I have a small business and we accept credit and debit cards. A while back I noticed that our bank was charging around 3 to 4 percent to process transactions.
We switched to another processer that when I set it all up they told me that they charged 1/2 of 1% and had something like a $7.00 monthly fee and that was the only charges.
Now, after several months with this new company I add up all the charges and all the fees and they charge a total of about 4 1/2%.
Do any of you use a processer that is honest enough to tell you up front how much they charge for processing? How much should this service cost?

Thanks for any advice you could give me.
Wingmaster

What about square reader? The site says 2.75% per swipe, and 3.5%+.15 cents per transacting if you have to enter the cc# manually. I have used it a couple of times in the past when I was doing computer repairs, not extensively though to see what it was costing me. My mother is a hair stylist and she rents her station and uses it for herself, seems to work for her. I think the $7.00/ month only is probably some gimmick and unrealistic, but that's just my guess.

A family owned and operated coffee roaster here in town absolutely refuses to accept them.
His wife has tried to convince him that he's just shooting himself in the foot, but he will not bulge. He thinks that the entire credit card operation is a scam and will not participate.
I usually tell folks that he reminds me of my Dad.
That way I don't have to say he reminds me of me.
Yes they are very successful and I don't like the coffee from anybody else.

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NRA LIFE MEMBER

Theres a giant, family owned liquor store near here that just started accepting credit cards.I think a new generation has taken over

Just remember that square is worse then eBay and PayPal they are anti gun and anti anything that can harm you. Now if you read their prohibited items it even look like bows, crossbows knives, etc.

"•Sales of (i) firearms, firearm parts or hardware, and ammunition; or (ii) weapons and other devices designed to cause physical injury"

https://squareup.com/help/en-us/arti...quare-register

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Psalm 23:4

Why not put up a sign that says '4% discount for cash"? This will encourage your repeat customers to bring cash, save you the hassle of record keeping for all the costs and fees, which should be a business deduction. Then, stop taking credit/debit cards altogether. Explain to anyone that asks, that the fees/charges make you raise your prices on each item. By using cash, the customer saves and you have a simpler business life.

Our company has used three different processing companies in the past ten or so years. They're all the same.

We had to raise our rates slightly to offset the cost. You may need to do the same.

You see many companies offer cash discounts or they charge a fee to use a card whether debit it credit. From what I understand they are not supposed to. But we see it everywhere.

We checked into the Square. The only problem we had is that out in the field, the Square doesn't allow us to print a receipt there on the spot. The receipt must be emailed. Not everyone likes that.

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Life Is A Gift. Defend it!

This doesn't always work. Depends on what type of business you own.

Commercial customers and governmental agencies require the use of credit cards for tracking purposes. They don't issue petty cash.

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Life Is A Gift. Defend it!

There are different rates, which depend on what kind of cards you accept, and how you process them.

Qualified rate is the percentage rate that's charged whenever you accept and process a regular card using an approved processing solution. This is usually the lowest rate you can receive, and it’s often what you’ll be quoted when you inquire about rates.

Mid-qualified rate is the percentage rate that's charged if you accept and process a card that doesn't qualify for the lowest rate. This may happen when you manually key a card into a terminal instead of swiping it, or if a rewards or business card is being used.

Non-qualified rate is the percentage rate that's charged whenever you accept and process a card that doesn't qualify for either qualified or mid-qualified rates. This may happen when a card is manually keyed into a terminal versus being swiped, address verification isn't performed, information is missing, or the authorization is not settled within the allotted time frame (usually 48 hours).

Also, if you are only processing a few hundred dollars a month in charges, that $7.00 monthly fee will pump up the actual overall percentage.

Thanks guys.
I guess their might be some slightly better but they are about the same.
It seems like they charge almost as much as sales tax. I think that is excessive. But I don't think I have much choice because I am seeing more people using cards all the time.
Less people carry cash.
The rest of the story is that my business is a full service car wash. Sometimes people buy pre paid wash cards or gift certificates, but most of our transactions are less that $15.00.
I think if we didn't accept cards we would be shooting ourself in the foot.
Thanks for the help guys.

Wingmaster

There are different rates if us use a "swiped" card or key in a number (like from a phone order). Depending on your contract one or the other will be higher within your volume range. The lower your volumes the higher your fee's will be. If you don't do at least 100+ transactions a month it may not be worth your while. Often you can get your best rates through your local bank or credit union that you bank with.

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H Richard
SWCA1967 SWHF244

Card processing must be lucrative since I get two or three calls per day trying to get me to switch to their company. They all say they are the cheapest! Costs about three or four percent for me depending. I would not take them but you will probably lose business if you don't.

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Hue 68 noli me tangere

They all do it. Added fees and maybe they're ok for a while then they start adding stuff. We do all our business through our credit union and are happy as clams. Of course I realize that a business HAS to work with one of these outfits to process cards. I hope there are a few around that don't rip businesses off.

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"He was kinda funny lookin'"