No Monthly fee sounds amazing; however; no monthly fee doesn’t mean no risk to your business.
- The concept is attractive, right?
Of course saving money is attractive. Especially in the credit card industry. (I know! This is my own industry. I hate paying high fees, too!)
A client called me the other day and said that they were leaving because we charge a monthly fee. They were offered a no monthly fee account…so, when we evaluated it for them we agreed that it did not have a monthly fee; however, the terms did include:
- a 2-year contract;
additional PCI scan fees;
a main number to call (which meant they would not have dedicated account representation); and,
deposits would be made to the service provider’s bank (which meant my client had to move their business banking).
They decided not to leave, especially when we ran an account analysis which showed that their costs would actually go up!
Understandably, when a business owner is reviewing vendor choices, the ones who offer the lowest cost are often considered, even if it means making a change. Before you change, we recommend asking:
- “Is it really the lowest cost, or is it the lowest the cost after a period of time?”
Futhermore, TransAct recommends looking for a balanced approach when working with any vendor including merchant services. Select a vendor whose sole focus is in the service area you are contracting them to do for you:
- Would you hire a dentist to stitch your finger?
Would you hire a contractor who is not registered or insured?
Would you bring on a business partner who didn’t offer experience in an area you don’t know?
Merchant Services Company are vendors with a fiduciary tie to your business. So when you consider an attractive offer of No Monthly Fee you are potentially sacrificing other things like less security, higher rates and higher transaction fees. At TransAct, we recommend looking for the lowest cost for the services that you need.
- How important is security to you and your business?
Instead of thinking of the fee as something that just has to be paid – consider why it exists. Just like paying to host your website, your monthly fee provides your account with a location on the servers to process credit card transactions. A secure and protected space that is not shared – at least when you process with TransAct.
Plus, with us, that dedicated server space also offers a dedicated contact with us as your service provider. Someone you know and you can call when questions arise. Someone who will support you with PCI scans, inquiries about chargebacks and delays in deposits.
Security today is so important and having a merchant system that cuts down on the basics can create risk.
Please be aware of these risks and know that TransAct is available to help when you decide you are ready to learn more about our services.
~ Mary Ann