Discover How to Finally understand Credit Card Processing
Fees and charges
Imagine being able to keep more of your hard-earned money and
pay less for the "privilege" of accepting plastic
In 2005, industry trade journals indicated for the first time ever "payment for goods and services with credit cards, has exceeded that of checks and cash" (Green Sheet). As a result, more of your bottom line is going out in fees to a Merchant Services Provider. It’s more crucial than ever to get a more thorough understanding of how your rates and fees are calculated. It’s likely that your current rep hasn’t, or won’t, enlighten you.
Credit card processing bills tend to be filled with cryptic codes and indecipherable information. It’s like trying to figure out logarithmic formulas, in many cases. Take a look at your current bill, for example. Are there charges that you don’t understand or feel are excessive?
Here’s an exercise for you. Take your total fees paid for the month and divide it by your total processing volume. Make sure you get "total" fees charged before doing this exercise. Some processors take some of their fees off each daily batch (referred to as Daily Discounting). Look for a line that says, "less discount paid" and add that to your month end fees. This will give your true Net Effective Rate. Is that number anywhere near what you were originally quoted as your "Discount Rate"?
Your Discount Rate (the rate they always lure you in with) is typically your Qualified or Tier 1 Rate. This will only be for your generic type Visa or MC credit or debit cards, swiped through a terminal. Most processors promote low discount rates but what they don’t tell you about is the host of surcharges and other miscellaneous fees. You could have Mid-Qualified, Non-Qualified, Tier 3 or Tier 4 rates. Do you have bundled or un-bundled rates? What about service, monthly statement, batch or annual fees? Have those been willingly explained to you? Keep in mind, every processor sets its own tiered pricing. One type of credit card transaction may be considered Mid-Qualified by one processor and Qualified by another. It’s extremely important to become better educated.
After many years in this industry, I am blessed with an extremely high customer retention rate. When you take time to educate and build relationships with your merchants, trust is earned. I’ve helped merchants save thousands in processing costs over the years. But, I can only touch and assist so many in my local market. So, in an effort to help thousands more, nationwide, I’ve developed an informative website and subsequent eBook on the topic of credit card processing. Take the time to come on by for a very profitable visit. You’ll find us at
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