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    10 Replies Latest reply on May 12, 2008 2:12 PM by chatterboxj

    Saving your company money in credit card processing!!

    M&M Services Wayfarer
      Hi I am Marcus Walker with M&M Merchant Card Services Inc.

      The question and challenge is why do business owners try to save so much money in every way possible form advertising, products and services, vendors etc. but not on their credit card processing as if it is TABOO!!?? My sales reps have been noticeing a pattern with business owners that they want and expect to save money for their business but when you show them how they are not getting the so called "lowest rate in the industry" and how they are being charged a lot more than what they were quoted by their current company, They seem to take it to heart and still will not better the situation??? If a company have been misleading me financially for month and years and a better company shows me how to read my statement correctly and shows me the in's and out's and how my money is being wasted but yet I stay with the company who has deceived me for so long is mind blowing, considering you want to save money on so many things that are way less important.

      I issue you business owners a challange step outside of the box and allow another company a chance to save profits for your company. In certain cases BIGGER is not BETTER certain so called banks etc. do not process their own credit cards! They send them to credit card processors and why would you not want a company that specializes in what you are trying to do to handle it? Other institution handle loans (business-personal) and mortgages and are not governed by Visa and Master Card laws meaning they can raise your rate if all of their other money making ways are not looking good for the quarter(Loans etc.) so your rate goes up to off set the cost of where they are loosing. THINK ABOUT IT !!

      If you are open to saveing money for your company? Getting great customer service? Able to speak with a live representative in a timely manner if you have questions? Not over charged for equipment and processing?

      Please contact us ASAP
      M&M Merchant Card Services Inc.
        • Re: Saving your company money in credit card processing!!
          jguthrie Newbie
          There are 3 things which you should be looking at when you are trying to find the lowest possible rates for processing.

          1) front rate
          2) straight pass through
          3) qualifying your transactions.

           

          If all 3 of these are in order then you will be processing at the very lowest possible cost. If you are speaking to a sales rep who doesn't understand what i am talking about, you are talking to someone who only knows what they will make off you in fees, not what will actually increase your bottom line.

          Does your company have straight pass through?

            • Re: Saving your company money in credit card processing!!
              amspcs Ranger
              Pass-through is probably the most equitable form of credit card processing pricing in the industry from the merchant standpoint The biggest mistake merchants make is signing off on a good rate in an interchange category in which few if any of their transactions fall, then getting gouged for the rest which constutes the vast majority of their volume. And yes, we represent several reputable acquirers out there who offer excellent pass-through pricing plans, in addition to other innovative concepts such as monthly discounting, gross processing etc. which most merchants fail to understand or appreciate, much to their detrement.

              BG
              www.merchantservices-help.com
              amspcs@juno.com
              • Re: Saving your company money in credit card processing!!
                M&M Services Wayfarer
                Yes my company does offer all three portions of your reply. Are you currently accepting credit cards in your business?

                M&M Merchant Card Services Inc.
                www.mm-merchantcardservices.net
                www.mm-merchantcardservices.com
                  • Re: Saving your company money in credit card processing!!
                    Vanvel Wayfarer

                    actually, straight pass through means exactly opposite...which is NO SURCHARGE straight pass through to Visa Mastercard

                    There are 3 parts to accepting Visa/MasterCard

                     

                    Visa MasterCard has INTERCHANGE which the US Supreme Court ORDERED Visa MasterCard to make public knowledge of in 2004 They can be found on Visa.net Straight Pass through means your processor actually HAS the technology to show and collect the EXACT rate, DPI and assessments associated with each and every transaction...which is based on the type of card, your type of business and sometimes (such as small ticket discount) the amount of the transaction...which is a discount result from VISA MASTERCARD BEING sued and Settled out of Court for 3.1 BILLION DOLLARS! Were talking HUGE MONEY IN THIS INDUSTRY FOLKS and it's Coming Directly from Business Owners' pockets!

                     

                    Next is the 'cost' for transferring these funds....GET THIS for dial up it cost your processor $.02 that's right
                    TWO PENNIES! for IP..the cost is $.01 YUP 1 penny per authorization! YIPEE bet you didn't disclose that did ya? hehe

                    3rd...well we all know were in business for a reason...so is your processor...THIS IS THE ONLY COST THAT CAN BE ADJUSTED PERIOD
                    anyone who talks I have a lower rate is full of it...We Have RIGHTS
                    check out
                    www.merchantbillofrights.com

                    contact Lisa at
                    lisa.vanvelsor@e-hps.com
                    if anyone didn't know this and would like to know more about your rights or small ticket discounts just shoot me an e mail and I will direct you to the Full Disclosure Honest way of doing business!
                    Heartland happens to be a technology business specializing in V/MC processing standing up for small business all over the US

                     


                • Re: Saving your company money in credit card processing!!
                  jguthrie Newbie
                  What i said was straight pass through :) The surcharges are exactly what Visa and MC post on their website and not a single basis point more :)

                  When you say pass through PLANS that tells me you have surcharges beyond what Visa and MC post on their website, if i am buying something from my issuing bank at one cost and selling it to my merchant at the same cost i bought it for, how is that gouging the merchant?

