Updated: Apr 23, 2020
As business owners how many times are we supposed to hang up on solicitors trying to lower our processing fees? Occasionally someone really great will come around, but you are busy right, so you don’t want to waste any time. Well, here are 3 ways to filter out and know what is actually in your cash register?
Price match guarantees are a joke
Processors that offer price-match guarantees do not offer their best rates first. It makes no sense to take excellent rates from one processor to another, simply to have rates matched. Doing so would require time
and effort for no benefit. A price-beat guarantee would be something worth advertising, but you are not likely to find a processor willing to offer that without a multitude of strings attached; particularly in the credit card processing world where pricing can be based a variety of different factors. As with any company you deal with, a fair, universal, transparent price is what all companies should strive to provide.
Your local bank is not the best option for credit card processing
Many local banks outsource credit card processing services to independent sales agents or organizations that work for large processors. You may think that by going to your bank you are going right to the source, when in fact, you are just adding another hand to the pot. Some banks will tell you that they will not charge you batch fees if you have your business banking and merchant services with them, they shouldn't be charging you to close your batch to begin with.
Ignorant, profit-driven sales reps can cost you money and/or ruin your business
Many credit card processors teach sales representatives just what they need to know to make sales, and the information is often vague, erroneous, and designed to maximize their commissions earned. This practice is of particular concern when dealing with larger processors that tend to have a high turnover rate in their inside sales force.
A sales representative is supposed to serve as a knowledgeable advisor that ensures your account is set up with the proper sales volume and ticket declarations, and that your business will be able to qualify for the lowest interchange rates. Make the mistake of getting your processing through an ignorant sales representative, and you risk a number of serious headaches.
Smaller, owner-operated independent sales organizations (ISO) often provide superior, more knowledgeable service than larger processors. The sales representative's knowledge will correlate directly with the quality of the service and cost of your processing.
Supposedly, these recommendations can be used for any financial product you are searching for, use them along with a strong filter and be sure you are getting a fair and equitable deal on your payment processing.