Watch this video to learn about changes to Interchange coming in October and why, if you have a merchant account with tiers (qualified, mid-qualified and non-qualified), it is time to switch your account to an Interchange Plus price model.
Check back here in the next few days for more specifics on the coming changes to Interchange.
Watch this video and read this post to learn what to look for and ask when you are shopping for a merchant account.
What watch out for:
Super low discount rates – the lower the advertised rate is the greater your effective rate typically will be.
Free terminals or gateways – in business nothing is free in the [...]
convenience_fees
Last night I went out for dinner with my family and some friends. We all love authentic Mexican food so we went to a real “whole in the wall” restaurant and ate some incredible food. When I was about to pay the cashier I noticed a hand written sign hanging from the wall [...]
By John Robinson, of Cocard Synergy
They’ve nailed some of the ring that stole 45 million cards’ worth of information from TJX Companies. 11 people have been charged, and the ringleader, Albert Gonzalez, could get life in prison. Life.
And in addition to TJX, check out who else Albert’s gang targeted: BJ’s Wholesale Club, OfficeMax, [...]
By John Robinson, of Cocard Synergy
Before I get to the meat of the matter, let me finish what I began last week. It bugged me that I only knew what TJ Maxx was supposed to be fined, so I went and found out what they were fined. Rather than the roughly $100 per [...]
Credit card processing seems simple enough. However, there are lots of moving parts behind the scenes. Here is a simplified, step by step list that reveals the whole process:
Authorization
1. Your customer presents their credit card (or the card number, expiration date and security code) to you or your employee.
2. You swipe the card or key [...]
By John Robinson, of Cocard Synergy
For the remainder of this discussion, I’ll discuss interchange fees and then a little about the fees to the merchant account provider. The assessment fees paid to the associations, both being small and not negotiable, can wait for another day.
Interchange fees usually make up roughly 80% of the fees you [...]
By John Robinson, of Cocard Synergy
For the really short answer, check out Who Gets Your Merchant Account Fees?
Here’s the plain ‘ol short answer:
Originally these fees were created to cover the cost of processing for your customer’s bank (the “issuing bank ”), and to make small profit for the bank giving you your money (the “acquiring [...]
The Biggest Chunk: The Issuing Bank (the bank that “issued” your customer’s their credit card)
This part of your fees are called “Interchange.” Depending on the type of business, size of transaction and type used these fees range between 1.03% and 2.70% plus transaction fees of $0 to $0.15.
Next: Visa or MasterCard (the associations)
These are called [...]
Rules. It seems like we have more rules in our lives every day doesn’t it? I am writing this post to make you aware of some more rules. These rules are for merchant accounts and if you don’t follow them you will you will be fined! Well maybe [...]
I have been seeing competing merchant account providers raising their rates because Visa and MasterCard are making some adjustments to interchange rates. So what is really going on? Are the interchange rates really increasing? Here is what I know:
Visa
Effective April 2008 Visa is raising their "Signature Preferred - card [...]
Have you ever wondered what kind of merchant account the rich and famous businesses of the Fortune 500 have? Just in case you have the answer is Interchange Plus .
What is Interchange Plus?
First lets start by defining Interchange . Interchange is the set discount rates from Visa and MasterCard for various [...]
by John Robinson
It’s a terrible thing to have happen. You’ve been alerted by your processor that you have a chargeback to fight. Sheesh. “At least”, you think, “I got all the receipts, signatures, etc. and should still get my money back.” And then you discover the cardholder reported their card stolen the day of the [...]
No, EIRF is not a cousin of the once popular Smurfs. In fact EIRF is not any where close to being a nice, soft, smiling, blue cartoon character. On the contrary, EIRF is disagreeable, hard, frowning and black! If you have it you most certainly are wondering what it is, how you [...]
I am reviewed three merchant account statements today and they all have one thing in common - these businesses are not receiving a reduction in rate when a customer uses a debit card. On one statement there is no debit card activity noted at all. So just in case you have not heard [...]
