It is when you, as a business,  receive surcharges from Visa and MasterCard  at  true bank cost
Let me  explain …
With a merchant  account  there are two price points: 1.  Your  base discount rate
With a merchant  account  there are two price points: 1.  Your  base discount rate This is the rate for transactions  when...
With a merchant account there are two price points: 2. Surcharges
With a merchant account there are two price points: 2. Surcharges These are added to the base discount rate on transaction...
First let’s look at a typical merchant account  without straight pass through… Often called a  " tiered rate "  ...
Your merchant account would have fees like this… base discount rate of 1.89% and $.20 per transaction mid-qualification ra...
Let’s define what these terms mean…
Base Discount Rate =   the rate for generic consumer cards  that are present and swiped
Mid-Qualified Rate  =  the rate for swiped rewards cards  or  generic consumer cards that are keyed in
Non-Qualified Rate =  the rate for corporate and business cards  or for any other type of transaction not meeting guidelin...
So let’s review those rates again… base discount rate is 1.89% and $.20 per transaction mid-qualification rate is 2.50% an...
Now let’s see how rates on a  straight pass through account work base discount rate is 1.89% and $.20 per transaction + su...
So how much of a difference does  straight pass through make?
EXAMPLE #1 Swiped Visa Rewards Card 2.50% + $.30 2.00% + $.20 Actual Rate (mid-qualification) .11% Visa Surcharge 1.89% + ...
EXAMPLE #1 Swiped Visa Rewards Card With a $100 purchase the straight pass through account fee  would be $2.20; for the ti...
EXAMPLE #2 Keyed in, card not present Visa or MasterCard 2.50%+$.30 2.20%+.20 Actual Rate (mid-qualification) .31% Surchar...
EXAMPLE #2 Keyed in, card not present Visa or MasterCard With a $100 purchase the straight pass through account fee  would...
EXAMPLE #3 Visa EIRF 3.20%+$.40 2.65%+$.20 Actual Rate (non-qualification) .76% Visa Surcharge 1.89%+$.20 1.89%+$.20 Base ...
EXAMPLE #3 Visa EIRF With a $100 purchase the straight pass through account fee  would be $2.85; for the tiered account $3...
EXAMPLE #4 Corporate Cards 3.20%+$.40 2.55 %+$.20 Actual Rate (non-qualification) .66% Visa Surcharge 1.89 %+$.20 1.89%+$....
EXAMPLE #4 Corporate Cards With a $100 purchase the straight pass through account fee  would be $2.75; for the tiered acco...
EXAMPLE #5 MasterCard Check or Debit Card 1.89%+$.20 1.36%+$.25 Actual Rate -.53%+$.05 MC Surcharge 1.89%+$.20 1.89%+$.20 ...
EXAMPLE #5 MasterCard Check or Debit Card No, the minus sign was not a mistake; with check cards you, as a business, are e...
Effective Rate Allows you to see what you are really paying for your merchant account.  Here is an example: Total bank car...
Now it’s time for a quiz
Question #1 When shopping for a merchant account, what price point is more important? A. Base Discount or B. Surcharges
Answer: You need to pay attention to both price points.  For years merchant account providers have made the focus the base...
Question #2 How can you make your merchant account  straight pass through? A. Contact your current provider and renegotiat...
Answer: Why would you contact your current provider if they have been hiding fees from you.  Do they really deserve any mo...
To get your very own  straight pass through merchant account
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What Is Straight Pass Through

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Learn about straight pass through merchant accounts and signifigantly lower your credit card processing fees.

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What Is Straight Pass Through

