Switching Merchant Accounts
Last Updated on May 11, 2023 by Corepay
At a loss with your merchant service provider and wondering how to switch merchant accounts? You’ve come to the right place. In this article, we will break down everything you need to know about switching merchant account service providers.
It’s important to note that this is a relatively easy thing to do, but there are some factors to consider. At Corepay, we are an excellent fit for merchants as we specialize in e-commerce transactions and offer an anti-fraud suite with our partner product, CB-ALERT.
It’s an excellent time to consider switching payment processors as you search for more on this subject.
- Switching merchant’s accounts is straightforward
- Switching merchant accounts can lead to better approvals and lower processing fees
- If you are using a low-risk merchant service provider and you’re high-risk, you need to switch ASAP
- Always perform extensive research before switching merchant service providers
- If a rate sounds too good to be true, it probably is
When To Switch Payment Processing Providers
While switching payment processing providers is not always necessary; there is a time and place for everything. For that reason, we created this shortlist below that specifies when you should switch:
- Lack Of Customer Support: Customer support is an absolute must from a payment processing partner. It is common for merchants to switch payment processing providers due to the need for customer support/customer relationships.
- Lack Of Transparency: Unfortunately, credit card processing can lack transparency, and certain payment processors promise one price and charge you another. Your credit card processing statement should not be hard to read; it should be straightforward. Your provider should also be open and willing to explain any surprising or unclear charges on your statement.
- Fees are outrageous for your industry: Not all processors charge the same fees. When comparing rates, you understand what the going rate is for your industry. If you are a high-risk business, you may have to pay higher rates because of the nature of your business. That being said, there is a chance that you are being overcharged.
- Lack Of Security: Not all payment processors provide the same security at checkout. Be sure that your payment gateway has PCI level 1 security and that all transactions are secure.
- Low Volume Cap That Can’t Sustain Your Revenue Growth: Depending on your industry and volume, you may need a higher limit than what your current merchant account can provide.
- Expensive Equipment Leases: All companies will charge different fees related to equipment. Many carry vary considerably.
All of these are reasons for switching payment processing providers.
What To Do When Switching Merchant Accounts
When switching merchant accounts, we recommend the following:
1) Ensure Your New Providers Are Experts In Your Industry
There are two different types of payment processor specialties: low-risk and high-risk. On top of this, there are payment processors in the high-risk field that specialize and understand specific industries more than others are capable.
For example, at Corepay, we have over two decades of payment processing experience, primarily focusing on high-volume e-commerce, adult, online dating, and CBD.
2) Choose A Fully Integrated Solution
Choose a payment processor that can connect to a payment gateway of your choice. Many payment processors today should be able to offer additional services to sweeten the deal, such as chargeback management, or payment gateways.
3) Ensure You’re Not Breaking An Existing Contract
Be sure to look at your existing contract to see if you are locked in for a certain amount of time and the cancelation fee.
4) Make Sure You Switch Merchant Accounts Accordingly
Be sure when switching providers to ensure your risk level. You must choose a high-risk payment processing provider if your business is considered high-risk.
5) Choose A Proven Partner
Many processors can make claims that they are experts in your industry. Engage with whichever companies you are deciding between to see what each can offer and how well they understand your industry.
Why Choose Corepay For Your Travel Merchant Account
At Corepay, we genuinely care about your company and understand the importance of reliable payment processing. Therefore, to keep your fees as low as possible, we waive all application fees, annual fees, and set-up fees.
We offer the following to all of our clients:
- Highly competitive rates: We understand that providing you with the lowest possible processing fees allows your business to grow with optimal profitability.
- Fast approval times: Our quick approvals maximize the time merchants need to make sales. We can provide approvals typically between 24-72 hours.
- High-volume processing: Our payment gateway, Netvalve, is explicitly designed for high-risk companies processing high volumes.
- Multiple currencies: We understand the importance of being able to accept different currencies
- Security: We have a PCI-Level 1 secure payment gateway that is monitored around the clock and regularly tested for security issues
- Mobile payments: You can easily accept payments from customers paying with their mobile device
- Waived application, set up, and annual fees
- 24/7 customer service
Switching merchant accounts/payment processors is something many merchants will face at some point. Remember to take your time and only rush into a solution with due diligence, as it could be costly.
If you’re exploring new options, we invite you to fill out an application to find out what we can do for your business.
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