In business today, accepting credit cards is a
must. Consumers enjoy both the convenience and
the security of buying with a credit card. But as a
merchant, accepting credit cards can be costly if
you're not aware of the potentially numerous charges
levied on merchants by card associations and
merchant service providers (MSPs).
Many merchants
typically sign up with the first company that
contacts them, usually their bank or affiliate, and
while the “jargon” can be confusing, what seemed
like a good deal, often is not. Some of the other
tactics used are long term contracts, leasing or
purchasing machines, application fees, and higher
rates.
HOW
ARE WE DIFFERENT?
NO
CONTRACTS
FREE
MACHINES
NO
APPLICATION FEES
FREE
SUPPLIES AND SUPPORT
NEXT
DAY DEPOSIT (NO HOLD ON YOUR MONEY)
LOWEST
RATES AVAILABLE
So how do you know how
much you'll pay your MSP for each transaction? What
you'll pay is based on a variety of factors, but two
main elements are how the transaction is classified
and your average ticket sale.
How
Do You Rate?
Most merchants,
unknowingly, are on the three tier program, rather
that interchange plus pricing (which in most cases
charges you less fees). Each of your transactions
will be classified as either qualified,
mid-qualified, or non-qualified. These three
classifications are based on Visa/MasterCard
regulations. Transactions that do not satisfy all
qualified transaction conditions, as established by
Visa and MasterCard, are assessed either a
mid-qualified or a non-qualified surcharge.
Make sure you've read
the complete list of criteria for determining how a
transaction is classified so you can meet those
criteria with each transaction. Your MSP should be
able to provide you with this list.
Watch
Those Numbers.
Don't be fooled by the
rate game. What might be a good rate for merchants
with higher average ticket sales -- the average
amount charged per item sold -- could be a costly
rate for merchants with lower averages.
To understand how this
works, you first need to understand rate
terminology. Most merchant service providers charge
a discount rate for each transaction, bundled with a
per-transaction fee. The term discount rate is a
misnomer because there's really no discount
involved. This rate is a percentage applied to the
dollar value of each transaction. The
per-transaction fee is a flat fee charged for each
transaction.
We provide each
customer with a cost analysis, that shows you on
paper, what you are paying today to process credit
cards with your current processor, and what you
would pay with us. You may be surprised just how
much money you are giving away!
Contact us
for a FREE analysis of your merchant
processing
We will tell you whether our processing
will save you money or not!
