Founded in 1997 and based in Lehi, Utah, ProPay (propay.com) 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 was acquired by TSYS in late 2012 and now operates under the ProPay name as “a TSYS Company.” Dave Duncan is the president of ProPay.
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 offers several ways to accept credit card payments, including mobile options. The first, “ProPay Jak,” is a service similar to Square that enables merchants to use a card reader with a smartphone to accept credit cards. ProPay also offers tablet-based point-of-sale solutions as well 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 processing 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. An EMV-compatible card reader is currently available for preorder through the company.
- Sales & Marketing: ProPay does not appear to hire independent sales agents and has not received any complaints about its sales practices.
- Costs & Contract: ProPay offers an annual contract that does not typically include an early termination fee.
- Complaints & Service: ProPay has received more than 40 public complaints.
- BBB Rating: ProPay has an “A+” rating with the Better Business Bureau and has received 35 complaints in the past three years.
- Rates & Fees: How Merchants Got The Best Rates With ProPay