Rising processing fees, inconsistent support, or unexplained outages are just some of the headaches that businesses face with the wrong merchant services provider.
Depending on the issues you’re dealing with, it can be tempting to jump ship to a new merchant provider right away. But payments are too critical to rush, and if the transition isn’t done right, you risk unexpected fees, checkout disruptions, or worse, downtime.
The good news is that it’s totally possible to switch merchant services without these drawbacks. You just need a well-planned transition. This guide covers what to do before you switch.
Key Takeaways
- Start by defining your requirements, then set your sights on merchant providers that align with your needs, business model, and tech stack.
- To make the process even smoother, prep your underwriting documentation beforehand; these may include business formation documents, bank statements, processing statements, and more.
- Fees and costs should also factor into your decision; choose a provider that offers transparent rates so you don’t end up overpaying.
- Once your new merchant services are live, monitor fees, performance, and workflows for at least 30 days to make sure everything is working as expected.
Switch Merchant Services Without Downtime In 7 Steps
A smooth switch requires a planned and measured approach. Here are the steps you can take to move providers without disrupting checkout or cash flow.
Define Requirements
Determine what you need from a new payments provider. This is a good place to start identifying the issues and shortcomings that you’re experiencing with your current merchant services. Is it the high credit card processing fees? Reliability issues? Does your provider not integrate well with your tech stack? Whatever the case, use those pain points to define your requirements when looking for a new payments provider.
Choose Your Provider
Select a merchant services provider that meets your requirements. Depending on what you’re looking for, this step could involve assessing their merchant account fees, looking at contract terms, evaluating their support, or checking their integrations. Take your time during the selection process and remember that the right provider shouldn’t just solve your needs today, but serve you as your business scales.
Prepare Underwriting
You must go through an underwriting process to assess risk and approve your business. You can ensure this step goes smoothly by preparing the required documents for switching merchant services. These include:
- Business formation documents
- Government-issued ID for owners or signers
- Recent bank statements
- Recent processing statements
- Voided check or bank letter
Connect Integrations
Merchant services don’t function in a vacuum. They need to be connected to your business tools, including your POS system, eCommerce platform, and accounting or billing software. Spend time setting up integrations to avoid gaps in reporting, reconciliation, or checkout performance.
Test Critical Flows
Make sure you’re fully up and running by testing key payment workflows, including in-store transactions and online or card-not-present payments. If something isn’t functioning correctly, fix it before you run actual customer-facing transactions.
Cut Over with a Rollback Plan
Even with thorough testing, it’s smart to plan for the unexpected. Schedule your cutover during a low-volume window and keep your old provider available as a backup. If issues arise, a rollback plan lets you restore payments quickly while you troubleshoot. That way, you can protect revenue and customer trust during the transition.
Monitor the First 30 Days
When you’re working with a new merchant services provider, you want to give things at least 30 days to stabilize. After that period, assess its performance, review your merchant statement, and confirm that fees match what was promised. If everything looks good, you can officially make the switch.
Should You Switch Merchant Services?
If you’re trying to decide whether to switch merchant accounts or merchant services, you should look at what’s actually causing the problem.
Generally speaking, if you’re facing high fees or need faster access to funds, consider getting a new merchant account. Now, if it’s an issue with outdated hardware or software, or if customer support isn’t meeting your needs, consider switching merchant services.
Signs It’s Time to Switch Merchant Providers
Let’s take a closer look at the top merchant-provider red flags that prompt businesses to switch.
- Rising Fees & Opaque Pricing – This is common among merchant service providers that use tiered pricing, due to a lack of visibility into how fees are calculated. Merchants often end up with higher effective rates, so they switch to providers that offer fair and transparent pricing (e.g., interchange-plus or flat rate).
- Poor Customer Support – Payments are critical to every business, and if something goes wrong, you need to be able to reach customer support. If a provider lacks adequate support capabilities, it’s likely going to negatively impact your business.
- Outdated Equipment – Switch providers if your POS or payment terminals don’t enable you to accept all payment types.
Risks of Changing Merchant Providers
The grass may be greener when you switch to a better provider, but the process doesn’t come without risks. Consider the following.
- Contract Lock-ins – If you’re locked into a contract with your current merchant provider, you could face early termination fees or be forced to wait it out before switching.
- Equipment Leases – Equipment leases are almost always a bad idea because you often end up paying far more than the hardware is worth. And when you need to switch providers, those leases usually stay with you, even if you’re no longer using the equipment.
- Rushed Migrations – If you try to rush through the migration, you risk missing steps or breaking some of your payment workflows.
- Incomplete Integration Testing – For payments to flow smoothly into your business, the tools and software you use must integrate well. Otherwise, you might run into issues with checkout, reporting, or reconciliation.
Evaluating Your Current Merchant Services Agreement (Before You Switch)
If you’re planning to switch merchant providers, the first step is to review your contract and determine your offboarding path.
Review Your Contract
Pull up your contract and review:
- Contract length
- Renewal terms
- Early termination fee clause
- Required notice period (typically 30-90 days)
- Automatic renewal language
- Equipment ownership terms
Based on the above, you can figure out your next steps. For instance, if your contract auto-renews in 60 days, then you may need to submit a written notice now to avoid another term.
Assess Your Current Payment Infrastructure
Most businesses don’t just have a merchant account; they have an entire payments infrastructure that includes equipment compatibility, integrations, payment methods, special programs, transaction patterns, and more. You must take stock of each of these components and determine how to migrate them from your old payments provider to your new systems.
