Typically twice a year Visa & MasterCard will make changes to some of the interchange fee schedule. Most years it only will effect a very few categories. If you are not with the right credit card service provider, they will use it as an excuse to adjust your rates and fees higher. They will say Visa or MasterCard went up so we need to charge you more.
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CONVENIENCE FEES
A convenience fee is associated with an “added value” that the cardholder receives in connection with a non-face-to-face card purchase in the form of an alternate payment channel outside of the merchant’s customary payment channels. For instance, a movie theatre is permitted to charge a convenience fee to cardholders that purchase movie tickets for a future showing through the Internet. This alternate payment channel offers the cardholder added convenience since they do not have to be physically present to complete this transaction, thus a convenience fee is allowable. The movie theatre (this would be their customary payment channel), however, may not levy a “convenience fee” at the ticket counter. You know you have a great product you offer to customers, then why not let them purchase a gift card to give to a friend? Build loyalty too. Promotional give away. Use for refunds, instead of cash.
Back to the lower court for new settlement discussions or a trial…
Visa & Mastercard Settlemen Update I am often asked what is your rate? It’s not about one rate, one needs to look at the sum of the total. Here is another example about another “junk fee”. Monthly Funding Advantage is a made up fee. Also I am seeing a new junk fee called “EMV non-enabled Fee” at a rate of 3 basis points. This fee will hit restaurants that does not have a POS to accept Chip Cards.
More Junk Fee Give us a call to find out how we can help you eliminate junk fees. 888-506-9225 Today’s global economy requires a retail store to offer all of their product at their brick and mortar location and online in one seamless experience. Consumers expect an easy, streamlined and quick way to find and purchase the products they seek. This includes browsing from all types of devices such as laptops, smartphones, iPads and tablets as well as the ability to apply discounts or receive coupons online. In order for a merchant to stay ahead of competition, they must be Omichannel Retail ready! This means combing data from transactions in order to create a customer behavior pattern.
High risk has to do more with the charge back exposure, since the acquiring / sponsoring bank is responsible for all charge backs if a business were to cease business and close for any reason. A better way to characterize a business as high risk is harder to place
To add to this subject and mention new information, a law suit was filed recently by the Attorney General of New York. Read more on the link provide below. The company involved is Northern Leasing Systems. This is just one company involved in this “leasing” industry. In the complaint it mentioned deceptive sales practices, which I have heard about from business owners.
Don’t Get “Squared” by Square Up
I am noticing more and more merchant using Square for processing their credit cards. On the surface Square may seem like a good option and for some it maybe. If you are just starting out and not sure how well your new business my take off and depending on what you are selling or services of your new business, perhaps it is a good option. For example, right now it is more of a hobby that a thriving business. Square might be a good option. Is There Any Benefit Obtaining Your Merchant Processing Account Thru an Association?
The short answer is not always. It dependents on how much the Acquire charges or not charges. What is an Acquirer? Read our earlier post on this subject. at the following link. This is not to say other benefits from the “Association” are not good, I am only addressing the credit card processing. I have talked to several businesses that belong to the “Association” and one of the many so called benefits is the lower cost of processing. Many of these same merchants are very closed minded about considering another alternative. The few I did get to see had good rates, but not as low as we offer. Do yourself a favor, let us look at your processing statement and we will analysis it to let you know just how good of a deal you are receiving from your “Association”. I am sure you will be glad you did. |
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