Why You Should Switch Credit Card Processor Every Few Years

Is It Time To Switch Processors?

Do not fall into that trap. You know the one, where you stick with the same credit card processor you’ve always used because, well, it’s comfortable; and changing it up must be just too darn difficult. Nonsense. Switch credit card processor – it’s easy, fast, and will save you money. If you want to stay competitive, it’s imperative for your business to partner with a good credit card processing company.

In fact, you may have already been working with the same processor for a few years now. Just as you switch insurance providers, you must consider the services you use annually. Have you thought about switching to a new credit card processor? If not, our experts weigh in on what to look for in a payment processor as well as a few reasons you probably need a switch now.

 

[1] You could be spending a lot on an equipment lease.

When you started your business, you didn’t have the funds to purchase your own credit card terminals. Good thing your credit card processor had a leasing option for the equipment, right? But if you look at your monthly lease now, you’re probably spending more than if you bought one outright. If you’re still not willing to invest in your own terminal, you can switch to a credit card processor that will provide you with a terminal that you can pay off monthly until you gain full ownership of it.

When you negotiate for lower leasing prices, be sure to factor in how the pandemic is affecting high-risk merchant accounts. Let the new company know that saving money is your key goal when you switch credit card processors. Stay focused, eye on the prize.

 

[2] You could be paying fees that you’re unaware of.

When you’re in a long-term partnership with a credit card processor, it’s easy to fall into the routine of just paying bills without looking at your statement. But if you’re noticing that your bill keeps increasing without any additional services, your credit card processor could be adding hidden fees to your account. If a merchant statement is becoming confusing, it’s time to find new processors and ask them for a quote outlining all their charges.

All too often, prices are changed or additional services are rendered and you have no idea. In fact, your credit card processor is likely increasing prices every year to stay current. And all power to them; they have to do what’s in their best interest, but so do you. So when you switch to a new high-risk merchant account, you are going to get offered the lowest fees as a signup bonus. Shop around every year and you could consistently take advantage of these signup bonuses. Do what’s in their best interests too.

 

[3] You could be experiencing compatibility issues with your provider.

As your business grows, your needs will also change; sometimes, this could result in compatibility issues with your payment processor. You may also be enrolled in a plan that doesn’t suit your business anymore. That is when you should start rethinking your partnership and perhaps consider switching to a credit card processor that will cater to your needs.

Are they offering chargeback prevention tips and strategizing ways to mitigate chargeback disputes? Are they keeping up to date with the latest news that affects how your business accepts credit card payments online? Are they in your corner? If you are hesitating, or if you haven’t even spoken to them in months, it may be time to switch credit card processors.

 

[4] You could be locked in a bad contract.

When you get approved for a merchant account, your credit card processor will write the contract with the terms of your partnership. In most cases, lengthy contract terms aren’t necessarily in your best interests and you could be tied to that contract for many years just because you don’t want to pay the expensive early termination fee. Fortunately, there are a lot of good credit card processors that offer month-to-month contracts in which you are free to cancel any time you see the need for a new provider.

 

Start Now & Sign Up For Your Merchant Account

Why should you switch credit card processors every few years? It’s simply a smart move to make sure that you’re always on the right track and that you have the right partner to cater to your business needs.

When finding a new provider, make sure to compare your options first. Review your current contract to understand how to close your account and return any leased equipment once you find a new credit card processor. Of course, you should also sign up with your new provider and re-program the new terminal to make sure it works with their system.  

Are you ready to hit the ground running? Let’s get started! Contact the team at First Card Payments to sign up for a new merchant account and save 25% instantly!