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Frequently Asked Questions

Find answers to common questions about the payments tool.

Emily avatar
Written by Emily
Updated over a week ago

Eligibility and Enrollment

Who is eligible to use the payments tool?

Payments is only available to businesses in the US with US bank accounts. You must also be on a paid Plus level subscription or higher to access Payments.

Payments is not available to any of these restricted types of business. Businesses are reviewed on an individual basis and restricted businesses can include more than listed here.

Is payments available in my location?

Payments is only available in the US.

What payment methods are supported?

The payments tool currently supports credit cards, debit cards, and ACH debits (bank transfers). You get to choose which payment methods to accept from your customers.

Can I accept payments from buyers outside the US?

Yes, payments can be accepted that are denominated in US dollars from outside the US. Global and regional card brands can be accepted including Visa, Mastercard, American Express, Discover, Diners and Japan Card Bureau (JCB).

During the set up process, I was asked to provide personal information as well as information about my business, including ownership information and legal structure. Why does Textedly require this?

Payment processing is subject to financial laws and regulations that are aimed at preventing money laundering, funding of terrorism and other illegal activities. To satisfy these regulations, Textedly and other payment service providers are required to verify basic information about the business entity, its primary owners, and the individual who will serve as the authorized representative for the payments account. These obligations are referred to as the “know your customer” (KYC) rules. In addition, Textedly will also use this information to mitigate fraud that could impact you or Textedly.

Why does the payments tool require the tax identification number for my business?

The payments tool requires your tax identification number to verify your business identity and reports Textedly files with the IRS. Textedly, along with all other payment service providers, are required by the IRS to report the total amount of payments you receive annually. The document required by the IRS is form 1099-K. A completed Form 1099-K will be sent to you by Textedly by January 31 after each calendar year in which payments are processed.

A member of Textedly’s underwriting team has contacted me to request additional information. What is the purpose of this?

Credit underwriting is a process Textedly uses to determine the financial risk associated with processing your transactions. Textedly needs to understand the goods/services that your business offers, the financial situation of your business, and the potential credit risk of your business.

Textedly will automatically complete this process behind the scenes within the first few days of you utilizing the payments tool. Occasionally Textedly will reach out for additional information or a phone call in order to activate your account fully.

Once completing the underwriting process, you can start accepting payments and your account will be fully activated.

Can I use payments in a trial account?

The payments feature is not available in a trial account and you will want to upgrade to a paid Plus plan to test it out.


Is the payments tool secure?

The payments tool protects your sensitive information using multiple layers of security. The payments tool is powered by Stripe which allows for secure collection and transmission of payment data. To help ensure your sensitive information is secure, all payment information is encrypted and tokenized by Stripe.

Is the payments tool compliant with PCI requirements?

Yes, Textedly payments uses infrastructure provided by Stripe, Inc., a leading provider of digital payments infrastructure. Stripe’s infrastructure is certified to comply with the Payment Card Industry’s Data Security Standards (PCI-DSS) Level 1, the payment industry’s highest level of protection.

Does the payments tool require my business to validate compliance with PCI security standards?

With most traditional payment processors, businesses that accept card payments are required to annually validate their compliance with PCI by submitting documentation and undergoing network vulnerability scans. With the payments tool, Stripe acts as the payments processor, which means that unless you separately process card data, you are not exposed to card data and are therefore not required to validate your compliance with PCI.

Rates & Fees

How much does it cost to use payments?

The Payments feature is free to have- that means no monthly charge or activation fees. Textedly charges a fee for each transaction, so you only pay for the service when it's used.

To access payment processing rates in your Textedly account:

  • In your Textedly account, navigate to Payments.

  • Click the Account info tab.

Will I receive an invoice for payments fees?

Fees for payments are automatically deducted from each transaction so you will not receive an invoice. You can view the fee for each transaction by navigating to Activity tab within the payments feature and click on a transaction.

Will I be charged a fee for refunds?

Textedly does not charge a fee for processing a refund but we are not able to refund the fee associated with the original transaction.

Is there a limit to the number of payments that can be processed per day or per month?

There is no limit to the number of transactions that can take place, though the maximum individual transaction size is $100,000.

There is also a maximum dollar amount per month that applies to each account, which is determined through the underwriting process and communicated to you in your welcome email.

Stripe's Role with Payments

What is Stripe's role, and can I use my existing Stripe account?

The payments feature’s infrastructure is provided by Stripe which is then hosted on Textedly. Stripe is responsible for secure processing, transmission, and storage of sensitive payment information. Textedly does not store your sensitive information directly and only surfaces certain tokenized or partial information about transactions in your Textedly account. You are not able to use an existing Stripe account with the payments tool. When setting up payments, you will be navigated to Stripe to enter your company information and verify your identity. This is not creating a Stripe login and you will not need to access Stripe in the payments tool again.

I already use Stripe in my business. How is this different?

