3 Common Complaints Merchants Have Against Payment Processors – And How to Resolve Them
- October 17, 2022
If you’re a merchant, it’s likely that you’ve had your fair share of issues with payment processors. From hidden fees to chargebacks, there are a lot of things that can go wrong when you’re trying to get paid. In this article, we’ll take a look at three of the most common complaints merchants have against payment processors – and how to resolve them.
Complaint #1: High Fees
One of the most common complaints merchants have against payment processors is high fees. Depending on the processor you use, you could be paying anywhere from 2% to 5% per transaction. That may not sound like much, but it can add up quickly – especially if you’re processing a lot of transactions.
Fortunately, there are a few ways you can reduce the amount you pay in fees. One is to negotiate with your processor for a lower rate. Another is to switch to a flat-rate processor, which charges a fixed fee per transaction regardless of the amount being processed. And finally, you can use a combination of both methods to further reduce your costs.
Complaint #2: Slow Payments
Another common complaint merchants have against payment processors is slow payments. Depending on the processor you use, it can take days or even weeks to receive your money after a sale is made. This can be frustrating if you need access to your funds right away.
There are a few things you can do to speed up the payment process. One is to use a processor that offers instant payments. Another is to set up automatic payments so that you receive your money as soon as it’s processed. And finally, you can contact your processor’s customer service team and ask them to expedite your payment.
Complaint #3: Chargebacks
Chargebacks are one of the most frustrating aspects of being a merchant. A chargeback occurs when a customer disputes a charge on their credit card and asks their bank to refund the money they spent. This puts the burden on you – the merchant – to prove that the charge was valid. If you’re unable to do so, then you’ll likely lose the dispute and be out the money. Chargebacks can also result in fees, which can further increase your costs, as well as land you on Mastercard’s ‘Member Alert to Control High-Risk’ list (MATCH). Being on the MATCH list brands you as a high-risk merchant, meaning it will be significantly difficult to find a processing bank and process credit card payments. This makes it hard to maintain financial obligations as a business.
The best way to avoid chargebacks is to prevent them from happening in the first place. There are a few things you can do to accomplish this. First, make sure your prices are clearly stated and easy to find on your website or product pages. Second, use clear and concise language when describing your products or services. And finally, always get authorization from the cardholder before charging their card.
No one likes dealing with complaints – least of all merchants who are already struggling to keep their businesses afloat in today’s economy. But by taking steps to prevent or resolve these complaints, you can help keep your business running smoothly and avoid any major setbacks down the road. Negotiate with your payment processor for lower fees, switch to/a flat-rate processor, or utilize automatic payments to prevent slow payments. Use clear pricing, concise descriptions, and proper authorization to avoid chargebacks. Doing these things will help keep your business running smoothly and prevent any major merchant account issues.
Global Legal Law Firm
At Global Legal Law Firm, our lawyers are familiar with the rapidly changing nature of electronic payments processing, and the ever changing regulations involved, with decades of expertise in ISOs, processors, commercial collections, credit card brands, and other forms of electronic payment processing litigation. Let us guide you through this new and volatile environment, rather than attempting to navigate it on your own.
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