Got a Contract? Here’s Why You Can Switch Payment Processors Anyway

If you’ve had it with high rates, hidden fees, and customer service that runs and hides when a problem arises, you might be thinking about switching to a new credit card processor. You call up your current processor, finally get ahold of the elusive support department, and find out that you still have several months left on your current processing contract! What to do?! Never fear, you don’t need to suffer through another day with a payments partner who has failed you. Here’s why a contract isn’t a death sentence for your plans to jump ship.

Do Your Research

Choosing your new credit card processor wisely is key to the whole undertaking. Review your new offer carefully and make sure you completely understand what you’ll be paying and when. Ask to see sample statements and make sure you can read and understand every line item. Ask questions, ensure you like the answers, and especially be certain you’ll actually be saving money in the long run. With a processor like 360 Payments who doesn’t believe in junk fees and hidden rate hikes after a certain length of time, you can feel confident that what you see is what you get.

Do the Math

It’s true that if you’re still under contract with your current processing provider you’ll probably have to continue paying minimum account fees each month – with possibly a penalty thrown on top for low volume – even if you stop processing. But don’t be so quick to let that stop you. If your new processor will save you a bundle every month, which they should if they’re stripping away all the junk fees you’re used to paying, you’ll still be saving money even though you’re paying two companies! It’s crazy to think about, but do the math. You can even use this as a bargaining chip with your new processor – insist that they have to save you enough to make it worth it for you to walk away from your current contract and incur the fees associated with that decision.

Leased Machine? No Problem!

You’ve settled the issue with your old processing contract and are satisfied that you’re going to save money even while you pay it off. But what about the terminal that you lease from your processor? You’re still paying for it for another few months – doesn’t that mean you’re stuck till then? Not so fast. As with your monthly processing contract, do the math. In many cases it is cheaper to just pay the monthly fee and let the machine sit idle until the contract runs out – if your new processor is saving you enough money. Don’t be afraid to explore your options!

Make Sure You Cancel

Getting set up with your new processor is fun and exciting – they’ll roll out the red carpet for you and likely contact you several times to make sure you’re happy with the way everything is going. Your old processor, however, will take the opposite approach. They’ll fade into the background and hope you don’t even notice them so they can keep collecting their monthly fees after you forget to cancel your service. Find out when your contract is up and circle that date on your calendar in red. When it comes, contact your old processor and cut the cord. Make sure to get everything in writing so there’s no question of when you stopped working with them (and when you stopped owing fees). If your new processor is worth their salt, they’ll help you with the cancellation process, too.

Find a Partner You Trust

Are you sensing a theme? The keys to a successful payments processing relationship are trust and transparency. If your new processor is truly looking out for your best interests, they’ll figure out how to save you money even if you’re still tied to a contract with your old processor. Choose your new partner wisely, and look for a company that values you as more than just a monthly account statement. Give 360 Payments a try. We’re different, and we’d love to show you why. Give us a call at 1-855-360-0360 or drop us a line on our website and we’ll explain how we do business.

PS – While we’re busting myths, it’s time to rethink how you feel about American Express. Here’s why.

PPS – Mobile payment apps are here to stay. Learn why.