When Should You Consider Switching Credit Card Processors?
Whenever a business owner is shopping around for a credit card processor for their business, they are going to hear a lot of advertising hype from companies trying to earn their business. The same holds true when you are switching credit card processors. Interestingly enough, a lot of business owners are reluctant to switch because they feel it is going to be too much of a hassle. Although they are partially correct, the hassle oftentimes involves paying cancellation or termination fees.
What’s important is that you know when it is time switch credit card processors. The following are considered the strongest reasons for making a change:
• Being unhappy with your current credit card processor – This is probably the most common reason that businesses switch processors. If you’re current company is not meeting the needs of your business, it’s time to switch.
• Level of customer service is unacceptable – The biggest difference between credit card processing companies besides the fees they charge is the level of customer service that they provide. Let’s face it. The majority of the banks and card processing companies out there provide substandard levels of customer service.
• Payment acceptance method makes no sense – If it is more difficult to process a credit card transaction with your current company than it is to accept cash or checks, something is definitely wrong with that card processing company. Remember, their technology should match the needs of your business. If not, then it is time to switch processors.
• Processing company’s rates are too high – You shouldn’t be paying more than a few percent in fees. By switching to a different credit card processor, you could be saving your company up to 25% in final processing costs.
• Your business has outgrown your current credit card processor – Starting out with a card processing company that offers “one low rate” or a “simple start-up” may have been what sold you on your current credit card processor. However, you may find out that this company can no longer meet your needs as your business expands.
The most important thing for you to do is to determine if it’s time to change the credit card processing company that you are using. So it’s important to pinpoint the reasons that this may be a good idea. Remember to do your homework before finalizing your decision to switch companies. You want to make a well-informed decision, not a knee-jerk reaction. And that requires that you do a bit of research.