We recently announced a new policy for how we collect information after processing a payment. In the interest of transparency, we thought it could use a little further explanation.
What You Need to Know
As of July 9th, all new merchants will be required to either link a bank account or give us a place to settle money via recurring check within 30 days of accepting their first payment. If a merchant does not do this in that time, then they will be unable to accept new payments until they do. Once the merchant gives us a way to settle funds, they’ll receive all the money from the payments they’ve already accepted, and they’ll be able to accept new payments again as well.
This is actually more liberal than the policy we had originally considered, whereby we’d automatically refund all payments received by a merchant if they failed to link their bank account within 30 days. However, given the high potential for this policy to result in a poor user experience, we arrived at a compromise that would satisfy both WePay’s internal requirements and the needs of our customers.
Even with the new change, WePay’s policies are still more user-friendly than those of most payments companies. Most require merchants to provide a ton of sensitive personal information before they can accept their first payment. WePay allows merchants to start accepting payments instantly, as long as they link their bank account within 30 days.
Why the Change
There’s some very good reasons why we’ve adopted this policy. To understand them, you have to realize that WePay is not a bank, and we’re not a digital wallet company. Rather, we’re a payment facilitator — we provide an easy way for money to get to from one person to another while minimizing fraud and regulatory risk for the platform that’s connecting those people.
Our mission is to allow the merchant to receive their payment as quickly as possible, and that includes settling the funds to the merchant’s bank account in a timely manner. Hence, the requirement that we have a bank account to settle to within 30 days.
By being laser-focused on that one goal, we can design without distraction — our focus is what allows us to create the best possible payments solution for platforms and their users. At the same time, we realize that providing a lot of information up front is hard for users and a major point of friction for our platform partners, who naturally want to design the most seamless user experience possible.
So that’s the compromise we hoped to strike with the new 30 day policy — it gets us the information we need in a timely manner, but it’s still flexible enough to provide our partners with the streamlined checkout process they’ve come to love from us.
We are, of course, constantly refining our policies to better serve our partners and their customers. If you have any questions or comments about the new policy and how it affects you, we want to hear them. Drop us an email at email@example.com.