How much does the Processor Charge?
We have seen how your fees are split between the Card Issuer and Visa / MasterCard.
We have talked briefly about the Processor. The Processor is responsible for sending your terminal batch through The Fed and eventually to the Card Issuer and Visa / MasterCard.
The Processor gets what ever the sales person can convince the merchant to pay.
Then the Processor Pays the sales person. The way I work with my clients is on volume, also I have many choices regarding processors. My philosophy is to take a smaller piece and have a lot of clients.
There is little to no turn over and we all can be happy. Other sales organizations don’t work this way. Keeping my clients long term is my goal.
I hope you have had a good experience with your processor.
Should You Lease your Equipment, Terminal, POS system, or should you buy.
Lease (standard generic terminal)
$35.00 x 48 months = $1680.00
Buy (standard generic terminal)
$450.00
You know your situation and I don’t. The above is about standard for my area in the Carolinas.
BUT WHAT ABOUT F R E E EQUIPMENT?
Remember nothing is free. Let us look at the details of free equipment.
If the Processor must pay $400-$800 for equipment and lend it to you, do you think you are going to get the lowest Over-All cost? I know merchants that are paying 60 basis points + enormous fees, 3 year contract, $495.00 early termination fee. If you do this, you will be sorry!
What is a Charge Back Fee?
This fee is a processing fee and is normal for the industry. Usually the fee is about $20.00 and is for a disputed transaction. This is not a regular return of merchandise.
What is a:
Retrieval Fee
Batch Fee
Return Transaction Fee
Early Termination Fee
Annual Fee
Minimum Monthly Fee
I consider the above “mystery junk fees”. My clients don’t pay these fees.
The above items are ways to increase profit in a deceptive way. If a processor looses in one area, the company must offset the loss by using “mystery junk fees” to offset the loss.
What about a monthly statement fee?
The monthly statement fee is a legitimate fee. The charge ranges from $5.00-$10.00.
Is it best to have my Merchant Service fees taken out daily or monthly?
Monthly is best. When you try to settle your bank statement with your batches you want the charges to remain the same on both statements. If you don’t have discount collected monthly then the daily fee is collected from each transaction daily. You won’t be able to settle your bank statement with your Merchant Service statement. You want fees to be itemized separately-collected monthly.
More Questions?
Email me: AmmonsConsulting@Gmail.com
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