Transitioning to a new payment processor can be daunting and time-consuming for any business owner. Before taking this step, you should be familiar with the necessary steps of this transition and what you should look out for. 

Why Transition to a New Processor?

Despite the initial appeal of hardware leases, these can be very expensive in the long run. You will have to continue paying these leases to your processor on top of their processing fees. Unfortunately, you will have to pay the remaining lease payments and return the hardware to transition to a new processor. 

Compatibility issues can also arise. For example, your business can lose out if your processor does not offer updated hardware or software that meets new security standards and payment types. 

Rising fees are also common with many payment processors. They offer lower fees for the first few months, then gradually increase them once they know you are committed to their system. Pricing transparency from payment processors is essential to avoiding this problem. 

Additional fees such as account application, account setup, and PCI compliance fees can also cut your profits. Suppose your current payment processor makes you deal with many withheld funds, expensive fees, or mishandled transactions. In that case, it is time to transition to a new processor.

Early termination fees and long-term contracts prevent your transition to a new payment processor. As a result, your business can lag behind the competition without the flexibility to adapt and change your payment system.

The ability to process payments is more important than ever. And if your system has any issues, customer service from your processor is essential. If your current processor cannot help you when you need it, then you need to start transitioning to a new processor with excellent customer service

Considerations Before Transitioning

If you are transitioning your payment processor, your choice must take care of the entire payment process. They should allow you to focus on what you do best not worry about payment issues.

Ability to Handle Costs

You will need to determine whether you are willing or can afford to change your POS. Unfortunately, some POS systems are closed, so you will have to get different hardware to integrate with your processor. 

Avoid Closed POS

If your current system is not closed, it makes transitioning easier, as you should be able to keep your existing hardware. Avoiding closed POS systems is the best move for your business in the long run. This provides you the flexibility to easily change payment processors. 

Flexibility and Customizable

You should also ensure that your new choice of processor has gateways that integrate easily into your POS and online store. These gateways are necessary for your online store to be able to function. In addition, they provide a critical security layer that allows you to accept online payments.

Avoid falling for the one size fits all trap of some processors. Instead, find options that are more geared toward businesses like yours. You must find one with reasonable pricing and favorable contract terms. 

Easy Onboarding and Fees

Once you choose a processor, you must fill out a merchant application and undergo the underwriting process. This can be a complicated process; unfortunately, some sales reps will add additional fees to complete this process. The underwriting process is meant to filter out fraudulent companies. While necessary, this process can be difficult for merchants that are determined to be at higher risk. 

The transition period for a new payment processor can be long and drawn out. You will need to invest time to make the switch. Look for processors who streamline this time-consuming process as much as possible. 

Customer Service and Fees

After you begin working with your new processor, there will be bumps as you work out the new system. However, these problems will be worked through, and if they have good customer support, you can quickly handle these growing pains. Keep an eye out for any additional and unnecessary fees that your new processor may want you to pay

Transition and Onboarding Process

The one trade-off of the modern cashless payment space is that there is plenty of room for fraud. Some business types, such as gambling companies or dispensaries, will have to go through a more robust onboarding process to ensure no fraud is occurring. It is important to note that some acquiring banks and payment processors will not work with high-risk businesses. 

The merchant onboarding and verification process takes six steps and is critical to transitioning to your new payment processor. The first is the pre-screening process that occurs with the sales team of the payment processor. 

Then the identity of the business and owners is verified, followed by a check of the business’s history and the owners’ history. The processor will also analyze your business model, which will only affect you if you are a high-risk merchant. They also may check your online presence as part of this step. 

From here, the processor needs to ensure that the merchant meets the highest standards of card network security so payments can be made securely. Finally, credit risk underwriting occurs to see how risky the merchant is to work with. While some rules apply to merchants in specific industries, all merchants must meet the regulations set by card networks.

How to make Transitioning Easier

You can make the onboarding process faster and easier by collecting the necessary documents ahead of time. These documents include proof of identity and address, business registration, tax returns, bank statements, and balance sheets. Having these documents on hand at the start of the process will allow you to complete the onboarding process. This will make transitioning to a new processor much easier

The more automated this process is, the better. This saves time for both you and your processor and mitigates the risk of simple human error slowing down the process. Therefore, look for processors that offer a significant degree of automation throughout the onboarding process. 

Smooth Transition with Payline

Transitioning over to Payline is incredibly easy. This is due to our commitment to transparency, quality customer service, and our partnership with Under.io. We do not try to rope you into a long-term contract with hidden fees. For example, we do not charge fees for early termination, setup, or PCI compliance. Additionally, you get a free trial to see how Payline works for you. Whether your business is high-risk or low-risk, we will help you every step of the way.

You also can check out our transparent pricing here. In addition, our sales and customer service team are always ready to help you transition over to Payline. We understand that this time can be stressful for business owners, and we will make it as easy as possible for you. Finally, our partners at Under.io enable us to automate and streamline onboarding and underwriting, allowing you to be approved for processing payments as quickly as possible. 

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