“First Step To Savings”

“My billing statement is confusing and lacks details”

Merchants need every advantage they can get in the competitive modern day marketplace. Merchants can reduce their credit card processing fees with a bit of knowledge. Here’s some basics that I think will be helpful to you.

The main thing you need to know is many processors and banks go out of their way to confuse the issues of processing rates and surcharges. Even if your billing statement makes sense to you, you might be surprised at the sophistication of the billing creativities. Unless you are familiar with the various types of creative billing and the interchange rates, you are probably paying more for your processing than you need to.

The interchange fees are what go to your customers bank for the their service of issuing your customers their credit and bank cards. The assessment is what goes to Visa and MasterCard on every transaction run worldwide. There is no compromising with these fees. Processors provide a valuable service and deserve to make a profit. The issue is how much profit is reasonable and when does it cross the line.

So where is the excess and how do you eliminate it? It’s typically hidden in the statement presentation and merchants have no idea it’s there. Does this terminology look familiar? Qualified, mid-qualified, non-qualified, or tiers 1,2,3,4? These are not legitimate interchange categories. This phrasing is very common and it’s sole design is to keep merchants from knowing more about what they should be getting charged.  

There are 35 Visa categories and 52 MasterCard surcharge categories for a retail environment. How do banks and processors get away with listing just three or four categories? Keeping the classifications vague keeps you from knowing exactly what types of cards you are taking in your business. If you don’t know what types of cards you are accepting then how do you know what the surcharges should be? Need I say more.

The first step you can take in reducing your costs is to look into processing with a company that will itemize your card types on your billing statements. All of my clients receive this type of billing and I provide them with a copy of the interchange rates so they can verify the card surcharges on their statements.

 

“A No Cost Analysis”

“Are there any fees for your analysis?” 

A complete analysis for my prospective clients comes at no cost or obligation. You have nothing to lose and everything to gain. The first step starts with you faxing or emailing over the most recent of your last three months billing statements. Send the highest volume statement of the three. Statements with more line items and higher volume will give us both more insight into your current situation. Black out your merchant ID numbers. After receiving your fax, I will complete the analysis within twenty-four to forty-eight hours and present you with the results. Please make sure all of your contact information is in your correspondence.

Another option is to call me directly and I will be more than happy to take as much time as you need in discussing your processing. Developing personal contact with your processor is an important part of the processing business. You want to make sure you are dealing with someone who will be there when you need them to be. Ask for names of merchant referrals so you can speak to a few merchants who have already received the services being promised. I’ll be happy to provide you with a list of names.

Often times merchants are not looking only to reduce costs or receive better service. They might have ideas of changing from terminals to software or having a combination of both. Another issue dealt with quite often is upgrading outdated terminals. I can also set you up with a check guarantee service if you have a high volume of bounced checks. You might even entertain the idea of adding gift cards.

Take that first step of contact TODAY! You will never regret that you did. I’ll be more than happy to let you speak with some of my clients who have saved anywhere from 10% to 50% in processing fees. That my friends, is why I enjoy doing what I do!

 

“Escape Your Contract”

“I’m locked into a contract and can’t get out of it”

Being in a term contract doesn’t necessarily mean that you must fullfill the length of the term. If you find a processor that offers you more appealing rates and service, you should make the switch. In this case the “angel”, not the devil, is in the details. If you take a few minutes to view the small print of your contract you will likely discover the clause of “early termination”.

Most merchant processing contracts that I have seen are bought out at a very reasonable price ranging between $150 to $300. Why would a merchant stay locked into a contract for such a small amount of money? They can easily save that money by switching processors. Legitimate processors will often times cover the buyout expense in exchange for receiving your business.

My company has no term contract. You stay with us as long as you’re happy. If you ever wanted to leave, there’s no buyout fee. My policy has been to pay the buyout fee for the merchant I’m dealing with who has an existing contract with their current processor. Escape the contract prison, you’ll be glad you did!