Why are merchants reluctant to switch their credit card processor?

In recent years, the credit card processing industry has hit a big wall. We find a lot of merchants getting scalped by their current providers, yet they refuse to switch. New business over the last few years has slowed down appreciably within our  industry. The reason for this is very simple. It is due to a loss of trust in credit card service providers, leading to a preference for the known rather than the unknown devil.

Contract Fees
Being forced to stay in your current contract due to cancellation fees

At Progressive Payment Solutions, we do a cross analysis between what you are currently paying and what you should be paying. Transparency and openness is our hallmark during this era when they’re hard to find.  We can always save you money, however the amount we can save you varies from merchant to merchant. No one is working for free however, so of course, there are associated upcharges. Offering reasonable upcharges is what separates an honest credit card service provider from a crook offering rapacious upcharges.

Another phenomenon is the fatigue associated with fighting for a tenth of a penny per transaction.  Merchants are tired of it. You could save a merchant a few hundred dollars  per year, but they won’t make the switch, due to the perceived time and effort

What merchants do not realize is that the switch is usually painless. Another issue is termination fee. When you sign a contract with your processor, make sure you are looking at all terms of the contract since termination fees are notoriously high in this industry. A few companies, such as ours have no termination fee and no fixed contract!   Old-fashioned as it may seem, we’d rather earn our keep, offering satisfied merchants lower rates.  Referrals do the rest.

Switch credit card processors
Having a conversation to switch credit card processors or not.

There is always a savings, it’s just a matter of how much. Are you, the merchant willing to make the switch?

It is no longer easy to just go door to door to sell our products. Lack of trust and dishonesty brought those days to an close. . Now it is all about networking and building trust with the person you will process for. In this era of squeezed margins, higher ticket businesses such as law firms, doctors’ offices, and large companies that accept credit cards offer a better target than smaller firms for many credit card processors.