Trap 1: A Verbal Quote!
Most of the time, a verbal quote only includes the rate, transaction fee, and monthly fee, which are just pieces of the equation. The rate usually reflects only the swiped rate or debit rate, and the salesperson often neglects to explain that if the credit card is a rewards card or a corporate card, of if the card is keyed-in or entered via the Internet, there is an additional charge. The actual wholesale cost of credit card processing is complex, with over 1000 different rates for separate kinds of cards, and for the many ways the cards are transacted, such as through a terminal, over the phone, or through a gateway on an E-commerce site. The salesperson presents only the swiped rate, transaction fee, and monthly fee in order to simplify the explanation (or maybe to snooker his prospect), and therefore close the sale. The added fees for rewards cards, keyed-in cards, and corporate cards are simply not mentioned. These added or “Hidden Fees” do not allow the merchant to make a genuine comparison to their current processor or to a competitive quote. So beware of verbal quotes, get your quote in writing, and demand that all the fees be listed in your written quote.
Trap 2: Termination Fees!
Many times the salesperson says he does not have a termination fee, but half way through a three-year contract (and you are thinking of switching again because you were originally lied to about the rates), you discover that in addition to the zero termination fee, there is a huge penalty called Liquidated Damages. It was never mentioned upfront, but was buried in the 30- page terms and conditions in very fine print, that you never read. A Liquidated Damages fee is a penalty which charges you all the fees you normally would have paid through the end of the contract term, if you didn’t switch. In other words, liquidated damages force you to pay all the fees through the contract term whether you use their service or not!
Trap 3: Rate and Fee Increases!
Ninety-nine percent of credit card processors raise rates and fees at least once a year, and many times more often. You are given notification in small print on the bottom of a merchant statement, which hardly anybody notices or reads. Electronic Money Company is truly unique in that WE NEVER raise our merchant’s rates or fees! As a result our merchants stay with us for the life of their business. Sometimes they call us up and ask us to look at a quote they received from a competitor. We ask to see it in writing. If it is truly a lower rate, we will match it GUARANTEED! Rarely has this occurred, but we honor it none the less. Of course, we also point out that the other company would likely raise rates during their contract. Our merchants already know that we have never done that!
Contact us to get an honest quote!