Payments | Frequently asked questions
Last updated: October 13, 2021
Find answers to common questions about the payments tool.
Eligibility and enrollment
Who is eligible to use the payments tool?
Your business or organization must be located in the US, have a US bank account, must be using a paid version of HubSpot. In the future, HubSpot plans to expand eligibility to customers located in additional countries.
What payment methods are supported?
The payments tool supports credit cards, debit cards, and ACH debits (bank transfers). You decide which payment methods to accept from your customers - cards, ACH, or both.
Can I accept payments from buyers outside the US?
Yes, you can accept card payments denominated in US dollars from buyers outside the US. HubSpot support global and regional card brands, including Visa, Mastercard, American Express, Discover, Diners and Japan Card Bureau (JCB).
What role does Stripe provide for HubSpot's payments tool?
The payments tool is powered in part by Stripe, a leading provider of digital payment infrastructure. HubSpot's payments tool is separate from the HubSpot-Stripe integration, which allows customers with an existing Stripe account to integrate HubSpot’s quotes tool with Stripe checkout.
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 HubSpot 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, HubSpot 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, HubSpot will also use this information to mitigate fraud that could impact you or HubSpot.
Why does the payments tool require the tax identification number for my business?
The payments tool uses your tax identification number to verify the identity of your business and for reports that HubSpot is required to file with the IRS. The IRS requires HubSpot and other payment service providers to report the total amount of payments you receive on an annual basis. Form 1099-K is the document required by the IRS for this purpose. HubSpot will send you a completed Form 1099-K by January 31 following each calendar year in which payments are processed.
A member of HubSpot’s underwriting team has contacted me to request additional information. What is the purpose of this?
As a payment service provider, HubSpot bears financial risk associated with the processing of your transactions. To protect customers and the businesses and consumers they serve, HubSpot needs to understand the types of products and services that your business sells, your financial situation, and the potential credit risk of your business. This is done through a process called credit underwriting.
In most cases, HubSpot can complete this process automatically in the background within one to two business days of when you first start using the payments tool. Occasionally HubSpot may need to request additional information or speak with you to complete the underwriting process before activating your account.
When the underwriting process is completed, your account will be activated and you can begin accepting payments.
Is the payments tool secure?
The payments tool uses multiple layers of security to protect sensitive payment information. Your buyer’s payment credentials are encrypted and tokenized to help ensure that unauthorized parties do not gain access to sensitive payment information.
Is the payments tool compliant with PCI requirements?
Yes, it is compliant with the Payment Card Industry’s Data Security Standards (PCI-DSS). HubSpot processes your transactions using infrastructure provided by Stripe, a leading provider of digital payments infrastructure. Stripe’s infrastructure is certified to comply with 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, you are not required to take any action to validate your compliance with PCI.
Refunds & payouts
Will I be charged a fee for refunds?
No, HubSpot does not charge a fee for processing a refund. However, you will not receive a refund of the fee associated with the original transaction.
How is the refund withdrawn from my payments account?
HubSpot will recapture the original transaction amount by deducting it from your future payouts or debiting it from your bank account.
How quickly are funds deposited into my bank account?
Transactions will be automatically deposited to your bank account within two business days for card payments and within seven business days for ACH payments. Payout deposits will appear on your bank statement as “HUBSPOT PAYMENTS”.
Will I receive a notification for payouts?
Yes, you will receive an email notification that a payout has been sent.
Rates & fees
What are the rates and fees for the payments tool?
HubSpot's simple and transparent pricing approach means there are no setup fees, monthly fees, minimums or hidden charges. HubSpot charges a percentage of each transaction, so you only pay for the service when you actually use it.
- For credit and debit cards, HubSpot charge a flat 2.9% of the transaction amount.
- For ACH payments, HubSpot process your first $50,000 per month for free. Above that, HubSpot charge a low rate of 0.5% of the transaction amount, which is capped at $5 per transaction.
Users can see their current payment processing rates by navigating to their payment's account info settings.
How will my business be invoiced for payments fees?
Rather than being included on your regular HubSpot invoice, the fees for payments are automatically deducted from each transaction. To see the fee for a particular transaction, navigate to the Transaction history tab and select the transaction. To generate a report showing the total fees for a particular time period, click Download reports and select Payments.
Chargebacks and ACH returns
What is a chargeback?
A chargeback is a reversal of a card-based transaction. It is a “forced” refund from you (the seller) to your customer (the buyer). Chargebacks occur when a buyer disputes a charge by contacting the bank that issued their credit or debit card. The cardholder’s bank will then take one of the following actions:
- Dismiss the case and inform the cardholder that the charge is valid,
- Send an inquiry to the seller to gather more information about the case, or
- Decide the customer’s claim is legitimate and issue an immediate chargeback.
