Pin Based Debit - Another Way to Lower Your Fees

Are you looking for another way to lower your merchant account costs? If so, you owe it to yourself to at least consider adding a pin pad to your credit card terminal(s). The main rule for pin based debit cards is the higher your average ticket is the greater your savings will be. Let’s take a look at some examples
of what I am talking about:

If you have an average ticket of $20 you will be losing money with a pin pad on many transactions. However, if you have your average sale is $200 you would save $3.20 on a single transaction! Even if you only had 20 pin based debit transactions a month that would result in an annual savings of $768. Not bad and if you get a straight pass through
merchant account on top of that you will be amazed at your savings.

Figuring the cost of a pin based debit

With a typical credit card processor adding pin based debit will cost $100 - $200 for the pin pad(s) depending on the type of terminal or software you are using. On top of the pin pad you will be charged fees per transaction and in some rare cases, a discount fee. On top of that and there are fees for the transaction traveling on networks such as Star, NYCE, Pulse, Interlink, etc.

When I initially speak to a potential client and I ask about their pin based debit fee the most common answer is $.25 per transaction. However, when I look at their statement I see transaction fees and network fees coming in somewhere between $.65 and $.85 per transaction. So do not be fooled by the $.25 fee most processors quote; always ask about the network fees and if they charge a discount fee.

I love the way my company charges for pin based debit. We charge a “flat and capped” transaction fee. In other words, when I say $.50 a transaction that is what you see on your statement because we do not charge network fees or discount fees.

If you have any questions leave a comment. To have your merchant account reviewed, click here and fill out the form you will happy you did.

Like this post? Then subscribe by RSS | Email