Merchant Fees/Discount Rates

[Island Sun Nola]

I believe this was probly discussed in another thread before, but I couldn't seem to find it.

We use Helios software but somehow managed to get our merchant acct through Sage Payment Solutions in Virginia.....
Why I did this when we first opened dont ask lol

I know people who are on Helios usually use Chase Payment Tech.

What do you guys think about these rates....I have got them to lower them twice already and still think they are high.....

They have 3 "Tiers" which I found a little odd....

Here's an email I rec'd from a rep at Sage...with my "new" disc rates...

Thanks for the advice yall!

PeTe

Rt 1 still 1.65%
Rt 2 chg from 3.38% to 2.12%
Rt 3 chg from 3.78% to 2.64%
Bus. Rt chg from 3.78 to 2.12
Thank You,

Shannon Maryland
Merchant Financial Services Rep.
Sage Payment Solutions
1750 Old Meadow Road Suite 300
McLean, VA 22102
Tel: 1.800.261.0240 EXT 2853
Sage Payment Solutions - Credit Card Processing & Electronic Payment Processing Solutions

www.sagepayments.com
Your business in mind.

[Tanning Queen]

Here is the thread you are looking for.

Merchant services HELP

[Mojave Tan]

Chase was very expensive. I switched from them after they "lowered" twice, but could never meet other offers.

[FIT]

Comparing companies rates is like comparing scalpers at a football game. Their rates aren't based on some "master plan". Merchants have salespeople and those people work off commission. The more you pay the more they make. They want to get you signed up with the highest rate you'll accept. Doesn't make them bad people. We want the same thing from our customers.

This doesn't mean there aren't guidelines and supervisors who oversee the process but in the end they want your business.

The first and most important thing you need to do is understand the process - which is not easy. If you don't understand the process you won't be able to evaluate what you're actually paying. The job of the salesperson is to make it as confusing as possible so that you have no choice but to believe them when they say they're giving you a great deal.

Merchant fees start with the credit card companies. Visa and Mastercard charge what's called an Interchange Rate. What the merchants add to that is what they make.

To make it even more confusing. Some merchants are actually third party merchants. They are a pass-thru merchant to a bigger merchant like Chase Merchantech or Global Payments. Using a third party supplier is like using a general contractor. They have to get paid on top of the sub-contractor or in this case the merchant processor.

http://usa.visa.com/download/merchan...ange-rates.pdf

This is where it starts. And then it gets really confusing. Standard issue credit cards have different rates then rewards cards. Reward cards have different rates then business cards. Business cards have different rates then debit cards. And so on and so on.

Get several quotes from various companies and ask them, "What am I paying above the basic Interchange rate?" If you show the salesperson you have a general knowledge of how the system works your chances improve greatly!

One last suggestion. When you get quotes the salespeople are going to want to see your statement. They want to know what you're paying so they can manipulate you into thinking you are saving money their way. Give them the statement but black out the rates and swipe fees so they can't see what you're paying. They should be quoting you on your volume and ticket average. If they aren't willing to play by your rules then move on the next company. There are hundreds out there.

Feel free to post more rates. It is actually pretty helpful to others in here as well. The first rates you posted shows me your company is not giving you a break on debit cards. Debit cards have the lowest fees and you should being paying less.

[SandiGirl]

My new Chase prices are:

M/C - 1.63%
Visa - 1.70%
Debit - $0.065

[EliteMike]

your debt is only 6.5 cents Sandi? is that a flat fee? or is it $0.65

$.065 sounds cheap as heck and I wouldn't accept anything but debit cards at that rate

[FIT]

Sandi's post shows just how confusing the process is. The saying goes, "There's more than one way to skin a cat!" You'll get a myriad of combinations. Smaller percentage higher swipe fee. Higher percentage smaller swipe fee. Sometimes no swipe fee just a rate and vice versa. The only way to truly know which is best for you is to sit down with your merchant statement and "do the math". Not fun but it'll give you an idea of what your average customer spends and what formula is better for you.

[FIT]

While we're on the subject I want to post a website. Not sure how much you see in the tanning biz but in the restaurant biz corporate and rewards cards are out of control. The rates and frequency of use are going up and up and it seems it's never going to end. The site is:

Unfair Credit Card Fees

A bill has been introduced to the finance committee to reel in these out of control fees. Credit card fees reached 56 million in 2006. Thats double what it was in 2001. There's a form e-mail on this site that you can fill out. It will automatically email it for you to your state representative asking him / her to support the bill. Only takes a couple minutes. I actually got a response from one of the three that I sent out.

[SandiGirl]

Originally Posted by EliteMike

your debt is only 6.5 cents Sandi? is that a flat fee? or is it $0.65

$.065 sounds cheap as heck and I wouldn't accept anything but debit cards at that rate

Nope, it was 9 cents I think and with the letter saying the CCs were going up, that went down.

I've never bargained so I'm sure I could get cheaper elsewhere, I just couldn't be bothered with the machines swapping. And I've never had a problem with them. Other machines have gone down thoughout the city a few times and it was always Moneris.

[SandiGirl]

Okay, I just got my statement.

$25.95/mn for the terminal
$1.00 Imprinter (yes ONE dollar...no clue)

And the rates I posted above. Oh, AmEx is $0.08/transaction.

[FIT]

What is the printer make and model?

[SandiGirl]

Ooooh, I'll get back to you in the morning with that. Ignito? Something like that. They better not be charging me $1/mn for that piece of dust collector in the back room.

[Tan Orexic]

So merchant services and PCI compliance are things, I've talked about before. Basically I got down with some other merchants and we determined that the average cost is 3% or the purchase. We figured this out after much discussion (since we are all different) that if you get the total charges for the month and divided it by the total income you come up with a number ie $35/1000.00 in this case the total charges from the service company is $35.00 and the business brought in $1000. This equates to 3.5% charges per dollar income. There were some that were as low as 2.7% and others as high as 4.25%, I think if your at 3% or lower your in good shape.

Just my opinion..I'm at 2.67%.

Tan Orexic

[Isltan]

2.93% visa MC plus .10 cents per sale. .90 cents debits with no percent, then the whole other method of charging for different status of cards. Frequent flyers etc...I DO NOT like the latest 6.95 charge added of $50,000 security breach? What in the world is that! Also, some $20.00 plus dollars in fees.

[Tan Orexic]

Well if you not happy with your Merchant Services company send me an e-mail and I'll give you a referral to mine. It might be worth checking out. I'm very happy with mine.

Myspace.com/TanningCove
TanningCove@hotmail.com

Tan Orexic

[CROVINE1]

what is everyone paying for m/c, visa etc.. and who do you use. I have Helios and for EFT they make you use chase. I hate chase, when someone disputes a payment they will not tell you who it is!!!