What reasons are there to switch Payment Service Providers?
Switching merchant services providers is quite common, but we’d like to know why?
Having access to real-world data, compiled from the views of UK merchants over the last couple of years we can take a look. I have selected a data slice of over 1500 recent opinions polled from UK merchants who wanted to switch merchant service providers. We asked, they answered from a set of four responses:
Granted, there could be some crossover between the reason for payment provider switching given. However, as an instant response we might see what is uppermost in the mind of merchants wanting to switch providers.
Reasons to Switch Providers
1, Dissatisfaction with current provider
2, Seeking a reduction in payment processing costs
3, Had a recent price increase
4, Provider closed their account
Merchant’s Reasons for Wanting to Switch Payment Service Providers
|Provider Closing A/C||4%|
As we can see in the above table and graph, by far the most requested reason for wanting to switch merchant account providers is to reduce payment processing costs. Reducing payment processing costs is clearly the motivating factor for merchants to switch payment processing providers.
The data could be interpreted such that the other reasons for wanting to switch providers, namely dissatisfaction with the current provider, having the account closed by the provider or suffering a price increase – just less than a third of merchants polled – could be viewed as a necessity for change imposed by the provider on the merchant.
The willingness to change providers on to reduce payment processing fees on-the-other-hand is a desire from the merchant themselves. In-turn this could be caused by a payment service or merchant account that was never a good fit for the particular merchant. This can happen when merchants submit their details to highly-automated or algorithm driven, comparison sites. The rememdy to this is to switch to a provider recommended by a merchant services expert, who will manually find the best merchant services provider for you, based on calculations of your actual volume of card types processed – available on your monthly statement from your payment services provider, although difficult to interpret to the untrained.
Regardless, it’s always a good idea make sure you’re getting the best deal when it comes to payment processing fees. We offer a free service to merchants to make sure they’re with the best merchant services provider for them, with further reviews when it comes time to renew contracts – an ideal time to switch payment processing providers if a better deal is available.