I talk to business owners and operators every day about ---you guessed it---their credit card processing program. During these conversations I'm asked a lot of questions, but none so often or with as much conviction as, "What's your rate?" For most people seeking out a credit card processor is all about shopping for the lowest associated cost, and it stands to reason that the cost of credit card processing is all about the rate, right? Not entirely.
Now, this is a subject I could spend a great deal of time on, but despite the fact that credit card processing is every bit as exciting a topic as extreme kick boxing, motocross or Maxim magazine, I'll limit myself to a brief explanation in an attempt to keep your attention.
Your rate is only a part of your overall cost
Try this simple math experiment: grab your last merchant statement and take a look at the total dollar amount deducted. Divide that amount by just your Visa / MasterCard credit and debit volume - don't include volume on Discover, American Express, Diners, JCB or any other card type. Now, multiply that number by 100 to get your effective rate. This is the rate that you're being charged to accept credit cards and it accounts for all of the transaction fees, miscellaneous administrative fees, rates and surcharges that apply to you.
Folks, I have seen some crazy fees - strange, Dr Seussian fees that I swear somebody came up with during a late night, drunken magnetic poetry session. Of course, despite their absurdity they seem official enough that most people don't question them.
Focus on your bottom line
Yes, your rate is important - after all it is applied to every dollar you run on credit cards. I simply recommend focusing more on the total dollar amount that you're spending each month and on your effective rate.
When I quote a business on credit card processing I take a bottom line approach. As you're probably beginning to understand, each processor uses different billing language and some companies out there structure their rates and fees in such a way that you can't really tell what you're paying by just glancing at a statement. It's for that reason that I take the time to examine your merchant statement and prepare a side by side (apples to apples) cost analysis. This way I can fish out all the strange fees, draw up a comparison and present a savings quote that you understand and that I can personally guarantee.
So, if you're looking for a clear and competitive quote on your credit card processing and if you enjoy the security of a savings guarantee, you should definitely contact us.
