One of the most frustrating things imaginable to businesses who utilize merchant services is when they are faced with paying a higher percentage rate on their credit card machine use than was advertised or promised. At best, this is misleading. At worst, this is a common industry bait and switch pricing tactic. Why is it that so many merchant services providers charge more than the rate promised?
The Steadily Upwards Creeping Introductory Rate
Many times, banks and merchant services providers quote a low introductory rate to make the initial sale with businesses, only to turn around and slightly increase rates again and again, month after month, year after year. These providers hope that either their merchants will not notice, or will not be bothered to change services once they’ve already signed up for one. This is a common occurrence, and many businesses have been victimized by this coercive business practice.
What to Do?
What can you do about it? Well to start, if you have been with the same merchant services provider for a few years and have noticed your prices slowly creeping up, you should contact a reputable merchant services provider and have them perform an account analysis on your most recent statement. They should be able to identify where you have been overpaying, or where your current provider’s policies have put you at a disadvantage, and should be able to help bring more bottom-line profits back to your table. It doesn’t cost anything, and you could save hundreds of dollars a year!
Continue reading Why Are You Paying MORE For Merchant Services Credit Card Processing Than The RATE Promised?