When to Switch PSPs: Signs It's Time

The Switching Dilemma

Switching PSPs is painful: integration work, potential downtime, customer impact. But staying with the wrong processor is often worse.

Signs You Should Switch

1. Poor Approval Rates

If your approval rate is significantly below benchmarks (85%+ for low-risk, 75%+ for high-risk), you're losing sales.

2. Uncompetitive Rates

If you've grown significantly and rates haven't improved, you're likely overpaying.

3. Feature Limitations

Missing features you need: currencies, payment methods, reporting, API capabilities.

4. Service Issues

Slow support, unresponsive account management, issues taking too long to resolve.

5. Stability Concerns

Frequent outages, rumors of financial trouble, or indication they're exiting your vertical.

6. Restrictive Terms

Long contracts, high exit fees, or unfavorable reserve terms you can't renegotiate.

When Not to Switch

• Minor rate difference (under 0.5%)
• Temporary service issues being addressed
• During busy seasons
• Without a clear improvement target

How to Switch Safely

1. Parallel Operation

Run both processors simultaneously during transition. Don't cut over completely until confident.

2. Gradual Migration

Move volume gradually. Start with new customers, then migrate existing.

3. Stored Card Strategy

Plan for stored cards. Some orchestrators enable token portability. Otherwise, re-authenticate customers.

4. Communication Plan

Notify customers if billing changes. Update any saved payment instructions.

What to Negotiate

• Rate guarantee period
• Migration support
• Volume commitments
• Contract flexibility

Key Takeaways

• Switching is painful but sometimes necessary
• Poor approval rates are often worth switching for
• Plan for parallel operation during transition
• Negotiate migration support and rate guarantees
• Don't switch for small rate differences alone