Today we wanted to cover some of the struggles that merchant’s often encounter when dealing with generic, quick and easy merchant service providers. This includes big box processors like PayPal, Stripe and Square. While these solutions are often tempting for their simple, flat-rate pricing, quick sign ups and the perceived reputation that comes with being a billion dollar corporation.
The Issue with One Size Fits All Payment Processing
From our previous description, it might seem like a no brainer to use a generic processor. However, there are some important facts that you need to be aware of before signing up with one of these services. These are things that many merchants do not know of or experience until their account is forcibly terminated, leaving them without processing and funds held, without access, for weeks.
Simple Flat Rate Pricing
Many of these big box processors offer a flat-rate pricing to give the appearance of being simple and easy to use. You will often see pricing around 2.70% – 3.50%, which, if you’re a business only processing a thousand dollars a month, this might not seem too bad. However, these prices are significantly more than what you can get by working with a more traditional payment processor.
Many businesses that have switched from these generic processors report saving 50% of their total processing fees. Without knowing these facts, many merchants fall into the “simple must equal good” mindset trap. Depending on your business type, volume, processing history and credit score, you can be paying as little as 1.49% with a traditional credit card processor.
Quick and Easy Sign Ups
While it may be tempting to hop on a website, click a few buttons and get instantly approved”, there are, yet again, a few things that you need to be aware of before taking the plunge. On the surface, it might sound like a good deal. However, when it comes to merchant services, trading accuracy for speed can lead to your business suffering in the end.
During this “instant approval” process, you will gain access to your “account”. But, you will quickly discover that your account is not actually able to be used to process any transactions. You’ll be forced to jump through a series of hoops to get your account verified before you can even begin using your account. This can take some time depending on your volume, industry and business location.
Obviously presenting documentations is part of getting approved for credit card processing through any payment processor. However, it is a great example of bait and switch. They make you feel like you saved a bunch of time by “instantly” getting an account, then turn around and ask for this, that and the other. A good payment processor should know your business type, tell you up-front what will be needed and give an accurate estimate for the account approval.
Perceived Reputation VS Reality of Customer Service
It is true, most people have heard of Square or PayPal by now. They are very large companies, with a huge bank to push their name in commercials and ads. They tout ease of use and simplicity. However, something that many businesses owners might not think of until they have a bad experience is; customer service.
You would think with PayPal, Stripe and Square all being billion dollar companies with tens of thousands of merchants, that they would have the basic aspect of customer service down pat. Well, no. Their customer service can often leave you waiting on hold for hours, transfer your call to overseas call centers with little training or just not be available. While stories differ from one to another, you can find hundreds of examples of support horror stories online.
It might not be on the forefront of your mind while shopping around for a processor, but it really should be. Otherwise, you could find yourself not being able to process payments, on a busy weekend, without warning or communication from your processor.
As one local bookstore found out the hard way, it happens with large processors more than you might think. If you want to learn more about the shocking story of a historical bookstore that experienced this abrupt termination of services, basically leaving their business dead in the water, we have the full scoop here:
Best Credit Card Processor Options
Choosing to work with an actual credit card processing company over a generic big-box solution can provide you business with many benefits. You can work with a more versatile payment processor with more banking connections, giving you more options for features, rates and supported industry types. With a company like Leap Payments, you also enjoy 24/7 US based support, lower rates and a dedicated account representative who can guarantee your complete satisfaction with the services.
If just cutting your processing rates in half and keeping more of the money your business generates everyday isn’t enough, you also get access to fully customizable programs like Cash Discount, Gift Cards, and Instant Funding. Cash Discount can actually make your processing fees entirely free. Instant funding will deliver your card transaction batches directly into your bank account within 3-5 hours. These benefits can be revolutionary to a company that has only worked with generic processing solutions before.
If you think working with a billion dollar company intrinsically means you will get better customer service, you would be surprised. All that revenue is not going towards hiring more and better support agents. At Leap Payments, we actually pride ourselves in our customer service and make it top priority to guarantee our merchants happiness. Our support team is always US based and available 24/7, including holidays.
Are You Ready to Pay Less AND Get More?
Thousands of merchants have already experienced the added benefits and reduced fees of partnering with Leap Payments for their credit card processing services. Accept all major card brands with the newest terminals, card swipers and online payment gateways. Remember, just because “it’s what everyone else uses” doesn’t mean that it is the smart choice for your business! Give us a call or complete the form below to get started with Simply Better Credit Card Processing.