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Moolah vs. Stripe: Merchant Account vs. Aggregators

When looking for payment processing for your business, you may have come across the terms Merchant Account, especially when compared to processing aggregators. At Moolah, we offer dedicated merchant accounts. Before we dive into the meaning of that, let’s start with the rates.

Better Value
Stripe offers a standard processing fee of 2.9% + 30¢. We offer 2.69% + $0.29 with a $19.95 monthly minimum, which means Moolah will charge you 2.69% + $0.29 of your sales for the month or $19.95, whichever is greater. This is a solid saving over Stripe assuming your processing more than $500 in credit card sales each month.

What exactly is an aggregator?
One subtle but substantial difference between Moolah and Stipe is the fact that Stripe is a processing aggregator, whereas Moolah offers dedicated merchant accounts. Merchants who sign up for Moolah are given their own account, much like the checking accounts that banks give. The only difference here is that an acquirer, a type of bank, takes on the risk associated with processing credit card transactions. On the other hand, aggregators like Stripe aggregate, or pool together merchants into groups. Merchants don’t have their own account, and payments are instead processed jointly with other merchants. What does this mean for you? Read on.

Faster Processing
As providers of dedicated merchant accounts, Moolah is able to provide faster payment processing. We deposit funds into your checking account within 1-2 business days, and for a slightly higher fee, we can even get you next-day deposits! If you’re part of Stripe’s aggregator system, you may have to wait a bit longer for funds to be transferred, typically up to 7 days from the date of your first transaction.

A Personal Touch
With Moolah, you are the merchant of record within the credit card eco system. That means that when you have an account from Moolah, you can rest assured that our underwriters have taken the time to review and understand your business from the get go. Those served by aggregators carry the burden of a higher risk for unexpected account freezes and holds as there is no attention paid to your individual business when it is originally turned on. We like to think we’re able to know you better.

We’re Upfront and Honest
There are some advantages to an aggregator system. Because there is no underwriting process, aggregators tend to have streamlined application processes, getting you up and running with their systems faster. This simple process means the barrier of entry for aggregators is lower.

Still, the benefits of a dedicated merchant account, especially one with, simple flat rates like Moolah, outweigh the slightly longer underwriting process. If you’re looking to benefit from the processing power of a dedicated merchant account, take a closer look at Moolah today.