If you have your own business, you most likely have gone through the annoying and frustrating process of choosing a credit card processor (also called a merchant account provider) in order to accept credit cards. Since there is not a lot of information out there on how to choose a processor, a lot of busness owners get ripped off with tricky rates, confusing sales people, and contracts that are impossible to understand. Here are some tips to help guide you in your search:
1) No cancellation fees allowed
Make sure to read the fine print from your credit card processing contract. You may be surprised to find a cancellation fee from at least $250 to several thousand dollars. This fee is a way of guaranteeing your loyalty to the processor, regardless of your satisfaction with their service. The good news is that getting rid of this fee should not be a problem: most salespeople have the authority to waive it. To avoid this problem, talk to the salesperson and make sure the fee is waived in writing either in the contract or as an amendment. For a beginning business, making sure to have the no cancellation fee clause is a great hedge in case anything goes wrong.