You should never sign a credit card processing contract. Period. Contracts are just an excuse for payment processors to overpromise and underdeliver once you’ve signed on the dotted line. At 360 Payments, we never ask our customers to sign a contract, but some of our competitors do. Here’s why you should never agree to a contract for credit card processing.
It’s an Excuse to Offer Poor Service
You may have been wined and dined by an attentive sales rep while you were considering signing up, and you were surely drawn in with rock-bottom rates and near-instant answers to your questions. Once you’ve signed a contract, the processor has no incentive to continue giving you great service, and you’ll find it a lot harder to get the support you need. Even the best systems fail sometimes, and when that happens you need a company that’s going to be there for you right away. Waiting on hold for an hour or being passed from representative to representative is just not an option. As frustrated as you’ll be, you won’t be able to do anything about it since you’re locked into a contract.
Rates Will Keep Creeping Up
Did you read the fine print on that amazingly low rate you were offered when you first signed up? Are you sure? Many credit card processing companies are counting on the fact that their customers lack familiarity with the industry and won’t sift through their multi-page contracts to read all the details. This means they won’t see the part where their rate is not guaranteed, or the part where the processor reserves the right to raise rates whenever and however they want. Being trapped in a years-long contract where your rate keeps climbing with no way out will seriously impact your bottom line. (Psst – we’ve never raised rates in our seven years in business and we don’t intend to start now.)
Your Needs Will Change – But Your Contract Won’t
Your business is constantly growing and changing – so why would you want to lock yourself into a credit card processing contract that will stay exactly the same for several years? What’s working for you this year might not be what’s best next year or the year after that, and there’s no reason why you should have to wait until your contract expires to make changes. In a way, companies that won’t let you modify your contract after signing penalize you for being successful in your business. As you begin to process more and different types of cards, you deserve to have your rates reevaluated to ensure that you’re still doing what’s best for your business.
Find a Processor Who Won’t Take Advantage of You
These all sound like pretty shady business practices, and you’re probably thinking that they happen pretty infrequently. We wish that were the case, but we’ve heard from business owners time and time again that they’re trapped in contracts that no longer work for them with companies they can’t even reach in an emergency. We do things differently at 360 Payments. We don’t ask our customers to sign a contract because we’d rather you’d be with us because you love us – not because you’re stuck. We’d love to meet you! Give us a call at 1-855-360-0360 or drop us a line on our website and we will be in touch ASAP.
PS – Ask your credit card processor these three questions. If you’re not totally satisfied with the answers, run!
PPS – Here’s how to choose the WRONG credit card processor.