Every business that accepts credit cards needs to work with a credit card processor — but finding the right one for your business can be tricky. It’s normal to want to switch providers and see if there are better deals or services that suit your everyday business needs.
Some business owners may also be urged to reconsider their provider for these reasons:
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Let’s go deeper as to why people choose to switch credit card processors.
One reason business owners switch processors is due to the poor support they receive. You may face companies that give you remarkable assistance and an attentive agent before signing up, and then find that they no longer pay attention to your concerns after you’ve been a regular customer.
It’s important to identify if you’re receiving poor customer service. After all, accepting credit cards is a big driver of business, and if you face any problems, you’re going to want to receive good customer service.
The next and the most frustrating on the list is the hidden fees. These unexpected charges result in distrust and can eat up your profits.
If a credit card processor imposes extra fees on their services without your knowledge, it’s best to start looking for a new provider. Keep an eye out and ask about setup fees, monthly minimum fees, and cancelation fees.
High processing rates are yet another reason for switching processors. Providers are known for offering low "introductory" rates and fees, only to raise them once you sign a term commitment. Interchange costs, sometimes known as "swipe fees," are determined by credit card issuers and updated twice a year. These rates usually increase with time. However, some providers will use this as a pretext to raise their prices.
Not all payment processors offer month-to-month contracts to let you test out their services. After being stuck with a single provider for so long, some business owners will want to try out other services.
However, payment processors have a strict policy when it comes to contract termination. This makes it difficult to switch processors when you have to, especially considering how early termination fees average $300 to $500. There may also be a liquidated damages clause that will only cost you more.
Compatibility issues can keep you from getting the most out of your processing equipment or possibly prevent you from accepting credit/debit card payments altogether. Software compatibility concerns can also affect payment gateways and virtual terminals, which is a major concern for eCommerce businesses.
If you are looking to have multiple merchant accounts, check out Processing Card’s blog to learn how to do it.
Florence Carpenter is passionate about ensuring that the process of opening merchant accounts is as straightforward as possible. She graduated from the University of Michigan with a bachelor’s degree in Marketing.
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