Map out how different parts connect, and from there identify what needs to be replaced or reconfigured.
Calculate Your True Cost of Switching
Switching providers isn’t just about comparing processing rates. To understand the real cost, look at both direct and indirect expenses, including:
- Early termination or contract exit fees
- New hardware or terminal costs
- Integration or development work
- Testing and training time for staff
- Temporary inefficiencies during the transition
Choosing Your New Merchant Services Provider
The “right” merchant services provider depends on your specific needs. Here are some considerations to keep in mind when choosing your next payments partner.
- Alignment with Business Model – Look for a provider that actually understands the nature of your business. Do they work with merchants in the same industry or businesses that sell the same products and services? Bonus points if they support your payment volume level.
- Technical Capabilities – Ensure the provider integrates with your POS or software, and offers APIs if you need flexibility. The smoother the integration, the fewer workarounds your team will deal with later.
- Fee Structure Transparency – The right provider will offer reasonable, transparent rates. Before signing on the dotted line, have them explain pricing based on your transaction date. Watch for surprise fees like monthly minimums, batch fees, or vague rate explanations.
- Contract Terms – Understand whether you are signing up month-to-month or locking into a multi-year agreement. Ask about early termination fees, equipment costs, and what happens if your needs change.
- Customer Support Quality – Ask about their support hours, where their teams are located, and their typical response time. This will help you determine whether they can meet your support needs.
- Feature Set – Modern payments go beyond swiping a card. Look for essentials like mobile payments, tokenization, recurring billing, and transparent reporting. The right features should support how you sell today and leave room for how you plan to grow tomorrow.
Recurring Billing And Token Migration (The Part Most Merchants Underestimate)
The switching process, if not managed well, can break subscriptions. Billing logic and stored payment data must be handled carefully, something Kurv has navigated for many recurring-billing merchants across industries.
Map Your Recurring Billing Dependencies
- Document how recurring billing works in your business. Identify where payment tokens live, how often charges run, which systems trigger renewals, and what happens when a payment fails. The clearer this map is, the easier it is to avoid surprises during a transition.
Migration Paths
- Understand whether tokens can be ported to your new provider or if customers need to re-enter payment details. If re-tokenization is required, plan the customer communication and update flow carefully.
Risk Controls
- Run a dual processing window for renewals (if possible). Make sure to monitor failed payments, retries, and churn closely.
Extra Considerations for Complex Setups
Switching providers can involve extra steps if you have a complex payment infrastructure.
- Multi-Location Retail Considerations – If you’re a multi-store retailer, you may want to consider a phased rollout, in which you determine which stores go first, how hardware will be shipped and installed, and who owns training at each site.
- Reporting Continuity – Before you switch, export reports you rely on for reconciliation, finance, and audits. Be sure to confirm how reporting will work post-migration.
- Negotiation Pointers – See if you can negotiate your rates (especially with high payment volume). You might also be able to negotiate hardware discounts, setup fees, contract terms, and more.
Make the Switch Without Breaking Payments—Kurv Can Help
Kurv simplifies payment processing for businesses of all sizes and across multiple industries. We help merchants switch over from the previous processor and offer benefits like:
- Pricing clarity: Switch to straightforward, predictable pricing, so there are no surprise fees after migration, and monthly statements are clear and easy to reconcile.
- Switching support: Flexible gateway and terminal support so you can transition smoothly, reprogramming of existing hardware to make migrations faster, smoother, and less disruptive.
- Risk reduction: Benefit from structured safeguards that help prevent downtime, failed transactions, and broken recurring billing, so revenue keeps flowing.
- Same-day approvals: Start processing payments the same day they are approved through the Kurv app, even before new hardware arrives (or without needing new hardware at all).
Final Thoughts
When you plan ahead, ask the right questions, and negotiate well, switching to a new merchant services provider doesn’t have to be complicated. Follow the pointers above, and you can make the switch with confidence while minimizing risks and downtime.
And if you’re in the market for a new payments provider, Kurv can help. Our suite of payment solutions is built to support modern businesses with flexible integrations, transparent pricing, and room to scale. Explore how Kurv can fit into your payments strategy.
Frequently Asked Questions
Can you switch merchant services without interrupting payment processing?
Yes, if you plan the transition properly. Many businesses run a short overlap period during which both providers are active. This allows you to test transactions, migrate data, and avoid downtime, especially for recurring billing or multi-location setups.
How long does it take to switch merchant services?
That depends. Simple setups can take a few days to a couple of weeks to switch. More complex environments, such as multi-location retail or recurring billing, may take several weeks to fully transition.
Can I keep my card terminal if I switch?
Sometimes. Some terminals are locked to specific providers, while others are reprogrammable. Before switching, confirm whether your existing hardware is compatible or if new devices are required. This can impact both cost and rollout timing.
Do I need to redo PCI compliance when I switch merchant services?
In most cases, yes. Even if your setup does not change much, PCI compliance is tied to your payment environment and provider. The good news is that many providers offer tools or guidance to make the process straightforward.
What happens to chargebacks and disputes when I switch merchant providers?
Open chargebacks usually stay with your previous provider until they are resolved. Make sure you understand who manages active disputes, how evidence is submitted, and how reporting will work during the transition so nothing falls through the cracks.
