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Casual Articles - The 'Nuts & Bolts' of understanding Merchant Account Rates on your Payment Processing Provider's
A culvert pipe is a cutting under or beside a road that allows water to drain, rather than pooling and creating hazardous conditions. Technically, only an enclosed channel under a road could be further classified as a culvert, and a cutting next to a road is recognized as a ditch. Culverts Pipes are a very important part of the system used to drain roads and drives, keeping them secure and extending their lifetimes.Ideally, a culvert installation is done when a road is built, either by the home highway authority or a property owner, only in case if the culvert is on private land.
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: 23.56
0.05 cents X 576 = $28.80
$13,876.00 X 0.0025% = $46.94
$28.80 + 46.94 = $75.74 in your monthly Debit Fees
You can see that Example 1 is cheaper by $6.62 even though it may initially look like Example 2 would have been less expensive. Typically, it is always better to have a flat Debit Fee only on your Debit Merchant Account. The only time the lower Debit Fee + % works in your favour on Debit Merchant Accounts is if you have a very high De
Are you tired of all the work at home gimmicks? So was I. I was getting tired of doing the same routine everyday. I was really tired of having someone else raising my son for me. I missed out on alot things that I should have been there for. But I was not, because I had pulled a double shift that night or someone did not show up so I covered for them at the job. I was not happy with my life and the way things were going.To be totally honest, I too thought all Home Based Businesses were scams. I would never give them the time of day until my life really started getting out o
There are four most common Merchant Accounts:
• Visa Merchant Account
• MasterCard Merchant Account
• American Express Merchant Account
• Interac (Debit Cards/Bank Debit Cards) Merchant Account
When you are setting-up your Payment Process System you will apply for Merchants Accounts on each Card that you would like to be able to allow your Customers/Clients to be able to pay by (if they so desire to do so).
You do not have to have Merchant Accounts on all Cards. You can pick and choose which Cards you wish your Payment Processing System to process. You can usually always add additional cards as time goes on.
Most Merchants will initially get set-up with, at least, a Debit Merchant Account and usually Visa & MasterCard Merchant Accounts.
Once you have been approved for each Card you will be given an individual Merchant number for each Merchant Account that is programmed on your Payment Processing System.
WHAT ARE THE FEES ASSOCIATED WITH ACCEPTING DEBIT & CREDIT CARDS?
What you have to take into consideration is that all Payment Processing Companies structure their Monthly fees in different ways. It is not a good idea to compare Debit costs to Debit costs, Credit Card costs to Credit Card costs, or POS Terminal costs to POS Terminal Costs.
The best way to compare pricing and costs from provider to provider is to make sure you have all the questions answered that I have listed in the article called “The 17 Essential Questions for selecting a Payment Processing Provider” which can be found at http://www.cutmyposfees.com Once you have all those questions answered then total up the over all costs with each provider and see which one comes out on top. (Scroll down the Page for Examples)
EXAMPLES:
DEBIT CARD MERCHANT ACCOUNTS: Each Merchant Account has different rates and fees associated with them. Typically Retail Debit Transaction Fees are just a flat rate. An example Debit Transaction rate would be: 12 cents per Debit Transaction. It does not matter whether the Transaction processed was for $5 or $5000 the fee would be 0.12cents for the transaction to take place. Now some Payment Processing Companies will charge you a Low Transaction rate on your Debit Transactions (like 0.05cents) and a % of your sales (like 0.0025%) that is a quarter of 1 percent. This may seem like a good deal, but rarely is.
