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Article Check - The 'Nuts & Bolts' of understanding Merchant Account Rates on your Payment Processing Provider's
If brown is the new black, then bistro table and chairs are the new furniture. Well, they would be, except that they have been around for almost two centuries now. Ask most people what a bistro table and chair set actually is and, chances are, they will shrug their shoulders and say they don't know. But, really, we've all seen them, especially those of us who live in cities or countries that exhibit continental sophistication. Yes, you have that right. The bistro table and chairs set is that easy-looking trio of small, inauspicious dining furniture that crowds the sidewalks, providing pe
Example 1:
Debit Transaction at 0.12 cents
576 Debit Transaction that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: $23.56
0.12 cents X 576 = $69.12 in you monthly Debit Fees
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: 23.56
0.0
Growing up we where all told in order to make it in life that you must go out there and work hard for everything you want in life. The harder you work the more you will succeed. Is this really that true though anymore? Now a day people seem to work harder then ever before, and still come up empty handed.So is working harder really getting us to where we want to be at in life? More then likely the only place its getting you is laying on our bed with a bad back or a huge headache. The new age is upon us, and now people are looking for ways to work smarter and not harder.There
There are four most common Merchant Accounts:
• Visa Merchant Account
• MasterCard Merchant Account
• American Express Merchant Account
• Interac (Debit Cards/Bank Debit Cards) Merchant Account
When you are setting-up your Payment Process System you will apply for Merchants Accounts on each Card that you would like to be able to allow your Customers/Clients to be able to pay by (if they so desire to do so).
You do not have to have Merchant Accounts on all Cards. You can pick and choose which Cards you wish your Payment Processing System to process. You can usually always add additional cards as time goes on.
Most Merchants will initially get set-up with, at least, a Debit Merchant Account and usually Visa & MasterCard Merchant Accounts.
Once you have been approved for each Card you will be given an individual Merchant number for each Merchant Account that is programmed on your Payment Processing System.
WHAT ARE THE FEES ASSOCIATED WITH ACCEPTING DEBIT & CREDIT CARDS?
What you have to take into consideration is that all Payment Processing Companies structure their Monthly fees in different ways. It is not a good idea to compare Debit costs to Debit costs, Credit Card costs to Credit Card costs, or POS Terminal costs to POS Terminal Costs.
The best way to compare pricing and costs from provider to provider is to make sure you have all the questions answered that I have listed in the article called “The 17 Essential Questions for selecting a Payment Processing Provider” which can be found at http://www.cutmyposfees.com Once you have all those questions answered then total up the over all costs with each provider and see which one comes out on top. (Scroll down the Page for Examples)
EXAMPLES:
DEBIT CARD MERCHANT ACCOUNTS: Each Merchant Account has different rates and fees associated with them. Typically Retail Debit Transaction Fees are just a flat rate. An example Debit Transaction rate would be: 12 cents per Debit Transaction. It does not matter whether the Transaction processed was for $5 or $5000 the fee would be 0.12cents for the transaction to take place. Now some Payment Processing Companies will charge you a Low Transaction rate on your Debit Transactions (like 0.05cents) and a % of your sales (like 0.0025%) that is a quarter of 1 percent. This may seem like a good deal, but rarely is.
Example 1:
Debit Transaction at 0.12 cents
576 Debit Transaction that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: $23.56
0.12 cents X 576 = $69.12 in you monthly Debit Fees
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: 23.56
0.05
Privacy issues around words such as "Personal", "Private", "For the Eyes of Department Management Only", "Privileged" and other words requesting Privacy in communications need to be very seriously considered.It is incumbent upon managers in business, education, and industry today, to be very sensitive and forthright in their communications, and in response to privacy requests regarding communications from their employees. To be less than totally forthright can result in some very unsavory results from disenfranchised employees.Let's face it. Management is about decisions,
Most Merchants will initially get set-up with, at least, a Debit Merchant Account and usually Visa & MasterCard Merchant Accounts.
Once you have been approved for each Card you will be given an individual Merchant number for each Merchant Account that is programmed on your Payment Processing System.
WHAT ARE THE FEES ASSOCIATED WITH ACCEPTING DEBIT & CREDIT CARDS?
What you have to take into consideration is that all Payment Processing Companies structure their Monthly fees in different ways. It is not a good idea to compare Debit costs to Debit costs, Credit Card costs to Credit Card costs, or POS Terminal costs to POS Terminal Costs.
The best way to compare pricing and costs from provider to provider is to make sure you have all the questions answered that I have listed in the article called “The 17 Essential Questions for selecting a Payment Processing Provider” which can be found at http://www.cutmyposfees.com Once you have all those questions answered then total up the over all costs with each provider and see which one comes out on top. (Scroll down the Page for Examples)
EXAMPLES:
DEBIT CARD MERCHANT ACCOUNTS: Each Merchant Account has different rates and fees associated with them. Typically Retail Debit Transaction Fees are just a flat rate. An example Debit Transaction rate would be: 12 cents per Debit Transaction. It does not matter whether the Transaction processed was for $5 or $5000 the fee would be 0.12cents for the transaction to take place. Now some Payment Processing Companies will charge you a Low Transaction rate on your Debit Transactions (like 0.05cents) and a % of your sales (like 0.0025%) that is a quarter of 1 percent. This may seem like a good deal, but rarely is.
