For those of you who are familiar with us, we are strong believers in become a credit card processing companywith information so they can make knowledgeable decisions about credit card processing for their companies. All of the scare tactics and ghost stories have been told to us. We’re here to dispel some of the misunderstanding and gimmicks, hopefully educating you in the process. I’ll start with the bothersome telemarketers. They are hired by agents to make appointments. Your name is certainly on the “list” if you own a business. The automotive industry is hardest hurt.

The agents will inquire as to the industries they target for marketing or have expertise in. These telemarketers are reciting scripts as they assure you of affordable prices. I particularly like the ones that give you “wholesale” prices or claim they can cut your rates because there haven’t been any chargebacks. No “wholesale” rates exist. The exchange (cost) rates for Visa and MasterCard are available on their websites. Everyone pays Interchange (cost). The provider makes money from all of the “other” costs. Let me add that not all suppliers share a national database. On any merchant account, information belonging to one company cannot be seen by another. Therefore, I advise hanging up the phone if you are speaking with someone who asserts otherwise. It can be difficult to understand the fees a service levies. Agents who sell you a merchant account aren’t necessarily telling the truth; rather, they’re not DISCLAIMINING all the details. READ the small print, then! All prices must be disclosed in every contract by law, but the issue is whether you know what you’re reading and looking for. (Of learn more about the two alternative approaches to pricing merchants, please visit my earlier blog on our website.) Offering a reduced rate is one of the best strategies. It looks fantastic. The business owner signs the agreement assuming that’s how quickly all transactions will go through. Wrong! Not all of the rates are being disclosed.

There are three rates that must be revealed. Request them!

False: Credit and debit cards swipe equally. Debit transactions are less expensive than become a credit card processing company. Agents may be dishonest in this situation. Unfortunately, you probably won’t witness the low swiped debit rate that they will “sell” or advertise. You must be on an Interchange pricing plan or have your account set up for debit pricing in order to get it. This only differs if the agent is charging the merchant less than cost. To make up for the loss, the agent will often increase the downgrade fees or charge you additional fees if this happens. There aren’t many people I know that will give something out for free.

My contract’s rates and fees are locked Wrong! The providers must make adjustments to reflect the increased prices of exchange. They have the right to raise your rates and fees under the contracts in order to account for those increases. Other prices that rise may also be passed down by the providers, such as statement fees and PCI compliance costs. Like any other business, they pass on the costs of doing business. In the spring and fall, exchange rates typically fluctuate. Prior to an increase, your credit card company should let you know in your statement. So read what you’re saying!

When my contract term is up, my agreement becomes month-to-month False! Some agreements automatically extend for another term. Normally, if you are in a contract, you must offer 30 days’ written notice before you wish to discontinue your subscription to the service.

I receive better rates and services from my bank False! Don’t think a large bank is better, more moral, or less expensive. The majority of large banks outsource all of their services, which may lead to greater costs.

When my lease is finished, I’ll be the owner of the equipment. Wrong! First, avoid signing a lease unless you are seriously strapped for cash during your startup period! In a lease arrangement, you are obligated to make payments for a set period of time (usually 3 to 5 years), after which you must pay a buyout or return the equipment. The buyout is approximately equal to what the machine originally cost. A gadget that probably only cost a few hundred dollars in the beginning can wind up costing you thousands of dollars.