The whole point of this article is how to get out of or cancel an unfair online payment processing agreement so you don’t have to keep paying monthly fees for a service you won’t be using. What if you do have to keep paying them though? How bad is it if that happens? You might consider paying those monthly fees the cost of a lesson learned, right? However, did you know that the actual “cost” of that lesson doesn’t have to be as bad as you thought?
You have to work the numbers. A typical credit card processor will have a monthly fee somewhere between $20 to $100. It really depends on your trading volumes, processing currencies, etc. However, the point is, it’s often not the end of the world. ESPECIALLY once you take into consideration your cost savings at the new processor.
You need to do the math to see if the cost savings at the new processor will counterbalance the fact that you must keep paying monthly fees to the old processor until your contract merchant account with them expires. Let’s take a moment to think about it: if your business is processing relatively decent volumes (I am thinking anything over $20,000 per month in sales), you should be able to get enough of a cost savings at the new processor to offset the monthly fees you are still paying at the old one. The higher your credit card volumes are the more easily you can save enough to offset the cost of moving to the new processor, even if you have to keep paying monthly fees to your old processor. If your existing pricing is complicated and have a hard time understanding it, I suggest you read our article titled how to analyze your credit card processing statement to see what you’re really paying.
The only danger is in the merchant agreement with the old processor. Some of them may also charge extra fees such as your average monthly discount rate fees – even though you are no longer processing! It’s a tactic to try to prevent you from doing exactly what we are exploring here in this discussion. Most processors do not do this though, and if not you can basically jump ship and need only worry about the online payment gateway monthly fee at the old processor. There is also an ethical component to it too. If they didn’t treat you right, do you really want to continue working with them? Long term, you will almost certainly do better at the new processor, and once that old contract term expires at the previous processor you’ll be doing even better.