For the better part of a year, the United States has been chugging through a recession that has impacted the payments for business, especially merchant accounts. There are important ramifications owners of merchant accounts should be aware of and proactively avoid, especially when it comes to salvaging business relationships.
Sudden Changes in Pricing:
Make sure the contract is on hand for easy reference, and that you clearly understand the terms. Overall prices of doing business can change when costs, dues and assessments change for the acquiring organization. However, it is not OK for them to suddenly pass those costs along to you, unless it’s listed as part of the terms in the contract.
The Unsigned Deal:
Oral agreements are somewhat trustworthy when the economy is doing well, however, in difficult times people may renege on anything not in writing, or adjust terms to more effectively fit their needs. As costs rise overall, its best to get work agreements in writing and payment terms spelled out clearly. It saves on potential litigation later.
New Fees:
There are a slew of new fees being tacked onto the pricing grids for ISO‘s so it’s important to be clear if those fees can be passed along to your merchant accounts. Talk with the acquirer and get clear on their right to charge additional fees, and the terms of the payment of those fees, especially if they need to be paid upfront before merchants kick in their portion.
Payment Delays:
Sometimes payment processors cannot collect money on time, as the acquirers are not paying on time or in full. Be sure your agreement states that acquirers notify you of a late payment or an inability to pay residuals within a specific time frame.
Stress on Friendships:
Many acquirers have been working with merchants sales folks for years, and have formed long -standing friendships. When money matters are unclear, it can cause those relationships to crash and burn. Be honest, clear and get everything in writing to avoid a legal wrangling and possible common ground to salvage the relationship.
Related articles
- What Causes The Revocation of a Merchant Account (creditcardprocessing.net)
- Free Merchant Account Comparison Site Requires Agreements for Its Credit Card Processors (prweb.com)
- Third Party Credit Card Processing (creditcardprocessing.net)
- Why You Need a High Risk Merchant Account (highriskpaymentprocessing.wordpress.com)
- What Everybody Ought to Know When Getting an Adult Merchant Account? (adultmerchantaccounts.wordpress.com)
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