Example 1:
Debit Transaction at 0.12 cents
576 Debit Transaction that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: $23.56
0.12 cents X 576 = $69.12 in you monthly Debit Fees
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: 23.56
0.0
One of the first questions start up businesses have is…"How do I get an EIN?"Before we look at the how to get this magic number, you need to make sure you really need one.If you have a sole proprietorship, with no employees, you do not need an EIN. The Federal Employer Identification Number, or EIN, is an IRS reference number for your business. As a sole proprietorship, your Social Security Number is the only number you need. You do not need an EIN until you hire your first employee.Remember, your states and cities have their own requirements for business li
The best way to compare pricing and costs from provider to provider is to make sure you have all the questions answered that I have listed in the article called “The 17 Essential Questions for selecting a Payment Processing Provider” which can be found at http://www.cutmyposfees.com Once you have all those questions answered then total up the over all costs with each provider and see which one comes out on top. (Scroll down the Page for Examples)
EXAMPLES:
DEBIT CARD MERCHANT ACCOUNTS: Each Merchant Account has different rates and fees associated with them. Typically Retail Debit Transaction Fees are just a flat rate. An example Debit Transaction rate would be: 12 cents per Debit Transaction. It does not matter whether the Transaction processed was for $5 or $5000 the fee would be 0.12cents for the transaction to take place. Now some Payment Processing Companies will charge you a Low Transaction rate on your Debit Transactions (like 0.05cents) and a % of your sales (like 0.0025%) that is a quarter of 1 percent. This may seem like a good deal, but rarely is.
Example 1:
Debit Transaction at 0.12 cents
576 Debit Transaction that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: $23.56
0.12 cents X 576 = $69.12 in you monthly Debit Fees
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: 23.56
0.0
I've got a confession to make... I was scammed by a company promising me I can stay at home and type data into forms and make over two hundred dollars a day.There are a lot of scams going on out there, these are just a couple of scams to be on the look out for.Scam #1 You Won The Lottery!This is an e-mail scam from a person or company informing you that you have just won the lottery. Payment is required to get your huge unsolicited lottery winnings transferred into your country/bank account. There are no 'winnings' .If you receive a "prize notification"
EXAMPLES:
DEBIT CARD MERCHANT ACCOUNTS: Each Merchant Account has different rates and fees associated with them. Typically Retail Debit Transaction Fees are just a flat rate. An example Debit Transaction rate would be: 12 cents per Debit Transaction. It does not matter whether the Transaction processed was for $5 or $5000 the fee would be 0.12cents for the transaction to take place. Now some Payment Processing Companies will charge you a Low Transaction rate on your Debit Transactions (like 0.05cents) and a % of your sales (like 0.0025%) that is a quarter of 1 percent. This may seem like a good deal, but rarely is.
Example 1:
Debit Transaction at 0.12 cents
576 Debit Transaction that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: $23.56
0.12 cents X 576 = $69.12 in you monthly Debit Fees
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: 23.56
0.0
Some people make things happen, some watch while things happen, and some wonder what happened.― AnonymousA 2,000 percent solution is any method of accomplishing what your organization does now with zero-to-four percent of the current time and resources, or accomplishing an increase of 20 times in results while employing the same or fewer resources. A combination of those results can also be a 2,000 percent solution.When first creating a 2,000 percent solution, many people report discovering that their solution could have been implemented at any time during the
Example 1:
Debit Transaction at 0.12 cents
576 Debit Transaction that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: $23.56
0.12 cents X 576 = $69.12 in you monthly Debit Fees
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: 23.56
0.05 cents X 576 = $28.80
$13,876.00 X 0.0025% = $46.94
$28.80 + 46.94 = $75.74 in your monthly Debit Fees
You can see that Example 1 is cheaper by $6.62 even though it may initially look like Example 2 would have been less expensive. Typically, it is always better to have a flat Debit Fee only on your Debit Merchant Account. The only time the lower Debit Fee + % works in your favour on Debit Merchant Accounts is if you have a very high Debit transactions on with a very low average Debit ticket price.
CREDIT CARD MERCHANT ACCOUNTS Again each Merchant Account has different fees associated with Credit Card Processing. Typically, it is a % of your monthly sales amount + a flat transaction fee. However, Payment Processing Companies do not charge a flat transaction fee, just the % on the monthly sales volume. When is comes to Credit Card Merchant Accounts it usually the % that you want to keep as low as possible and it is not usually as much an issue with the flat transaction fee.
Example 1:
Credit Card Discount Rate: 2.65%
No Transaction Fee: 0.00
327 Transactions
$18,267.00 in Credit Card Sales that month
Average Ticket Price: $55.86
2.65% X $18,267.00 = $484.07 in Credit Card Processing Fees that month
Example 2:
Credit Card Discount Rate: 1.89%
Transaction Fee: 0.10 cents
327 Transactions
$18,267.00 in Credit Card Sales that month
Average Ticket Price: $55.86
327 Transactions X 0.10 cents = $32.70
1.89% X $18,267.00 = $345.24
$32.70 + $345.24 = $377.94 in Credit Card Processing Fees that month
It is obvious in this Example that example 2 is the better Merchant Account to go with.
*IT IS VERY IMPORTANT THAT YOU LOOK AT THE OVER-ALL PROGRAM TO FIND WHICH MERCHANT ACCOUNTS RATES ARE BEST FOR YOUR BUSINESS.
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