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For a free professional review, please
fax (949-583-0649) your current bankcard merchant
statement to us. For more information, call (949) 583-9500 x2500 or email
for details. Or Fill out our Credit Card Merchant Account
Form. |
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Having consulted
with thousands of merchants, the question we
are most frequently asked is "What’s
your rate?" Ever
wonder how this question became the starting point
for all negotiations?
Obviously,
rate is an important component, but what we have
found is that merchants have actually been taught
to ask this question by sales reps. Inexperienced
and untrained sales reps rarely do more than sell
on rate, using rate as the chief motivating factor
to get merchants to sign contracts.
If
you ask for rates, savvy marketers will only be too
happy to entice you with below-market gimmick rates
designed to lure your business into a contractual
obligation. These contracts may be long-term equipment
terminal leases or multi-year processing agreements
with stiff early-termination fees.
Having
more knowledge about what determines your rate and
the fees that impact your bottom line cost will help
you make an informed decision when selecting a credit
card processing provider. Understanding the importance
of price structure and having a company that can
help you manage your interchange qualification are
very important. More MasterCard and Visa Interchange
Pricing Information.
Merchants
today must pay even closer attention to their rate
structure than to their rate.
Do
you currently have a tiered rate structure with a
qualified, mid-qualified and non-qualified bucket
pricing?
You will want to avoid
this pricing structure since you will find that many
of the transactions that once were consider qualified
will move to the mid or non qualified rate bucket
beginning with the new 2005 Interchange pricing from
MasterCard and Visa. Traditionally, most merchants
only paid attention to the qualified rate; therefore
merchant account providers have built expensive margins
into their mid and non-qualified pricing.
Do
you have the same rate for both MasterCard and Visa
transactions?
Effective April
2005, MasterCard increased the base rate for retail
swipe card transactions by 0.09%. Visa’s base
retail rate remain unchanged. Since Visa may account
for as much as 70% of your transactions, if you pay
the same rate for both MasterCard and Visa transactions,
you will want to consider changing to a custom price
structure, quoting independent rates for each.
Do
you currently have only one qualified rate?
If
you do, you are not able to qualify for all the reduced
incentive Interchange pricing levels available to
you. For example, restaurants can qualify for reduced
Interchange rates for credit and signature debit
(check cards) transactions under $15. Also, signature
debit card transactions that qualify for both Merit
3 Debit and Restaurant Debit will get a better rate
with the Merit 3 Debit program if the amount is greater
than $35.71 or the Restaurant Debit program if the
amount is less than $35.71. This example illustrates
the upside of having a professional payment systems
consultant work with you to analysis your card processing
activity to find the best rate structure for your
specific business.
We trust
that the topics in this price section will lead you
to better vendor relations. Keep reading or contact
Vantage for a personal consultation. We will provide
a valuable analysis to show you a comparison of the
Interchange pass through pricing model. It is by
far your best option to insure you qualify for the
best rates. Simply fax a statement to us at 949-583-0649. |
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| How Credit Card Processing Works |
| Get a Quote for a Merchant Account and/ or Credit Card processing |
| Sage MAS 90 and MAS 200 Credit Card Processing |
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Have
questions? Call
a Consultant at (949) 583-9500 x 1130
or email
Fill out our Credit
Card Merchant Account Form. |
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