Is it illegal to have more than one credit card processor?

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I own a small business and I’m expanding in a couple of weeks. The current credit card company I’m with charges me some pretty high rates but they’ve been with me since the beginning and took a chance on me. Would it be illegal for me to use another company to process my credit cards for my new location? Can I have more than one credit card processing company?

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  • Generally credit card processors will not allow you to do this, unless you own multiple chains/locations. Quit paying the high charges with your current company, first speak with them about your current rates to see if they will reduce them, if not move on. Your loyalty is commendable, however, this is business and you’re in it to make money and that means making smart financial decisions.

  • Why dont you cancel your current account and then apply for a new better company with lower rates and fees? Are you stuck in a term contract? If so how much is the early cancellation fee, and is it worth it to pay to be free of?

    I had a similar situation when I was very unhappy with my current credit card processor and had to pay the the cancellation fee.

    Just always make sure if and when you sign up with a new company that there is no contract and you can cancel at any time with no fee.

    I switched to MerchantWharehouse, 1 of the few companies that does not require a term contract and have been very happy with them.

    Source(s): www.merchantwharehouse.com
    www.AcceptingCreditCards.info

  • In order to have multiple credit card processors you would have to have separate equipment for each company. The best solution would be to find a company that offers the best rate, the actual interchange rate from VISA, Mastercard, etc. There’s only one that I know of: http://wholesale-credit-card-processing.blogspot.c…

  • usually rates are based on your average transaction size.

    I can’t imagine the various CC processing companies are that much different in their rate structure. if your avg sale is $10, then your transaction fee is going to be a higher percentage than someone with an avg sale of $50

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