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Suggest You - The 'Nuts & Bolts' of understanding Merchant Account Rates on your Payment Processing Provider's
I was introduced to the concept of “Thank you notes” when I was about five years old. My teenage cousin just presented me with a coveted new birthday present – a soft, cuddly, gray and white teddy bear. I was overjoyed receiving this bundle of joy but my cousin, who could not attend my birthday party, was unaware of the unbridled happiness stemming from her gift.My grandmother – someone who could have taken over the reigns for “Ms. Manners” – soon afterwards advised me to write a thank you note. I inquired, “Can I call my cousin on the phone to thank her”? “Yes,” she replied,
CREDIT CARD MERCHANT ACCOUNTS Again each Merchant Account has different fees associated with Credit Card Processing. Typically, it is a % of your monthly sales amount + a flat transaction fee. However, Payment Processing Companies do not charge a flat transaction fee, just the % on the monthly sales volume. When is comes to Credit Card Merchant Accounts it usually the % that you want to keep as low as possible and it is not usually as much an issue with the flat transaction fee.
Example 1:
Credit Card Discount Rate: 2.65%
No Transaction Fee: 0.00
327 Transactions
$18,267.00 in Credit Card Sales that month
Average Tic
Industry pros, magazines, and financial television shows trip over themselves highlighting the bold and new over the tried and true. But, one of the most powerful things that anyone can do to improve their finances and increase their financial savvy is also one of the oldest, most widely known and simplest financial disciplines.It's not sexy. It's not unique. It's not exciting. Yet, it's one of the most effective things you can do: Keep Track of Every Penny that Enters and Leaves your Life.Whether you keep track with a pencil and a pocket notebook, a PDA, create a spreadshe
There are four most common Merchant Accounts:
• Visa Merchant Account
• MasterCard Merchant Account
• American Express Merchant Account
• Interac (Debit Cards/Bank Debit Cards) Merchant Account
When you are setting-up your Payment Process System you will apply for Merchants Accounts on each Card that you would like to be able to allow your Customers/Clients to be able to pay by (if they so desire to do so).
You do not have to have Merchant Accounts on all Cards. You can pick and choose which Cards you wish your Payment Processing System to process. You can usually always add additional cards as time goes on.
Most Merchants will initially get set-up with, at least, a Debit Merchant Account and usually Visa & MasterCard Merchant Accounts.
Once you have been approved for each Card you will be given an individual Merchant number for each Merchant Account that is programmed on your Payment Processing System.
WHAT ARE THE FEES ASSOCIATED WITH ACCEPTING DEBIT & CREDIT CARDS?
What you have to take into consideration is that all Payment Processing Companies structure their Monthly fees in different ways. It is not a good idea to compare Debit costs to Debit costs, Credit Card costs to Credit Card costs, or POS Terminal costs to POS Terminal Costs.
The best way to compare pricing and costs from provider to provider is to make sure you have all the questions answered that I have listed in the article called “The 17 Essential Questions for selecting a Payment Processing Provider” which can be found at http://www.cutmyposfees.com Once you have all those questions answered then total up the over all costs with each provider and see which one comes out on top. (Scroll down the Page for Examples)
EXAMPLES:
DEBIT CARD MERCHANT ACCOUNTS: Each Merchant Account has different rates and fees associated with them. Typically Retail Debit Transaction Fees are just a flat rate. An example Debit Transaction rate would be: 12 cents per Debit Transaction. It does not matter whether the Transaction processed was for $5 or $5000 the fee would be 0.12cents for the transaction to take place. Now some Payment Processing Companies will charge you a Low Transaction rate on your Debit Transactions (like 0.05cents) and a % of your sales (like 0.0025%) that is a quarter of 1 percent. This may seem like a good deal, but rarely is.
Example 1:
Debit Transaction at 0.12 cents
576 Debit Transaction that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: $23.56
0.12 cents X 576 = $69.12 in you monthly Debit Fees
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: 23.56
0.05 cents X 576 = $28.80
$13,876.00 X 0.0025% = $46.94
$28.80 + 46.94 = $75.74 in your monthly Debit Fees
You can see that Example 1 is cheaper by $6.62 even though it may initially look like Example 2 would have been less expensive. Typically, it is always better to have a flat Debit Fee only on your Debit Merchant Account. The only time the lower Debit Fee + % works in your favour on Debit Merchant Accounts is if you have a very high Debit transactions on with a very low average Debit ticket price.
CREDIT CARD MERCHANT ACCOUNTS Again each Merchant Account has different fees associated with Credit Card Processing. Typically, it is a % of your monthly sales amount + a flat transaction fee. However, Payment Processing Companies do not charge a flat transaction fee, just the % on the monthly sales volume. When is comes to Credit Card Merchant Accounts it usually the % that you want to keep as low as possible and it is not usually as much an issue with the flat transaction fee.
