LMS vs. Other Companies.
Sarah Wilson | 7th Nov 2022
Want to see how we fare up against some of the most well known processing companies in the market? Well… It’s time to dig in.
When you think of merchant processing companies, what do you think of? Cheap Machine? Low Cost at the end of the month? Ease of Use? Reliability? Well, it turns out there is more than what is on the surface to it. Therefore, we decided to take a look at how LMS would fare up against some of the most well known processing companies that merchants take a first look at & think of.
UPFRONT COSTS
One of the main attractions to any business is simplicity which also means not having to pay anything when changing their processor or setting up a new one.
We here at LMS promise this simplicity by making merchants feel at home when they decide to use our services. While many other processing companies charge various fees to onboard your business, we here at LMS guarantee this promised simplicity by only charging fees that you would normally pay at the end of the month & nothing upfront.
RATES
Many companies take pride in offering transparency & ease of understanding by offering “Flat Rate Pricing” but is Flat Rate all it’s cracked up to be? Well, this pricing structure is quite simple however it is highly unlikely to save any money for your business.
Typically, the most efficient & cost saving pricing structure for small-medium sized businesses is “Interchange Plus Pricing”. The name might sound a mouthful but this plan is sure to save you cost at your business & unless you are really sold on any company’s name alone.
We would highly suggest that you go with a company that offers this plan instead of the Flat Rate.
See this chart on how these rates compare to one another, flat rate ALWAYS has a higher margin with unclear rates whereas the interchange rate only has a visible/declared margin on top of all wholesale rates from Visa/MasterCard & other Card Publishers.
WHAT TO CONSIDER
There are a few key factors which are a must to consider before choosing the right payment processor for your business.
One of the most important ones to consider is Customer Service, who would you call in case you need help or have any questions after you start processing?
When it comes to the terminal, how easy it is to use the hardware?
Last but not least what other fees and charges come along that you are unaware of associated with each system?
You might be considering a “I don’t need anything fancy, I just want to set up my system and start taking payments” while that sounds fantastic, however, there is always a catch.
Before choosing easy to set up processors such as Square or Stripe you need to be aware that some times these companies offer shared merchant accounts for businesses that sign up & don’t require any vetting or approval hassle and time.
Businesses that use services from such easy to set up processing companies tend to usually have complaints of frozen funds & even account termination for lower leniency of risk or fraud.
WHY LMS?
As discussed above we offer the same free set up, efficiency & easy to use (aesthetically appealing) hardware but with an individual account for your business. Keeping in mind that you would have to pay for the mandatory costs e.g., the equipment & the app.
While other companies may also offer great equipment, typically, the tend to charge additional for its software even after you pay the monthly fees on the hardware. We offer our equipment with built in software so there is no additional fees that you would have to pay for using the basic equipment.
We even offer an absolutely free! “Virtual Terminal” along with our equipment so in case you don’t happen to be near your equipment or simply want to take payments from elsewhere, you can make that happen virtually anywhere by simply logging into the “Clover Dashboard” via your Phone, PC, Laptop or anywhere you would like.
CURIOUS ABOUT RATES?
Mostly people in business love stability of a consistent rate, understandably so, however most companies deliberately make interchange rate(s) confusing so you won’t understand how much profit they are skimming from the top.
OVERVIEW
Till now you must have understood that many companies use different tactics to manipulate business owners into various so-called traps whether it be higher fees or costly equipment.
Many large processing companies are a forefront of conversation when it comes to changing or setting up new accounts for businesses & even offer tons of hardware choices for different kinds of businesses, however, mostly all of them capitalize on business owners lack of knowledge on how interchange works and offer flat rates which is not as great of a deal for small medium sized business as it is for their profits.
Plus, as your business scales, so does their fees & costs.
We here at LMS are dedicated to providing transparency and freedom to business owners, therefore, we let YOU decide what plan you want with a wide variety of hardware to choose from & whether you want a rental, lease or purchase.
Our suggestion is to always opt for interchange plus pricing and we make it easy to understand for you as well as only earn for the work we are doing for your business.
SATISFIED YET?
Sign up immediately with transparent terms, lowest rates & our friendly team to help you through the process.
