Merchant Services - Rich Dark Secrets

Have you questioned if the MasterCard Fees and also Visa Costs were legitimate or were they made up? Possess you ever pondered what were deep blue sea dark keys concerning Merchant Services Prices? What regarding why there was actually a lot fine print during that Merchant Services Processor's arrangement. Why is there a very early discontinuation expense?

The fee costs stem from MasterCard Management Services and also Visa Administration Services and also are usually updated two times per year. The fees that you are demanded is based on their personal MasterCard price slab and Visa fee sheet. Currently you must contribute to that cost the portion your processor chip tacks on for their payment. Performed your sales rep ask just how much they might include in your fee for their payment? If you were inquired that inquiry, you have an agent that possesses your best interest in mind.

The price for each kind of bank card that has been released to your customers from the financial institutions (called the card company) possesses a definite price linked with each of those cards. Nevertheless, you may certainly not see the private prices for each and every card, however clearly you are being billed of what ever before memory card is being swiped via your terminal. If your merchant services claim does not detail every memory card you browse through your terminal, after that you will definitely certainly never know what is happening with your account.

For example you might not know if the card is a generic MasterCard or a MasterCard World card. The same is for Visa. You could be swiping a generic Visa or a Visa Rewards card. The World Card and the Reward Card have higher rates that you have to pay. The rate is shown on the Merchant Services Cost Sheet so you should see this itemized on your merchant services statement.

The fee charge (actual cost) to scan the card (called the transaction) is usually around $.10 per transaction. That $.10 is added to the rate you are being charged. One exception to the $.10 transaction fee would be small ticket. Small ticket is associated with restaurants or fast food purchases and even coffee shops. Generally the transaction fee for restaurants i.e. small ticket transactions is about $.04 per transaction. The lower transaction fee is allowable due to the high volume and low average ticket of the transaction.

One of the deep dark secrets on your Merchant Services statement is the cost to batch your terminal at the end of the day. Batching is when you move your sales from the credit card terminal to your bank account through the system. Many merchant services contracts are written with a $.20- $.25 batch fee. The batch fee is a "mystery junk fee" that is not required. I hope you aren't paying it.

Caution - there is another deep dark secret. There is another fee that can become very costly to merchants. The fee is called the merchant early termination fee. The merchant early termination fee is usually in the small print. Many times the early termination fee is explained away by sales reps with the idea that it is just like the cell phone companies. They will say the fee is in line with all other companies and they must charge it too.

Sounds good doesn't it? This fee is used to deter you from info canceling your service with the processor (called the acquirer). You will usually see this gem tucked away in the very small print toward the end of your contract. The merchant services early termination fee is another "mystery junk fee" used to tie the merchant from jumping from processor to processor.

My question is if the processor is looking out for the merchant, why would there be a need to jump from merchant services processor to merchant services processor. If a lower rate was available, why wouldn't the rep take the necessary steps to lower the rate of their customers? Did you know in 2008 there were a few rates that went down on the merchant services cost sheet? Were you notified that your merchant services rate was being lowered? Could you have jumped to that processor with the lower rate without an early termination fee? Buyer Beware!

Merchant Services Consultant - 8 years experience If you need to find a processor that will not add the "junk fees" and look out for your best interest, then please email me: I am an independent agent that can negotiate on your behalf. For more truths about merchant services and little known information about the charge card business please visit []

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