3 Dangerous Payment Processor Practices That Your Small Business Needs To Know

November 17, 2015

Banks usually are ill-equipped to help, and you should trust a processor.
Just because a processor is in the business, doesn’t automatically mean they’ll have your best interests at heart either.
Processors can be deceitful and have a lot of shady practices that can leave business owners feeling like they’ve been raked over the coals.
So today we’re pulling back the curtain on our own industry, and share the most dangerous things to watch out for when selecting a merchant processor.

They try to con you into leasing

We’ve talked about leasing equipment versus owning it in another blog.
But outside of costs, many processors will try to lease rather than sell. And you should be wary of trusting them with your business.
Well think about it this way, leasing costs more in the long run, but it it’s much easier for companies to sell more leases than full equipment.
The ugly truth is, leasing processors are common because they are more profitable for salespeople.
These types of processors have a high turn over for clients and focus all their attention on acquiring new customers rather than maintaining them.

They try to get you to sign contracts

A contract for a basic processing lease is an automatic red flag.
And banks are not the only ones who engage in contracting customers. Contracts are usually only necessary if you’re a high-risk company or are having the processor invest a lot of extra money they normally wouldn’t.
It basically says “We’re not confident in our ability to keep you as a customer, so we’re going to squeeze what we can out of you.”

They outsource you

Some processors will cover some of the services but will end up giving different numbers to different companies for any tech questions.
Even worse, sometimes the person you interacted with is only a salesman, and they’ll have no idea how to read your statement. When you get unknown fees or have a card fail to process, you’ll call them for answers and they’ll have to refer you to someone else.
These are the most common practices you should watch for when shopping for a processor.
Not everyone will have your businesses needs at heart, so look for a personalized company who will be interested in your company's growth as well as their own.

Work with a processor that has your best interests in mind

Take a look at our services, and see what others have said.
If you’d like to learn more about what our company can do for your business, or would like a free consultation, contact us here.