{"id":5300,"date":"2025-02-11T11:41:10","date_gmt":"2025-02-11T11:41:10","guid":{"rendered":"https:\/\/triedandtrueconsulting.com\/?p=5300"},"modified":"2026-02-26T20:09:33","modified_gmt":"2026-02-26T20:09:33","slug":"how-to-avoid-the-gotcha-in-payments-and-point-of-sale","status":"publish","type":"post","link":"https:\/\/webdirectms.com\/tried2\/2025\/02\/11\/how-to-avoid-the-gotcha-in-payments-and-point-of-sale\/","title":{"rendered":"How to Avoid the Gotcha In Payments and Point of Sale"},"content":{"rendered":"\t\t
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Avoid making the mistakes that can cost you thousands of dollars a year, lock you into a long-term agreement, or sell you proprietary hardware, software or a point of sale that no one else can use.<\/div>

1. Not Understanding the Fee Structure<\/strong><\/div>
  • Many businesses focus only on transaction fees but overlook hidden costs like monthly fees, PCI compliance fees, chargeback fees, and early termination fees.<\/li>
  • Some providers advertise low rates but apply\u00a0tiered pricing<\/strong>\u00a0that results in higher charges than expected.<\/li><\/ul>
    \u00a0<\/div>
    2. Choosing a Processor Without Proper Security Measures<\/strong><\/div>
    • Failing to ensure that the processor is\u00a0PCI-DSS compliant<\/strong>\u00a0can lead to security vulnerabilities and potential fines.<\/li>
    • Not checking if they offer\u00a0fraud prevention tools<\/strong>\u00a0like tokenization and encryption.<\/li><\/ul>

      3. Ignoring Contract Terms and Hidden Fees<\/strong><\/div>
      • Some processors lock businesses into\u00a0long-term contracts with high cancellation fees<\/strong>.<\/li>
      • Some charge\u00a0“non-qualified” transaction fees<\/strong>\u00a0that significantly raise costs for certain card types.<\/li>
      • Watch out for\u00a0Liquated Damages Clauses\u00a0<\/strong>in agreements. \u00a0 It is one thing to have a reasonable cancellation fee, or no-fee, it is entirely another when you are responsible for paying for poor service for the remainder of the contract.
        • Example: \u00a0 You pay on average $500.00 a month for services, but the service you receive is horrible.\u00a0 \u00a0 You have been with the company for 12-months, but signed a 36 month agreement.\u00a0 \u00a0\u00a0
          • Your\u00a0Cancellation fee<\/strong>, if you choose to change, will be 24 (months remaining in contract) times (X) $500.00. \u00a0 $12,000.00.\u00a0 \u00a0\u00a0<\/li>
          • This is\u00a0not just credit card processing companies<\/strong>…..I have seen phone and cable companies charge these type of fees as well. \u00a0 If you are in\u00a0Greater Orlando,<\/strong>\u00a0read your telecommunications\/internet service provider contracts. \u00a0 We have worked with clients to help them when they are “stuck”.<\/li><\/ul><\/li><\/ul><\/li><\/ul>

            4. Overlooking Integration with Existing Systems<\/strong><\/div>
            • Choosing a processor that doesn’t integrate well with\u00a0POS systems, e-commerce platforms, or accounting software<\/strong>\u00a0can cause operational inefficiencies.<\/li>
            • Not verifying compatibility with\u00a0mobile or online payment gateways<\/strong>.<\/li>
            • Companies will sell you a\u00a0terminal<\/strong>,\u00a0gateway<\/strong>\u00a0or\u00a0POS solution<\/strong>\u00a0that is not compatible with another processor.\u00a0 \u00a0 If the service is bad but the hardware is good, you should look for a\u00a0Point of Sale<\/strong>\u00a0that allows you to move. \u00a0 After all, your\u00a0credit card processor\u00a0<\/strong>and point of sale solution should earn the business every day too!<\/li><\/ul>

              5. Not Considering Customer Support Quality<\/strong><\/div>
              • Many businesses overlook\u00a024\/7 support availability<\/strong>, which is crucial for resolving payment issues quickly.<\/li>
              • Some processors only offer email support with slow response times.<\/li><\/ul>

