Processor FAQ's

If they say no, then ask them to remove this clause that is found on page one of every merchant agreement.

Depending on the processor, you have 30 – 90 days (most are 30) before the new fees can no longer be disputed and are locked in. Your non-response is considered acceptance of the new fees, and you agree to them being part of the agreement moving forward.

Every agreement states that the agreement rules over any outside understandings, such as emails, conversations, etc. 

Only one thing can alter a contract/agreement. You need an addendum. This is a legal amendment to the verbiage of the contract.

An email, a phone call, etc., from an employee or even an officer is not binding. It has to be on letterhead and signed by an officer. However, remember that this is not a substitute for the contract addendums. 

Addendums alter the verbiage, terms, etc. 

The previous questions merely give you insight into their willingness to play fair and be truthful. 

No guarantee, but a good start. Again, the contract needs to be vetted by an attorney with merchant processing contract experience. 

If you don’t have an attorney, our legal department will assist at no cost. It is just one more thing we do to give back. 

Email: [email protected]

Subject line: Contract To Be Vetted 

Make sure you also include all your contact information so we can reach you should we have questions. Depending on our workload, please allow 10-14 business days. 

Many processors will say we don’t have a contract; we have an agreement. 

This is like saying we don’t have stewardesses; we have flight attendants. 

Okay, how long is the agreement? 

The answer should be month-to-month. 

If not, then they can raise rates and add new fees, and you will be locked in and have massive costs to get away. 

If they say yes – run! 

Page one of every agreement says they can raise rates any time they want. 

The reason to ask this question is for you to understand that this incredible offer is good for today and today only! 

If they want, they can raise rates before you even process your first transaction. 

This is also why you need to have a month-to-month agreement with zero penalties of any kind if you cancel.

Don’t ask if they have an Early Termination Fee (ETF), as that is just a fee to pull your attention away from the much higher costs. 

Processors can say they will waive the ETF etc., and still have other fees for canceling. 

Ask – Are there ANY fees of any kind for canceling? 

Make sure to read the important disclaimer three questions down. 

If yes, does the gateway auto-enhance the file, or will you be required to enter the approximately 30 fields manually?

The statement needs to itemize: 

(1) Discount Rate

(2) Interchange Category. i.e., US Purchasing Card Level II

(3) The processing volume of each category

(4) The transaction count for each category

(5) The fees charged per category. 

If they disclose these fees, it does not mean everything is ok. 

If they don’t, they are hiding their actual cost. 

The answer should be no. You never want any fee bundled. Bundling fees is used to hide the actual fees/cost. Everything should be itemized. 

The answer should be yes. This means they are stating that they don’t inflate interchange.

If the answer is yes, then ask to see a sample of the report and ask if you will receive it each month. If you don’t receive it each month, then you cannot manage it. If the answer is no, then you are probably losing a lot of money on unnecessary interchange fees.