Low Credit Card Processing Fees
I’m not one to dance around the subject. So, I’m going to get straight to it and let you know, if you want the lowest credit card processing fees it’s important to run each sale in the proper manner. Credit card sales transactions come in two forms, face-to-face swiped or card present. The other is non-face-to-face key entered.
When a card is key entered or punched in it’s going to be more expensive to process. If you run sales over the internet it’s better to swipe cards with a magnetic card reader MCR, aka credit card reader. Another way to get low credit card processing fees is to ask for Interchange Plus, and see if your merchant services representative is willing to agree.
Some credit card processing reps won’t. At my company, we help you accept cards any way you want it. With over 10 years of experience it’s also important that your credit card processing terminal and the proper associated services have been registered with, when available. Even if your customers personally key in their credit card to make internet payments, it’s still possible to get low credit card processing rates, if a key feature is included. Most reps don’t know the exact details or these secrets for getting a business set up for optimum discounts, unfortunately.
A Caution About Credit Card Processing Fees
By the way, I must warn you, since you are doing some internet research. Don’t get sucked into these ads like: “As Low As 0.25%” Those are desperate attempts to trick you into a trap. The wholesale bank rate for different Visa and Mastercard rates is much higher. Those low-ball rates are always tied into some bank card (which are not credit cards but debit rates). Saying that you’ll get 0.25% is like me telling you, “I’m going to award you 75%”.
Well, the question that you should be asking is “75% of what?” Because, 75% of zero is still zero. All of those cheap merchant rates that sound to good to be true are just that, bogus. In the small fine print you are going to find the other fees that jack up that 0.25%, usually end up much higher than most credit card service companies. Don’t get stuck in a bad marriage and deal with a nasty divorce. Get set up right the first time.
Be smart. Work with a company and representative that will tell you the truth, even if it’s counter to what those low-ball cheap offers are claiming. Because, once you sign on the dotted line, hand over your checking account information and run one-single card transaction, you are going to be married to that merchant company for a long time. No one wants to be stuck in a bad relationship with an ugly partner, especially when it’s sucking money out of your pocket every month too.
Don’t Get Married To Bad Credit Card Processing Fees
If you will pick up the telephone and call me, I’ll explain to you the best options that will let you get low credit card processing fees. Plus, I will show you exactly what equipment you need to help insure each sale gets the lowest merchant fees. And, I’ll also share with you the lowest prices on equipment. So, you’ll spend less on a credit card machine, a pos system or accepting credit cards over the internet and through a website. Contact me Before you decide to sign on any credit card processing fees agreement, call me.
Under $200 (Wholesale Prices)*
Here’s a great business tip most credit card machine sales people don’t know about or won’t tell you. When you lease a credit card machine, the lease company will collect from you property tax on your equipment.
That’s right. Don’t forget, leasing equipment for your business increases your business property tax values. Therefore, you’ll be paying more money just for accepting credit cards and choosing to lease the equipment instead of buying. Now granted, if the tax assessor decides to visit your business and take inventory, there’s not much you can do about it. However, why open yourself up for more taxes buy leasing a piece of equipment and paying on a terminal assessed at a $900 value, when in fact the terminal’s real taxable value is closer to $150 according to the county.
Do yourself and your pocket book a favor and buy your credit card machine for the least amount, instead of leasing it for four years and paying more taxes on it than you need to. Take control of your expenses.
So Where Can You Find Low Prices?
Take a look at my catalog of credit card machines. There you’ll find many of the best quality terminals at wholesale prices. Contact my representative because not every terminal is ideal for every business. He will teach you the differences between credit card machines. He can also show you how to save money in credit card processing fees. Call him today.
If you need help saving more money while accepting credit cards, give me a call. To learn more about how to buy a credit card machines or open a merchant account correctly contact me at .
Credit card processing companies seem, to most business owners, as all being alike. They all claim to be able to help you accept credit cards and provide 24/7 telephone support with the lowest processing fees. At least, that’s what it seems like.
