Most businesses are called day in and day out by telemarketers attempting to sell them merchant services or cheaper merchant services than they currently have. And while most of these businesses can indeed save money on their credit card processing and would save money if they decided to heed these calls, most of them choose not to. The hassle of going through a process not knowing exactly how it will turn out coupled with the typically miniscule savings make it difficult to convince anyone it would actually be worth it, epecially when they learn they have a $300 Early Termination Fee with their current processor. So then, how does one go about finding the lowest credit card processing rates without going through all the hassle? The answer may seem simpler than expected, but shop around.
Start here, talk to these telemarketers, allow them to call you, let them do a rate analysis for you, it can’t hurt. Generally all they need is one or two merchant statements to outline exactly how much you pay currently, and what you could pay if you were to switch. These consultations are always free, and it only takes a minute to throw a statement in the fax machine. Some companies will tell you you have really good rates, and they can only save you a tiny bit of money (which may be true, or it may just be that’s what they want you to believe). Talk to more than one company until you are satisfied you’ve been given a decent, low quote. Next, go to your current credit card processor and tell them you’re being quoted and offered a lower rate. Chances are, they’ll match it and lower your credit card processing rates in accordance with the quote you’ve been given, however, in the off chance they refuse to lower your rates, you should be prepared to sign with the new company. Many processors will help you cover an ETF fee should you incur it, but more importantly, you need to establish that you are in control of your account, and should the processor choose not to play ball, you will have to take control, and move on. Hopefully, you won’t have to do that, and as I said, 9 times out of 10, your current processor will lower your rates instead of lose your account.
However, there is one small catch, you’ll have to be careful enough to analyze the contract you’ve been given by your new company. There are a lot of ways to hide fees in a merchant services account and you want to make sure you don’t fall victim to nickle and diming. The simple solution is send the new processing contract to your old processor before signing. Let them examine the contract and show you if and where exactly you are being hit with extra fees. You want to create the scenario where two or more companies fight for your business. This competition will cause both parties to lower the fees they’ll charge until you’re paying practically nothing. So next time you get one of those calls, give it a shot, you may be surprised how it turns out for you.