  1. 2. It is when you, as a business, receive surcharges from Visa and MasterCard at true bank cost
  2. 3. Let me explain …
  3. 4. With a merchant account there are two price points: 1. Your base discount rate
  4. 5. With a merchant account there are two price points: 1. Your base discount rate This is the rate for transactions when a normal consumer credit card is used
  5. 6. With a merchant account there are two price points: 2. Surcharges
  6. 7. With a merchant account there are two price points: 2. Surcharges These are added to the base discount rate on transactions where a rewards card, corporate card, etc. are used or when the credit card in not swiped.
  7. 8. First let’s look at a typical merchant account without straight pass through… Often called a " tiered rate " account.
  8. 9. Your merchant account would have fees like this… base discount rate of 1.89% and $.20 per transaction mid-qualification rate of 2.50% and $.30 per transaction and non-qualification rate of 3.20% and $.40 per transaction
  9. 10. Let’s define what these terms mean…
  10. 11. Base Discount Rate = the rate for generic consumer cards that are present and swiped
  11. 12. Mid-Qualified Rate = the rate for swiped rewards cards or generic consumer cards that are keyed in
  12. 13. Non-Qualified Rate = the rate for corporate and business cards or for any other type of transaction not meeting guidelines or transactions that were not batched in a timely manner
  13. 14. So let’s review those rates again… base discount rate is 1.89% and $.20 per transaction mid-qualification rate is 2.50% and $.30 per transaction and non-qualification rate is 3.20% and $.40 per transaction
  14. 15. Now let’s see how rates on a straight pass through account work base discount rate is 1.89% and $.20 per transaction + surcharges direct from Visa and MasterCard
  15. 16. So how much of a difference does straight pass through make?
  16. 17. EXAMPLE #1 Swiped Visa Rewards Card 2.50% + $.30 2.00% + $.20 Actual Rate (mid-qualification) .11% Visa Surcharge 1.89% + $.20 1.89% + $.20 Base Rate Regular Account SPT Account
  17. 18. EXAMPLE #1 Swiped Visa Rewards Card With a $100 purchase the straight pass through account fee would be $2.20; for the tiered account $2.80. So a straight pass through account would give you a .60% reduction on this type of card!
  18. 19. EXAMPLE #2 Keyed in, card not present Visa or MasterCard 2.50%+$.30 2.20%+.20 Actual Rate (mid-qualification) .31% Surcharge 1.89%+$.20 1.89%+$.20 Base Rate Regular Account SPT Account
  19. 20. EXAMPLE #2 Keyed in, card not present Visa or MasterCard With a $100 purchase the straight pass through account fee would be $2.40; for the tiered account $2.80. So a straight pass through account would give you a .40% reduction on this type of card
  20. 21. EXAMPLE #3 Visa EIRF 3.20%+$.40 2.65%+$.20 Actual Rate (non-qualification) .76% Visa Surcharge 1.89%+$.20 1.89%+$.20 Base Rate Regular Account SPT Account
  21. 22. EXAMPLE #3 Visa EIRF With a $100 purchase the straight pass through account fee would be $2.85; for the tiered account $3.60. So a straight pass through account would give you a .75% reduction on this type of card
  22. 23. EXAMPLE #4 Corporate Cards 3.20%+$.40 2.55 %+$.20 Actual Rate (non-qualification) .66% Visa Surcharge 1.89 %+$.20 1.89%+$.20 Base Rate Regular Account SPT Account
  23. 24. EXAMPLE #4 Corporate Cards With a $100 purchase the straight pass through account fee would be $2.75; for the tiered account $3.60. So a straight pass through account would give you a .85% reduction on this type of card
  24. 25. EXAMPLE #5 MasterCard Check or Debit Card 1.89%+$.20 1.36%+$.25 Actual Rate -.53%+$.05 MC Surcharge 1.89%+$.20 1.89%+$.20 Base Rate Regular Account SPT Account
  25. 26. EXAMPLE #5 MasterCard Check or Debit Card No, the minus sign was not a mistake; with check cards you, as a business, are entitled to receive a rebate from both Visa and MasterCard. With a $100 purchase the straight pass through account fee would be $1.61; for the tiered account $2.09. So a straight pass through account would give you a .48% reduction on this type of card
  26. 27. Effective Rate Allows you to see what you are really paying for your merchant account. Here is an example: Total bank card Volume - $72,053.25 Total merchant account fees – $1942.52 Effective Rate: 2.695% Base Rate – 1.79%
  27. 28. Now it’s time for a quiz
  28. 29. Question #1 When shopping for a merchant account, what price point is more important? A. Base Discount or B. Surcharges
  29. 30. Answer: You need to pay attention to both price points. For years merchant account providers have made the focus the base discount rate and have made most of their profit on the surcharges. It is time for that to change.
  30. 31. Question #2 How can you make your merchant account straight pass through? A. Contact your current provider and renegotiate or B. Contact a new provider that will provide you with a straight pass through merchant account
  31. 32. Answer: Why would you contact your current provider if they have been hiding fees from you. Do they really deserve any more of your business? The answer is to go with a company that is transparent and only creates straight pass through merchant accounts.
  32. 33. To get your very own straight pass through merchant account

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