When should you change merchant accounts?

When should you change merchant accounts?

Many businesses work hard to maintain solid relationships with their credit card processing companies. However, there may come a time when you need to change merchant accounts and end the relationship with your current credit card processing company. Here are some signs that you've reached the end of that relationship:

1. An increase in percentage rates for each transaction. When your per-transaction charges skyrocket, it may be time to find a new merchant account. Higher fees cut into your bottom line. Other credit card processing companies may be offering a much more attractive fee schedule, so do some research to find a better match.

2. High credit card processing equipment fees. If you've established a relationship with a credit card processing company and it's charging you high fees for renting equipment, it's time to shop around. Consider your options when you find that you're paying a lot just to keep your credit card processing machines and software running.

3. It no longer supports transactions with your bank. If your credit card processing company cannot integrate your transactions with your bank account, you may end up paying extra to authorize each transaction. Make sure your bank is part of the authorized network; if not, you should consider changing your merchant account.

4. Increases in monthly maintenance fees. Whether it's because of the economy or just slow business, some merchant account providers increase their monthly fees to recover costs. If you've been a longtime client and are now being charged more monthly fees, it may be time to switch to another credit card processing company.

5. Limited transaction reporting options. Some of today's leading credit card processing providers offer real-time transaction reporting, data export options, and can even make your transaction reports compatible with QuickBooks and other accounting software. If you don't have easy access to reports and financial summaries, you may consider switching to a merchant account provider that offers these extra benefits.

When you're using a credit card processing terminal or software as part of your business operations, keeping your merchant account in good standing is a top priority. However, high fees, limited transaction support and poor reporting tools may mean it's time to switch to a different credit card processing company or merchant account provider.

Published: June 22,2023