How to Switch Payment Processors Without Losing Sales

Switching payment processors can save money, end account headaches, or give you a partner that actually supports your industry. Done carelessly, though, it can mean a few days of lost sales, failed subscription renewals or surprise fees. Here's a step-by-step plan for switching smoothly.

Step 1: Read your current contract

Before you do anything else, find your current agreement and check:

• Term and renewal: when the contract ends and whether it renews automatically.
• Early termination fee: a flat fee for leaving early. Some contracts use "liquidated damages" instead, which can be much larger, so read carefully.
• Notice period: how much written notice you must give.
• Equipment: whether your terminals are owned, rented or leased. Equipment leases are often separate contracts that continue even after you switch.
• Reserves: whether your processor is holding a reserve, and when it will be released.

Step 2: Compare offers properly

Compare total cost, not headline rates. Ask each provider for pricing on your actual volume and card mix, and use the processing fee calculator to compare your effective rate. Our pricing guide explains interchange, markup and the fees to ask about. Price isn't everything, though. If you're in a high-risk industry, a processor that understands your business is worth more than a slightly lower rate.

Step 3: Get approved before you change anything

Apply and get fully approved by the new processor while your current account keeps running. Have your documents ready to avoid delays. Our approval checklist lists what most underwriters ask for.

Step 4: Plan for stored cards and subscriptions

If you bill customers on a schedule or store cards for repeat purchases, this is the most important step. Card details are usually stored as tokens that only work with the processor or gateway that created them. Ask your current provider whether they support a secure, PCI-compliant transfer of stored card data to your new provider. Many do on request, but it can take time. Without a transfer, customers would need to re-enter their cards.

Step 5: Set up and test

• Connect your website checkout, shopping cart or software to the new payment gateway.
• Set up and test terminals if you take payments in person.
• Run test transactions, including a refund, before going live.
• Confirm your new billing descriptor is one customers will recognize.

Step 6: Switch over during a quiet period

Pick a low-traffic time to move live payments to the new processor. Watch the first day's transactions closely for declines or errors.

Step 7: Keep your old account open for a while

Don't close your old account the day you switch. Refunds for past orders have to go back through the original processor, and customers can file chargebacks on old transactions for months. Keep the old account open, with enough funds available to cover disputes, until the risk has passed. Ask your old processor when any reserve will be released.

Step 8: Close it properly

When you're ready, give written notice as your contract requires, return any equipment you don't own, and get written confirmation that the account is closed and what final fees apply.

Switching checklist

• Contract terms, fees and notice period reviewed
• Equipment lease checked
• New account approved
• Stored card transfer requested, if needed
• Checkout and terminals connected and tested
• Go-live date chosen
• Old account kept open for refunds and disputes
• Written closure confirmation received

Thinking about switching?

Zeyla works with businesses in everyday and high-risk industries, and a payments specialist reviews every application. If your current processor is holding funds or closing your account, read why processors hold funds, then apply in about 3 minutes.