Switching Card Processing Providers

Switching card payment providers can be quite a daunting task for the small business owner. If you’re considering switching there will have been something that triggered you to investigate further, more so if your mid contract with a terminal rental company which are called an ISO (Independent Sales Organisation)

Can you switch providers?

In a nutshell yes, anyone can switch providers but it’s wise to consider the costs and weigh against the savings. First step is to dig out your original terminal contract, this is the binding document which will have early termination fees and cancellation process etc.

Who you signed up for your terminal rental will depend on what you do next and the reasons you want to leave your current provider. Don’t get this contract confused with your card processing acquirer, a common mistake made and on a positive note typically you only need to give 30 days notice to them and incur no penalties.

So you’ve located your original contract and taken a look at the date you signed up, look for the contract length which is typically 36 or 48 months and check the cancellation notice in the T & C’s. Don’t get too hung up on the date you signed at this point but just be aware of how many months you’re into the contract.

The typical implications of ending a card terminal rental are:

1. Remaining months rental payments

2. Restocking Fees (This is something some ISO’s will add on as a slap on the wrist for leaving)

3. Admin Fee

All of the above is on your original rental agreement, so you can calculate the cost of terminating your agreement. There can be other costs associated but 1 – 3 will give you a ballpark figure.

Does being a Sole Trader or Partnership make a difference?

If you are a sole trader or a partnership, you may want to rely on the Consumer Credit Act 1974. However, it is essential that you check if it applies to your agreement. The Consumer Credit Act 1974 permits (in most cases) a cancellation of your terminal agreement after 18 months without paying any further rental payments, we can help you with this and walk you through the process.

Next Steps

Find a trusted advisor and one that’s independent, the visit from a self employed rep claiming to be independent is just a play on words, they’re independent in the fact that they do not work directly for an ISO (the terminal rental provider and usually where the additional (hidden) charges come from. They can and will always offer you a better deal than you’re paying now, lets face it why would you even consider switching if this wasn’t the case.

A small business like Hello Merchant Solutions is a true independent and effectively a broker, we work independently with trusted ISO’s in the business, this does allow us to source the better deal and one that is fit for you now and in the future. Unfortunately, agreements are a necessary evil but with the right provider and acquirer the savings can be quite substantial and this isn’t just in money terms, it can include time savings with integration of POS tills or eliminating keyed in errors from staff members or yourself.

If you’re looking to switch providers or simply want to now what deals are better for your business, get in touch our advice is FREE and you’ll find our way of doing business refreshing and hassle free with transparent pricing.

What we usually can do is work with our trusted ISOs to include free months terminal rental and or identify such a significant cost saving on processing rates that this outweighs the remaining months left to pay. Either way, every merchant is different and we find the solutions enabling you to switch to a better deal.

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