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Merchant services – four simple steps to
move from one credit-card processing
provider to another
If you are dissatisfied with your
current credit card processing provider,
then it is about time you consider to
switch to another provider. Following
are the steps which will aid a trader in
switching from the current merchant
service provider:
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The first thing to be done is to
have the merchant processing
statement for the merchant account
analysed by a credit-card processing
specialist. These specialists will
give a rate comparison or a
cost-benefit analysis. This analysis
will reveal what you are being
charged with and what a new provider
can charge you. The agent approached
to change the provider should help
you save money by lowering the
rates, based on what the current
rates are. If you, as a trader, have
any doubts about credit card
processing and the associated rates,
it is best to clarify any such
questions. Ask for through
explanations before proceeding. This
plays an important role and is the
vital step to switch from the
current merchant service provider.
-
When the terms of the contract and
the discount rates meet your
requirements, you need to fill a
form in order to get a new merchant
account. All necessary information
should be provided in the
application form so that you are
approved for a new merchant account.
In addition to the essential
information, you are also required
to provide a voided check which
indicates where your funds should be
deposited and one copy of the
business license. To get approval,
it may take anywhere between 1 to 3
days.
-
After a new merchant account has
been approved, the trader will be
contacted by the account executive.
In almost all the cases, the current
POS (Point of Sale Equipment) or the
credit card machine is recommended
to the new processor. This clearly
implies that you need not get
additional or new equipment in order
to change the current processing
company. The only thing to be done
is to get the terminal
re-programmed. The re-programming
will usually be done by the agent,
but in certain cases you may have to
do the re-programming yourself.
Downloading the equipment will only
take 20 or 30 minutes. During this
time, you will not be in a position
to accept ATM, debit or credit
cards. Hence, it is essential to
schedule the download time when it
isn’t the peak business hour.
-
Finally, a letter should be written
to the current credit-card
processing firm specifying the
cancellation. This will ensure that
you will not be charged with a
statement fee and the minimum
monthly fee. Also, enquire with your
agent whether he/she has one such
pre-written cancellation letter. The
cancellation letter should include
details such as merchant number,
business name, name and the
signature of the owner. The letter
should simply state that the account
should be closed immediately in
order to ensure that you will not be
charged with monthly fees or
statement fees in the future.
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