Don’t Sign Until You Understand the Fine Print
Payment processing is a serious choice for any business, but many merchants pay attention only to processing rates while ignoring their contractual obligation. Even though pricing matters, the terms of your merchant service agreement can affect your business for years to come.
Think about all the details of the agreement before you sign it. It is better to ask several questions in advance to prevent problems and hidden costs.
Know the Length of the Agreement
The contract term is one of the first items to consider. While some providers have month-to-month contracts, there are others that require a long-term commitment.
The next important item to find out is whether the contract automatically renews. Knowledge about cancellation conditions will give you more freedom.
Understand All of the Fees
Processing rates are not the sole determinant of your cost structure. Check the contract for fees for monthly services, PCI compliance, payment gateway charges, equipment fees, and all other recurring costs.
Feel free to inquire from your processor if you have any question regarding a particular fee. An ethical payment processor should always be ready to explain all its fees.
Ask About Equipment Ownership
In case your contract requires the use of terminals or POS, find out whether you are going to buy or lease such equipment. The ownership of your hardware will give you flexibility in the future; at the same time, leasing could turn out to be less cost-effective.
Evaluate Customer Support
Sometimes, problems may occur outside the normal business hours. Inquire what kind of support you would get and how fast you would be assisted in case you encounter any problem in the payment system.
Support makes a big difference, especially if your business relies on payment processing everyday.
Choose a Partner You Can Trust
Merchant service agreements should not be ambiguous or have any surprises. Some of the finest payment processing companies are those who are upfront with their prices, have easy-to-understand agreements, and build lasting relationships with their customers.
Investing a little extra time to go through your agreement will pay dividends down the line. Having an agreement that is clear, reasonable pricing, and reliable service are just as essential as having competitive processing rates for merchants.
