Changing your merchant account provider can be relatively painless if you decide to go with the right company. Getting the best rates in the business can be especially important in an industry that might be considered “high-risk,” such as electronic cigarettes, adult entertainment, or a collection agency. In order to change credit card processors the right way, you should keep a few things in mind such as:

  • Cancellation fees for current services
  • Returning any rented equipment
  • Weighing the benefits of switching high risk merchant account providers

Current Contract

Taking a look at your current contract can tell you a lot about what you can expect to happen if you decide to cancel it. Some merchant account providers, especially high-risk ones, will charge an early termination fee. This fee can end up costing you hundreds or even thousands of dollars, which you really cannot avoid paying.


In some cases, Painless Processing would be able to take care of some of your early termination fee for you, in exchange for you doing all of your credit card processing through us. This can be a great deal, especially since there is a lot of fee variance among high risk merchant account providers. Because there is such a high risk involved in some of these transactions, fees are going to be higher across the board when compared to traditional merchant account providers. With these higher fees comes the ability to work with you to get you on a plan that would work best for you and your business.


Rented Equipment

Some credit card processing companies provide you with a handheld terminal for you to use in your place of business. When you end your contract with them, especially if you do it early, you may need to immediately return any rented equipment. Failure to do so can result in that company charging you the full value of a brand new machine.


What you need to keep in mind here is that you do not want to have to be without a terminal for a few days. When you decide that you want to switch processors, sign up with the new one first in order to get everything going, then, once the equipment has arrived, you can start running transactions under the new system. This gives you the freedom to call and cancel, then immediately send back any rented equipment, leaving you with no downtime.


Benefits of Switching

Deciding whether or not to switch merchant account providers comes down to your ability to save more money, or have less trouble with one as opposed to another. Shopping around and looking for which processors have the best per-transaction rate is a good way to start doing this, but it is also helpful to keep in mind that, depending on the size of your average sale, a smaller standard transaction fee can help save you even more money in the long run.


Though the amount of money that you can see on paper which you will save with one processor over another is perhaps the most important part of your business, you may want to think about what is best for you as the owner. Having to deal with a lot of chargebacks, fraud, and refunds can be time consuming and extremely annoying. By going with a merchant account provider that understands why these things happen, and does their best to prevent this, you may end up saving yourself a lot of headaches in the future.


In order to actually switch your processing over to another provider, you need to sign a new contract with a new vendor. This process usually only takes a day or two, perhaps less, and the equipment can be at your business within days. If your current contract is up, it may be an even better time to switch since you will not have to pay any exit fees.


Give Painless Processing a call for your credit card processing needs, as well as additional services such as ACH processing, Check 21 processing, and plenty of other financial services tailored to those in high-risk industries.


Contact an Expert to Change Your Merchant Account Provider