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WHEN IS THE TIME TO CHANGE YOUR ACCOUNT
PROVIDER AND HOW?
Business owners mostly terminate their
merchant accounts as they no longer
accept payments through credit card or
they have received a much better offer
from another account provider with much
lower fees and rates. Of course, if it
is the first reason then it is safe to
assume that the business is not doing
well and it is going to be shut down.
Therefore, a merchant account will no
longer be useful for the owner. However,
the second reason needs some thinking
and a few smart actions otherwise you
will loss more money than you have
gained.
First thing you have to do is try to re
– negotiate your deal with the existing
provider.
The “Cut Throat” competition that exists
in this industry is the reason for you
being approached by several salespeople,
each offering you a better deal than the
previous one. When you have several
offers in hand then you can’t help but
look into those offers. The problem
occurs when the owners of the business
switch their account providers without
first trying to negotiate with their
existing account provider.
One of the most hated things by any
“Merchant Service Provider” is: losing
out a customer to their competitor. They
want to retain their clients, no matter
how. This may also be due to the fact
that keeping existing clients is much
easier than getting new ones. The logic
applies to a merchant also, which means
that, for the merchant it is much, much
easier to re – negotiate the fees and
rates with your existing provider than
to terminate this account and get
another one.
Do not think that those new offers for
merchant accounts are just garbage. Look
at the rates and fees offered by other
providers and if you find them to be
lower than what you are paying then it
is time you made a call to the customer
service centre of your merchant account
provider. Even though you are bound in
an agreement or contract, most of the
providers are prepared to lower their
fees and rates so that they can have you
as a long term customer and not the one
who will terminate the account as soon
as the contract expires.
If your existing provider, himself,
reduces the fees and rates then you will
not have to go through the pain and
frustration of terminating your existing
account and then getting another one.
Cancellation Fees and how to avoid it
So you gave a chance for your existing
provider and he is not willing to match
the fees of the competitor. Now What?
Don’t just cancel the account on impulse
with out seeing your agreement.
First, you have to read your contract
document again and find out whether you
still have to pay the cancellation fees.
These fees will be very high. If yes
then you have to sit down and calculate
whether you will make a profit or loss
more money by cancelling the account. If
you are making a profit then do it
otherwise wait till the point of your
contract expiring. |
