Playing the Credit Card Processing Field - To Switch or Not to Switch

Imagine a company that specializes in setting up merchant accounts for new businesses or established ones that have never had credit card processing capability. The firm's collective pride and confidence swell when such business owners report that they have selected the company after performing much due diligence - some researching for months before taking the leap and deciding which credit card processing vendor to select.

However, while the merchant account providers' representatives may be enthusiastic speaking with merchants who are new to the credit card arena, they may typically feel a little uneasy speaking with merchants who are already processing with another vendor ' as if they’re walking on someone else’s lawn.

This is not to suggest that the representatives are not open and convinced that they can save these type of merchants money, making their lawn a little greener, so to speak. It is especially gratifying to the representatives that merchants who have experience accepting credit cards are finally aware of all the relevant fees – many of which may not have been disclosed when the original account was opened. However, during a discussion with credit card processing veterans, the given merchant account agents not only want to emphasize the savings that will result by switching to their program, but the incredible responsive service that the merchants can expect in the future. This is welcome news for many who have had unpleasant experiences with their current credit card processing provider.

Despite the fact that the company in question can convert many merchants who errantly chose another merchant account company, there will exist other business owners who will remain on the fence -- uncertain whether to switch or not.

One consideration that may be factored into the decision is whether a termination or cancellation policy is in effect. Many companies institute a rather severe penalty for canceling an account (many charging a base amount plus missed revenue from lost processing months) that can even surpass $1,000. Will the savings realized on a new account, in time, make up for this penalty? (Please note that many credit card processing providers do not have any termination fee.)

Merchants may also need to weigh whether it is worth their time setting up shop with another credit card processing company. A new application has to be completed, and assuming successful underwriting determination, a retail merchant then has to have his/her credit card terminal enabled to accept transactions from the new processor via a download process. An Internet merchant will have to alter html coding to post transactions to a new vendor.

While the allocation of time to switch credit card processing providers is generally modest (i.e., should not take more than several hours, and often, much less time), it still may be overwhelming for the merchant who feels under tremendous time constraints. Recently, I spoke with a harried business owner who does about $100,000 in credit card processing volume per month. He asserted that he has no time to thoroughly evaluate our proposal but will find some time if we save him at least $100 on a monthly basis. Needless to say, we are examining his statement with a fine, too comb, certain that we will provide this savings to the merchant and that he will find the time to switch to our credit card processing program.

Even despite any resultant credit card processing savings, a merchant may also place importance on the relationship that he/she has with the sales agent. One of our clients emailed us in distress over a Holiday weekend and we were able to solve a problem that appeared insurmountable to the merchant. She feels indebted to us (she need not feel this way) and always lets me know that, “We have a customer for life.” So even if she is presented with a competitor’s quote where another agent claims that she can save money by switching, she will politely decline the offer. As one agent sagaciously stated, “People buy from people, not processors.”

Merchants need to feel comfortable that their rates are extremely competitive, that they have someone to turn to (after the account … and especially in times of crisis) to answer questions and rectify problems, and that they are receiving great value for their processing dollars. When a merchant is happy with their merchant account partner, there is no need to look in another direction. Conversely, if a merchant experiences nothing but consternation with his/her current credit card processing vendor, then the merchant needs to look elsewhere to satisfy their credit card processing needs.

Andy Lax is an Account Manager with IntelliCollect, a credit card processing vendor that offers an affordable merchant account with excellent customer support. Those currently processing credit cards with another vendor would be very wise to examine IntelliCollect's program, comparing rates. Please see the following site, http://www.intelli-collect.com to reduce your credit card processing expenses.