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Insights and Expertise

Work with honest • Misrepresentation of services: Be careful of
providers who promise things that seem too good
merchant service to be true. They might say a merchant is guaranteed
to get approved or that they have the lowest rates,
but it might not be true. They may also overstate the
providers capabilities of their products or services, leading to
unmet expectations and potential financial loss for
merchants.
By Elie Y. Katz • Inadequate customer support: Some providers don't
National Retail Solutions (NRS) offer good customer service. When a business needs
help, it's hard to reach these providers, or they don't
f you're just getting started as solve the problem. This can be incredibly frustrating,
a merchant level salesperson, especially when dealing with payment processing
switching to a new ISO or pro-
I cessor, or assuming a new role errors or chargeback disputes, potentially costing
retailers time and money. Unresponsive customer
in the multifaceted payments business, support can even leave a business vulnerable to fraud
it's essential that you choose your part- or security breaches—with no assistance whatsoever.
ners wisely. That's because it's an unfortunate reality that
not all providers play fair. • Bait-and-switch tactics: Watch out for providers that
offer great deals first, then change them later. After a
Some providers use sneaky tricks to overcharge businesses business is onboarded, the low prices or good terms
and lock them into bad deals. If you sign on with this type might disappear, replaced with higher fees, stricter
of company, you may profit in the short term but risk terms or less desirable services. This can leave a
irreparable reputational damage. merchant feeling trapped and frustrated because
Common red flags they're stuck with a provider that doesn't deliver on
their initial promises.
Understanding the bad business practices you may
encounter is vital. Following are common ways self- • High-pressure sales tactics: Be wary of providers
serving providers mislead businesses. who pressure you to sign merchants up for accounts
quickly, using tactics like limited-time offers or scare
• Hidden fees and misleading pricing: Some providers tactics about missing out on a deal. They might
lure merchants in with low rates, then surprise them discourage you from giving businesses time to
with extra fees for security or monthly minimums. fully consider their terms, compare other options or
They might use tricky pricing that makes it hard consult with advisers. This pressure can lead to hasty
to know the actual cost, such as burying fees in decisions merchants will later regret, and you'll be
complex statements. They could also charge different the one they blame.
rates for different types of transactions, without any
prior notice or clear explanation of how their pricing Protect yourself
works. These hidden costs can quickly add up and Don't rush. Take the time to read all the fine print in
significantly impact a retailer's line. merchant contracts and agreements. Look out for hidden

• Early termination fees and long-term contracts: fees, confusing terms or anything else that raises red flags.
Watch out for contracts that lock businesses in Don't be afraid to ask for clarification if something doesn't
make sense. Remember, your career is on the line.
for a long time. Should businesses want to switch
providers before the contract ends, they could face Do your homework and research potential ISOs,
hefty fees, making it expensive to leave even if they're
unhappy with the service. These fees can sometimes gateways, processors and other potential partners. Talk
with colleagues. Check online reviews. Compare different
negate savings they gained from the provider's initial
rates, and can even reach hundreds or thousands of providers to see who offers the best combination of
features, prices and customer service. Don't hesitate to ask
dollars.
questions.
• Equipment leasing scams: Some providers push
merchants to rent expensive equipment they don't Following the tips in this article will help protect you from
need, promising it's essential for their businesses. becoming associated with dishonest providers and enable
They might hide extra costs like maintenance fees you to establish mutually beneficial business relationships
or insurance, or lock retailers into long leases with that last.
complicated cancellation terms. This can trap Elie Y. Katz is founder, president and CEO at National Retail Solutions
businesses into paying for equipment they don't use (NRS), https://nrsplus.com. Contact him by phone at 201-715-5179 or
or can't afford, creating a financial burden. by email at ekatz@nrsplus.com.

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