News, Trends, and Insights for IT & Managed Services Providers
News, Trends, and Insights for IT & Managed Services Providers
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ConnectWise is set to introduce a surcharge on credit card transactions starting October 1, 2025, in response to rising processing costs. This fee will either reflect the actual cost of processing or the maximum allowed in specific jurisdictions, whichever is lower, ensuring transparency during checkout. The company emphasizes the need for this change to maintain a secure and flexible payment experience amidst increasing operational expenses. For partners looking to avoid these additional charges, ConnectWise offers an alternative payment option through Automated Clearing House transactions, which will not incur surcharges. This new policy primarily impacts partners in North America and Canada, excluding regions where such fees are prohibited by law.

ConnectWise has recently experienced layoffs as part of a summer workforce rebalancing effort. The company, known for its IT service management solutions, is adjusting its staffing to better align with current market demands and operational needs. This move comes amid a broader trend in the technology sector, where companies are reassessing their workforce and operational strategies in response to changing economic conditions. While specific numbers regarding the layoffs have not been disclosed, the decision reflects a growing phenomenon among IT service providers who are seeking to optimize resources in a competitive landscape.

Why do we care?

ConnectWise is joining the “nickel-and-dime” parade: credit-card surcharges kick in as early as October 1st. They’ll charge either their actual cost or the legal max, whichever’s lower, and point you to ACH to dodge the fee. In places that ban surcharges, they may just stop taking cards. Sound familiar? Pax8 did it. Lots of vendors are quietly steering everyone to ACH.

Here’s the blunt take: if you’ve been paying big vendor bills on a points card, the gravy train is over. Do the math—$5K a month at 3% is $1,800 a year—per vendor. That’s not catastrophic, but it builds fast across your tech stack. So stop treating payments like an afterthought. Flip vendors to ACH as you can, fix your MSA so your collections are standardized, and know your state rules and offer a fee-free option if you must pass fees along. Don’t get cute and trip compliance.

On the layoffs: fewer than a hundred people, labeled “rebalancing.” Translation: they’re clearing the decks to push Asio harder and improve the numbers. That usually means faster product changes and pricing/packaging moves. Don’t get caught flat-footed—demand dates, SLAs, and clear migration help before you sign onto anything “platform.”

Is this “enshittification”? Maybe.  It does fit the term coined by economists about platforms squeezing value out of their customers.   But the practical move is simple: own your payments and standardize your tooling so vendor tweaks don’t punch holes in your margin.

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