American Credit Card Processing Corp

The pitfalls of deciding on a new merchant account provider on price alone

Choosing a new merchant account provider based solely on price can lead to several pitfalls:

Hidden Fees: Low advertised rates may hide additional costs like monthly fees, statement fees, PCI compliance fees, and chargeback fees, which can add up quickly.

Poor Customer Support: Cheaper providers may lack reliable customer service, leaving you without help when issues arise with payments or equipment.

Limited Features: Lower-cost providers may not offer advanced features like fraud protection, reporting tools, or integration with your POS system, which can limit business growth.

A la Cart features: Lower-cost providers utilize costly 3rd party vendors for features like apps for smartphone or tablet, payment link, virtual terminal which can make the total monthly costs higher with additional fees and logins, reports & calls to customer service.

Long-Term Contracts: Some low-cost providers may lock you into long-term contracts with hefty cancellation fees, making it difficult to switch if you're unhappy.

Unreliable Processing: Focusing on price may mean sacrificing reliability or uptime, potentially leading to lost sales during processing downtimes.

It's essential to consider the overall value, not just the upfront price, to avoid these common issues.

Mx Merchant will make your business more Efficient, more Effective and more Profitable

I offer a complimentary 30-minute discussion to walk through what that looks like for you.

www.calendly.com/jsaluk

Is your merchant account a Trick or Treat?

In the credit card processing space, over-promising and under-delivering is a common issue. Here are a few examples:

1. "Lowest Rates Guaranteed"

Promise: Providers often advertise the lowest possible processing rates to attract businesses.

Reality: The "teaser" rate only applies to a small percentage of transactions (like debit cards), while other transactions are processed at much higher rates. Hidden fees for things like PCI compliance, monthly service, or batch processing can quickly add up.

2. "No Contracts"

Promise: Some companies claim to offer "no-contract" or "month-to-month" agreements.

Reality: In fine print, there are often early termination fees, or you may be locked into a lease agreement for POS equipment, which can last years and be expensive to break.

3. "Free Equipment"

Promise: Some processors offer "free" POS systems or card readers.

Reality: The equipment may be free upfront, but merchants often pay higher transaction fees or are tied to a long-term contract with costly terms. Leasing fees may also apply, turning the "free" equipment into a financial burden over time.

4. "Instant Approval"

Promise: Providers promise quick approvals to lure businesses.

Reality: While initial approval may be fast, issues like withheld funds, account freezes, or underwriting delays can occur later, especially for high-risk businesses, causing disruption in cash flow.

These tricks can lead to significant frustrations, making it important for businesses to carefully read contracts and ask detailed questions before signing up.

Mx Merchant will make your business more Efficient, more Effective and more Profitable

I offer a complimentary 30-minute discussion to walk through what that looks like for you.
www.calendly.com/jsaluk

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