Difference w/ payment processors like Stripe vs others?

So I noticed after reaching out to a few merchant services that the applications for approval are very intense. They want all personal information, details about my home's equity, complete background checks, and more. They want to sign piles of paperwork and do complete background checks with underwriting that can take weeks.

At the same time, in the past I have used Stripe and they were like, answer these 5 questions and then, that's it, you can start accepting payments! Sure in time maybe they needed more paperwork like some corporation paperwork but I never had to put up my entire collateral on the line to get a processor, let me dive into my credit score, and then wait weeks for an approval as they review everything about me.

As a startup, not dealing with that is nice. The other benefit with ones like Stripe etc is if you have a rough time with charge backs, they may write you and simply say, "this isn't working out… have a good day and good luck" whereas a full payment processor like Payfirma or Moneris may blacklist you and make it impossible for others to approve you down the road. I realize in theory the rates are less with a full account that checks everything and does a risk assessment but the bs involved is a nightmare imo.

My question is what is the proper term to describe a processor solution like Stripe or PayPal or Square vs full fledged merchant services? Is there a different name or term? I ask because I'll see sites that say "top 10 Stripe competitors" and it will list but that is a gateway that works with full processors. I feel like the terms are interchangeable.

submitted by /u/kassius79
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