10 Things You Must Know To Get A Fair Deal From Your Processor 817-614-7105
10 Things You MU$T Know To Get a Fair Deal From Your Credit Card Processor! By Stacey Dewberry“Senior Relationship Manager” 817-614-7105
HELP IS HERE !!As a business owner/operator who accepts card payments, youre likely solicited by many competing payment processors who will promise you almost anything to winyour business. 10 credit card processing tips may seem likea lot, but the more you know the better equipped you will be to avoid pitfalls. ENJOY!
Never Ask A Sales Representative “Whats Your Rate?" #1 Its natural to ask a sales representative for their rateswhen comparing offers. After all, its the rate that matters the most, right? Wrong. The pricing model on which rates are based matters more than the actual rate. The first and most important question to ask is "whats your pricing model." Once you know that pricing is based oninterchange pass through you can inquire about rates with confidence..
Only The Markup Over Interchange and Assessments Is Negotiable! #2 The only portion of credit card processing cost that you can negotiate is the markup over interchange. When comparing credit card processors, focus on theprocessors markup portion over cost. The markup is the only area of expense that will differ from one processor to the next. Interchange pass through (also called interchange plus pricing) is the least expensive, mosttransparent credit card processing pricing model, and its the one you want.
Your Local Bank Is Not The Best Option For Credit Card Processing! #3 Many local banks outsource credit card processingservices to independent sales agents or organizations thatwork for large processors. You may think that by going toyour bank you are going right to the source, when in fact, you are just adding another hand to the pot. Contact me:Stacey Dewberry and I’ll guide you to the best one of only 11 wholesale card processors in the United States.
Tiered Pricing Is Garbage! #4 Tiered pricing (sometimes called bundled pricing) is when a processor quotes three rates, called qualified, mid-qualified, andnon-qualified. Tiered pricing structure is expensive and riddled with loopholes and hidden fees that result in expensive surcharges and obscure reporting. Tiered pricing allows credit card processors to determine what transactions are considered qualified, mid- qualified, and non-qualified. All they have to do is route moretransactions (interchange categories) to the mid and non-qualified pricing tiers. This results in higher charges, and it happenscompletely behind the scenes. By the time you notice your chargeshave increased, you will have been overpaying for months or years!
Free Merchant Accounts Do Not Exist! #5 When processors advertise "free merchant accounts" , they are usually referring to equipment or application fees. Dont shop for a credit card processor based on whether you can get a free machine. You will pay much less in the long term by going with a processor thatcharges a competitive price for a machine, in addition to offering competitive interchange pass through rates.
Failing To Clear Your Batch Results In Higher Fees! #6Interchange guidelines require authorizations to be settled within a certain number of days (usually only two days). Holding authorizations longer will cause them to downgrade (be charged at a higher rate) to interchange Standard or EIRF categories. Be sure you clear your batch every day to avoid this expensive and unnecessary downgrade. Terminals should be programmed to auto-batch each night.
Take PCI DSS seriously — You Are Liable For A Breach! #7PCI DSS stands for payment card industry data securitystandard. PCI DSS is a set of guidelines set by the cardbrands to ensure that merchants are taking the propersteps to safeguard cardholder information. Your businessis liable for any loss of cardholder data, and you arelooking at huge fines if your business experiences a breachwhile it is not PCI compliant. Take PCI seriously, and ensurethat your business is compliant. More information on PCIis available at the PCI Security Standards Council.
Failing To Use AVS Costs Money! #8 AVS stands for address verification service. The card brands (Visa, MasterCard and Discover) require that acustomers billing address be entered for any card-not- present transaction (keyed-in, online, etc.). Failing to provide AVS information increases costs by causing transactions to downgrade (run at a higher rate).
You Are Supposed To Get Fees Refunded On Returns! #9Businesses are supposed to receive an interchange credit each time a debit or credit card refund is issued. Tiered pricing allows processors to intercept this fee credit, essentially stealing it from businesses.Getting interchange pass through instead of tiered pricing will ensure that your business receives interchange fee credits on refunded transactions.
Never Lease A Credit Card Machine! #10 Reputable processors will never try to lease you a credit card machine. In fact, most processors will sell you a machine at or near cost when you open a new merchantaccount. Depending on the make and model, machines cost roughly $100-$500 when purchased with a merchant account. The cost will be slightly higher if you dont need processing, but it is still far less than the $2,000 - $3,000 you would pay to lease the same machine.
Ignorance is blissfully expensive when it comes to credit card processing. Has your processor informed you that since the implementation of the “Durbin Amendment” the debit swipe fee reform from one year ago that your costs should be lower? “Both business owners and consumers are feeling the relief oflower debit card swipe fees,” merchants are putting their ‘Durbin Dollars’ to work in a variety of ways, such as opening new locations, purchasing new equipment, fixtures and delivery cars, offsetting rising fuel and food costs and more. Consumers are also benefitting from merchants not raising prices, and from merchants such as Home Depot, which lowered prices as a result of overall lower operating costs thanks in part to the regulation. At no cost, I’ll walk you through your statement, help you uncover hidden fees and show you where you can reduce waste! I’ve only worked with companies that have an endorsement from major trade associations (over 250+) , including publication and academic organizations.
If You Need Help Just Contact Me! Stacey Dewberry Credit Card Processing Consultant 817-614-7105 or firstname.lastname@example.org $ee You At The Top!