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Start by looking at reviews of credit card processors here:
http://credit-card-processing-review.toptenreviews.com/

They recommend using these guys:
http://www.cardservicesales.com/

I'm not affiliated with either. Just want to save you some time

-Evan

We provide some resources and infromation on our website - businessmoneytoday.com

Business Money Today

No No No !!!! By concentrating on the "cheap percentage...paid to the issueing company" you are about to commit the same mistake many merchants unknowingly make, and pay dearly for it.

You do NOT want the 'cheapest percentage'. You DO want the processing program that costs you the least
to process your transactions. Very very diffierent. I know, it's hard to understand, but it's true.

What you DO want is the program that provides the optimal rate structure in the interchange categories in which most of your transactions will qualify. You also need to factor in the fixed fees involved. Processing method. And lots of other factors other than just 'the cheapest rate'. In many cases, depending on your unique circumstances, paying a higher percentage discount rate could save you many dollars annually.

Here's a site you can refer to to learn exactly how processing discount rates work:
http://www.merchantservices-help.com/discount-rates.html

AMSPCS
amspcs@juno.com
www.MerchantServices-help.com

Evan,

Pretty good post and not bad advise about avoiding setup fees. But unfortunately, it is clear that you,
like so many other merchants, completely miss the point about credit card processing pricing. By
dwellling on the 'rate' issue, you are playing right into the hands of the 'numbers pros' by playing their numbers game. And, much like golf amateurs who play golf with golf professionals, you have little or no chance of winning.

2.04% may or may not be a good rate for an online merchant. Lots of other things that need to be taken into account before that verdict can be reached. A few examples:

What is your mid-qual rate bump?

What is your non-qual rate bump?

What criteria does your processor use to determine when to bump from qual to mid-qual, and from mid to non qual? No, they're not all the same.

What is your per item fee? In conjunction with that, what is your average ticket amount?

Are you on gross processing? Net processing? Gross/gross processing? Makes a big difference.

Do you get a rate _de_crease when you process a signature debit card? Or does your processor pocket the difference?

How long a contract do you have? Early termination fees? Interchange or non-interchange rate guarantee?

Monthly fees? Annual fees? Additional processing fees? Other fees?

The list goes on and on. In and of itself all alone, your 2.04% means absolutely zero. You may have an excellent rate structure, you may well have an absolutely horrid rate structure. Just telling us 2.04% or whatever means zero.

Incidentally, a retail establishment having actual possession of the card shouldn't be paying anywhere near 2% under any circumstances unless in a very high risk business or have terrible credit.

AMSPCS
amspcs@juno.com
www.MerchantServices-help.com

But BEFORE you do anything: Read your contract with your current processor !!!!!!!

Make sure you know
(1) the term of your contract
(2) the penalty fee(s) for terminating it early
(3) the EXACT timing and procedures dictated for terminating your contract.

I"ve been in this biz for years, wish I had a dime for every unfortunate merchant I've seen who got talked into
switching processors to save a few dollars a year, and got popped hundreds or thousands of dollars in early termination fees by the ex-processor.

AMSPCS

My qualified rate is 2.04% for accepting credit cards online. Don't go blind looking at the rate. I've been doing business online for years and have built a great business relationship with my *ISO, Gateway, and Merchant Account Provide*r. Don't know the difference between the three? Watch: http://credit-card-processing-review.toptenreviews.com/credit-card-processing-c108-video-1.html

@amspcs
And I don't care "all about the rate". I'm just mentioning that merchant providers are willing to negotiate rates with you.

+2.04% may or may not be a good rate for an online merchant. Lots of
other things that need to be taken into account before that verdict can
be reached. A few examples:+
Good luck finding a trustworthy merchant account merchant account provider that will issue a rate lower than that for a fledgling start-up business. I only mentioned my rate to let the community know that you can negotiate with you merchant account provider and ISO.

What is your mid-qual rate bump?
Mid qualified rate is 2.3%

What is your non-qual rate bump?
Non qualified is 3.5% But, like you said, lets not dwell on the rates here.

What is your per item fee? In conjunction with that, what is your average ticket amount?
Per item fee is $.50 (hold on to your pants) and the average ticket amount is $2700. Yes, we were willing to accept a higher per item fee to get a lower qualifed rate.

How long a contract do you have? Early termination fees? Interchange or non-interchange rate guarantee?
There is no contract. I primarily work with CyberSource through Bank of America and they've been great. I also meet with my ISO yearly.

Monthly fees? Annual fees? Additional processing fees? Other fees?
No set-up fee. Something like $10 monthly to use the gateway.

+The list goes on and on. In and of itself all alone, your 2.04% means
absolutely zero. You may have an excellent rate structure, you may well
have an absolutely horrid rate structure. Just telling us 2.04% or
whatever means zero.+
Of course the list of fees and questions goes on an on...But to all you new small businesses out there, don't let this seemingly endless questioning deter you from negotiating a better rate with your Merchant Account provider. ISOs (the people who hook you up with a merchant account) are usually very personable and friendly people. If you don't have a good relationship with them, you're making a bad long term investment.

-Evan

If you already have not decided on your provider give they guys and gals at greenlightpayments.com a call they process for a lot of message therapists and passion parties. They know how important it is to accept credit cards especially with low rate. 1-800-448-2038