If you own an electronic commerce business and are always searching for reliable payment processing companies, you may be thinking about changing to a new processor at some point. Whether you are looking for better customer service or want to reduce processing fees, we have compiled a checklist about switching merchant service providers to make the process as seamless as possible.
Reasons why merchants may decide to switch providers
Sometimes merchants find that it is time to change the provider of the merchant solutions they have been receiving. The reasons for this vary and could be any of the following:
- Frustration with the services the merchant is receiving.
- Confusion over service fees.
- Increasing costs.
- Locked into a lengthy contract.
- The provider does not match the needs of the business.
What to consider when switching merchant service providers
In order to find a merchant account provider that perfectly suits your business needs, including cannabis merchant accounts, make sure that you follow the checklist below.
1. Check your previous contract and any agreements
Some of these documents may include a clause about cancellation penalties, as well as early termination fees. Even if you are sure of your contract or agreement, please double-check them before you proceed with switching from one provider to another.
2. Make sure the new provider offers the exact options you are looking for
One of the most important considerations is to find out which provider offers the best terms for your business. Before switching between processors, make sure you review all the information about the new company and assess how the offered options can help your business. Particular attention should be paid to credit and debit card processing. We recommend contacting your card issuer to ask whether they will allow a potential new merchant account provider to integrate into their systems.
3. Find out what is required to switch to a merchant account provider
The next important step is to familiarize yourself with the requirements of the new provider. Please, take special care to learn what is required to switch from one payment processor to another.
3. Test a new company before actually switching to it
High-level merchant services providers should give their potential clients trial periods during which they can evaluate whether the provider suits their businesses’ needs. Some of the companies do offer such an option to newcomers, so try it.
4. Don’t forget to cancel your previous merchant account
Some people may be wondering, “Can a merchant account provider (sometimes called a merchant processor) continue to charge me if I cancel the contract?”. Yes, if you didn’t follow this procedure properly. In order to close your merchant account, the best option is to contact the provider you are changing from and go over the cancellation process directly with them. The procedure is usually quite standard. Also, be sure you receive an email or fax confirming that your account is being canceled.
Final thoughts
These were five key steps to consider when searching for a new merchant account provider. Keep this checklist in mind when you decide to switch your merchant service provider in order to choose the best option for your company.
