Learn About Payment Processing
Payment Processing Information
Credit card processing can be very confusing and complex. Our experienced consultants can help.
We provide processing services for Visa, MasterCard, American Express, Discover, JCB and Debit cards, as well as Electronic Gift Cards and Checks. Our consultants will help you determine which services are right for your business and tailor a customized program designed to save you money and help you grow your business.
You can accept credit cards using a point of sale terminal or software, the Internet, or by touch tone telephone. We’ll help you decide which method is best for you.
Rates & Fees
Credit card processing rates vary by a wide range of factors, including your business type, the method of processing, type of card used and average sale amount. Processors charge different rates for different types of transactions. For example, one rate for swiped transactions and a higher rate for key-entered transactions. The lowest rate you receive is generally known as you “qualified” rate and the higher rates are known as “mid-qualified” and “non-qualified” rates.
Rather than simply quoting you a “low-ball” qualified rate, we’ll fully analyze your business and past processing history (if applicable) to determine the best possible rate structure for you. That includes all rates and fees and is designed to provide you with the lowest overall cost structure for accepting electronic payments.
We’re confident that we can save you money on your credit card processing. Just click here to find out how much.
Equipment and Processing Methods
We can provide you with whatever processing method is right for you. Among the methods available are:
- Stand-alone credit card processing terminal
- Wireless credit card processing terminal
- Integrated processing software
- Secure Internet processing
- Cell phone or PDA processing
- Touch tone telephone processing
Interchange
Interchange is the most important component of the fees a merchant pays to accept credit cards. In fact, understanding interchange is vital in making certain that a merchant has the best possible rate structure for their business.
Interchange—also known as “bank reimbursement fee”—is the fee paid to the bank that issued the credit card to a merchant’s customer. This fee is paid each time the card is used. The amount is determined by a variety of factors.
For example, when a customer presents a ABC Bank Visa card to a merchant for payment, ABC Bank will receive a fee, or commission. The interchange fee paid to the issuing bank constitutes the overwhelming majority of the discount fees the merchant pays to process that transaction. The appropriate interchange fee determines all discount fees paid to us and is collected as part of the merchant’s discount fees. The amount of interchange is the same for all credit card processors. In addition, both Visa and MasterCard assess a small additional fee, which is added to interchange, to fund their operating expenses.
Interchange fees are determined by a combination of factors, including:
- The merchant’s type of business;
- Type of credit card (consumer, credit, debit, corporate, reward, etc.);
- How the transaction is processed;
- Timeliness of the merchant’s batch settlement.
Type of Business
Traditional retail businesses generally pay the lowest interchange fees, with restaurants and hotels paying slightly higher rates. Internet merchants, direct marketers and business to business merchants typically pay higher rates.
Type of Credit Card
The type of credit card used for purchase will have a direct impact on the interchange fee paid. Consumer-issued credit cards and debit card generally carry the lowest interchange fees, with commercial cards (business-issued, corporate, purchasing, etc.) carrying higher fees in many cases, specifically when these cards are key-entered or used at restaurants or hotels. Debit cards are typically lower in cost than credit cards. In addition, cards that provide the cardholder with a reward component (i.e. air mileage cards) carry a higher rate.
How the Transaction Is Processed
One of the most significant factors in determining the interchange fee is the method used for actually processing the transaction. Swiped transactions, settled within 24 hours carry the lowest rate, while key-entered transactions carry higher rates. Multiple authorizations for a single transaction, voice authorizations, and/or failure to use address verification for key-entered transactions are among the factors that can cause higher discount rates to be assessed by the card issuer.
Timeliness of Batch Settlement
To receive the lowest possible rate structure, a merchant’s transactions must be settled daily. Delays in batch settlement will increase the discount fees assessed for the transactions.
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