However, just as there are different credit card processing companies, there are differences in quality they can provide your business. One idea to keep in mind is, the ability to accept credit cards is a benefit your business. It allows your customers an opportunity to afford buying from you. Customers can self-finance purchases. Having a credit card processing service provides your business with non-cash payment alternatives. And in today’s world, safety is what is driving people not to carry cash.
Consider this if you sell high priced items. Being able to accept credit cards or debit cards allows your business to avoid establishing a credit department. You don’t have to handle financing or issue lines of credit. Therefore, there is going to be a cost associated with accepting non-cash payments. However, you won’t need to create a credit department and pay those costs. Instead, by getting a merchant account, a processing company will handle credit sales for you at an extremely lower price.
I stress this point because people seem to have forgotten the importance of why businesses accept credit cards. People forget that shopping for credit card processing services should not be handled like shopping for a hamburger. Of course, I realize because we live in a fast-food driven society, business owners can get into the habit of shopping for credit card processing services based on low prices and the speed of getting the merchant account set up.
For example, the #1 question I get is “What are your rates?” After I give people the discount rate, along with the monthly minimums, statement fees, authorization and batch rates people usually respond by saying, “Well, I just got some other quote and your rate is very high, or someone else doesn’t charge statement fees or authorization fees.” At that point I really feel like rolling my eyes and sighing, but I can’t. No matter how annoying this response gets, I have to keep focused on that fact that these business owners, are untrained on the true costs of credit card processing.
Most people don’t know where to get the industry rates for accepting credit cards. Therefore, they don’t know how to spot false advertisements or realize they’ve been told lies. What really gets my goat is that processing companies are not allowed to advertise false rates. For example, some companies advertise .25% as a rate. That is an absolute misrepresentation and a bogus rate.
To fight this type of credit card processing ignorance and false advertising, I have to use hard evidence. Therefore, to prove to some business owners that they’ve been misinformed, I refer them to the Mastercard Interchange Rate Guide and the Visa Interchange Rate Sheet. You can view them and download yourself by clicking on the links. As you will see, there is no rate at or below .25%.
These documents are the Interchange Rates charged to MSPs (Merchant Service Providers) and Acquiring Banks. These are the fees that credit card processing companies must pay to the bank networks. This is similar to banks paying the Prime Rate to the Federal Reserve for borrowing money. There are no freebies from Mastercard, Visa or any credit card company. Everyone has to pay these fees. They are essentially the bottom wholesale rates. So, when someone says they don’t have to pay these fees according to some rep, they have been duped. Processing companies have to cover their costs and they will make it up elsewhere by increasing something to make up the price difference they lose elsewhere.
These rate sheets clearly show what credit card processing companies pay for processing credit cards. Now, these fees have to be passed on to merchants, you the business owner, at a slightly higher rate in order to make a profit. These fees are then called Discount Rates and are fees that must be charged to cover the Interchange Rates charged by Mastercard or Visa. They have to make a profit in order to stay in business. Using the rate sheets, if you are able to make a general sense of all the figures, you will see that there are in fact monthly minimums, authorization fees, batch fees, bank network fees, costs associated with processing credit cards. There is no .25% rate for Visa, Mastercard, Discover or American Express.
So, when any company tries to make you believe that your not going to be charged fees, or pay some crazy low-ball rate watch out! Because, what’s going to happen is the fees they claim you won’t be charged, will be billed to you…but actually built into other less obvious fees. I caution you because, from experience, 9 times out of 10, companies that offer things for free tend to overcharge for services. I don’t care how loyal you are to your bank or your processing company, if your money is important to you, don’t fall for these free or dirt cheap offers. Be willing to accept upfront, but fair, charges.
So What Choice Should You Make? Who Should You Work With?
Deciding who you should pick to help you manage your credit card processing service really needs to narrowed down to your consultant. Who is the person, the face or voice, that you can rely on and call on to help you negotiate your merchant account fees? That person is your Agent.
Who can you call on the weekend or holiday, evening or otherwise to get advice, not only on credit cards, debit cards or check acceptance, but also on simply how to increase your business sales? That person is an experienced Agent. Sometimes, unfortunately, picking your employees son in law who happens to work in merchant services isn’t the best choice. It’s going to come down to experience, dependability, accessibility and performance history.
