Merchant Account Rates
Credit card processing rates can be one of the most confusing aspects of your business. Unfortunately, there is no “one size fits all” rate structure in the merchant services industry. Visa® and MasterCard® each have many different categories for processing credit cards, dependent upon the type of card; the type of transaction and whether the customer is present; and how much cardholder information is collected. These categories are generally referred to in the industry as qualified rates, mid-qualified rates and non-qualified rates. A qualified rate would mean the customer is present to sign a receipt and the card is swiped and the card is a regular credit card, not a rewards card or commercial card. With all those variables, it’s easy to see why merchants can get confused—often, the salesperson trying to provide your merchant account doesn’t sufficiently understand these variables either or just chooses not to disclose the different rates. A common sales tactic is to present the lowest rate possible as “the rate,” which the merchant never realizes until the first statement comes and is full of extra charges for mid- and non-qualified cards.
In addition to these interchange rates, your merchant account may be subject to PCI compliance fees, setup fees, application fees, annual fees, service charges, transaction fees and numerous other charges which may never be revealed to you until you receive a statement or your account is debited.
We will design a program for you based on your monthly volume, your type of business, percentage of swiped vs. keyed transactions, and the overall needs of your business. Some merchants opt for a traditional tiered rate program and some merchants prefer a program based on interchange-plus rates.
One thing is certain—in most cases, we’ll be able to offer you better overall rates than you’re currently paying. We often hear from merchants who believe they are paying a rate below interchange, and once we examine their statements, we’re able to show them where the difference has been shifted, a tactic called bundled rates.
Here’s the bottom line: we’re in business to make a profit, just like you. But our philosophy is that we’d rather profit a small amount on many customers with whom we will build lifetime relationships than profit a large amount on a customer who will then cancel their account when a seemingly better offer comes along.
Give us a call today. We’ll be glad to review your current statement with you, and if we can save you money then we’ll present you with an offer. If not, we’ll let you know that your current situation is good for your business.
We’re building relationships and that can only be done with honesty, integrity, excellent service and fair prices.
Keep in Touch!