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Credit Card Processors - who are you using/how do you like it?


Turbs3000

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Hey so I'm looking at switching our companies credit card processor, or at least shopping some rates. With the experience here in regards to similar matters I thought I'd pick some brains and get some of your thoughts/opinions/experiences.

 

Yearly amt via CC: $250k - $500K.

Currently with Huntington

After including all the fees/charges we are right around 3.5%

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Face to face processing, over the Internet or phone sales?

 

I used RBC before switching to square. I love that square is simple and fast. No contracts. No guessing what the % is going to be and funds next day into our account. It's mobile so I can swipe anywhere and I'm logged in on my cell, finances cell and our iPad. It's 2.75 % I believe. We have done between 150k-250k in sales without a single problem. I would never go back to the awful merchant service industry with leased terminals and varying swipes ever again.

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I process through First Data.

 

I read for hours to understand how the system works.

 

Basically the short part is this:

You get charged by your processor and the customers card company.

You can't negotiate the charges on the customer's card end. They happen to be the higher charges.

 

I got First Data down to 25 basis points. (.25%) + the charges on the other end.

 

Then ask for a listing of what all cards charge how much broken down by transaction type.

 

The cheapest is a debit transaction. On debit I pay $.01 + (0.35% of transaction amount) in total. Not too bad.

 

Amex charges are the highest....

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Basically from what I'm seeing, the price is made up of:

Interchange fees- which is the interchange rate + cost per transaction.

Fees- which are a bunch of nicknacky fees (service charge, gateway fee, batch fee, network fee)

Service Charges- The service charges are the real killer in my mind. They are made up of volume fees and sales discounts.

 

The minimal knowledge I have on this all tells me he interchange rates are those you cannot change. They are set by the banks/card issuers etc. Our cost per transaction is only $0.10 which doesn't seem too bad.

 

I'd also be curious if anyone else knows what they are currently paying as an overall percentage, everything included; fees, address verification, interchange costs, statement costs, access costs. Obviously, technically some of those shouldn't be rolled as a percentage but it seems to be a decent measurement. That's the percentage for us that is about 3.5%

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