The payments tool is powered by Stripe but since it is hosted on Textedly, you do not need to connect your Stripe account. You can send your customers to a checkout page with all of your own branding. The payments tool offers you flexibility with supporting more payment options and recurring payments. Once you have received payment, you can manage this directly in Textedly in the payments tool instead of logging into a separate Stripe account.

How do I connect the payments tool with my other Stripe account?

You are not able to connect an existing stripe account to the payments tool or migrate data over from an existing account.

Chargebacks and ACH returns

What is a chargeback?

A chargeback is a reversal of a card transaction where funds are forcibly removed from a business’s account and returned to a customer’s account after the customer submits a dispute with their bank. It is a forced refund from the seller to the buyer. When a customer disputes a charge with their bank, the bank will react with one of the following actions.

  1. Inform the cardholder that the charge is valid and dismiss the case.

  2. Reach out to the seller with an inquiry to get more information on the case.

  3. Issue an immediate chargeback after deciding the customer’s claim is legitimate.

There are only certain reasons permitted for a cardholder to start a chargeback, which include

  • Fraud- cardholder claims fraudster made the purchase with stolen card information.

  • Duplicate or incorrect transaction amount- cardholder claims they not charged the correct amount or were double charged for the same transaction.

  • Goods or services were not received from the seller

  • Goods or services are different than the description provided by the seller or are defective

The cardholder only has 120 days from the transaction date to initiate a chargeback in most cases.

How will I be notified of a chargeback and how do I respond?

You will be notified of a chargeback via email by Textedly’s payments risk team. If you do not believe the reasons for the chargeback to be valid, Textedly will assist you in challenging the chargeback. Textedly will handle all communications with the card networks on your behalf and inform you of the outcome.

If you decide to challenge the chargeback you must respond quickly. Most card networks only give you a 20 day response window from the chargeback date before it is final.

If the card network decides that the chargeback is valid, Textedly will recapture the amount of the original transaction by deducting it from your future payouts or debiting from your bank account. You do not need to issue a refund for the chargeback amount on your end, the cardholder’s bank will issue a credit for the disputed amount. The cardholder should contact their bank for status updates on the refund.

What are some ways I can minimize chargebacks?

Some steps you can take to prevent chargebacks related to goods and services are:

  1. Have clear terms and conditions that are posted on your website for your customers. Make sure that your refund and cancellation policies are clearly outlined.

  2. Use a statement descriptor on your payments that your customers will recognize. When a customer is charged for a transaction, your statement descriptor is the name that will show up on your customers’ credit card or bank statements. If you are using your branded business name which is different from your company’s legal name, Textedly recommends that you use your branded name for your statement descriptor rather than the legal name. To add a statement descriptor, please chat with our support team using the chat icon in the bottom right corner of your screen, or email [email protected]. The statement descriptor needs to be 5-22 characters, and can't contain the characters <, >, ", ', *, or \ . We recommend including a phone number on the descriptor as a best practice to ensure the most seamless experience for your customers.

  3. Encourage customers to contact you directly with any issues or refund requests. Make sure you are available to customers for questions at the time of transaction by clearly providing your contact information, including email address and phone number.

  4. Keep records of tracking numbers for shipped goods and try to ensure quality by carefully packaging any breakable items for shipment.

  5. Give refunds or cancellations as soon as requested.

  6. Post your return policy on your website in an easy-to-find location and when possible, ask customers to acknowledge your return policy in writing via signature or text message (especially for large transactions).

  7. Deliver clear expectations on what the customer can expect from a good or service. (detailed description on website or photos of product different views)

What is an ACH return?

Automated Clearing House (ACH) returns happen when a transaction cannot be processed as intended. These transactions can fail or be reversed later for a variety of reasons. An ACH return that initially fails can be contributed to one of the following reasons:

  • Insufficient funds: there is not enough money in the bank account that the transaction is being charged to

  • Account closed: A bank account that is no longer active and has been closed.

  • Unknown account: No account can be reached/ it does not exist

An ACH transaction that does go through initially may be reversed later for the following reasons:

  • Unauthorized transaction: The buyer claims that they did not authorize a charge to their account.

  • Revoked prior authorization: The buyer that previously authorized the charge to their account has revoked the authorization.

How will I be notified of an ACH return?

Textedly’s payments risk team with notify you via email of any ACH returns. You will be notified within 5 business days of the transaction date if an upfront failure occurs.

For ACH transactions that go through successfully and are then reversed later, Textedly will notify you via email as soon as the team is aware of it.

According to ACH rules, you have a two business day window for a business bank account holder to reverse an unauthorized transaction. However, a customer bank account holder has up to 60 calendar days from the original transaction date.

To resolve an ACH return, you will need to contact your buyer directly to determine a resolve and getting an alternative form of payment. If your attempts to resolve this with the buyer directly are not successful, your other option is to take legal action against the buyer. To retrieve buyer authorization for evidence against false claims that the transaction was not authorized, you can navigate to the transaction history tab in your payments settings.

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