Bad Merchant Service Provider | Tips on how to avoid them
Posted by Alex Neir on Fri, Jun 29, 2012 @ 12:31 PM
With so many companies offering merchant services it easy to find numerous providers that are interested in only one thing - taking your money. Accepting credit cards is important for a business to be successful, however selecting the right merchant service provider is as important, if not more.
When shopping for a merchant service provider it is advisable to give yourself ample time to review and understand the account before moving forward. Rushing to get the account set up is the fastest way to lock yourself into an account and contract that is unfavorable. Make sure to read the entire agreement and ask questions on the items you are unsure about. A bad merchant service provider will be unwilling to spend the time necessary for you to feel comfortable with what you are signing up for.
Remember, you get what you pay for. The cheapest provider is usually a good indicator for a bad merchant service provider. No merchant service provider can attain wholesale pricing lower than another. That being the case, everything costs the same so the price charged should be about the same. If a provider is advertising rates significantly lower than the market rate they will make it up somewhere else. It’s simply a fact.
A bad merchant service provider will be pushy with the sale and inevitably try to lease equipment or charge a huge mark up. Never, repeat never, lease processing equipment, you end up paying upwards of 10 times the actual cost of the equipment. Check prices for equipment on the internet so you know about what the equipment should cost. If you are being charged significantly more, you have an idea that the provider is not acting in your best interest.
A good provider takes the time to help you understand what you are signing up for. The rates for the service are clearly outlined and explained. A good provider is willing to negotiate the rates so that you are comfortable with the pricing.
The merchant services industry is extremely competitive and in order to stay in business a provider must offer good service and rates. Make sure to check the age of the company you are considering. If they have been around for 10 years or more, chance are they are doing something right.