Paysafe is a leading merchant service provider offering its services primarily in markets like the United Kingdom, the United States, Europe, and Canada. While it is quite popular for its extensive payment solutions, most of its payment services are restricted to Europe. Still, businesses continue using Paysafe in the form of a payment service provider for business-centric credit cards.
Paysafe also goes by the name Paysafe Group. It is a famous merchant account provider that is based out of the United Kingdom. The company is also popular for having acquired several large-scale payment processing subsidiaries in the duration of past few years. Paysafe Group was launched in 2015 and it has been rebranded from the previous Optimal Payments. Subsequently, it was acquired in August 2017 by equity firms named CVC Capital Partners and The Blackstone Group.
Some of the major acquisitions by Paysafe Group under the branding of Optimal Payments have been MeritCard Solutions, Skrill, Choice Payment Solutions by Merchants, and Meritus Payment Solutions. Most recently, Paysafe Group went ahead with acquiring iPayment. In 2020, Paysafe Group announced its partnership with FOX Bet -a leading sports betting platform in the Untied States. It even extended its partnership with the famous Microsoft Store.
Recently in 2021, Paysafe Group went ahead with expanding into the domain of cryptocurrency as it finalized its partnership with transcoin.me.
Functioning of Paysafe
As a leading merchant service provider, Paysafe Group is responsible for offering payment processing functionalities. These functions effectively integrate with the point of sale of any business. Therefore, businesses are allowed to accept a wide range of payment methods.
With Paysafe, businesses can also consider getting themselves a dedicated Clover credit card reader with the help of Paysafe if they wish to accept payments. Paysafe Group is responsible for doing the background operations to make sure that the respective credit card transactions remain successful. Paysafe is capable of handling in-person, online, and mobile-based transactions.
Features of Paysafe
Paysafe offers support for both online and in-person debit and credit card payments out of some of the most common credit card providers. According to its name, the company focuses primarily on security at the time of checkout with the help of advanced features like tokenization, fraud prevention tools, and a chargeback management process for ensuring that your business will remain PCI compliant.
Along with general payment processing methods, Paysafe comes up with industry-specific solutions for gas stations, convenience stores, regulated iGaming, digital marketing companies, online lottery services, and so more. The concept of in-store payments works with multiple terminals. Customers will get access to dedicated discounts on the respective Clover Station -a strong countertop terminal. You can also think of qualifying for a loan program to do away with the total cost of purchasing a Clover Flex or Mini outright. Businesses can also make use of Paysafe Group as the payment processor with Verifone, Ingenico, SwipeSimple, and others pieces of hardware.
Online payments tend to be secure with the Secured Checkout capability of Paysafe. This allows businesses to save information related to customer payment while creating scheduled payments, tracking data on transactions, and integrating a customized payment page onto the website with dedicated customer support to aid with coding. Invoicing and recurring payments are also offered support by the process of online payment processing.
Mobile payments are also additional options an are able to be processed with a tablet or smartphone through the mobile app of Paysafe.
Paysafe offers access to a digital wallet for storing payment methods like credit card information. It allows customers to ensure payments in a contactless fashion. Some of the popular instances of digital wallets are Samsung Pay and Venmo.
Paysafe offers access to digital wallet services with the help of its subsidiaries like Neteller and Skrill. The respective integrations enable your business to accept payments out of users having access to Neteller or Skrill apps. These are capable of offering alternative payment options for users while increasing the accessibility of businesses.
Non-US Alternative Methods of Payments
Paysafe provides access to safer alternative methods of payments that are available only in the EU or European Union. These include bank transfers, Paysafe cash, and Paysafe card. While this opens a myriad of business opportunities across Europe, this restricts the features of the company for businesses based in the United States of America. The company has currently expanded into Latin America by purchasing SafetyPay.
Small-Business Loans & Merchant Cash Advances
Paysafe has partnered with Rapid Finance for offering small-business loans with fixed payments and variable terms along with merchant cash advances.
Paysafe Group has less than 10 public complaints. However, there are several complaints against Paysafe-owned brands and subsidiaries of the company. Complaints that are related to the payment processing products of the brand offer descriptions like undisclosed fees, misleading sales practices, higher cancelation penalties, fund holding, undesirable leases of equipment, poor customer services, and so more.
There are no changes in the content or frequency of the complaints due to the acquisitions made by Paysafe of smaller brands. This implies that Paysafe does not aim at imposing new corporate policies on the respective acquisitions.
Paysafe Fees and Rates
The exact details of fees and rates of Paysafe have not been published explicitly. However, if you wish to obtain fully-disclosed information for operating your business with Paysafe, you can request for a specific Paysafe quote.
- Contract Terms: With Paysafe, there is a dedicated contract, however it is typically not a problem. If you are operating a large-scale business, some types of early termination fees can be significant. However, even small-scale businesses might not be able to sustain any major financial hit. It is observed that Paysafe is capable of charging more than $25,000 with respect to early cancelation fees. The minimum amount for cancelation is around $495.
- Payment Gateway and Virtual Terminal Pricing: Along with its storefront payment processing services, Paysafe also specifies a portion of the website to advertising the payment gateway and virtual terminal services. However, there is no information on pricing on both the aspects. Additional fees and rates -including technical support fees, gateway fees, additional transaction rates, and batch fees are typically added to the available range of e-commerce services.
- Industry-standard Pricing: Paysafe is not available with any particular contract or pricing terms on the website. However, research reveals that Paysafe merchants are expected to pay a standard merchant account fee. During this instance, there is no denying the fact that the pricing of the company will compete effectively with the cheapest merchant service providers in the industry.
Sales Practices Used by Paysafe
Paysafe makes use of the robocalling mechanism for sales & marketing. It is an automatic dialing system that is utilized for ensuring sales pitches. When perceived positively, Paysafe does not aim at disguising itself on the call. However, experts suggest that you should still practice caution while offering processing information. Delivery of a statement for rating review is a simple way for payment processors to claim that they are capable of beating the rates while not necessarily offering the best deal.
Paysafe Fines and Lawsuits
In 2021, a class-action lawsuit was made against Paysafe for investors involved in the securities of the company. Merchants who were not satisfied and wished to pursue a non-litigious program of action against the brand should look into reporting about the same at the related supervisory organization.
A Unique Sales Approach from Subsidiaries
Serving as the parent company for most payment processing companies, Paysafe looks forward to adjusting the sales approach -from one market to another. The high level of advertising of the brand is quite generalized. There is the absence of a dedicated sales team within the company. At the same time, there is also the absence of proper resellers, sub-ISOs, and ISOs.
The operation of conventional merchant accounts of Paysafe function just like other competitors. There is the presence of independent sales agents who initiate both in-person as well as telephone-based contact with the potential merchants. On the other hand, the online and e-commerce platforms of the company tend to rely significantly on the concepts of strategic partnerships and internet marketing to target high-risk and niche markets.