Introduction:

Canadian businesses are starting to adopt this strategy of adding surcharges to their goods and services. We will discuss the most common questions asked about the program. If you' like to see if it would work for your small business, drop us your information over at Dough

How to Switch Payment Processing Companies + 4 Things You Need To Know

When you take payments for your business, it’s natural to want the easiest and most convenient ways to do so. After all, you wouldn’t want your customers to have to deal with any hassles in order to pay you. The truth is, switching payment processors can be a hassle with the banks, but it’s one that can be avoided if you plan ahead and understand what you’re getting yourself into before signing anything or work with a broker like Dough

Many new businesses don’t understand the process of switching payment processors or their impact on their businesses. This guide explains everything you need to know about switching payment processing services and why it’s important for your business as well as your bank account.

What is a payment processor?

A payment processor is a service that accepts payments from your customers on behalf of your business. Payment processors handle all the details of communicating with your customers, billing them, and sending you the payment. For example, if you sell products or services online, when a customer places an order, the payment processor will facilitate the payment process by sending the customer’s payment information to your bank and then depositing the funds into your account.

There are two main payment processors: integrated and external. Integrated payment processors are built into your online store with an eCommerce platform, such as Shopify, BigCommerce, Squarespace, or one provided by a broker like Dough Payments. External payment processors are used by businesses that need to take payment in their store or on the go (wired/wireless terminals like Clover or Pax)

Why Should You Switch Payment Processors?

The most obvious reason to switch payment processors is because your current processor raises its rates or changes its contract. While you might think that you’re locked into a contract with your payment processor, most businesses offer a way out (either for free or by paying a $300 cancellation).

Before you sign on the dotted line with a new processor, ask yourself, “Why should I switch?”

While your current processor may have lower rates, the new company might offer something that your business really needs, such as faster settlements or better fraud prevention tools. At Dough, we even offer business owners free social media marketing assistance and signup bonuses.

4 things you’ll need to know before switching

The process of switching payment processors can be a headache for your business if you’re not prepared. Make sure you have everything you need to make the transition a smooth one before you commit to switching payment processors. Here are some things you’ll need to know before switching:

- Be prepared for the switch. The worst thing that can happen when switching payment processors is experiencing downtime. Customers don’t want to be inconvenienced by your switch, and neither does your bank account. Make sure that the transition happens when your business has the fewest customers possible (it's best to do installs after the work day)

- Know the terms of your contract. If you’re locked into a contract with your payment processor, you must abide by it. If you switch companies before your contract runs out, you may be required to pay a termination fee or pay for a few months of service with your old processor. At Dough, we help cover some cancellation fees for your business :)

- Know how your current company plans to close the account. If you process in Canada, cancellation is simply a phone call. They can close your account same day. Some processors will charge you $300 for cancelling (we can help with that) and some may charge you the remainder of your terminal lease. For leasing or rent to own, you'll want to know how many months are left in the contract before you pull the trigger on the switch.

- Make sure the terminal you are switching for has all of the bells and whistles that you need. Have a menu? You'll want a terminal or POS like the Clover series that lets you run your entire business from the terminal. Just need to take countertop style transactions like a dry cleaning business? Simple, tap and go style countertop models will get the job done without the added price tags of POS software and hardware.

How to switch payment processors?

Before you decide to switch payment processors, make sure that you have enough time in your schedule to make the switch. Switching payment processors isn’t a week long process but you should find someone who can complete the switch within 3 days.

When you’re ready to switch payment processors, follow these steps:

- Set up a consultation with the new processor or brokerage. Before you switch payment processors, make sure you have everything ready with your new processor. The processor will want to know the type of products or services you sell, the number of customers you have, and the volume of transactions you process each month.

- Discuss how your current payment processor works. Your current processor will have certain features, credit card fees, chargebacks, and more. You’ll want to bring up these things so that the new processor knows where to improve.

- Stay with your current payment processor. While you’re in the process of switching payment processors, don’t shut down your account with your current processor. Doing so could affect your business’s cash flow, especially if your new processor isn’t set up to receive funds yet. Only cancel the current provider when the new terminal is delivered and initialized.

Before you switch, ask yourself, “why you should switch?”

Once you’ve considered everything that’s involved with switching payment processors, you should have a good idea of why it’s a good idea for your business. Make sure that you understand the reasons behind switching payment processors and that those reasons apply to your business.

The reasons behind switching payment processors might include:

- Lower rates: The most obvious reason to switch payment processors is because your current processor’s rates are too high. The new processor may offer lower rates, better customer service, or other features that make it a better option than your current processor.

- Better fraud prevention: The new payment processor might offer better fraud prevention tools than your current company. This could help reduce chargebacks and make your business look more trustworthy to banks and customers.

- Faster settlements: Your current processor might offer slower settlements than the new processor. This could affect your cash flow and make it difficult to pay bills on time.

-Switching to cash discount or surcharge. These two brand new pricing programs available through Dough and terminals like Clover, Pax and Newland can help your business eliminate the fees paid for credit card processing. There is some setup involved so be sure to reach out to Dough before heading in this direction.

After switching, be sure to do this

After you make the switch and the old company has been cancelled, keep an eye on your bank statements so that you can catch if the old company tried to charge you anything you weren't supposed to be charged. This rarely happens with a standup processor but it's never bad to be observant!

Switching processors isn't too complicated, and comes with many benefits should you find someone great to work with (you should try Dough Payments!).

Interested in a quote?

Dough is one of the first providers in Canada to assist small businesses get started with Surcharge or Cash Discount programs. Having sold the same program in the states as well, we have a unique set of experience helping businesses like yours get started today saving 90% of their annual processing expenses.

We'd love to learn more about your business and provide a quote for these programs (while also updating your processing equipment)!

• Leave us your information over at getdough.co in the form. We will reach out with more details and look to set up a time to chat (we like meeting merchants, call us old school).