Did you know that you don’t have to sign a contract in order to offer credit card processing? A lot of companies would like you to think contracts are your only option, but they aren’t. The reason for this is because many merchant service providers want to maintain control over their customer accounts, draining money from you rather than providing a solution that inspires your company to grow. Contracts allow them to keep you cornered with high processing fees, poor customer service, and little room to expand or grow. We’re here to call contracts on the carpet and educate our readers that there is another way.
The number one reason companies want to require contracts for their merchant services is to keep customers locked into high rates that they can’t get out of. This is not ideal for businesses that experience fluctuations throughout their lifespan and need flexibility to adapt as their company changes. Most business owners think this is their only option, which is why processing companies take advantage of their naivety. Signing a contract keeps you locked into a specific rate for 3 or more years, which is ultimately going to cost you more money than necessary.
Poor Customer Service
Unfortunately, entering a contract also prevents you from receiving the best customer service you deserve and need. Processing companies don’t have to prioritize contracted clients, because they’re not afraid of losing your business. Your success hinges on the ability to offer seamless credit card processing, and a customer service team who prioritizes your urgent needs as they arise. Stay away from contractual relationships with merchant service providers, or you may be frustrated not just by the high rates, but also by the lack of attention you’ll receive from their support department.
Having credit card processing capabilities is not just a tool for the present, but it’s an asset that will help you grow and expand as your company finds success. It’s important to partner with a processing company that has your best interest in mind and will adapt as your priorities shift. What works for your business today may look different a few years from now. Unless you want to pay an outrageous cancellation fee, once you’re in a contracted agreement, your ability to grow is stifled.
The bottom line is credit card processing contracts aren’t good for your business and there are alternative options you can choose instead. Before jumping into a long-term commitment with a provider who requires a contractual agreement, do your research and consider making a move that best suits the current needs and future growth of your company. If you need guidance in this area or just have questions that you’d like an expert to answer, let us know! We’re here for you.