Are You Really Getting a Great Deal?
Judging a Merchant Credit Card Processing plan by the discount rate alone is a little like judging a giant glacier by the tiny fraction of it you can see jutting above the waterline. There's a lot more to it than that. And the sooner you realize what you're dealing with, the better off you'll be.
If you don't know the answers to ALL of these questions, then you have no idea if the credit card processing program you are considering is well priced or not:
- What is the QUALIFIED discount percentage?
- What are the MID-QUAL and NON-QUAL discount percentages?
- What percentage will you pay for Rewards cards?
- What discount percentages will you pay for FOREIGN and BUSINESS cards?
- What rates will you pay for SIGNATURE and ON-LINE DEBIT transactions?
- What criteria does your processor use to distinguish one Interchange qualification from another? In other words, one processor could consider a particular transaction as Qualified, while another may downgrade it to mid-qualified and charge the merchant a higher fee. This is very common and something the Merchant should be aware of.
- Any other hidden or extra fees you will be charged.
- What kind of fee guarantees, if any, does the processor offer?
- How long is the term of the contract?
- What are the termination procedures and early termination fees?
- Is the program DAILY DISCOUNTING or MONTHLY DISCOUNTING?
- Is the program GROSS PROCESSING or NET PROCESSING?
Are you interested in REALLY lowering your cost of accepting credit cards? Then you'll be happy to know that there is a major big-time processor out there who will guarantee to beat your present rate structure or they'll pay you $500!
All merchant accounts are referred to and processing services provided by: North American Bancard, a registered ISO/MSP of HSBC Bank USA, NA, Buffalo, NY; Paymerica LLC, a registered ISO/MSP of Wells Fargo Bank, NA, Walnut Creek, CA.; or Innovative Merchant Solutions, a registered ISO/MSP of Innovative Bank, Oakland, CA. and National Bank of the Redwoods, Santa Rosa, CA.