5 Reasons to Switch Your Payment Processor
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As an established merchant, how many times have you received a sales call about switching your payment processor? Is it always in your business’ best interest to avoid these talks and stick with the status quo? Is the claim of saving money valid?
There will always be a processor out there offering lower credit card processing rates. But switching merchant providers every time a new, lower offer comes through the door is not suitable for business in the long run. Surprisingly pricing is only one of many reasons to switch payment processors. Why should your business a payment partner alternative? Let’s review five reasons it might be time to consider a switch!
1. Teaser Rates
Unfortunately, many merchants are seduced by the deceptive teaser rate. Also called an introductory rate, it is an absurdly low payment processing rate to make it appear your business is getting an attractive deal. Think twice before signing on the dotted line if the price is too good to be true. Trust us, it is.
These teaser rates are typically only valid for a short period or don’t include all the required interchange or transaction fees. Processors may lose money on the basic credit card rates but makeup or surge of other transaction types, such as card, not present (CNP).
2. The Contract Term
Many payment processors require you to adhere to a contract term upon setup. This contract is valid until the specified time is exhausted and may contain hidden cancel fees. Besides, it may automatically renew if you do not cancel within a certain amount of time. Before signing anything, be sure to carefully read through all documentation and question the part not understood. Any reputable provider will be happy to address your concerns and edit any unfair terms to earn your business. If not, consider switching your payment processor sooner rather than later.
3. Not a Fully Integrated Solution
An integrated solution is one way of harmonizing all your business systems to work together efficiently. This approach connects the payment processing function with other business systems such as your CRM or accounting software. It streamlines your receivables process immensely, and it critical to have in today’s tech-savvy society. If your payment processor is not integrated, the first question you need to ask is, why not? In most cases, you’ll find your merchant provider has not taken the time to establish a relationship with your software.
4. Poor Customer Service
Customer service is often an overlooked factor when choosing merchant services. That is, it’s ignored until you need it. The processing industry unfortunately notorious for negligent customer care after they earn your business. Sound familiar? If this is what you’re experiencing, consider looking for a different one. Many processors offer 24/7 telephone support, dedicated account managers, or live chat options. Switch to a payment processor that best fits your business needs.
5. Junk Fees
Some processors may require a setup when establishing services. We already learned cancellation fees are common, as well. Be on the lookout for unnecessary junk fees – these costs may end up hurting your business, especially if you’re starting up.
There are many reasons why businesses switch payment processors. At the end of the day, if your business is suffering due to inadequate payment services, it’s time to make a switch. Spend some time putting together a ‘must-have’ list and interview several providers until you have the perfect fit. At Payment Savvy, we’ve sent over a decade creating custom and scalable solutions for each of our clients – no matter the size or industry. Since the beginning, we’ve never locked our clientele into contract terms or charged a single cancellation fee. Ready for a better way? Touch base with our knowledgeable team today to see if we’re your perfect payment partner.