Finding a merchant processor can be a daunting prospect for many business owners. If the business is in a high risk industry, it can take months or even years to secure a payment processor willing to give them a merchant account. As a result, once businesses do find a payment processor, they will stick with them even if services rendered are not satisfactory. But how will owners know when it is time to find another payment processor?
Fees Have Gone Up
Many merchants acquire services through banks. Sometimes their fees can skyrocket and business owners are caught off guard. When fees do go up, merchants can sit down with bankers to take a look at statements to see why businesses are hit with fees. Often the plans that merchants choose at first, no longer work because of differences in card usage at POS. For example, merchants can be hit with higher fees due to phone transactions as they pose a higher risk for fraud. Combing through questionable fees in this manner, can reduce fees in the long run.
Unpredictable Credit Card Fees
Some merchant processing plans have tiered pricing where different credit cards come with different fees. Most merchants don’t prefer this model due to the unpredictability of fees. As a result, some switch to an “interchange plus” plan, where you pay the same fee no matter what type of credit card is used. To avoid unpredictable fees, other entrepreneurs utilize services like PayPal, Square, and Stripe which offer set fees for transactions.
Hard to Leave Processors
When entrepreneurs try to leave payment processors, they run into significant interference. Often the processor won’t readily hand over the customer records to be transferred to a new processor. This can be a tough obstacle to get around. When merchants use services like PayPal, Stripe, or Square they are using the merchant accounts of these services. If merchants want to go to another payment processor, they will not be given customer information to take with them, which means they’ll have to start with a new customer base.
Starting a new business is challenging enough. Merchants shouldn’t be stressed out over problems with payment processors. eMerchantBroker.com offers simple and business friendly payment processing. Never be hit with irregular or hidden fees. EMB has no application fees or VISA and MasterCard requirements.