Or, Why You Should Compare Merchant Accounts
Let me share a quick story with you regarding merchant account reviews and how we are able to accurately (and fairly) compare your existing merchant account fees with what you could be paying.
If you haven’t already reviewed the article on why to compare merchant accounts, and how it is often difficult to make “apple to apple” comparisons, why not check it out by following the link when you’re finished reading here…
With the economy struggling along, everyone wants to save a couple extra bucks if they can. And business owners are no different.
In fact, they are more aware of the need to trim the bottom line and become more profitable. For some, it’s a question of staying open or closing your doors forever.
Merchant Account Reviews & Early Termination Fees
If you’re not familiar with early termination fees, I suggest you download a free copy of the merchant account guide.
Either way, I’ve discussed this rip-off with business owners about a hundred times. For simplicity sake, let me just say a few words about it here.
Here’s how it works…
You sign up with another merchant account provider. They promise you the moon to get you to sign up. Maybe you read the “agreement,” maybe you don’t.
Now, perhaps you find that your rates increase without warning.
Or maybe you’re rates haven’t gone up, but you notice things like “surcharges” and stuff that no one ever explained to you. So you get a merchant account review.
Hopefully it’s accurate (many are NOT).
You like the idea of saving money. You’re all set to move forward, and you call your existing merchant account provider to make sure you’re not locked into a contract or something…
By the way, you SHOULD call your existing provider before signing up with someone new.
Most sales reps with the mega-processing companies will NOT tell you this, because they want YOUR signature on their agreement before you find out that you’re locked into a contract already. Which would mean, you’d be locked into 2 contracts…
Anyway, after calling you find out that you’re stuck. Maybe you have a 3 year “agreement.” Maybe 4. Heck, I’ve even heard of 5 year contracts.
So What Now?
Sometimes the early termination fees are reasonable, say a flat rate of $275. Sometimes it’s based on how long your contract remains in effect. This can get expensive fast. So what do you do?
Well, here’s a couple of pointers. Ask the person doing the review if they’ll help pay the termination fee…
You could call and complain to your current merchant account provider. If you signed up through your local bank call your local branch and complain.
Big time. Most likely they never told you about termination fees, so you might just be able to get out of it.
The bottom line?
Before signing up with anyone, make sure you’re not getting locked into anything you can’t get out of later on down the road.
And if you are already accepting credit cards, why not get your “no-cost, no-strings-attached” merchant account quote by following the link and answering a couple of questions?
Or contact one of the merchant account providers listed here.
And if you’d like to post a comment, share your thoughts, questions or opinions please feel free to leave a comment on the site. We look forward to hearing from you.
