Businesses primarily cancel their credit card merchant account because they no more have to accept charge cards or since they are switching to a different provider that has offered them lower rates and costs. When a merchant account is cancelled just because a business no longer needs to accept charge cards, it usually implies that the company has been dissolved and there's pointless with an account whatsoever. However, cancelling a free account to change to a different provider that promises lower rates might be more trouble than it's worth - literally.
Seek advice from your overall provider before you cancel your merchant account Competition is the driving force behind our prime merchant turnover that exists in the payment card industry. Any small business operator can attest to the high frequency where they're approached with a credit card merchant account salesperson promising the very best rates and fees. With so many offers it's difficult not to investigate several, and many business people do just that. However , they change to the new account without conferring with their existing provider.
Merchant service providers want to retain clients. It is a lot easier to allow them to keep an existing client than to acquire a brand new one. This is also true from a merchant's perspective. It is a lot simpler to have the rates and fees lowered on your existing credit card merchant account than it is to cancel the account and open a replacement.
Don't look at the constant flow of new credit card merchant account quotes as an annoyance, instead, view them as a helpful reminder. Each time you're offered credit card merchant account rates that are less than the rates on your existing account, send these to your provider and ask for they match or beat the greater quote. If you are inside a contract, many merchant account providers are prepared to lower rates and fees in order to retain your company.
By giving your overall provider an opportunity to match quotes that you receive, you're obtaining the advantage of the lower rates without the hassle of cancelling your exiting merchant account and opening a new one.
Avoiding cancellation fees when switching merchant accounts So what happens if your existing provider won't match or beat the rates of a competitor? The first thing to do is determine whether you're under contract, therefore, just how much the cancellation fee is to close your credit card merchant account. If you are looking at a sizable fee, there are a couple of things that you can do to avoid paying it entirely.
The very first is to see the terms of your contract. Most cancellation fees are void if a merchant company raises rates or fees inside the contract period. In case your rates have increased since you originally signed the contract, or because the last time the contact auto-renewed, you might be able to cancel your credit card merchant account without having to pay the fee.
In the event that fails, attempt to pass the cancellation fee along towards the new provider that's attempting to earn your business. Particularly if you're processing a decent amount of credit cards every month, it might be worth it for that new provider to pay the right path from your existing account. Believe it or not, this is something that happens on the fairly regular basis. Most providers won't advertise that they may pay cancellation fees to their competitors, however they will do what they can to obtain your business if the numbers work for them.
If everything else fails� If you are existing provider is unable or hesitant to meet lower rates and costs promised with a new provider and also you can't avoid the cancellation fee, ensure that it's worthwhile to change accounts. Crunch the numbers to determine when the lower rates and costs will save you enough to negate the out-of-pocket expense of the cancellation fee.
Make sure the new rates are really better The ultimate and perhaps most significant indicate cover before switching merchant accounts, would be to make sure that the rates and fees promised with a new provider are really much better than what you curently have. Especially on a tiered pricing structure, credit card merchant account rates aren't always what they appear to be. The content, "Merchant Account Rates: Tiered VS. Interchange-Plus Pricing" in the MerchantCouncil will help you to get a better understanding of this topic.