Do You Know What to Avoid with Merchant Services Contracts?

merchant service providers Bluffton SCWe have been selling Merchant Services for approximately one year. 

One of the first things that we learned when meeting with small business owners is that some had signed a lengthy contract and had leased processing equipment with no exit possibilities without costly penalties.

This is disheartening and leads to a bad reputation for our industry. 

An easy guideline when reviewing your options for the complex
world of merchant services can save a business considerable money

Please read before signing on the dotted line.  During your review of companies and options, the representative should provide you a pricing model, review any monthly account fees, provide pricing on equipment to process your payments, and reveal whether or not you are committing to a long-term agreement with early cancellation fees and or penalties. 

Once you have decided on a particular merchant service provider to process your electronic payments, you will have to sign a merchant services agreement which is part of the application for services. 

The bulk of the contract contains boilerplate terminology that is the same for every merchant. 

Here are some items that are negotiable:

electronic payments equipment bluffton SCDo you have to agree to a long-term contact? 

The answer is no.  There are merchant service providers that offer a month-to-month contract or a short-term merchant agreement depending on the method of processing. An early termination fee for a longer-term contract is also something that you want to avoid. 

Even worse than an early termination fee is a liquidated damages clause instead of a fixed fee.  The damages are based on a combination of your average monthly processing volume and the length of time remaining on your contract.

We see dollar signs. Make certain that your agreement does not have an automatic renewal clause.  And, finally, do not lease equipment. 

Most equipment is very affordable, and the equipment lease agreements will have you tied to that merchant and overpaying for equipment.

At Pay Proudly, we provide competitive pricing and month-to-month merchant services agreement, so our customers don’t have to worry about an early termination fee. 

We also sell our credit card terminals at a reasonable price.  Equipment sales is viewed as a necessity for our customers to accept credit card payments, but not as a revenue generating part of our business. 

A business owner should expect good customer service and an honest representation from their merchant service provider.  That is our goal with each customer, plus we give back to charities on behalf of our customers which is an added perk for them, their customers, and the community.

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