They want to sign you to their new terms not be bound by
the old ones. Don’t do it before having someone you trust
look at your rates and the contract. The reason these compa-
on these accounts is high and they’re looking to take it higher.
We have been seeing merchant statements announcing HUGE
April rate increases. These are some of the largest increases
I’ve seen in my over 20 years in the industry. Statistics show
that over 80% of merchants don’t look at their statements.
When you factor in so many companies require you to go
online to review your statements that number jumps to over
90%.
If you look at your March processing statement you’ll see
these increases. This is the only notice that they need to give
you. If you’re not paying attention, who knows what they’re
now agreed to these new rates. Most of these rate increases
are larger than the standard interchange plus markup.
The reason these companies can impose such huge rate increases
are termination fees, de-conversion fees, or whatever
your company is calling the fee that they will charge you to
leave their company. They’re trying to scare you and take advantage
of you not knowing what to do. The secret is, if you
don’t cancel the account and leave it open but dormant; you’ll
probably get charged $40-50 a month to not process through
that company.
If a legitimate company can offer you $300 a month in savings
while you wait for the $3000 termination fee to expire,
example, we had a merchant who was told he had a $35,000
termination fee. We were able to save him $1400 a month.
He left his previous account open but dormant for 2 ½ years
and was charged $50 a month. This allowed him to switch
of $1350 a month.
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