Example 1:
Credit Card Discount Rate: 2.65%
No Transaction Fee: 0.00
327 Transactions
$18,267.00 in Credit Card Sales that month
Average Tick
In using our communication skills and abilities how we say something is just as important as what we say. Body language plays an extremely important part of our communication. In fact studies have been done showing that when we interact in a communication process the receiver actually receives 7% of the message verbally. The other 93% is received based on the non-verbal aspects of the message.How we dress, our gestures, facial expressions, posture and body movements are also being received when we verbally communicate with someone. That is why it is very important that our actions
Once you have been approved for each Card you will be given an individual Merchant number for each Merchant Account that is programmed on your Payment Processing System.
WHAT ARE THE FEES ASSOCIATED WITH ACCEPTING DEBIT & CREDIT CARDS?
What you have to take into consideration is that all Payment Processing Companies structure their Monthly fees in different ways. It is not a good idea to compare Debit costs to Debit costs, Credit Card costs to Credit Card costs, or POS Terminal costs to POS Terminal Costs.
The best way to compare pricing and costs from provider to provider is to make sure you have all the questions answered that I have listed in the article called “The 17 Essential Questions for selecting a Payment Processing Provider” which can be found at http://www.cutmyposfees.com Once you have all those questions answered then total up the over all costs with each provider and see which one comes out on top. (Scroll down the Page for Examples)
EXAMPLES:
DEBIT CARD MERCHANT ACCOUNTS: Each Merchant Account has different rates and fees associated with them. Typically Retail Debit Transaction Fees are just a flat rate. An example Debit Transaction rate would be: 12 cents per Debit Transaction. It does not matter whether the Transaction processed was for $5 or $5000 the fee would be 0.12cents for the transaction to take place. Now some Payment Processing Companies will charge you a Low Transaction rate on your Debit Transactions (like 0.05cents) and a % of your sales (like 0.0025%) that is a quarter of 1 percent. This may seem like a good deal, but rarely is.
Example 1:
Debit Transaction at 0.12 cents
576 Debit Transaction that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: $23.56
0.12 cents X 576 = $69.12 in you monthly Debit Fees
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: 23.56
0.05 cents X 576 = $28.80
$13,876.00 X 0.0025% = $46.94
$28.80 + 46.94 = $75.74 in your monthly Debit Fees
You can see that Example 1 is cheaper by $6.62 even though it may initially look like Example 2 would have been less expensive. Typically, it is always better to have a flat Debit Fee only on your Debit Merchant Account. The only time the lower Debit Fee + % works in your favour on Debit Merchant Accounts is if you have a very high Debit transactions on with a very low average Debit ticket price.
CREDIT CARD MERCHANT ACCOUNTS Again each Merchant Account has different fees associated with Credit Card Processing. Typically, it is a % of your monthly sales amount + a flat transaction fee. However, Payment Processing Companies do not charge a flat transaction fee, just the % on the monthly sales volume. When is comes to Credit Card Merchant Accounts it usually the % that you want to keep as low as possible and it is not usually as much an issue with the flat transaction fee.
Example 1:
Credit Card Discount Rate: 2.65%
No Transaction Fee: 0.00
327 Transactions
$18,267.00 in Credit Card Sales that month
Average Tic
Although still a relatively new and emerging technology, companies are quickly realizing the many benefits of using electronic recording when it comes to storing important business documents. Believe it or not, there are still people slightly weary (or perhaps simply not aware) of the advantages of electronic recording. Using this process will allow you and your company to save on the two things businesses want to economize the most: time and money.In today’s business world, time literally is money. Thus, saving time directly translates into saving money and everyone likes to s
EXAMPLES:
DEBIT CARD MERCHANT ACCOUNTS: Each Merchant Account has different rates and fees associated with them. Typically Retail Debit Transaction Fees are just a flat rate. An example Debit Transaction rate would be: 12 cents per Debit Transaction. It does not matter whether the Transaction processed was for $5 or $5000 the fee would be 0.12cents for the transaction to take place. Now some Payment Processing Companies will charge you a Low Transaction rate on your Debit Transactions (like 0.05cents) and a % of your sales (like 0.0025%) that is a quarter of 1 percent. This may seem like a good deal, but rarely is.
