Announcement

**Judy** · 09-03-2008, 04:50 PM

Hi John. I've been looking at the program Costco offers. It seems pretty good. It's on their website under business or business services.

Judy

**Juli in Kona** · 09-03-2008, 04:52 PM

You haven't mentioned PayPal.

Juli in Kona

**levelbest** · 09-03-2008, 04:59 PM

We use paypal pretty regularly right now. I think they are more expensive but maybe I should look again.

Best deal I am seeing so far goes as follows...

Visa/MC Credit Card Rates (not debit)

Qualified - 1.67% + .19
Mid Qualified - 2.42% + .19
Non Qualified - 3.42% + .19

$15 minimum discount fee
$5 month statement fee

**levelbest** · 09-03-2008, 05:02 PM

On paypal - looks like the virtual terminal is the most comparable - where you will have to key in numbers etc as with propay...

Volume: $0.00 USD - $3,000.00 USD
Rate: 3.1% + $0.30
Monthly Fee for unlimited Trans: USD $30.00 USD

**signman** · 09-03-2008, 05:16 PM

We use First American Payment Systems for both businesses, a local 'rep' came in to setup the terminals, has taken care of any programming problems, etc. instantly...and you won't believe the rates...visa/mastercard both 1.74% and a 20¢ fee. Visa and MC check card fees- 1.35%
looking through the contract, there is PirstPay.net, internet card services, all kinds of other things.
www.first-american.net
we were all set up and running the day the terminals came in for our store, for my graphic shop he set up an old used system that came with another business I bought out!
I'd highly recommend them-there is also NO MONTHLY MINIMUM fee-our previous company kept jacking that up every 6 months!

**signman** · 09-03-2008, 05:18 PM

They also have check guarantee program-so much easier to deal with because you run the checks through a terminal that 'reads' the code, verifies the check-and ELECTRONICALLY snags the money and deposits in your account in 24 hours! No more 'bounced' checks-if they don't go through-you don't take them!

**levelbest** · 09-03-2008, 06:48 PM

Thanks Rolland - I have contacted them and will post the results here.

So you don't have a 3 tier rate? The rate you mentioned sounds like a first tier - Qualified rate.

What's your statement fee?

Now, the check thing is interesting. What terminal do you have, how much did it run, and how do you like it?

**signman** · 09-04-2008, 08:23 AM

Here's what we have...
Statement fee (credit cards) $4.00 per month
Statement fee (checks) $4.00 per month
New terminal setup (we needed 2, had 1 old one without the stripe swiper, so we went for new up to date unit-has a check 'swiper', credit card swiper, debit card terminal, and printer. Can hook to a register but we didn't do that) $520 I think for the whole thing. Even the printer rolls are free!
Since we got it, we have not had one 'bounced' check at our store-average at christmas would have been several hundred dollars, and no more bad credit cards...the system catches them BEFORE the transaction is finished, same as checks. There's been a couple checks in the past year and a half that were insufficient funds but the credit company does NOT revoke our payment-because we have the ORIGINAL signed check here (we don't have to give them back to the customer!) we fax that in and the company goes after them! So we haven't lost a dime to bank charges or 'service' fee, just the 1.74% + 20¢ per check. Our charge/debit card use has skyrocketed the past year and a half because this system is so good!
At my graphics, 95% of the business is over the phone, I just have the terminal on another line and type in card numbers as they read them over the phone, a couple easy security questions, hit a button, and bingo...I'm paid-same percentage for fee!
The last company we used was through my sign association membership-and the MONTHLY rate had zoomed to $75...so it was a no brainer to drop them!
Roland

**Mr. Sew & Sew** · 09-04-2008, 09:44 AM

John - I had this issue a few months back. I landed a large corporate client that insisted on paying with a corporate credit card. They order about once every 8 weeks or so, but the orders are usually $2500+ each time. I went through the math on all the systems and decided to go with paypal virtual terminal.

No setup costs and flat fee of $30/month plus the fees on charges (about 3% or so).

I looked around but because I am doing minimal (but large) charges, this worked out for me.

So $360 a year plus about 3% on the charges but they are doing about $20K a year with me so I consider it a cost of doing business. Again, this is a sideline business for me and not my main source of income so I go for convenience many times over rock bottom cost, but that's my two cents.

Let us know what you decide to go with. Roland's deal sounds pretty good to me.

Tom

**signman** · 09-04-2008, 09:53 AM

Our average card usage a month went from around $500 to $1000, more at christmas, to $3600 this july alone, not counting my graphics business! For no extra charges, we have both businesses as separate accounts to track sales easier!
Occasionally I get a business order over a couple thousand so we have a higher 'limit' on that end but at the store it's $1000 or you have to call in or something to get authorization. Never had to do it since our retail 'sale' averages under $100.
Compared to the previous card processor we used, we are saving over $125 per month, even our business bank couldn't touch the rates and fees we paid. Everything is done electronically-we get a monthly 'mailed' statement but no checks to write or anything. So it's well worth doing the math, finding the hidden fees you might be paying now, and comparing services. So many people now just whip out the debit or charge card and don't use cash or checks-every dime you save on a transaction adds up!

**levelbest** · 09-04-2008, 11:36 AM

Well, costco is out. The rate they quoted me waa higher than just about any other company I contacted and they didn't seem interested in negotiating or hearing what the competition had to offer.

**TOTWGraphics** · 09-04-2008, 06:25 PM

My wife has been selling CC processing services for years- She currently sells processing primarily for Nationwide Payment Solutions

All I can tall you is be wary of anyone promising lower rates than their competitors, read everything very carefully, and ask a lot of questions.

As I understand it- Visa and Mastercard charge a certain rate- something like 1.69% virtually all processors MUST pay that rate- anything above that and whatever fees involved are their profit on the transaction. That rate is going to go up every year

Anyone promising lower rates is burying difference in there somewhere. She loses customers up here in AK and back in Florida all the time to people promising low rates only to have them call her a few months later when they discover they're now paying more- One of her local competitors is even in actuality a collection agency!

**signman** · 09-04-2008, 06:47 PM

My wife checks every monthly invoice to look for 'overcharges' or hidden increases-that's how we caught the last couple processors gouging us. First American so far hasn't raised a single fee.
Rates are 1.74 + 20¢ per card so based on 9 months so far of worry free service I"d recommend them.
Also, having a real life person in the area if we need help with program glitch or whatever makes a big difference!

**levelbest** · 09-04-2008, 06:48 PM

I hear you TOTW. The company I am thinking of going with Merchant Warehouse (based in Boston) has no contract.

$7.95/mo Statement Fee
Qualified: 1.65% plus .21cents
Mid Qual: +.80%
Non Qual: +1.10%

$0 Monthy Minimum
No Contract, No Annual Fee

They've been in business since 1998 so they have a track record. Tooling thru the contract now...

Announcement

Credit Card Processing - Outgrown Propay

Credit Card Processing - Outgrown Propay

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment

Comment