Risks of Changing Processors Due to Lower Rates
Some merchants call to cancel their merchant accounts because they believe they are offered better rates from other processors. They tend to jump to conclusions and want to cancel, not realizing we can match or beat anyone else's credit card processing costs. More importantly they aren’t aware of the risks they can face by switching to another processor.
Once a merchant has a schedule of fees that they are being offered by another processor, he/she can simply fax it to us and we will gladly evaluate to determine how we can help accommodate the merchant. In many instances we find many undisclosed “hidden fees.” These fees could include a contract with a costly early termination fee.
For example, in one particular case, a merchant who I had previously helped on a number of occasions called me. She wanted to inform me that she had canceled her merchant account with us a few months prior. She said the client service representative she spoke with recommended that we look over the competitor’s contract and fees. However, she wasn't interested and wanted to cancel immediately. She admitted that switching processors was a huge mistake. Although some of her rates were slightly lower, the customer service was inefficient and not helpful whatsoever. She wanted to revert to us, but was locked into a contract which included a $395.00 early termination fee which she was never clearly made aware of. It was mixed in with a cluster of small print jargon on the application. We were able to offset a portion of her cancellation fee which made it possible for her to return to Merchant Warehouse.
In addition to unhelpful customer service and hidden fees, not getting funded on time, annual fees, and unexpected rate increases are other problems that an uninformed merchant can encounter after switching processors.
Eve Miceli - Account Manager