Switching Merchant Account Providers

There are times that businesses apply for and get approved for a merchant account with a particular bank, and then later decide they want a different provider.  There are many reasons why this might occur- sometimes the provider doesn't offer good customer service, or maybe they've placed a limit on the dollar amount or number of transactions that can be processed in a given month.  Whatever the reason, businesses should realize that it is definitely possible to switch merchant account providers, and that it can often be done without incurring high expenses.

Switching POS Merchant Account Providers

If you have a retail store or other establishment in which you process cards in a swipe environment (credit cards are physically present and you swipe them through a terminal to process), switching providers will involve a few steps.  First, if you are leasing the equipment from the provider, you are going to either need to purchase it from them or return it.  Weight the costs of returning versus purchasing to determine which is a better option.  If you decide to return leased equipment, wait until you've selected and set up an account with a new provider to ensure no interuption to your ability to accept credit card payments at your business location.

When you've selected a new provider of merchant accounts, you can decide whether to lease or purchase the necessary equipment from them if you don't already have it.   They'll program it and set it up before they ship it to you.   Make sure the new provider can work with your existing equipment if you already have it.  Often, it's just a matter of reprogramming the terminal equipment so it will work with a new merchant account provider.  (It is typically better to purchase the equipment than to lease).

Switching Internet Based Merchant Account Providers

If you've decided that you need to get a new credit card processing provider for your web based business, the switch is less complicated. as there is no need for physical equipment  Most companies are able to provide a turn-key solution and even work with the payment gateway you currently use. 

Some providers will charge fees for terminating the account with them.  Check your account agreement or contract to determine what those fees will be, or call and speak to a customer service representative if you aren't sure. Once you know what the fees are, you can shop around for a new internet based merchant account provider.  Some providers will consider paying your cancellation fees with the other provider in order to gain your business- don't be afraid to ask.

When to Change Providers

If the fees charged by your merchant account provider seem to change daily, or they are more than you expected when you signed up for your account- you should look for a more reputable service.  If the equipment or processing software the provider gave you doesn't work every time you swipe a card or enter customer details, you should consider looking for a more reliable company.