www.mcgoverncg.com Credit Card Processing Familiarization Session
Things To Consider <ul><li>Merchant Account Fees </li></ul><ul><li>One Time Fees </li></ul><ul><li>Monthly Account Fee/Equ...
Merchant Account Fees <ul><li>Anyone who processes transactions with a credit card is labeled a merchant by the credit car...
One Time Fees <ul><ul><li>Fees Associated with Getting Your Merchant Account Setup </li></ul></ul><ul><ul><ul><li>Applicat...
Monthly Account Fee <ul><li>Almost all merchant accounts will have some type of monthly fee.  </li></ul><ul><li>It may be ...
Transaction Fees &  Discount Rate <ul><li>Usually, there are two components to the cost of processing each transaction:  <...
Discount Rate <ul><li>For example, if the discount rate offered is 3%, and you receive a payment of $100 you will be charg...
Challenges  <ul><li>Comparing is nearly impossible </li></ul><ul><li>There are many different rates that can apply to a tr...
Where to Start <ul><li>Google Search </li></ul><ul><li>Comparison Websites Such As: </li></ul><ul><ul><li>http://www.ratec...
Why Did We Go With SquareUp.com? <ul><li>Free Setup </li></ul><ul><li>No Monthly Fee </li></ul><ul><li>No Equipment Purcha...
Downside - Challenges <ul><li>No Phone Support – All Email </li></ul><ul><li>For Non-Swiped Cards If you accept more than ...
Should You Have Additional Questions Contact Us: McGovern Consulting Group, LLC 888-876-1544 www.mcgoverncg.com
Upcoming SlideShare
Loading in …5
×

Things To Consider When Selecting A Credit Card Processing Company by the McGovern Consulting Group

785 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
785
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Things To Consider When Selecting A Credit Card Processing Company by the McGovern Consulting Group

  1. 1. www.mcgoverncg.com Credit Card Processing Familiarization Session
  2. 2. Things To Consider <ul><li>Merchant Account Fees </li></ul><ul><li>One Time Fees </li></ul><ul><li>Monthly Account Fee/Equipment </li></ul><ul><li>Transaction Fees & Discount Rate </li></ul><ul><li>Ease of Use </li></ul><ul><li>Access </li></ul>
  3. 3. Merchant Account Fees <ul><li>Anyone who processes transactions with a credit card is labeled a merchant by the credit card processing companies, so your processing account will be called a Merchant Account. </li></ul><ul><li>Merchant accounts are financial accounts through which payments are made. The financial institutions that issue merchant accounts are taking some financial risk if the cardholder disputes a transaction, so applying for a merchant account almost always involves providing the financial information that is necessary for a credit review </li></ul>
  4. 4. One Time Fees <ul><ul><li>Fees Associated with Getting Your Merchant Account Setup </li></ul></ul><ul><ul><ul><li>Application Fees </li></ul></ul></ul><ul><ul><ul><li>Setup Fees </li></ul></ul></ul><ul><ul><ul><li>Gateway Setup Fees, </li></ul></ul></ul><ul><ul><ul><li>Software or Equipment needed to process your transactions. </li></ul></ul></ul><ul><ul><ul><li>This fee might be an ongoing monthly fee if you sign up for a web-hosted solution, or if equipment is leased </li></ul></ul></ul>
  5. 5. Monthly Account Fee <ul><li>Almost all merchant accounts will have some type of monthly fee. </li></ul><ul><li>It may be called a: </li></ul><ul><ul><li>statement fee </li></ul></ul><ul><ul><li>account fees </li></ul></ul><ul><ul><li>reports fee </li></ul></ul><ul><li>Some accounts have multiple monthly charges that typically range from $10-30/month. </li></ul><ul><li>Other accounts may impose a monthly minimum fee instead of/or in addition to the monthly fees. </li></ul>
  6. 6. Transaction Fees & Discount Rate <ul><li>Usually, there are two components to the cost of processing each transaction: </li></ul><ul><ul><li>a per item fee (usually between $0.20 and $0.50) </li></ul></ul><ul><ul><li>a fee that is a percentage of the transaction amount, called a &quot;Discount Rate.&quot; </li></ul></ul><ul><li>The discount rate can vary substantially from one processor to another. </li></ul><ul><li>It commonly is between 2-4%, based on the type of credit card and the method of processing used . </li></ul>
  7. 7. Discount Rate <ul><li>For example, if the discount rate offered is 3%, and you receive a payment of $100 you will be charged $3 as the processing fee. Most of this money goes to the card issuing company such as Visa, MasterCard, etc. (they call this an ‘Interchange’ fee). </li></ul>
  8. 8. Challenges <ul><li>Comparing is nearly impossible </li></ul><ul><li>There are many different rates that can apply to a transaction, depending on the type of card used. This is not just if it is Visa, MasterCard, or Discover, but also if it is a Rewards card, Corporate card, Debit card, etc. </li></ul><ul><li>How the transaction is being processed (swiped, keyed in) </li></ul><ul><li>if it passes certain fraud prevention tests such as &quot;Does the address associated with the transaction match the billing address of the credit card?&quot; </li></ul>
  9. 9. Where to Start <ul><li>Google Search </li></ul><ul><li>Comparison Websites Such As: </li></ul><ul><ul><li>http://www.ratecreditcardprocessing.com/ </li></ul></ul><ul><ul><li>http://credit-card-processing-review.toptenreviews.com/?a_aid=aff1054 </li></ul></ul><ul><li>Your Bank </li></ul>
  10. 10. Why Did We Go With SquareUp.com? <ul><li>Free Setup </li></ul><ul><li>No Monthly Fee </li></ul><ul><li>No Equipment Purchase </li></ul><ul><li>Funds Available Next Day (on swiped transactions) </li></ul><ul><li>2.75% Rate on all Swiped Credit Cards </li></ul><ul><li>Manually entered transactions, cost 3.5% + 15¢ per transaction. </li></ul><ul><li>Works with Iphone, Android, Ipad </li></ul>
  11. 11. Downside - Challenges <ul><li>No Phone Support – All Email </li></ul><ul><li>For Non-Swiped Cards If you accept more than $1,000 in card-not-present payments during any trailing seven day period, Square will defer depositing the amount in excess of $1,000 for 30 days . </li></ul><ul><li>Swipe Card Multiple Times/Transactions for Amounts Over 10K </li></ul>
  12. 12. Should You Have Additional Questions Contact Us: McGovern Consulting Group, LLC 888-876-1544 www.mcgoverncg.com

×