                  You make some good points and its obvious you have been in merchant services a long time...but i have also, and the current company i work for is unlike any i have seen in 12 years in this business.

                  If your surcharges are above straight interchange on any card that is rewards , business, purchasing, perks, corporate, etc, you have hidden fees. Your point tho about knowing the flow of how a merchant processes is valid, but i dont believe any company out there can match my rates on back end, simply because we are true bank cost :)

                  Have a nice day.

                   

                  Jenn Guthrie

                  US Merchant Services
                  usmerchantservices.net
                    • Re: Saving your company money in credit card processing!!
                      amspcs Ranger
                      Jenn...............

                      Oh please..NO business, not even mine or yours, can sell a product or service at dead cost (which is the idea you're trying to sell) and remain in business. Obviously it would be impossible for a business to pay overhead, let alone make a profit, if they didn't mark-up their product or service somehow. Yes, I know the allure of bargain-basement buying at dead cost makes a great sales pitch----goodness knows enough auto dealers troll for victims silly enough to believe they can buy a car at or below cost judging from the laughable commercials I see and hear all the time... and I"m sure some of the truly gullible merchants out there are bound to respond to such nonsense. But we all really know there is no such thing. Really.

                      Incidentally, if anybody would like to see 2008 Interchange rates, you may do so at
                      https://www.agentinfocenter.com/e107_files/downloads/nab_
                      apps/interchange_chart.pdf

                      For those who don[t know, Interchange, the wholesale cost of transaction processing, is exactly the same for all processors. In other words, dead cost of processing services is the same for each and every processor out there. So since everybody is basically selling the very same product at the very same cost, re-sellers find it necessary to 'package' their products '+creatively+ 'shall we say in the interest of being gentle, of which the "we sell at cost" claim is a common (but absurd) example.

                      By the way, 'straight pass through' pricing means the exact same basis point markup is employed for each and every one of the V/MC pricing buckets. In other words, you can't re-sell one rate bucket at a 10 BP markup, and another at a 50 BP market---they are ALL marked up the same 20BP. It does NOT mean the services are re-sold at dead cost "for exactly what Visa and MC post on their website and not a single basis point more" for obvious reasons mentioned above.

                      Sorry to be so critical, but it's difficult to sit back and watch erronious nonsense concerning your industry being presented as fact before a mass audience.

                      BG
                      amspcs@juno.com
                    • Re: Saving your company money in credit card processing!!
                      jguthrie Newbie
                      Who said we don't make profit? We make our profit on the BP on the front end, not back. Yes, we actually do give straight interchange on everything but the front rate. Maybe thats why our average retention of our merchants is 5 years versus the industry average of 18 months. We treat our merchants better.

                      Btw did i mention we have no early term fees? No switching costs ? Give the merchant equipment if its feasible otherwise sell it to them for our cost? Yes, i truly work for a white knight in this industry.

                      It's great to be able to sign up a merchant and not have to apologize 3 months later for the gouging i did :)

                      Cheers,

                       

                      Jenn Guthrie
                      US Merchant Services
                      usmerchantservices.net
                        • Re: Saving your company money in credit card processing!!
                          amspcs Ranger
                          You state:* +"We make our profit on the BP on the front end, not back."???? +We give straight interchange on "everything but the front end"???????????????*

                          What kind of double-talk is that? ALL transactions have both a front end (authorization) and back end (settlement), so what the heck difference does it make _where y_our markup is? That's like saying "instead of charging you $1 for the glass of Coca-Cola, I'll give you the Coke for free. Just pay me $1 to rent the glass". That's called the 'label" game, the oldest scam in the book which used to be all too prevalent in the industry, much to the detrement of confused and misled merchants.

                          Listen Jenn, there's nothing wrong with a little healthy competition; I'm 60 years old and many of my dearest friends in life share the same profession as I. But be professional, market your product as best you can but remain respectful of others who share your industry. The stance that you're the only 'good guy' out there and everybody else is a gouger insults the intelligence of a lot of folks out there on both sides of the sales equation, and gives a black eye to the industry as a whole which is neither good marketing nor necessary. Put the dog and pony show away, market your product in a straightforward manner, and we'll all be better for it.

                          I imagine you'll have a response to this. That's fine, I believe my points have been made so this will be my final comment on the subject. I dislike being put into the position of defending the integrety of my profession, but it's very difficult hearing someone sprout nonsense knowing that some naive merchant out there , maybe one of mine, will be duped into buying into it.