Merchant Services ProcessingDiscount Rates

Negotiating for discount rates is like playing a game. Would you enter into a high-stakes golf game against Tiger Woods? If you answered 'no', why not? Probably because you realize he's a pro who knows every trick in the book and, as an amateur, you have little or no chance of winning.

Yet, this is exactly what many Merchant do when they go one-on-one against the pros in the merchant services processing industry and attempt to negotiate credit card discount charges. The fact is: When a Merchant who doesn't understand the intricacies of credit card discount pricing compares processing plans designed by those who DO understand, the Merchant has no chance. That's why we call it "The Rate Game", and that's why the Merchant always loses.

When comparing credit card processing programs, here are some of the things you MUST understand on top of just asking "What's your discount percentage?":

• What are the OTHER fees I'll be charged besides the low percentage quoted? How much more mid-qualified transactions? Non-qualified surcharges? Rewards cards extra fees? Foreign card and signature card fees? The list goes on and on.

• What are the HIDDEN AND ADD-ON FEES involved? There are other fees involved besides just the discount percentage. A low percentage accompanied by lots of extra fees is hardly a bargain.
• Is the discount computed MONTHLY OR DAILY?
Do you know the difference? It's huge. WHAT'S THIS? What's this??
• Is the plan NET PROCESSING or GROSS PROCESSING What's this? Again, you need to know the difference.
• Are the fees quoted GUARANTEED, and for how long?
How do you know the great numbers you are being quoted now won't change as soon as the ink dries on your contract? WHATs THIS?

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