Merchant Account Blog & Credit Card Processing Blog

Welcome back!

Merchant Account Rates - Credit Card Processing Rates

Merchant account rates and fees can vary from processor to processor. Unerstanding rates are key to finding the best overall merchant account rate for your business. We will look at each variable when searching for the best credit card processing rates.

Swiped Credit Card Rates: Credit card transactions which are “Swiped” through a credit card machine are usually fall around 1.69% - 1.79% depending on the processor. These levels usually bundel both Signatute Debt Transactions and Credit Card Transactions branded with either Visa or Mastercard Logos.

Keyed Credit Card Rates: Transactions where the customers card is not present and the card number is “Keyed” into credit card processing software or ecommerce merchant account where the customer manually inputs credit card information, the rate usually falls around 2.39% - 2.49% keyed.

Mid Qualified Rates: These rates are assessments by Visa & Mastercard and will vary by processors. Usually this tier is for Rewards Cards, branded either Visa or Mastercard.

Non-Quailified Rates: Again, these are assessments by Visa & Mastercard and do vary bt processor. This tier is for International Cards, Business Cards, Corporate Cards, Government Cards, and any keyed transaction that is un-qualified or lacks AVS Fraud Controls. Discount rate tier regulations.

Pin-Based Debt Transactions: These retail transactions require a Pin Number Authorization and usually price at $0.35 + 0.75% of the dollar amount. A PCI-Compliant pin-pad is required and is not
available for phone-order or ecommerce transactions.

Split Signature Debt / Credit Card Rates:  These rates are split into two catagories, seperating Signature Debit and Credit Card transactions. Usually priced at 1.39% Signature Debit and 1.89% Credit Card. Be careful here, as if your business accepts mostly credit cards, you will pay more.

Transaction Fee: Transaction fee’s cover the transmission cost and usually price between $0.20 and $0.30 depending on your processor and transaction processing methood. May include end-of-day batching of the day’s transactions for payment to your account.

Statement Fee: Each month you receive a monthly merchant account statement of transactions forr the previous month and usually prices between $10-$12 per month.

Minimum Fee: This fee is charged to Low-Volume Business doing less than $25 Month in discount rates fees. Often used to off-set free equipment placements to low-volume businesses.

Annual Fee: Merchant’s are usually charged a annual fee on the aniversry of their account. Fee will vary and can usually be waived.

Chargeback Fee: Customer disputes that result in a Chargeback are charged between $25-$35 per instance. Chargeback Prevention is needed as your merchant account can be “Closed” for excessive chargebacks.

Application Fee: This fee has pretty much disappeared, industry-wide.

If you are looking to SAVE MONEY on your credit card processing, please give me a call imediately.

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

If you enjoyed this post, make sure you subscribe to my RSS feed!

Business Survival In A Slowing Economy

The key to survival in this slowing economy is to cut your cost’s. Reduction’s in your overhead will stabilize your bottom line profit’s and allow you to ride out this storm. Slowing top-line sales are sure to be felt by most small business, as consumer spending slow’s.

Credit Card Processing Rates

The first place merchants can cut-cost’s is in their credit card transaction costs. Merchant account fee’s can vary from merchant to merchant and saving’s can usually be found for any merchant. Our model has always been to save the merchant money, while providing superior service. Currently we are prepared to beat any rate you are currently paying on an existing merchant account, guaranteed. We also offer an incentive program for high volume merchant accounts to save thousands.

Grab your current processing statements and give me a call to discuss your needs.

MARK SANDS
1st National Processing
http://www.usa-merchantaccount.com
1-866 828-8683

If you enjoyed this post, make sure you subscribe to my RSS feed!

Getting The Best Merchant Account Rates

Understanding your merchant account rates, is the first step in insuring that you get the best rate. Most merchants do not understand the rate structure of their merchant account. The majority of merchant accounts are on a Tiered System, as Visa & Mastercard charge different rates for certain business types and transaction types. This is called “Interchange” and is extremely complicated. Between both Visa and Mastercard there are at least 100 different Interchange Catagories, here are the current interchange rates from Visa Interchange and Mastercard Interchange, as-of this writing. As you can see, Interchange Rates are extremely complicated.

The popular Tiered System tends to simplify this extremely complicated formula used by Visa & Mastercard. Most merchant accounts use a Three Tier System for Qualified, Mid-Qualified, and Non-Qualified Transactions with different rates for each. Basic understanding of each, is key to getting the best possible rate for that particular transaction type.

GETTING THE BEST RATE:

Alway’s swipe the credit card, when possible.
Use AVS & CVV2 when keying a transaction. ( Address, Zip Code, Last 3 On Back )
CLOSE YOUR TERMINAL BATCH DAILY !!!!!!!!

Majority of your transactions should fall under Quailfied Transactions, by following the above proceedure. Any Rewards Cards process will probally fall under your Mid-Quaified Tier. Finally any of the following card types will fall under the Non-Qualified Tier….Foriegn Cards, Business Cards, and any hand-key transactions with a retail account.

Larger businesses that process above $37,500 per month, may qualify for Interchange Plus pricing which is Interchange Cost, plus a flat rate of 0.27% above interchange cost. This is actually much simpler and you will receive a monthly break-down of where each transaction fall’s under the complex Interchange Structure. This option is reserved for higher volume merchants, currently processing credit cards. Call us today, to see if you qualify as a high-volume merchant account. Your 3 most recent credit card processing statements are required.

Both Visa and Mastercard offer special Supermarket Rates for grocery stores that:

If you enjoyed this post, make sure you subscribe to my RSS feed!