                6. Choosing Based on the Lowest Rate Alone<\/strong><\/div>
                • A provider offering the\u00a0lowest advertised rate<\/strong>\u00a0may have\u00a0hidden fees or unreliable service<\/strong>.<\/li>
                • Some companies use\u00a0bait-and-switch tactics<\/strong>, offering low introductory rates that increase later.<\/li><\/ul>

                  7. Not Factoring in Business Growth<\/strong><\/div>
                  • Some businesses choose a provider based on current needs without considering future expansion.<\/li>
                  • Limited scalability can lead to\u00a0higher fees or the need to switch providers<\/strong>\u00a0later.<\/li>
                  • If your processor is not asking about your immediate and long-term plans you may be setting yourself up for a big transition down the road.\u00a0 \u00a0\u00a0<\/li>
                  • Ask if the processing company will\u00a0swap the point of sale hardware\u00a0<\/strong>or\u00a0extend a credit to offset the new point of sale hardware cost<\/strong>\u00a0when you have to upgrade technology.<\/li><\/ul>

                    8. Ignoring Chargeback and Dispute Policies<\/strong><\/div>
                    • Some processors have\u00a0strict chargeback policies<\/strong>\u00a0that make it difficult to dispute fraudulent claims.<\/li>
                    • Not checking\u00a0how quickly funds are released after disputes<\/strong>\u00a0can affect cash flow.<\/li>
                    • There are companies that\u00a0offer chargeback mitigation support<\/strong>\u00a0or\u00a0reimburse<\/strong>\u00a0you\u00a0in the event you lose a chargeback<\/strong>\u00a0when\u00a0using their POS solution<\/strong>\u00a0the exact way they train you. \u00a0<\/li><\/ul>

                      9. Not Comparing Multiple Providers<\/strong><\/div>
                      • Rushing into a contract without comparing multiple processors can result in\u00a0higher costs and fewer features<\/strong>.<\/li>
                      • It\u2019s essential to get quotes from different providers and compare contract terms.<\/li>
                      • Recommend getting at least a second quote if you are starting up.\u00a0 Companies should be showing you a Traditional pricing stategies, Dual Pricing and Surcharge so you can decide on what is best for you.\u00a0 (Be sure that the payment consultant knows the state and card brand rules to ensure you are set-up properly).<\/li><\/ul>

                        10. Not Reading Online Reviews and Reputation<\/strong><\/div>
                        • Many businesses sign up with a processor without checking\u00a0customer reviews and complaints<\/strong>.<\/li>
                        • Researching\u00a0Better Business Bureau (BBB) ratings, Trustpilot, and industry forums<\/strong>\u00a0can help identify red flags.<\/li>
                        • If a company does not have a lot of reviews, be sure to ask for\u00a0client testimonials,<\/strong>\u00a0locations\u00a0in your industry<\/strong>\u00a0that they work with and\u00a0authorization to contact the client<\/strong>.<\/li><\/ul><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

                          Avoid making the mistakes that can cost you thousands of dollars a year, lock you into a long-term agreement, or sell you proprietary hardware, software or a point of sale that no one else can use.<\/p>\n","protected":false},"author":1,"featured_media":5302,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[],"class_list":["post-5300","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-articles"],"_links":{"self":[{"href":"https:\/\/webdirectms.com\/tried2\/wp-json\/wp\/v2\/posts\/5300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/webdirectms.com\/tried2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/webdirectms.com\/tried2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/webdirectms.com\/tried2\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/webdirectms.com\/tried2\/wp-json\/wp\/v2\/comments?post=5300"}],"version-history":[{"count":1,"href":"https:\/\/webdirectms.com\/tried2\/wp-json\/wp\/v2\/posts\/5300\/revisions"}],"predecessor-version":[{"id":5395,"href":"https:\/\/webdirectms.com\/tried2\/wp-json\/wp\/v2\/posts\/5300\/revisions\/5395"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/webdirectms.com\/tried2\/wp-json\/wp\/v2\/media\/5302"}],"wp:attachment":[{"href":"https:\/\/webdirectms.com\/tried2\/wp-json\/wp\/v2\/media?parent=5300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/webdirectms.com\/tried2\/wp-json\/wp\/v2\/categories?post=5300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/webdirectms.com\/tried2\/wp-json\/wp\/v2\/tags?post=5300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}