When to Ask for a Rate Review on Your Merchant Account

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Merchant services fees are, in part, based on monthly credit card income. The higher that monthly income goes, the better the rates you may be offered.

This is one reason it's a good idea to do a rate review every one to three years. A business grows and changes over time. Most often a business owner, or a business manager, is interested in total receivables and doesn't spend much time considering which way that money comes in.

If a business has gone from $4,000 per month revenue to $15,000 per month revenue over three years and most of that revenue is coming in by credit card, then that business is probably eligible for a better rate.

Many banks will be happy to consider a rate change to keep a customer's business. And having an independent quote or two can usually help negotiations as well. This is especially true if you are at the end of, or have finished, your contract. A rate review should be free of charge. If your current processor wants to charge you for a rate review it may be time to consider moving to a new processer. That's when an independent quote can really come in handy.

Each bank's procedure is different but all can be started with a call to your banker saying you would like a merchant services rate review. This gives your banker and merchant services representative a chance to familiarize themselves with any changes to your business since your last review or when you were set up. They can also then offer you banking and financial options that you may now qualify for or are recent additions to the banks offerings.

The best time to request a rate review is in April or May of the year as this is the time when credit card associations (like Visa and MasterCard) make rate changes and release any new card types they have created.

A great way to say thank you for a new rate is to send your banker and your merchant services representative good leads so your friends and associates can receive great rates too.