What Are Good Credit Card Processing Rates?
What Are Good Credit Card Processing Rates?
Every small business owner should know by now that accepting credit and debit cards is a must. Most small business owners understand that they are really missing out, if they don’t have a credit card processing solution. However, the hardest part for most small-business owners is finding a good deal on credit card processing, because the industry has been designed to be confusing.
Most credit card processing companies will claim to have low rates and fees. However, most small business merchant account providers set you up with a system of pricing called tiered pricing. Tiered pricing is basically taking over 130 interchange rate fields that Visa and MasterCard charge directly to credit card processing companies and dumping them into just three main categories.
Qualified, Mid-Qualified, and Non-Qualified credit card processing rates:
- Qualified refers to transactions that fall into their “special discount” rate category. Most of the rates that fall into this category will be significantly lower with BankCard POS anyway.
- Mid-Qualified typically means that there the “special discount” rate may be one and a half to two times what you originally were quoted.
- Non-qualified typically means that your “special discount” rate is over double what your merchant account provider quoted you.
BankCard POS only offers interchange plus pricing, because we believe education about rates and fees will lead to our merchant partners to understanding why they get charged what they get charged on any particular credit or debit card processing transaction.
MOST CREDIT CARD TRANSACTIONS-Fall into mid-qualified and non-qualified transactions categories, because of reward programs, corporate cards, business cards, travel cards, and the list goes on and on….there are well over 130 rate categories, so ask your credit card processor what cards falls into the mid-qualified and non-qualified bins. Your rep won’t know the answer. No one ever asks, which cards are qualified and what ones aren’t. It will be an eye opening conversation for you and your merchant account provider.
Bankcard Pos Is The Best Credit Card Processor
Everyone at BankCard POS feels that we are the best credit card processing company, because we design every merchant account and point of sale solution around each individual restaurant and retail business that we become merchant partners with; while being upfront about our limitations, strengths, rates, and fees. Our Goal is simple: Provide our merchant partners the best POS Solutions at the best price to earn the business and give them the best service to keep it.
We aren’t like a lot of other credit card processing companies, because we don’t lock merchants into long term contracts with severe restrictions, or charge more for no other reason than it’s a small business. We educate merchants on all of their options for credit card processing, POS Hardware, POS software and let them tell us what they want from there.
Some of the things that make BankCard POS the best credit card processor
- Transaction/swipe rates-Rates start at just ten basis points and $0.10/transaction above interchange and only go down depending on monthly volume, business type, processing history, and other factors.
- Equipment, setup and other costs-BankCard POS is a wholesale provider of POS hardware and has multiple deals with companies that allow us always to find the best deal for any individual business.
- Ease of setup and use-We offer free unlimited training and all of our POS software and POS systems are really easy-to-use.
- Contracts and service terms-We have different terms from different banks for different solutions, but everything is flexible, because of the huge amount of customers that we hold with these banks.
- Types of processing offered-We can offer credit card processing solutions for any business, including high risk, but our real specialty is restaurants and small business retail.
- Types of payments accepted-Your business will be able to accept all types of electronic payments.
- Funding and processing time-Funding usually happens between 1-4 business days depending on which bank and which POS system we are using.
- EMV capability- All of our merchant account solutions are EMV compatible
- Merchant services-BankCard POS is a full service merchant service provider, so give us a call on anything from POS systems to cash advances.
- Additional features and benefits-We can do all kinds like provide free websites, online ordering and everything else that we do to reward our merchant partners and help them succeed.
- Customization options- We build every POS system and point of sale solution to fit the specific needs of that specific business.
- Third-party integrations- We can integrate into anything and we usually don’t charge merchant partners extra for doing so, unless it’s an unusually complicated and time consuming project.
- Reporting and analytics- We can provide with more reports than you will ever need and customize your reports however you want. We can integrate into QuickBooks and other popular accounting software at no additional charge.
- Service limitations-We can’t help you fly a spaceship.
- Customer service-We have very experienced customer service agents with long personal histories in the POS and merchant services industries.
Learn about interchange plus pricing:
Wise business owners learn why they are being charged and who is making the money in regards to every purchase their business makes. However, a lot of merchants quickly give up, when it comes to credit card processing, because interchange rates were originally designed to be confusing by Visa and MasterCard.
Knowledge is power in all situations and not giving yourself the knowledge you need in regards to interchange plus pricing will give your merchant account service company all of the power. Take the power back into your own hands and learn what a good merchant account deal truly is.
Interchange Fee Information Resources:
- Wikipedia’s interchange fee entry
- MasterCard Interchange Rates and Criteria
- Visa’s interchange reimbursement fees
Visa and MasterCard offers fixed interchange rates and fees that all credit card processing companies pay to submit credit and debit card transactions through their systems. Merchant Service companies provide electronic gateways and machines to make this happen along with the customer service on the merchant’s behalf. A good credit card processing company represents its merchant partners, when there are chargeback or other issues. All credit card processing companies pay the same rates and fees, so merchants looking to save money to need to find out which credit card processor gives the best customer service with the lowest interchange mark up. BankCard POS advertises it’s “friends & family” program at just 10 basis points and $0.10 per transaction with a $10.00 monthly fee (includes POS software fee for restaurants and select retail). This rate isn’t advertised anywhere else and our rates actually go down as volume goes up. We can also get the transaction fee down to just $0.04 per transaction for small average ticket merchants. We can work with any business to find the best credit card processing service at the best price and we have proved it thousands of times since 2008.
All credit card processing companies make their money by marking up the interchange rates, fees, and assessments, but not all credit card processing companies began as a POS hardware and POS software provider. BankCard POS is unlike other credit card processing companies in that we make a majority of our money providing POS hardware and POS software products and services to other credit card processing companies. We were one of the first credit card processing companies to focus on providing restaurants and retail locations with POS systems and that has led us to become a POS solution company that provides service to other merchant account providers. The end result is that we can afford to give you the lowest rates and fees on credit card processing, because we have thousands of merchant partners in the restaurant industry across the country. It’s saving money by association really, so thank all the other restaurant owners that use our point of sale solutions.
Discount Credit Card Processing Rates
Some credit card processors you the terms “Discount Credit Card Processing Rate”, or “Special Discount Rate”. These terms are being used to describe your merchant account offering are clear indications that you are being offered a “tiered pricing” merchant account. It’s also possible that the person offering this special rate to you doesn’t even fully understand what interchange plus pricing means, but you would be best served finding another program.
It’s not only about rates that get charged, when you process a credit or debit card transactions, because monthly fees, annual fees, assessments and other things come into play. BankCard POS doesn’t charge hidden fees that really are just extra fees charged by other credit card processors like batch header fees, monthly minimums, annual fees, PCI fees, EMV fees, and all the other fairy tale fees other merchant account providers get away with charging.
The biggest problem with tiered pricing in our humble opinion is that it changes from company to company, because no merchant account provider that offers tiered pricing uses the same matrix or guidelines to determine what is qualified, mid-qualified, or non-qualified. These rate categories are made up categories and the fairy tale changes just slightly from company to company. To get a true apple-to-apples comparison a merchant would still have to learn about interchange rates, fees, and assessments, then determine what the different companies are charging on each individual transaction.
We understand why most restaurant and retail small business owners give up and just go with what they feel is the best deal being offered, but DON’T DO THAT!!
- Ask what the markup on interchange rates, fees, and assessments are.
- Ask what services are offered to justify the markup.
- You know we start at just 10 basis points and $0.10 per transaction above interchange.
- You also know that we are flexible depending on the conditions and circumstance.
- You also know by looking at our Google Reviews that we offer great customer service.
Contact us by filling out this form or give us a call at 944-538-3576:
These articles below offer different information on Interchange Plus Pricing and POS Systems:
Interchange Plus Pricing!
What Credit Card Processing Options Are Available For My Restaurant?
How Much Should My Point Of Sale System Cost?
Interchange Plus Pricing Means Low Transparent Rates And Fees!
What Does EMV Mean To The Merchant?
What Is A Point Of Sale-POS-System?