The Top 5 Most Common Merchant Account Complaints

When it comes to choosing a credit card processor, merchants have a lot to consider. Sometimes the “cheapest” merchant accounts end up costing the most in headaches and lost time. When a processor creates problems or wastes your time, that directly reduces its value to your business.

We’ve rounded up the top five complaints merchants have about credit card processors, and what you can do to avoid them.

If you need help comparing options, check out our roundup of the best credit card processing companies.

5 Common Complaints About Merchant Accounts

Before you sign a contract, it helps to know the issues merchants face most. Spotting these red flags early can make choosing the right processor much easier.

Difficulty Cancelling Services

If your contract is month-to-month, getting out is usually straightforward. But if you’re in a longer contract with early termination fees, it can get messy.

Many merchants complain about being bounced around from department to department, trying to get a cancellation approved. Some never get a clear answer, and a few end up stuck paying for services they no longer use.

The best course of action is to always cancel your account in writing and keep a copy. That way, you have proof if you’re ever charged after switching providers.

Bad Or Expensive Leasing Agreements

Leasing terminals can feel like a trap. Merchants often find themselves paying thousands over a few years for machines that cost only a few hundred to buy outright.

Leases are usually non-cancellable, so you’re stuck paying the full term even if you close your account early. That adds up fast and frustrates many small business owners.

The takeaway: if you can afford it, buying your terminal outright is almost always cheaper than renting, and it keeps you in control of your hardware.

Deceptive Sales Tactics Or Pushy Representatives

A merchant account salesperson’s job is to make a sale. That doesn’t automatically make them shady, but some providers — and their independent resellers — can get aggressive.

Tiered pricing and flashy “low rates” sound great, but most merchants don’t qualify for the advertised rate. Hidden fees can eat up any savings, turning a seemingly good deal into a surprise expense.

Independent agents, who work on commission, may push deals without explaining the fine print. They might be poorly trained, overworked, or under pressure to close sales, leaving you stuck with a contract that doesn’t meet your needs.

Read the contract carefully, ask questions, and don’t let a salesperson rush you.

Poor Customer Service

Once the sale is done, some providers vanish. Independent agents often move on to the next client, leaving merchants with little support.

Trying to reach the right person can turn into a frustrating game of hot potato, passed from department to department. Automated answering systems can make it even worse.

Good customer service is crucial. Before signing up, check reviews and see how easy it is to reach someone who can actually help if something goes wrong.

High Fees

Fees are where many merchants feel burned. Early termination and PCI compliance fees are common complaints, but they’re not the only ones. Some processors hide extra charges that pop up later, like liquidated damages fees or international transaction costs.

Early termination fees are around $400 on average, which can feel steep for small or new businesses. Some providers don’t charge PCI or termination fees at all, making any fee feel unnecessary and frustrating.

To avoid this issue, always read the fine print, ask about all potential fees, and compare providers before committing.

Final Thoughts On Merchant Account Complaints

No two merchants have the same experience, so it’s important to look at complaints in context. A processor serving 100,000 merchants will naturally have more complaints than one serving 10,000, but patterns matter.

If you see repeated complaints about the same issue — whether it’s cancellation trouble, high fees, or poor service — that’s a red flag. Knowing these common pitfalls upfront lets you ask the right questions and avoid surprises.

The best approach is to be informed, read contracts carefully, and don’t be afraid to walk away if a provider isn’t a good fit for your business.