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Voluntary merchant attrition, in which a merchant client elects to switch service providers, has decreased because of the difficult economy. However, involuntary merchant attrition, such as when merchants no longer operate, has increased, according to industry insiders. "We've seen merchant attrition related to merchants going out of business go up slightly," says Vic Susman, chief operating officer at First National Merchant Solutions, an Omaha, Neb.-based processor. "We've also seen a hunkering down on behalf of merchants who want to switch because of price. They are more hesitant" because of the economy, he says. Merchants are looking for stability with their existing service providers instead of less-expensive rates with a different provider, says Vaden C. Landers, CEO of Profit Point Inc., a Nashville, Tenn.-based provider of gift card, loyalty and merchant services. "If someone wants something cheaper, they are more inclined in this environment to call me and ask for a better price," says Landers.
