Lower Fees Through Qualifying - Part 4

I went to Google in search for articles written about merchant account qualification. I was hard pressed to find any detailed information about qualifying transactions for the lowest rate. Why is this? Shhhh, don’t tell anyone what I am about to write in this post, it’s an industry secret.

The reason is that when your transactions do not qualify correctly the profit margin typically goes up, way up. So why would your merchant account provider work with you to fix your qualifying problems? So he could lower his income?

What I often see is merchants being offered a very low base discount rate and then they get hit with major surcharges on every transaction that is not a normal, swiped, consumer credit card transaction. Yesterday I spoke with a potential client that was given a front rate of 1.19% the only problem was they took almost all business credit cards and their rate for those transactions was 3.50%. Their effective rate ended up being 2.98%! Ouch!

So what is the solution? Work with a merchant account provider that one, provides straight pass through or Interchange Plus pricing and two, is committed to helping you improve your transaction qualifying. If you do not have these characteristics in your current provider you are over paying for merchant account, period.

If you have any questions about qualifying merchant account transactions contact me here.

Like this post? Then subscribe by RSS | Email