Businesses primarily cancel their credit card merchant account simply because they no more have to accept charge cards or since they are switching to a different provider which has offered them lower rates and costs. When a merchant account is cancelled just because a business does not need to simply accept credit cards, it always means that the company is being dissolved and there is pointless with an account whatsoever. However, cancelling a merchant account to change to another 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 power behind the high merchant turnover that exists in the payment card industry. Any small business owner can verify the high frequency at which they're approached with a merchant account salesperson promising the best rates and costs. Because of so many offers it's difficult not to investigate several, and many business owners do just that. However , they switch to the brand new account without consulting their existing provider.
Merchant providers want to retain clients. It's a lot easier for them to keep an existing client than it is to acquire a brand new one. This is also true from a merchant's perspective. It's a lot simpler to possess the rates and fees lowered on your existing credit card merchant account than to cancel the account and open a replacement.
Don't look at the constant flow of recent credit card merchant account quotes being an annoyance, instead, view them like a helpful reminder. Every time you're offered credit card merchant account rates which are lower than the rates in your existing account, send them to your provider and request they match or beat the greater quote. If you are in a contract, many merchant account providers are prepared to lower rates and costs in order to retain your company.
By providing your existing provider an opportunity to match quotes that you receive, you're obtaining the benefit of the lower rates without the headache 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, and if so, how much the cancellation fee would be to close your merchant account. Even if you're looking at a sizable fee, there's a couple of things that you can do to avoid paying it entirely.
The very first is to read the terms of your contract. Most cancellation fees are void if your merchant company raises rates or fees inside the contract period. In case your rates have raised since you originally signed anything, or because the last time the contact auto-renewed, you might be able to cancel your merchant account without having to pay the fee.
If that fails, try to pass the cancellation fee along to the new provider that's attempting to earn your company. Especially if you're processing a decent amount of credit cards every month, it may be worthwhile for the new provider to pay the right path from your existing account. Believe it or not, this is something that happens on a fairly regular basis. Most providers won't advertise that they'll pay cancellation fees for their competitors, however they is going to do the things they can to obtain your business when the numbers work with them.
If all else fails� If you're existing provider is unable or hesitant to meet lower rates and costs promised by a new provider and also you can't steer clear of the cancellation fee, make sure that it's worth it to change accounts. Crunch the numbers to figure out if the lower rates and fees could save you enough to negate the out-of-pocket cost of the cancellation fee.
Make sure the new rates are really better The ultimate and perhaps most important indicate cover before switching merchant accounts, would be to ensure that the rates and costs promised with a new provider are really better than that which you already have. Especially on the tiered pricing structure, credit card merchant account rates aren't always what they seem to be. The article, "Merchant Account Rates: Tiered VS. Interchange-Plus Pricing" in the MerchantCouncil will help you to obtain a better knowledge of this topic.