Myths about Merchant Services

This blog is going to bust some of the myths that surround the merchant services industry. There are a lot of misconceptions surrounding what makes a good provider and it can be quite confusing for the merchant. Especially if you are shopping around to find the best provider, different companies will tell you a variety of things to convince you they’re the best provider. That’s why we are going to highlight some of the key myths about merchant services and explain why these are myths. This will help to provide clarity in a diverse and confusing industry.


  1. Bigger is better. It’s a common misconception that bigger merchant service providers provide better service than smaller ones.  Many of the larger providers do not offer 24/7/365 in-house technical support or are able to provide you with key reporting and analytic tools to help manage your business.
  2. The rates are all that matter. It’s a big mistake to think this is the only important factor that goes into choosing a merchant service provider.  Many providers give great headline rates but when you look at the small print there are often additional charges plus huge and complicated cancellation fees.
  3. Merchant services are too expensive. The cost of accepting, processing and banking of cash is of significant concern, though many wrongly perceive cash as being ‘free’, not to mention the security concern of storing and moving cash too.
  4. It takes a long time to get my money after a card payment is accepted. It takes three working days to be deposited into your account whereas a cheque can take up to five working days to clear.
  5. Card processing opens up my business to fraud. No system can deliver cast iron anti-fraud guarantees, however, today’s card processing systems are far safer than ever with the introduction of chip and pin and 3D secure. As a merchant, you will also have to comply with the Payment Card Industry Data Security Standard (PCI DSS).  This is a worldwide standard set up to help businesses process card payments securely and reduce card fraud.
  6. The public still prefers using cash. Consumer card spending overtook cash spending in 2018, according to research from the British Retail Consortium. Debit cards remain the most popular method of payment, accounting for almost three-in five transactions. The use of cash payments has been falling steadily over the past five years, from 50% in 2013 to 40% in 2018.
  7. Small businesses don’t need to be PCI compliant. PCI is short for the Payment Card Industry. Even if you run a small business that only accepts a small percentage of credit card purchases, it’s in your best interest to be PCI compliant when handling sensitive customer information. Being PCI compliant will help your business remain secure and profitable.
  8. Merchants are not liable for chargebacks for items purchased online. All merchants, big or small face the very real risk of having to pay for fraudulent purchases even when they were purchased online. It is important to keep good records of all your transactions and be able to back up any claims.

In conclusion, merchant service providers can mask the truth and they use different techniques to try to show they’re the best providers for you or their brand precedes themselves and makes them appear to be the best provider. But we hope that our myth-busting list can help anyone looking into merchant services to have a checklist to really find the best provider for themselves.

Doing a blog like this shows how ethical NetPay are and how we value customer service, trying to put the customer first. We are clear with our rates and explain them fully. With 24x7x365 UK customer service we aim to be there for merchants whenever they need us.

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