How to Switch Payment Processors in Philadelphia
If you're a Philadelphia small business owner who's been with the same payment processor for years — or who started with Square or Stripe and is now frustrated with holds, fees, and lack of support — switching processors is probably the best business decision you can make this year.
Most Philadelphia business owners think switching is complicated. It's not. Here's the complete step-by-step guide.
Step 1: Get Your Current Processing Statement
Before you do anything, get a copy of your most recent processing statement. This is the document your current processor sends you every month showing your transaction volume, fees, and effective rate.
If you can't find it, log into your processor's portal and download it. You need this to understand what you're currently paying.
Step 2: Calculate Your Effective Rate
Your effective rate is the total percentage of your card volume that you're paying in fees. Calculate it like this:
Effective Rate = Total Fees ÷ Total Card Volume × 100
For example: If you processed $40,000 last month and paid $1,200 in fees, your effective rate is 3.0%.
Most Philadelphia small businesses have effective rates between 2.5% and 3.8%. If yours is above 2.5%, you're almost certainly overpaying.
Step 3: Get a Free Statement Analysis
Send your statement to Custom Payments for a free analysis. We'll identify:
- Your current effective rate
- What you should be paying with interchange-plus pricing
- Whether the EDGE dual pricing program makes sense for your business
- Your projected monthly and annual savings
This analysis is completely free and takes 24–48 hours. There's no obligation.
Step 4: Apply for a New Merchant Account
Once you decide to switch, the application process takes 15–20 minutes. You'll need:
- Business information (legal name, address, EIN)
- Bank account information (for deposits)
- Processing history (your statement)
- Owner information (SSN for background check)
Approval typically takes 24–48 hours for most Philadelphia businesses. High-risk businesses (bars, nightclubs, some contractors) may take 3–5 business days.
Step 5: Receive and Set Up Your Equipment
Once approved, your new terminal is shipped or delivered in person. Setup takes 30–60 minutes:
- Terminal programming (your business name, tax rate, tip settings)
- POS system configuration (if applicable)
- Staff training
- Test transactions
Robert personally handles equipment setup for Philadelphia accounts.
Step 6: Cancel Your Old Processor
Once your new account is active and you've processed a few test transactions, cancel your old processor. Important notes:
- Check your contract: If you're in a contract with your current processor, check the early termination fee. Some processors charge $250–$500 to cancel early. We can help you evaluate whether the savings justify the fee.
- Return equipment: If you're leasing equipment from your current processor, return it promptly to avoid ongoing lease charges.
- Keep your old account open briefly: Process one more month with your old processor while you confirm your new account is working correctly.
Common Mistakes Philadelphia Business Owners Make When Switching
Mistake 1: Not reading the contract
Some processors have 3-year contracts with early termination fees of $500–$1,000. Always read the contract before signing. Custom Payments has No contract applies unless it is presented, reviewed, and agreed to in writing.
Mistake 2: Leasing equipment
Never lease payment terminals. Leases are typically 48 months at $50–$100/month — you'll pay $2,400–$4,800 for a terminal worth $300. Always buy or get free equipment with your account.
Mistake 3: Choosing based on rate alone
A 2.0% rate sounds great until you discover $50/month in fees, a $500 early termination fee, and no customer support. Look at the total cost, not just the rate.
Mistake 4: Staying with Square or Stripe for high-volume businesses
Square and Stripe are fine for very small businesses (under $5,000/month). For Philadelphia businesses processing $20,000+/month, the flat rate is expensive and the lack of support is a problem.
What to Expect After Switching
Most Philadelphia businesses see their first savings within 30 days. Here's what to expect:
- First month: Your new account is active. You process normally. Your statement shows your new, lower fees.
- Month 2–3: You've confirmed the savings. You cancel your old processor.
- Ongoing: Monthly savings accumulate. For a restaurant saving $1,500/month, that's $18,000/year.
Getting Started
Custom Payments LLC offers free statement reviews for Philadelphia businesses. Robert Staschak is based in Devon, PA and personally handles every Philadelphia account.
Call (484) 393-1576 or visit custompayments.biz to get started.