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Details on credit card processing and Heartland Payment Systems

Details on credit card processing and Heartland Payment Systems

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    Slideshare.Heartland Presentation Slideshare.Heartland Presentation Presentation Transcript

    • Heartland Payment Systems Processing 101
    • Heartland Payment Systems
      • Heartland Payment Systems' CEO Bob Carr Wins Ernst & Young 2007 Entrepreneur of the Year Award.
      • Heartland was named the Financial Services Sales Organization of the Year in the Best Run Sales Organization category by Selling Power
      • Heartland processes over $80 Billion Dollars every year
    • It’s Not About Rates!
      • How the Process Works
      • How the business owner (aka merchant) is charged
      • Industry Secrets
      • The Heartland Difference
    • How it Works!
      • Your Costs …
        • =Discount Rate (%)
        • + Per Item Fee ($ amount per transaction)
        • + Network fee (the cost it takes for the processor to move the money to your account)
        • + Processor’s Fees
    • How it Works
      • Inter Change – the cost of each card decided by MC/Visa
        • Will differ from industry to industry
        • Visa’s Base Wholesale Rate is Lower than MC
        • Visa represents about 65% of the average Merchant volume
        • Base Wholesale Price for Visa has not increased in 3 years
        • Base Wholesale price for MC was recently lowered
        • It is the same for everyone based on SIC code– Wal-Mart to Wally’s Market
    • All Cards Are Not Created Equal!
    • Check Cards
      • Money Comes Out Of Checking Account
      • Less Risk
      • Lowest Base Wholesale Rate
    • Check Cards Base Wholesale Rate
      • Retail
        • Visa 1.12% MC 1.15% + $.15
      • Utility
        • Visa .09% +$.75 M/C .09% + $.45
      • Supermarket
        • Visa 1.03% M/C 1.05% + $.15
    • Consumer Credit Cards Base Wholesale Rate
      • Retail
        • Visa 1.63% MC 1.67% + $.10
      • Utility
        • Visa .09% +$.75 M/C .09% + $.45
      • Supermarket
        • Visa 1.24% M/C 1.48% + $.05
    • Consumer Rewards Cards Base Wholesale Rate
      • Retail
        • Visa 1.99% MC 1.99% + $.10
      • Utility
        • Visa .09% +$.75 M/C .09% + $.45
      • Supermarket
        • Visa 1.90% + $.10
        • M/C 1.64% + $.16
    • Corporate Cards Base Wholesale Rate
      • Retail
        • Visa 1.99% MC 1.99% + $.10
      • Utility
        • Visa .09% +$.75 M/C .09% + $.45
      • Supermarket
        • Visa 2.20% + $.10
        • M/C 2.65% + $.10
    • All Cards Are Not Created Equal! Retail (review) 1.12% + $.15 $100 purchase = $1.27 1.67% + $.10 $100 purchase = $1.77 1.99% + $.10 $100 purchase = $2.09 1.99% + $.10 $100 purchase = $2.09 *Plus Processing Fees
    • Down Grade Rates
      • Card Not Present (Phone Orders)
      • Card Not Swiped (Keyed in)
      • Processed Incorrectly
        • Lodging as Retail (example)
    • Industry Secrets What They Don’t Want You To Know & Why it’s not about the rates…
      • On average
          • Only10% of your volume will fall under a qualified rate
          • If your average ticket is less than $50, as much as 50% of your volume could be check card
      • Most Processors charge the same for Visa & M/C transactions
      • Most Processors use a three tier platform (Qualified, Mid-Qualified & Non Qualified)
        • They will determine which cards fall where
    • Industry Secrets What They Don’t Want You To Know & Why it’s not about the rates…
      • Batch Fees are a Financial Industry Invention
        • They are charging you to deposit your money
      • They will often lease $400 equipment for as much as $70/month (for 4 years)
      • They will increase all rates whenever Visa or MC increases Any rate. (ex. Visa Supermarket Debit card)
    • Industry Secrets What They Don’t Want You To Know About Statement Practices
      • Don't list Rates
      • Don’t explain designations
      • Don’t give CheckCard rebates
      • Charge Batch Fees
      • Surcharge Everything
      • Offer a great Qualified Rate and an outrageous MidQual and NonQual Rate
    • Statement Practices Rate increase not warranted 90% of Volume Surcharged 20% of Volume qualifies for Check Card discounts Quoted Rate is 100% meaningless
    • The Heartland Difference
      • Full Disclosure on Pricing
      • 24/7 Customer Service
      • Personal Local Service Professionals
      • Lower Overall Costs
      • Customer Solution Focused
      • 3 Year Guarantee Against Fee Increases
      • much more…
    • The Heartland Difference
      • Payroll Services
      • Auto Recovery
      • HPS Connect
      • HPS WebConnect
    •