Red Flags To Look Out For In Merchant Services And Payments

If you’re a business owner, then you know that finding the right merchant services and payments provider, including stripe payment processing, is key to success. Unfortunately, not all providers are created equal — and some can actually be quite harmful to your business. In this blog post from the trusted team at XYLO Inc., we’ll discuss four red flags to watch out for when choosing a payment processor. Stay safe and avoid these potentially predatory providers!

PROVIDERS THAT AREN’T TRANSPARENT ABOUT THEIR RATES

Transparency is one of the first things you should look for in a stripe payment processor. Good providers will be upfront about their rates, fees, and terms. They won’t try to hide anything in the fine print or sneak in unexpected charges. Unfortunately, some providers are less than transparent about their rates. They may advertise a low rate, but then charge hidden fees that inflate the total cost.

PROVIDERS THAT “MATCH” RATES BUT DON’T SAVE YOU MONEY

Another common tactic among payment processors is to say they will “match” your current rates or their competitors’ rates. They may even guarantee that they can save you money. But in reality, they often just match the rates of a portion of the service — meaning you don’t actually save any money.

PROVIDERS THAT SUGGEST

LEASING EQUIPMENT

Leasing equipment is another red flag to watch out for. While there are some instances where leasing makes sense, in general, it’s not a good idea. This is because you end up paying more in the long run and don’t actually own the equipment.

PROVIDERS THAT OFFER “FREE” EQUIPMENT BUT CHARGE HIGHER RATES

Some providers will try to lure you in with the promise of “free” equipment. But be careful — these providers often make up for the free equipment by charging higher rates and fees. In the end, you end up paying more than you would have if you had just purchased the equipment outright.

When it comes to merchant services and payments, it’s important to be aware of potential red flags. By avoiding these four traps, you can help ensure that you choose a safe and reputable provider. XYLO is committed to providing businesses with the best possible service — contact us today to learn more!