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    5 Replies Latest reply on Mar 30, 2009 1:58 PM by MktingAsst

    Are processing rates & fees taking too much of every sale?

    amspcs Ranger
      I saw a post the other day about 'lowering business costs' that inspired this thought. One of the most obvious ways would be to reduce payment processing expense.

      I know from experience and studies I have read that most merchants suspect they are paying too much for credit card processing. They have no idea why, they just know it's too expensive. If your business accepts credit cards and you feel this way, I'd like to suggest a simple solution: Invest a little time in comparison shopping, and if you get an offer that looks better than your current program, all you need to do is confront your present processor with that proposal (obviously BEFORE you sign off on the proposed deal no matter how good it looks). If it's legit, your present processor will probably meet or beat it. If it's not (and lots of them are not), hopefully he'll explain why and help you make an informed decision. Either way, you'll come out ahead either in terms of lower costs or enhanced knowledge.

      If anybody would like an opinion or ask quesetions regarding their current processing program, please respond to this post and we'll have a conversation. This is not a hard sell--I'm in my sixties now, semi-retired, been in the processing business a long time, have lots of knowledge to share. . As I say, your first choice would be to confront your present processor with your new found knowledge...this is not a 'fire them and hire me immediately' pitch. If that doesn't work, that's the time to explore other options.

      A word of caution: If you do receive another 'bid' that looks good, do your homework first, do NOT leap before you look. Lots of landmines and misleading processing schemes out there, don't fall for them.

        • Re: Are processing rates & fees taking too much of every sale?
          tmk108 Wayfarer
          i agree with you. you really need to do your homework. the company that i process through has a free ebook called insider secrets. you can download it for free. i think it is still available on their site.
          • Re: Are processing rates & fees taking too much of every sale?
            bmt2008 Adventurer
            The thing to keep in mind is the opportunity cost of not accepting credit cards. Plastic is the way that the majority of people buy things - nearly everything - even for amounts under $1.00 - this is just the way people buy today.

            I have seen numerous businesses stop accepting credit cards and I watch their business suffer. Think about this - 80% of your customers purchase with credit cards. What would your business do without those 80%? So, how much is that 80% worth to you. Given the state of the financial industry today and the liabilities they have to both the card holder and the merchant - I am not surpised that fees are not sky rocketing.

            Just some thoughts
            • Re: Are processing rates & fees taking too much of every sale?
              Maxser1 Newbie
              That depends on the processors. I am a firm believer in clients using the flat rate option for their merchant services because it always tends to be cheaper than the more complex model when you take into account the blended rates for each type of transaction. As far as for which company you choose. I always suggest going with a stable company people have heard of and an account rep that you feel comfortable with. The fees really don't matter as stated earlier because most will try to accomodate you if they think they are about to lose your business.

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              Ty Penson


              Director of Business Development


              Maxser Consulting Group LLC


              • Re: Are processing rates & fees taking too much of every sale?
                MktingAsst Wayfarer
                I totally agree. It is crucial to do comparison shopping when searching for a credit card processor. I would also advise you to be sure that you are comparing apples to apples when getting quotes. Research questions to ask the same questions with every processor and also be sure to read the fine print. Many processors give different names to the same thing, so be sure to watch out for that.

                If you would like more information about how to save money on credit card processing, be sure to visit It's a site to educate business owners on merchant services. It's a great resource.