Merchant Processing Myths And Facts: About The Merchant Processing Industry

category: News posted: May 10, 2016
Merchant Processing Myths And Facts

At Red Payments, we take a lot of pride in offering business owners honest information about the merchant processing industry. With all the myths and misconceptions about the payment processing industry floating around, it’s hard to figure out who’s being honest. To help our customers make good decisions, we decided to clear up some of the most common myths about the merchant processing industry. Here are some of our most frequently noted misconceptions.

Myth #1: All merchant processing companies offer the same services.

This is absolutely not true, and when you factor quality into the occasion, it’s an even bigger lie. Some companies do not help with terminal setup. Others won’t allow you to get cash advances using their terminals. Still more might not be able to help you get your own gift card program ready. As a business owner, it’s crucial to choose a company that offers the right services and quality care for you.

Myth #2: All merchant processing companies have about the same price.

Once again, this is simply not true. In fact, different merchant processing companies might actually go so far as to put you into completely different pricing brackets, since each company has its own standards about what high-risk companies are considered to be. Many merchant processing companies also have different pay scales, too. In other words, you need to shop around.

Myth #3: Once you’re in a contract, you’re locked in.

Not necessarily. Many merchant processing companies will work on your behalf to get you out of your contract.

Myth #4: You shouldn’t pay for your terminal.

While a slew of companies do offer a standard terminal for free, paying a little extra for a super-modern, high-grade terminal is almost always a good investment. 

Myth #5: Your company won’t suffer if only accepts credit cards, or if it doesn’t accept major credit providers.

Not all people have more than one credit card, and many will want to pay via debit, gift card, or even ApplePay. If you don’t offer a bunch of different options, your company will likely alienate clients. The more payment options you offer your clientele, the less likely it is that they’ll want to go to another company due to payment issues alone.

Though it’s true that the merchant processing world can be difficult to navigate, having a good conversation with a professional who works in the industry can help you make the right decisions. If you are curious about the merchant processing world, give Red Payments a call. We’re always ready to help.