Example 1:
Debit Transaction at 0.12 cents
576 Debit Transaction that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: $23.56
0.12 cents X 576 = $69.12 in you monthly Debit Fees
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: 23.56
0.05 cents X 576 = $28.80
$13,876.00 X 0.0025% = $46.94
$28.80 + 46.94 = $75.74 in your monthly Debit Fees
You can see that Example 1 is cheaper by $6.62 even though it may initially look like Example 2 would have been less expensive. Typically, it is always better to have a flat Debit Fee only on your Debit Merchant Account. The only time the lower Debit Fee + % works in your favour on Debit Merchant Accounts is if you have a very high Debit transactions on with a very low average Debit ticket price.
CREDIT CARD MERCHANT ACCOUNTS Again each Merchant Account has different fees associated with Credit Card Processing. Typically, it is a % of your monthly sales amount + a flat transaction fee. However, Payment Processing Companies do not charge a flat transaction fee, just the % on the monthly sales volume. When is comes to Credit Card Merchant Accounts it usually the % that you want to keep as low as possible and it is not usually as much an issue with the flat transaction fee.
Example 1:
Credit Card Discount Rate: 2.65%
No Transaction Fee: 0.00
327 Transactions
$18,267.00 in Credit Card Sales that month
Average Tic
All small business owners dream of greater leverage which means the reaping large profits from a simple inexpensive tool. So they look around for tools, tactics or software that will give them an edge. But they miss one of the most effective tools that sits right under their nose. The profit-building tool that most small business people miss is the toll free number.Independent surveys have shown that toll free numbers can increase your business’ sales, improve the branding and perception of your company and significantly increase the value of your business at the point of sale. Be
Example 1:
Debit Transaction at 0.12 cents
576 Debit Transaction that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: $23.56
0.12 cents X 576 = $69.12 in you monthly Debit Fees
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: 23.56
0.05 cents X 576 = $28.80
$13,876.00 X 0.0025% = $46.94
$28.80 + 46.94 = $75.74 in your monthly Debit Fees
You can see that Example 1 is cheaper by $6.62 even though it may initially look like Example 2 would have been less expensive. Typically, it is always better to have a flat Debit Fee only on your Debit Merchant Account. The only time the lower Debit Fee + % works in your favour on Debit Merchant Accounts is if you have a very high Debit transactions on with a very low average Debit ticket price.
CREDIT CARD MERCHANT ACCOUNTS Again each Merchant Account has different fees associated with Credit Card Processing. Typically, it is a % of your monthly sales amount + a flat transaction fee. However, Payment Processing Companies do not charge a flat transaction fee, just the % on the monthly sales volume. When is comes to Credit Card Merchant Accounts it usually the % that you want to keep as low as possible and it is not usually as much an issue with the flat transaction fee.
Example 1:
Credit Card Discount Rate: 2.65%
No Transaction Fee: 0.00
327 Transactions
$18,267.00 in Credit Card Sales that month
Average Tic
Call them what you will: Loss Prevention, Assets Protection, Security, or Store Detectives. The larger your store, the more you need to protect your assets from shoplifting. Shoplifting costs businesses millions of dollars every year. Protection is important, but if your customers feel like they're being watched, they'll feel uncomfortable and shop elsewhere. While a visual deterrent will make dishonest shoppers think twice about stealing, if you're interested in catching thieves, your surveillance will need to be covert. While a great camera system and trained observers can be an e
CREDIT CARD MERCHANT ACCOUNTS Again each Merchant Account has different fees associated with Credit Card Processing. Typically, it is a % of your monthly sales amount + a flat transaction fee. However, Payment Processing Companies do not charge a flat transaction fee, just the % on the monthly sales volume. When is comes to Credit Card Merchant Accounts it usually the % that you want to keep as low as possible and it is not usually as much an issue with the flat transaction fee.
Example 1:
Credit Card Discount Rate: 2.65%
No Transaction Fee: 0.00
327 Transactions
$18,267.00 in Credit Card Sales that month
Average Ticket Price: $55.86
2.65% X $18,267.00 = $484.07 in Credit Card Processing Fees that month
Example 2:
Credit Card Discount Rate: 1.89%
Transaction Fee: 0.10 cents
327 Transactions
$18,267.00 in Credit Card Sales that month
Average Ticket Price: $55.86
327 Transactions X 0.10 cents = $32.70
1.89% X $18,267.00 = $345.24
$32.70 + $345.24 = $377.94 in Credit Card Processing Fees that month
It is obvious in this Example that example 2 is the better Merchant Account to go with.
*IT IS VERY IMPORTANT THAT YOU LOOK AT THE OVER-ALL PROGRAM TO FIND WHICH MERCHANT ACCOUNTS RATES ARE BEST FOR YOUR BUSINESS.
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Related Articles:
Credit Card Fraud Prevention - Err on the Side of Caution
Ways to Determine the Value of a Business
Up to Here with Credit Card Processing Limits
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