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Most merchants, 78%, cite price as the primary factor that prompted them to switch processors, suggest the results of a recent Aite Group LLC report on merchant attrition. Aite says it surveyed 160 merchants between May and August last year for its research. "The incessant quest for lower pricing is driving merchants to look at different processors and renegotiate their rates," states the report "The Allure of Greener Grass: An Analysis of Merchant Attrition." After price, merchants say response time to their requests and overall customer service affected their decisions to switch processors. Of the total merchant respondents that switched processors, 48% noted the replaced processor was too slow to meet their needs, and 48% believed the processor gave poor customer service, according to Aite. Merchant respondents also cited their inability to understand processor statements (33%) or to reconcile statements and transactions with account software (28%), and a lack of product choices (27%) as reasons to switch processors. An Aite analyst was not available for comment by CardLine deadline.
