Switching credit card processing companies can be a nightmare for many different reasons.

Some of the main reasons people look to switch credit card processing companies are because of issues with pricing, equipment, customer service, or reporting.

Below are some examples in the credit card processing industry that showcase the headaches merchants and businesses have endeared when trying to switch credit card processing companies.

Switching to Obtain Savings

The most common reason merchants switch credit card processing companies is to “save” on their credit card processing fees.

This sounds like an easy solution to lower your credit card merchant fees but it rarely ever is. 

If you area  decision maker, you have been called and approached by credit card processing companies claiming that their credit card processing service is the best.

These credit card processing sales representatives will tell you anything they think you want to hear in order to obtain your business.

They will throw out large savings numbers in order to entice a switch over to their company.

They will talk about hidden or added merchant fees you are being charged, or they will claim that there is some type of credit card processing error that will be fixed if you switch services. 

Issues With Switching Credit Card Processing

• One main problem is that when you switch credit card processing companies in order to obtain the savings that the credit card processing company promised, the majority of the time the savings are not even there.

You may have been paying 3% before making a change and then once you switch, you still end up paying that 3% with no savings to be had.

There are even times when you switch credit card processing companies and end up paying MORE than what you were paying previously.

• Another issue is that you may see savings for the first three to six months until the credit card processing rates start to creep up month by month.

The credit card processing companies tend to increase pricing every quarter to meet financial expectations from board members.

The more a credit card processing company can manipulate your account, the more that credit card processing company is going to profit. 

Switching for Upgraded Technology or Software

Another common reason for switching credit card processing companies is to upgrade to new equipment.

This happens most commonly in restaurant credit card processing and in the e-commerce credit card processing industry.

There are many credit card processing companies coming out with new and improved POS systems and gateways to improve the way you accept credit cards every day. 

Credit card processing companies are going to sell you on their product and possibly even try to convince you that you should be paying more for their service than another.

There are certain situations where this is 100% true and the new technology will benefit your business, but that is a very rare case.

Whether you need a system upgrade or not, it is a very difficult transition to make. 

Restaurants or retail stores are going to incur a large upfront purchasing cost when purchasing new equipment and installation.

Owners will need to take time out of their day or hire someone in order to plug in the menu or inventory into the POS system.

Employees will also need to learn how to use the system in order to make sure that the process runs smooth while a customer is interacting or paying for a product.

eCommerce companies trying to make a switch to a new product are going to have to hire a tech team in order to assist with plugging in the new specifications to the back end of the website.

This also takes time and money in order to make sure everything is set up properly.

There can be many situations where this integration does not go smooth and businesses will lose out on customers purchases on their website because the shopping cart or payment portal is not working correctly.

Switching for More Transparent Reporting and Customer Service

Some business owners are sold on the fact that if they switch to a new credit card processing company their credit card processing statements will be easier to understand.

This is a common sell for credit card processing companies offering a flat rate.

The reporting on these types of credit card processing companies can be easier to understand, but the majority of the time will be more expensive.

Flat pricing is very expensive because they make that flat credit card merchant rate high enough to protect themselves from any high rate cards. 

Reporting

Other than flat rate pricing credit card processing companies, all credit card processing statements are very similar in the way they report the credit card processing fees.

It is just as confusing to understand as the next company.

The credit card processing statements are meant to be difficult to understand because it is easier for the credit card processing company to hide or increase credit card merchant fees. 

Customer Service

Customer service is also very similar from one credit card processing company to the next.

Some of the smaller ISO (Independent Sales Organizations) might assign a direct representative to each merchant account.

This can be beneficial because you have someone direct to contact with questions even if that representative is also making direct money into their pocketed based on how high they can set the price.

Typically the credit card processing companies that claim to have the best customer service use that as a sales tactic to charge a higher price.

Final Thoughts

The bottom line of switching credit card processing companies is that majority of them are exactly the same. They are expensive, deceptive, confusing, and difficult to deal with.

Try working out any issues with your current credit card processing provider before having to deal with the pain of switching to a new one. I

f you do switch, the same issue will most likely roll over to the next company.