions.

Mobile Payment Services

ProPay’s mobile payment solution enables businesses to process transactions in various settings, such as food trucks, outdoor events, or home services. This service allows businesses to accept credit and debit card payments directly from a mobile device.

E-Commerce Payment Processing

In response to the growing trend of online shopping, ProPay provides a secure online payment processing service.

Virtual Terminal Services

ProPay’s virtual terminal service allows businesses to process credit card transactions remotely by manually entering card information into a secure, web-based system.

Integrated Business Management

ProPay also offers integrated software solutions to streamline various business operations. Their suite of tools includes payment processing, inventory management, CRM, and data analytics.

ProPay Customer Feedback Overview

While ProPay reviews are comparatively few for a company of its size, most negative reviews date back to before 2014. Some complaints seem to stem from clients’ misunderstandings about credit card processing fees, issues that are likely common across many providers. If you’ve had an experience with ProPay, please share your thoughts in the comment section below.

Recurring Issues in ProPay Reviews

A recurring theme in ProPay complaints involves the company’s practice of holding funds and freezing accounts, especially when merchants deviate from their usual transaction patterns or experience chargebacks. In some instances, ProPay has reportedly terminated accounts suddenly, leaving clients unable to process credit card transactions. These actions are often accompanied by dissatisfaction with customer service.

ProPay and High-Risk Businesses

ProPay tends to be cautious with high-risk businesses, so those in higher-risk industries might want to explore alternatives specializing in high-risk payment processing. It’s advisable for businesses using ProPay to minimize chargebacks as much as possible.

Fund Holding Practices

ProPay’s practices of holding funds align with industry standards and are usually implemented in cases of suspected high-risk transactions or fraud. This approach seems to be within the norm for the industry. For more insights into fund-holding practices, see this article.

ProPay Lawsuits

ProPay is currently involved in two major class-action lawsuits. The first concerns allegedly incorrect COBRA notices leading to loss of health insurance, while the second is part of a larger suit related to the TelexFree Ponzi scheme. These legal issues are significant and may impact client perceptions. Clients looking for non-litigious resolution methods can consider reporting to appropriate supervisory bodies.

Assessment of ProPay Customer Support

ProPay provides customer support through a web form and a dedicated phone line available from 7 am to 7 pm MST, Monday through Friday. This level of support does not meet the criteria for top-tier customer service in the industry.