Your SlideShare is downloading. ×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

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

566
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
566
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. www.mcgoverncg.com Credit Card Processing Familiarization Session
  • 2. Things To Consider
    • Merchant Account Fees
    • One Time Fees
    • Monthly Account Fee/Equipment
    • Transaction Fees & Discount Rate
    • Ease of Use
    • Access
  • 3. Merchant Account Fees
    • 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.
    • 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
  • 4. One Time Fees
      • Fees Associated with Getting Your Merchant Account Setup
        • Application Fees
        • Setup Fees
        • Gateway Setup Fees,
        • Software or Equipment needed to process your transactions.
        • This fee might be an ongoing monthly fee if you sign up for a web-hosted solution, or if equipment is leased
  • 5. Monthly Account Fee
    • Almost all merchant accounts will have some type of monthly fee.
    • It may be called a:
      • statement fee
      • account fees
      • reports fee
    • Some accounts have multiple monthly charges that typically range from $10-30/month.
    • Other accounts may impose a monthly minimum fee instead of/or in addition to the monthly fees.
  • 6. Transaction Fees & Discount Rate
    • Usually, there are two components to the cost of processing each transaction:
      • a per item fee (usually between $0.20 and $0.50)
      • a fee that is a percentage of the transaction amount, called a "Discount Rate."
    • The discount rate can vary substantially from one processor to another.
    • It commonly is between 2-4%, based on the type of credit card and the method of processing used .
  • 7. Discount Rate
    • 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).
  • 8. Challenges
    • Comparing is nearly impossible
    • 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.
    • How the transaction is being processed (swiped, keyed in)
    • if it passes certain fraud prevention tests such as "Does the address associated with the transaction match the billing address of the credit card?"
  • 9. Where to Start
    • Google Search
    • Comparison Websites Such As:
      • http://www.ratecreditcardprocessing.com/
      • http://credit-card-processing-review.toptenreviews.com/?a_aid=aff1054
    • Your Bank
  • 10. Why Did We Go With SquareUp.com?
    • Free Setup
    • No Monthly Fee
    • No Equipment Purchase
    • Funds Available Next Day (on swiped transactions)
    • 2.75% Rate on all Swiped Credit Cards
    • Manually entered transactions, cost 3.5% + 15¢ per transaction.
    • Works with Iphone, Android, Ipad
  • 11. Downside - Challenges
    • No Phone Support – All Email
    • 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 .
    • Swipe Card Multiple Times/Transactions for Amounts Over 10K
  • 12. Should You Have Additional Questions Contact Us: McGovern Consulting Group, LLC 888-876-1544 www.mcgoverncg.com