You will see many
merchant rates offered to you by other credit card processing companies.
Almost all will offer your company a low teaser rate also known as the DISCOUNT RATE.
We at Discount Credit Card Processing are going to explain this very
confusing jargon so you can make an educated choice in your processing decision.
There are four
base categories of credit card (CC) rates you will be charged
by VISA/MC every time you accept a CC for a transaction.
- Debit Cards or Check Cards
- Qualified Cards
- Reward Cards
- Corporate or Business Cards
HOW IT WORKS TO COST YOU THE MERCHANT MORE MONEY
THE QUALIFIED
To put it simply
this is the credit card that gives the card holder
nothing but the right to make a charge for goods or services. This type of card
is usually a very low limit card and often carries a very high interest rate,
given to low credit scores and first timers. VISA/ MasterCard are issuing
these cards less and less. You will see this rate offered at 1.62 or 1.65 this
is below cost also know as a teaser rate, this card will only make up 10 to 20 percent
of your sales.
1-866-896-8472
REWARD CARDS also know as Mid-Qualified
The REWARD
CARD offers something back
whether it be POINTS, MILES, GIFTS, and OR EVEN CASH. The majority of the
cards being issued today are REWARD Cards. Why should you the Merchant care? You,
the Business Owner, are paying for all those FREE Rewards, through higher FEE’s.
And these are the rates the other Processors don’t mention when you call them.
We at Discount Credit Card Processing are more then happy to show you, the rate you pay on
this type of Card will more then make up for the FEE’s they lost on the teaser rate.
This is where you the Business Owner will get hammered on fees.
1-866-896-8472
CORPORATE AND BUSINESS CARDS AKA Non-Qualified
The Corporate Cards are
issued to Small Business Owners and Small Corporations. These cards have been
issued by the Visa/Mastercard Banks to offer an alternative to American Express.
The rates you,
the merchant, pays on these types of cards is the highest percentage that approach 4
percent. We at Preferred Merchant Services will show you your Non Qualified rate up front.
1-866-896-8472
DEBIT CARDS
These are the cards that should make the merchant most happy. They are the lowest rates Visa/Mastercard charge. Payment is taken right out of the customer's checking account and credited to your Merchant Account, so there is almost no risk to the banks or processors.
The true INTERCHANGE
RATE is about 1.15 percent for DEBIT but most PROCESSORS do not give you a DEBIT CARD RATE,
they lump it in with the QUALIFIED RATE. Now they are making up the below cost teaser rate
they gave you. If you do a lot of DEBIT you will be paying too much to process these
transactions. REMEMBER YOU NEED A PIN PAD TO HIT THE LOWEST DEBIT RATE.
1-866-896-8472
TRANSACTION FEES
Every time you accept a card and enter it into either a terminal or accept it over the
Internet a fee is charged to connect to the Processors Computer System either thru
800 numbers or a gateway via the Internet.
Preferred Merchant Services charges 20 cents for a swiped card at a terminal, and 25 cents for an Internet
transaction. You do not pay more.
1-866-896-8472
BATCHES
When you have finished your business for the day you must close out your transactions or
the Daily Batch. This begins the transfer of funds to your bank account. If you do not
batch out within 24 hours, all of your sales will fall into a Higher Percentage
Rate due to your failure to send a daily batch to Visa/Mastercard.
We can make your terminal automatically batch out at a
certain time every day. This is a free service of Preferred Merchant Services.
1-866-896-8472
MONTHLY STATEMENT FEE
Discount Credit Card Processing let's you see your account online daily FREE.
The monthly statement gives you a summary of your monthly deposits, any other
fees or junk fees would appear on your statement.
1-866-896-8472
Worry
Free Visa, MasterCard Processing With Preferred Merchant Services
