20 Questions to Ask Merchant Credit Card Processors Before Signing the Dotted Line

When selecting a credit card processor for your business, asking the right questions can save you from unexpected fees, poor customer service, and unnecessary stress. Not all payment processors are created equal, and with so many options, it’s vital to ensure you’re choosing the best fit for your business.

Below, you will find the 20 most important questions you should ask merchant credit card processors before signing a contract. By understanding these key areas, you’ll be empowered to make an informed decision that benefits you.

1. What Are the Setup Fees, Monthly Fees, and Transaction Fees?

One of the most crucial questions to ask merchant credit card processors is about their fee structure. Many payment processors have hidden fees that aren’t obvious in the initial agreement.

Ask for clarity on the following fees:

Setup fees: Fees to establish your merchant account.
Monthly fees: Ongoing fees to maintain your account.
Transaction fees: A percentage or flat fee charged on every card transaction.
Statement fees: Fees for sending monthly statements online or by mail.
Batch processing fees: Fees to process all payments at the end of the day.

Pro Tip: Ask for a fee schedule in writing and ensure the fees are guaranteed for the life of the contract.

2. Are There Early Termination Fees or Long-Term Contracts?

A long-term contract can be risky for new businesses, especially if you discover the service isn’t working for you. Many processors lock business owners into contracts that can only be terminated by paying hefty cancellation fees.

Ask about:

Month-to-month contract options
No-fee cancellation policy
Details on penalties for early termination

3. How Transparent Is the Pricing Structure?

Many payment processors advertise “flat-rate pricing” or "interchange-plus pricing," but that doesn’t mean you’ll avoid hidden fees. Dig deeper and ask about:

Additional fees for certain payment types (credit cards vs. debit cards)
Fees on chargebacks and refunds
Pricing for international payments
Rates for online shopping cart payments

Make sure there’s no "fine print" that could affect your bottom line.

4. Is the Payment Processor PCI-compliant?

PCI compliance is essential for businesses that handle customer card data. Without it, your business could face heavy fines if a security breach occurs.

Ask the processor:

Are they PCI-compliant?
Do they offer tools and guidance to help your business become PCI compliant?
Is there an extra fee to maintain PCI compliance?

5. How Does the Payment Processor Handle Data Security?

A secure payment processor should use tokenization and encryption to protect card data. These technologies make it difficult for hackers to access sensitive information.

Ask if the provider offers:

Tokenization to protect stored data
Encryption to protect card data during transactions
Fraud protection tools

The goal is to ensure your customers’ payment information is protected at every process stage.

6. Are the Payment Types and Transaction Types Supported?

Your customers will expect to pay using various methods, from credit cards to debit cards to mobile payments.

Ask the processor:

Which card brands are supported (Visa, Mastercard, Amex, etc.)?
Do they support contactless payments (Apple Pay, Google Pay)?
Can they handle ACH transfers or e-check payments?

Zen Payments supports all major credit card brands, plus Apple Pay, Google Pay, and ACH payments.

7. Do They Offer Support for EMV Chip Card Processing?

The switch to EMV chips has reduced fraud in credit card transactions. Ensure your processor can support EMV chip card processing at physical terminals.

This keeps your business compliant and protects you from potential fraud liability.

8. What Are the Customer Support Options?

Nothing is worse than having technical issues with no support. Excellent customer service is non-negotiable in payment processing.

Ask:

Is support available 24/7 or only during certain hours?
Can you reach support by phone, chat, and email?
Is support outsourced or in-house?

Zen Payments provides personalized support for all high-risk merchants, ensuring you’re never left without help.

9. How Fast Are Fund Transfers to My Business Bank Account?

Some payment processors take several days to transfer funds. Ask how soon you’ll receive payments and if they offer same-day funding. Faster access to funds can greatly improve your cash flow.

10. Are There Hardware and Physical Terminal Costs?

If you need physical terminals or POS systems, ask about the cost. Many providers offer “free” terminals, but the cost is often hidden in higher processing fees.

11. What is the Approval Process Like?

High-risk businesses are often denied merchant accounts by traditional providers like Stripe and PayPal. Ask about:

Approval rates (Zen Payments boasts a 98% approval rate)
Required documents for application
Average time to get approved

12. How Are Chargebacks Handled?

Chargebacks are common for high-risk businesses. Ask if the processor offers chargeback protection tools and if fees are charged on disputed transactions.

13. Do They Offer Virtual Terminals?

A virtual terminal is essential if you run a remote business or take payments over the phone. This allows you to enter card details manually for card-not-present transactions.

14. What Happens If You Change Business Models?

Can the processor support your new needs if your business grows or pivots? For example, can they handle high-volume payments or switch from retail to e-commerce?

15. Can I Use a Payment Gateway for Online Transactions?

A payment gateway connects your online store with the payment processor. Ask if the gateway is included and if it integrates with platforms like Shopify, WooCommerce, and BigCommerce.

16. Are There Any Limits on Transaction Volume?

Some providers cap your monthly transaction volume. If you exceed this limit, your payments may be put on hold.

Zen Payments helps businesses process high-volume payments with no holds.

17. How Are Disputed Transactions Handled?

When customers dispute payments, you need to know how long it takes to resolve them. Ask about the dispute resolution process and how funds are handled during investigations.

18. Is There a Risk of Your Account Being Frozen?

High-risk businesses are at greater risk of having their funds frozen. Ask if there are conditions under which funds might be held.

Zen Payments works with multiple banks to reduce this risk.

19. Do They Support Batch Processing?

Batch processing allows you to group transactions for faster and more efficient payments. It can also reduce fees on individual transactions.

20. Can They Handle Both Debit Cards and Credit Cards?

While most processors handle both, it’s wise to ask. You want to ensure you can accept all payment types from your customers.

Choose the Right Payment Processor for Your Business

Choosing a merchant credit card processor can feel overwhelming, but asking the right questions will set you up for success. Look for transparent fees, fast payouts, and strong customer support.

Zen Payments specializes in high-risk merchant accounts and offers tailored payment processing services to help your business grow. With over 15 years of experience and access to 15+ banking relationships, Zen Payments ensures you’ll have a trustworthy partner.

Get Started with Zen Payments Today

Don’t settle for hidden fees, slow transfers, and poor customer service. Contact Zen Payments for reliable, transparent, and secure payment processing for your business.

Ready to start processing payments? Apply for a High-Risk Merchant Account.