The merchant services industry is not well known for being clear and transparent about the way it structures fees, leases and rents equipment and handles contracts. Here are the answers to the five questions we most often run into.
1. What rates are you paying and where are they on your statement?
Most merchants to do not have a good understanding of how they are being charged and how to decipher their statement to find out. The industry makes it indecipherable as a way to prevent price comparisons that might loose them accounts. Pricing is complex and statements often miss vital information that would allow the merchant to understand their fees.
2. Do I have to switch my terminals if I change my processor?
You might think yes. Most commonly the answer is no but this is used as a way to make merchants think that they have to stay with the processor who originally delivered their equipment. You can change processors and keep your equipment in about 90% of cases with the exceptions being some more complex POS systems.
3. Do I have to wait for my contract to expire to switch?
Simply put – NO! You can switch anytime and may have to pay an early termination fee but that will likely be reimbursed by the new processor.
4. Are you paying too much for your equipment?
Some processors deliver aggressive rates on transactions but charge hefty sums for equipment leasing. These leasing contracts can amount to thousands of dollars over their term on equipment that is worth a couple of hundred bucks in most cases. Ouch! When you are asking yourself if you are getting a good deal, be sure and include leasing costs in the equation.
5. Will switching processors affect my POS system?
No. You might have to use something called middleware to translate between your POS system and your processing but you can, in most cases, switch processors and save a significant amount of money every month. If you think your locked in, check. You are probably not.
The bottom line is your bottom line. It’s worth spending a few minutes finding out if you can get a better deal. It is usually hundreds or thousands of dollars a year difference and we know you hate dealing with it, but drop us a line. We are nice and we can help 🙂