Why am I charged a Swipe Fee or Transaction Fee?

Take a look at the cost sheet again.  At the top of the Visa section, see the CPS/ Retail swiped line: CPS/RETAIL (Swiped)  1.54%   $0.10…

This means that the Card Issuer will make 1.54% of the sale and Visa will make $.10 on every card of the type swiped through your terminal. The Definition of DPI is discount per item. Yes, I know the term discount usually means a good thing. However, the term discount in this business means it costs you.

For example, if you had 25 customers that used this type of credit card, the Card Issuer would make 1.54 % of the sale and Visa would make 25 x $.10 = $2.50.

You pay these charges out of the gross amount scanned through your terminal. You get the difference sent to your bank account.

These are the rules in place by Visa, MasterCard, Discover,  and American Express (AMEX). Your Processor has nothing to do with setting the rules.

Am I required to sign a long term agreement with a processor?

This is one subject that really can get you into trouble. Long Term Agreements are good for the Processor and BAD for you the Merchant.

Being locked into a long term agreement can be as obvious as the Legal Small Print that you sign or the early termination fee in the small print.

Can I change processors without paying an early termination fee?

Another way to “Lock You In” for long term is to be told, “You can change processors any time you want.” However, the early termination fee is so high you can’t afford to change.

I had one client that had been under a $900.00 (etf) early termination fee. If you need details how I solved his problem, please email me at AmmonsConsulting@Gmail.com for details.

To get next day funding why must I close before 7:00 pm Eastern Time?

Next day funding can be a blessing for small business. If cash is king, then Next Day Funding is Queen. On a previous page, I instructed you to batch your terminal before 7:00 PM Eastern. My clients machines are programed to batch at 6:30 PM Eastern Time.

The Processor you choose is responsible for sending your batches through the Federal Reserve (The FED). It has happened on a busy business day, a large number of merchants/restaurants have batched very near 7:00 PM Eastern. A back log occurred and some merchants/restaurants did not get next day funding.

When the clock hits 7:00 PM Eastern, The FED closes their computers till next business day. Need I say more? The Central Banking System of the U.S. is The Fed not your local bank.