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Do you need a merchant gateway account as well (i.e., authorize.net) or do you want your merchant credit card processor to bundle that with your quote?
teddibear703 said:I currently pay 2.09% for qualified and 2.86 for non qual.Just curious, but have you actually checked your transactions to verify this rate, or is it just what you were quoted when signing up?
There isnt any way to compare rates - rates fluctuate based on your merchant category, along with so many other factors.
that is what i am paying and have checked. All cards are either lumped into qual or non qual, but pretty much most of my transactions are non qual due to most people using rewards cards...
i already have a merchant account, but more so am looking to share my info and get other's peoples rates so we can know how much I can negotiate further.
I tend to think that you can do a lot better with pass through rates. All the big boys get pass through pricing.
For example, visa e-commerce credit is 1.80% + 10 cents pass through. Add the 30 basis points quote and you're doing better.
I'm not really as knowledgable on the small business side of things, but let me know if you have some questions I can take a stab at answering. Interchange is a real beast to get down. Give me an idea of industry and how you're accepting payments and I can do a quick lookup on applicable interchange. There's really enough variations to confuse anyone.
i'm in the wholesale industry. We don't do small transactions, but mainly our transactions are larger ones 5k+. So i'm not really looking at the transaction fee, like the $.10 per transaction, but moreso I am looking at the percent to charge it through. 90+% of my charges are business cards or cards with rewards which bumps me to the higher rates.
Well I would push for a per transaction fee without a % surcharge.
The business cards are a lot worse then rewards/signature/infinite cards.
Some interesting interchange rates GSA Purchasing cards large ticket 1.20% + $39 anad US Purchasing card emerging market large ticket 0.95% + $35. Both require registering with visa and level 2 and 3 data. Right now, check to see if you are passing level 2 and level 3 data, that should get your qualifying rates with your current processor (crossing fingers, most processors sneak a lot of crazy stuff into agreements).
Regular interchange for business/corp/pcard with level 2 data is 2.05% + .10, Level 3 data p cards are 1.80%+ .10. It only goes up from there.
Example level 2 data:
Tax Freight Duty Tax Exempt Status Purchase Order Number
Last I remember authorize.net supports level 2 data, but you have to put that in and you need to make sure whatever you're using to the gateway is passing the additional data.
Level 3 data is for purchasing cards. I believe that the biggest thing for that is you're pretty much sending the whole receipt to the processor. You'd have to look for processors and gateways that can support that.
teddibear703 said:i'm in the wholesale industry. We don't do small transactions, but mainly our transactions are larger ones 5k+What docs did you have to provide to the Processor to be able to process transactions over 5k?
xoneinax said:teddibear703 said:i'm in the wholesale industry. We don't do small transactions, but mainly our transactions are larger ones 5k+What docs did you have to provide to the Processor to be able to process transactions over 5k?
they wanted to see company financials as well as some other info. It was hard raising that limit, but that's our average ticket. Every now and then we get a credit card charge for 20K plus and they end up holding that charge for 1 week+ which does make things inconvenient.
On average the interchange rates in the US are 179 basis points.
The best pricing is pass-through plus a fixed mark-up from your acquiring bank/processor. This fixed amount will of course vary. A very competitive rate would be 10-20 basis points, which would likely be difficult for most small business to negotiate.
Be careful that you may be quoted a competitive pass-through rate, but will be hit with various fees or adjustments after the fact. They will take your money unless you are paying attention.
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