Cardholders may initiate chargebacks only for certain permitted reasons. Those reasons include:
- Fraud, where the cardholder claims the purchase was made by a fraudster using stolen card information.
- Duplicate or incorrect transaction amount, where the cardholder claims they were charged twice for the same transaction or were charged the wrong amount.
- The goods or services were not received from the seller.
- The goods or services are defective, or are different from the description provided by the seller.
- The cardholder cancelled a recurring transaction but was charged for it anyway.
In most cases, the cardholder must initiate the chargeback no later than 120 days following the original transaction.
How will I be notified of a chargeback? How do I respond?
HubSpot’s payments risk team will notify you via email if you receive a chargeback. HubSpot will assist you with challenging the chargeback if you do not believe the reasons for the chargeback are valid. HubSpot will also handle all communications with the card networks on your behalf and inform you of the outcome. If you decide to challenge the chargeback, respond to the notice quickly, because most of the card brands only provide a 20-day response window from the chargeback date. After that, the chargeback will be final.
How will the chargeback be reflected in my account?
If the chargeback is upheld by the card network, HubSpot will recapture the original transaction amount by deducting it from your future payouts or debiting it from your bank account.
What are some ways I can minimize chargebacks?
- Make sure your customer terms and conditions are very clear on your website, proposals and contracts, especially with respect to refund and cancellation policies.
- Use a statement descriptor that your customers will recognize. Your statement descriptor is the name that will show up on your customers’ credit card or bank statements when they are charged for a transaction. If you’ve branded your business or website with something other than your company’s legal name, HubSpot recommends using your branded (“doing business as”) name on the statement descriptor instead. You can add your statement descriptor by going to your payment account info settings in HubSpot, or reach out to HubSpot support to get it edited.
- Be available to customers for questions by clearly providing your contact information (including email address and phone number) at the time of transaction.
What is an ACH return?
Transactions passing through the Automated Clearing House (ACH) system can fail (or be reversed later) for a variety of reasons. In either case, this is called an “ACH return”. The most common reasons for upfront failure are:
- Insufficient funds: the buyer does not have enough money in their bank account to cover the transaction.
- Account closed: a previously active bank account has been closed.
- Unknown account: no such account exists.
An ACH transaction that initially succeeds may be reversed later for the following reasons:
- Unauthorized transaction: the buyer claims they did not authorize you to debit their bank account.
- Previous authorization revoked: the buyer who previously authorized you to debit their account has revoked the authorization.
How will I be notified of an ACH return?
HubSpot’s payments risk team will notify you via email. For upfront failures, HubSpot will notify you within five business days of the transaction date.
When an ACH transaction initially succeeds and is reversed later, HubSpot will notify you as soon as the team is aware of the return. ACH rules provide a two business day window for business bank account holders to reverse an unauthorized transaction. However, consumer bank account holders have up to 60 calendar days following the original transaction date.
How do I respond to an ACH return?
The ACH does not provide a resolution process to challenge ACH returns. ACH transactions are similar to check-based payments in this respect, and you will need to directly contact your buyer to make alternative arrangements to be paid. If this is not successful, your remaining recourse is to take legal action against the buyer. If your buyer has reversed the transaction due to a claim that they did not authorize the transaction, and you believe this is incorrect, providing evidence that the buyer authorized the transaction may be helpful to your case.
To retrieve a copy of the buyer’s original authorization, navigate to the Transaction history tab in your payments settings. Hover over the ACH payment and click View Details. Click the Actions dropdown menu and select Send ACH authorization. This will trigger an email with ACH authorization details added to the email body.
Is there a way to synchronize my payment activity and payouts into my accounting system without manually entering it?
Navigate to the Transaction history and click Download reports to export transactions from HubSpot. You can download two types of reports:
- Payment report: view all the customer facing transactions such as one-time & recurring payments, refunds, transactional fee and disputes reported here.
- Payout report: HubSpot deposits the money collected on behalf of your customers in your bank account as per the payout schedule of CC & ACH. Payout report lists all the customer payments that build your daily payout amount.
For security purposes, only users with super admin permissions may perform this action.
How do I update my bank account details for HubSpot Payments?
Navigate to the Account info tab in the payments tool. For security purposes, only users with super admin permissions may perform this action, and HubSpot will send an email confirmation to each super admin whenever your bank account information has been changed.
How do I update the name of my company?
Contact email@example.com to make this change.
How do I change the authorized representative for our HubSpot Payments account?
Contact firstname.lastname@example.org to make this change.
How do I update our account to reflect ownership changes in my business or changes to my organization’s tax identification number?
How do I close my payments account?
How do I contact your support team for issues related to the payments tool?
If you need help, contact our support team by clicking on the help widget at the bottom right side of your screen in your HubSpot account.
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