Example 1:
Debit Transaction at 0.12 cents
576 Debit Transaction that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: $23.56
0.12 cents X 576 = $69.12 in you monthly Debit Fees
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: 23.56
0.05 cents X 576 = $28.80
$13,876.00 X 0.0025% = $46.94
$28.80 + 46.94 = $75.74 in your monthly Debit Fees
You can see that Example 1 is cheaper by $6.62 even though it may initially look like Example 2 would have been less expensive. Typically, it is always better to have a flat Debit Fee only on your Debit Merchant Account. The only time the lower Debit Fee + % works in your favour on Debit Merchant Accounts is if you have a very high De
A construction cost estimator knows that there are a lot of expenses that need to be tracked when estimating a job. Many people who have been in the industry for a long time have always relied on pen, paper and a calculator to estimate a job. They feel that their experience in estimating out weighs the convenience of the new software programs. However, what they do not realize is that using this software can save them a lot of time and headaches.Projecting Construction Costs Is The First Step To A Successful ProjectThere are a lot of costs that have to be considered when es
Most Merchants will initially get set-up with, at least, a Debit Merchant Account and usually Visa & MasterCard Merchant Accounts.
Once you have been approved for each Card you will be given an individual Merchant number for each Merchant Account that is programmed on your Payment Processing System.
WHAT ARE THE FEES ASSOCIATED WITH ACCEPTING DEBIT & CREDIT CARDS?
What you have to take into consideration is that all Payment Processing Companies structure their Monthly fees in different ways. It is not a good idea to compare Debit costs to Debit costs, Credit Card costs to Credit Card costs, or POS Terminal costs to POS Terminal Costs.
The best way to compare pricing and costs from provider to provider is to make sure you have all the questions answered that I have listed in the article called “The 17 Essential Questions for selecting a Payment Processing Provider” which can be found at http://www.cutmyposfees.com Once you have all those questions answered then total up the over all costs with each provider and see which one comes out on top. (Scroll down the Page for Examples)
EXAMPLES:
DEBIT CARD MERCHANT ACCOUNTS: Each Merchant Account has different rates and fees associated with them. Typically Retail Debit Transaction Fees are just a flat rate. An example Debit Transaction rate would be: 12 cents per Debit Transaction. It does not matter whether the Transaction processed was for $5 or $5000 the fee would be 0.12cents for the transaction to take place. Now some Payment Processing Companies will charge you a Low Transaction rate on your Debit Transactions (like 0.05cents) and a % of your sales (like 0.0025%) that is a quarter of 1 percent. This may seem like a good deal, but rarely is.
Example 1:
Debit Transaction at 0.12 cents
576 Debit Transaction that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: $23.56
0.12 cents X 576 = $69.12 in you monthly Debit Fees
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: 23.56
0.05 cents X 576 = $28.80
$13,876.00 X 0.0025% = $46.94
$28.80 + 46.94 = $75.74 in your monthly Debit Fees
You can see that Example 1 is cheaper by $6.62 even though it may initially look like Example 2 would have been less expensive. Typically, it is always better to have a flat Debit Fee only on your Debit Merchant Account. The only time the lower Debit Fee + % works in your favour on Debit Merchant Accounts is if you have a very high De
It’s just as easy to succeed as to fail in direct mail, so here are a few simple guidelines of what not to do. You’ll probably still find lots of other mistakes to make on your own — but at least you won’t have to make these:1. Not knowing your audience - every ad should be to a specific targeted group that you research until you know it intimately. Aim for your readers' personal hot spots, in a writing style and level they're comfortable with. Learn how they feel and act, and what they like and dislike. Then, craft your style and content specifically to your readership.2.
The best way to compare pricing and costs from provider to provider is to make sure you have all the questions answered that I have listed in the article called “The 17 Essential Questions for selecting a Payment Processing Provider” which can be found at http://www.cutmyposfees.com Once you have all those questions answered then total up the over all costs with each provider and see which one comes out on top. (Scroll down the Page for Examples)
EXAMPLES:
DEBIT CARD MERCHANT ACCOUNTS: Each Merchant Account has different rates and fees associated with them. Typically Retail Debit Transaction Fees are just a flat rate. An example Debit Transaction rate would be: 12 cents per Debit Transaction. It does not matter whether the Transaction processed was for $5 or $5000 the fee would be 0.12cents for the transaction to take place. Now some Payment Processing Companies will charge you a Low Transaction rate on your Debit Transactions (like 0.05cents) and a % of your sales (like 0.0025%) that is a quarter of 1 percent. This may seem like a good deal, but rarely is.
Example 1:
Debit Transaction at 0.12 cents
576 Debit Transaction that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: $23.56
0.12 cents X 576 = $69.12 in you monthly Debit Fees
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: 23.56
0.05 cents X 576 = $28.80
$13,876.00 X 0.0025% = $46.94
$28.80 + 46.94 = $75.74 in your monthly Debit Fees
You can see that Example 1 is cheaper by $6.62 even though it may initially look like Example 2 would have been less expensive. Typically, it is always better to have a flat Debit Fee only on your Debit Merchant Account. The only time the lower Debit Fee + % works in your favour on Debit Merchant Accounts is if you have a very high De
There is a small, yet palpable inherent risk in accepting credit cards. Aside from chargebacks, there always exists a possibility that a given credit card is stolen or presented without any authorization to use from the card holder. Even veteran merchants, processing for decades, can recount incidents where they have sent out product, subsequently learning that they have been victimized by credit card fraud.One day, I received a phone call from one of our retail merchants who sells furniture. She explained that she received a credit card from a so-called customer that was declined
Example 1:
Debit Transaction at 0.12 cents
576 Debit Transaction that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: $23.56
0.12 cents X 576 = $69.12 in you monthly Debit Fees
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: 23.56
0.05 cents X 576 = $28.80
$13,876.00 X 0.0025% = $46.94
$28.80 + 46.94 = $75.74 in your monthly Debit Fees
You can see that Example 1 is cheaper by $6.62 even though it may initially look like Example 2 would have been less expensive. Typically, it is always better to have a flat Debit Fee only on your Debit Merchant Account. The only time the lower Debit Fee + % works in your favour on Debit Merchant Accounts is if you have a very high De
Small businesses thrive when productivity is maximized. The best way to maximize productivity is through efficient technology. Business success is based on having the right product or service at the right price at the right time and in the right place. Efficient technology for small businesses probably will not create the next great product or service, but it will help you with everything else your company must do to get that product or service to market and to deliver it to the customer.Many small businesses fail because they do not utilize technology adequately or efficiently
Example 2:
Debit Transaction at 0.05 cents + 0.0025%
576 Debit Transactions that month
Total Monthly Debit Business Volume $13,876.00
Average Ticket: 23.56
0.05 cents X 576 = $28.80
$13,876.00 X 0.0025% = $46.94
$28.80 + 46.94 = $75.74 in your monthly Debit Fees
You can see that Example 1 is cheaper by $6.62 even though it may initially look like Example 2 would have been less expensive. Typically, it is always better to have a flat Debit Fee only on your Debit Merchant Account. The only time the lower Debit Fee + % works in your favour on Debit Merchant Accounts is if you have a very high Debit transactions on with a very low average Debit ticket price.
CREDIT CARD MERCHANT ACCOUNTS Again each Merchant Account has different fees associated with Credit Card Processing. Typically, it is a % of your monthly sales amount + a flat transaction fee. However, Payment Processing Companies do not charge a flat transaction fee, just the % on the monthly sales volume. When is comes to Credit Card Merchant Accounts it usually the % that you want to keep as low as possible and it is not usually as much an issue with the flat transaction fee.
Example 1:
Credit Card Discount Rate: 2.65%
No Transaction Fee: 0.00
327 Transactions
$18,267.00 in Credit Card Sales that month
Average Ticket Price: $55.86
2.65% X $18,267.00 = $484.07 in Credit Card Processing Fees that month
Example 2:
Credit Card Discount Rate: 1.89%
Transaction Fee: 0.10 cents
327 Transactions
$18,267.00 in Credit Card Sales that month
Average Ticket Price: $55.86
327 Transactions X 0.10 cents = $32.70
1.89% X $18,267.00 = $345.24
$32.70 + $345.24 = $377.94 in Credit Card Processing Fees that month
It is obvious in this Example that example 2 is the better Merchant Account to go with.
*IT IS VERY IMPORTANT THAT YOU LOOK AT THE OVER-ALL PROGRAM TO FIND WHICH MERCHANT ACCOUNTS RATES ARE BEST FOR YOUR BUSINESS.
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