Therefore, if you’re one of the business owners who knows that all those so called “Lowest Merchant Rate” and “Acquirer of the Year,” or “Free Credit Card Machine” offers are really just hype, perhaps your someone who needs to be talking to a straight forward consultant. Someone who’s going to give you advice, even if it’s not the news you want to hear.
If this is the type of advisor you want on your side. You might be the kind of business owner I want to work with as well.
If you need help saving more money while accepting credit cards, give me a call. To learn more about how to buy a credit card machines or open a merchant account correctly contact me at.
There are plenty of “generous” companies willing to hand out free credit card machines to business owners. Actually, it was only a matter of time before free offers migrated into the processing equipment industry. For years processing companies have been stuck in leasing equipment for small monthly payments as it’s main marketing strategy. However, as soon as processing equipment costs lowered, the door of opportunity opened wide. So, just like free cell phones became popular, credit card processing equipment did the same. Unfortunately, some people still don’t understand that there no profit minded companies that give away anything for free. Take note, free credit card machines are not truly free.
So, where does this credit card processing money come from to pay for a free credit card machine? The biggest and most popular credit card processing myth being told today is, the discount swiped rate is all you have to pay. This is absolutely false. First of all, the discount swiped rate isn’t a discount for a business owner. It’s not a savings. Secondly, the entire discount rate is really made up of three parts – the qualified, mid-qualified and the non-qualified rate – shown as percentages. These rates represent the levels of risk.
The first, and lowest rate charged is the qualified rate. It is the rate charged for swiped transactions. Where the credit card is physically swiped through the machine for payment. The next fee that can be added to the same sale is the Mid Qualified fee. Its the next fee, which increases the transaction fee, when the card card number is typed, in order to process the transaction. Lastly, the Non Qualified fee can potentially be added to the transaction. This occurs when, for example, a rewards card or corporate card are presented for payment. This fee can also be charged when a typed in transaction is handled properly. For example, when asked for the customers zip code where they receive their statement is skipped, this will likely result in the Non Qualified fee being charged.
While, the amounts these three fees can vary from one merchant provider to the next, one thing remains true. The bulk of fees needed to pay for free credit card machine offers occur in the Mid Qualified and Non Qualified fees. In fact, I’ve read merchant statements proving that many business owners were charged the Non Qualified fee 100% of the time, for every credit card sale. How does this happen? Simple, take away the Address Verification Service option from a merchant who keys in every sale. AVS by the way, is the service which prompts the user to enter the zip code where the statements are mailed for the credit card presented as payment. The credit card company wants to match up what the customer says, to what the credit card company has on record, in order to reduce the risk of fraud. If they can’t match it up, that sale becomes a higher risk sale and the business owner pays more for that transaction.
“But I’m A Loyal Customer Of My Bank”
Ever heard that before? I’m sure every bank President loves loyalty. I’ve never met a banker who doesn’t love their customers, have you?
I haven’t gone one week over the years, when I’ve not talked to a business owner who says to me, “I don’t care about lowering my fees. I’m a loyal bank customer and just want to stay with my bank, even if their fees are higher.” Wow! Is what I’m thinking. Yes, I’m blown away each time I hear business owners, that are suppose to be in business to make money, convincing themselves that loyalty puts more food on the table – when they are the one’s paying for the service. When the money comes out of your pocket, there is no profit being generated.
Loyalty doesn’t pay your bills. Loyalty doesn’t pay your mortgage. Loyalty doesn’t make you any wealthier. Loyalty, only in the minds of your customer makes you money.
So, for anyone who is willing to listen. Don’t accept a free credit card machine, unless it’s from a friend or family member who isn’t going to sign up for a merchant services account. Don’t do it!
If, you get what I’m sharing here and want to do business with one of America’s most knowledgeable credit card processing professionals, call toll free at .
Get smart. Buy wholesale not retail. Remember, you are the business owner.
Call me today.
Credit Machines has over 20 years of business experience. His expertise is in reviewing merchant statements and identifying profit on behalf of business owners. Visit his website today at http://www.creditmachines.com
Categories: Articles Tags: