Straight Pass Through Highlighted by LA Times
Yesterday I saw the traffic of this blog triple and I had no idea why. I did a little research and I found out the Los Angles Times mentioned the term “straigh pass through” in a business focused column written by Karen E. Klein yesterday. You an go here to see the column or just read it below:
Credit treatment can cut card fees
Dear Karen: I saw your recent discussion on credit card fees. I work for a credit processor and found that 85% of merchants don’t know that they can get “straight pass through” treatment to help reduce their fees and surcharges.
Answer: You’re right about the benefits of straight pass through, but it’s likely that more than 95% of small merchants are unaware of it, said Bob Carr, chairman of Heartland Payment Systems Inc. of Princeton, N.J.
Straight pass through treatment, common for larger merchants, means that you’re charged the Visa and MasterCard interchange rates without extra costs added on from various credit processors. The processing fees are listed separately, so your costs are more transparent. Few small retailers get the benefit because they don’t know to ask for it, Carr said.
Ask your credit card processor to separate out what they are charging you from the interchange rates. “You may find as many as 12 middlemen processors, all charging fees you never knew about,” he said.
I wish Karen would have quoted me but I must thank her and the Los Angles Times for mentioning this subject.
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Robb, I pray for the day that it is this transparent in the Canadian payment processing industry. Fantastic info and site! I’ve sold accounts for 7 point of sale companies through 4 credit card processors, and sometimes it doesn’t seem much different than the dozen of horror story competing companies. It’s like these companies purposely want to confuse their customers because it still works for them 80% of the time. Dumb. Not service oriented at all. I just put up a site in feb and it doesn’t look nice like yours, but hope that it’s going in the right direction in regards to making a difference and being different in this industry up here in Canada.
Robb,
I spoke with you several months ago, however, I cannot recall the topic. Although I believe I was still working at US Merchant Services at the time. I had mentioned your site to Kelly Nelson and “Aunt” Kathy at US Merchant Services and they told me you had worked there too.
I had to separate from them in February, 2009 when my mother was diagnosed with Alzheimer’s. Kelly would not allow me to modify my schedule.
Even though I reside in Anaheim I affiliated with Vantage Card Services out of Georgia because their business practices actually exceed that of USMS (Interchange/Pass Through only, No Contracts, No Fees, Residual Commissions, etc.)
I continue to call prospects as I did at USMS to develop business but I find it inefficient–for lack of a better term.
How did you facilitate this “exponential” growth of yours on your own?
Did you know the industry prior to USMS?
I believe Straight Pass Through to be a worthy enough offering to endure all of the crap I go through calling people, however, I cannot get past the fact that by virtue of telemarketing I diminish not only the worth of my message but that of myself too.
Can you share more of your experience with me? I can see where one might find conflict with such a request but you seem a natural mentor.
(Besides, I attended USC-Dental School 1989 – 1991. I withdrew after 2-years during my divorce never to return. Only problem I attended UCLA undergrad.)
I am sincere in my request of you. Just as I am sincere in my efforts to at once tell the truth and prosper in this industry as you have.
Regards,
Greg