Credit Card Processing

I am doing my yearly avaluation of our credit card processing, and wanted to know if anyone has any ideas on reducing the processing charges.

I've negotiated pretty low rates, but now the rules are changing as to what is a qualifying and non-qualifying purchase, such as debit cards, credit cards with points and so on.

We own all the machines, so it's just the processing service we pay for.

Has anyone found a provider that stands above the rest in terms of low cost and turnaround time ?

Any ideas?

Johns

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Originally Posted by Johns

Has anyone found a provider that stands above the rest in terms of low cost and turnaround time ?

Any ideas?
Johns

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I am having the same problem.........I am slowly learning as this is a new one for me.

I called my bank and finally got to person in charge of our account. The first question they asked.........."have you had a better offer from somebody else"................. and then dropped the charges 1/2% which is peanuts.

So I am still looking around.

I hate when people pay with a Bussiness cards!
The procesing % is much higher!
Did you notice that!?

Lenny,

That's because they are "non-qualifying" charges. Any card that has points back or other spiffs cost more to process. That's where the $$ for these programs comes from -Us !

I was also told that if a bank is processing your transactions, you are automatically paying a much higher % rate.

Gentlemen

Sam's club, Costco and BJ's all offer services for small business such as merchant services as radically lower rates. They function as resellers just as the various others sellers of merchant services do. Try Pay-Pal they offer a few programs.

Also, some trade associations offer programs for there members.

good luck

Do most of you own your own card machines or rent them from your bank which I currently do.I thought about buying one but was a bit afraid if anything went wrongetc. Who for eg provides the support for eg card not authorised
thanks

I am looking for a credit card processing company in the US. I figured resurrecting an old thread was better than starting a new one. :hammer:

What are the best rates, low fees, fast turn around times that have been found for the optical field? Has anyone worked with a virtual credit card terminal?

Thanks,
Eric

I went through my bank...the rates are a little higher, but I can count on my money being there the next day, and they have tech support available 24/7...I bought my terminal...the last thing I wanted was another bill to pay!! LOL! :D

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Originally Posted by DocInChina

I am looking for a credit card processing company in the US. I figured resurrecting an old thread was better than starting a new one. :hammer:

What are the best rates, low fees, fast turn around times that have been found for the optical field? Has anyone worked with a virtual credit card terminal?

Thanks,
Eric

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As far as I know there are only 3 major credit card procesors in the USA.
The rest of the small guys just work on small points and fees!

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Originally Posted by LENNY

As far as I know there are only 3 major credit card procesors in the USA.
The rest of the small guys just work on small points and fees!

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Who are the reliable small guys that work for low points and low/no fees? :bbg:

I assume everyone accepts credit cards in their business so everyone should have information to share. ;)

This is my guy!
Eugene
646-258-1058

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Originally Posted by LENNY

This is my guy!
Eugene
646-258-1058

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Thanks, Lenny.

I believe that the cost of credit is going to increase. Consumer rates are going to go up and card limits are going to decrease dramatically. Processing fees will likewise be higher and it may be more difficult to find someone willing to process your charges.

In other words, its going to be more like it was back in the good old days.

Johns,

A few things you need to know.

1. The banks no longer have a monopoly on credit card processing and their fees are often the highest. There are many small independents processors now.
2. Master Card and Visa review their rates every six months. Sometimes they change their rates and sometimes they don't. Some companies increase their rates every six months even if MC and Visa do not have a rate increase.
3. More ethical credit card processing companies offer cost ( MC & Visa's base rate) + contracts. These contracts tend to be longer term ( 2-years) because the CCPC makes very little profit.
4. Rates and companies vary greatly. You would be shocked at what some people are unknowingly paying.
5. Don't let your existing contract be a determining factor in switching from one company to another. Most often even if you switch the bank or company you have a contract with will only threaten you. Some companies will often pay contract penalties if you are charged to get new business
6. Fees are based on the number of tickets you have and the average dollar amount of the tickets.
7. Businesses are rated on loss ratios and certain businesses have higher rates than others based on the type of business they run. Optical is higher than OD's MD'S
8. The way you processes your credit cards and the types of credit cards you process greatly affects the charge to you. Certain gift cards, corporate cards and so forth on can be 3 to 5 times the normal rates.
9. The contracts are extremely complicated and they are deliberately that way, as is the billing and reconciliation.
10. Only the phone company and Yellow Pages are more outrageous in the fees and add on charges.

I am currently in training with a local company that wants me to offer CCP services in my rep area to my optical accounts. They are not a national wide company but if you will P M me I will try to get the name of some independent companies in your area. I am hoping I can get some additional income calling on the same people. They would at least see me every 8 weeks. Most accounts have never met their credit card sales rep in person.
Hope this helps.

Rep

With credit card processing there is a break even point on the two types of cards being debit and credit. I was told by two seperate processors that if the amount of the sale is under $40 it is cheaper to treat all cards like a credit card and to get a signature even if it is a pin based ATM check card. If the sale is over $40 you are better off to run the card as debit and have the customer key in their pin#. Of course this applies if the customer gives you a card that allows this.

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Originally Posted by rep

Johns,

A few things you need to know.

1. The banks no longer have a monopoly on credit card processing and their fees are often the highest. There are many small independents processors now.
2. Master Card and Visa review their rates every six months. Sometimes they change their rates and sometimes they don't. Some companies increase their rates every six months even if MC and Visa do not have a rate increase.
3. More ethical credit card processing companies offer cost ( MC & Visa's base rate) + contracts. These contracts tend to be longer term ( 2-years) because the CCPC makes very little profit.
4. Rates and companies vary greatly. You would be shocked at what some people are unknowingly paying.
5. Don't let your existing contract be a determining factor in switching from one company to another. Most often even if you switch the bank or company you have a contract with will only threaten you. Some companies will often pay contract penalties if you are charged to get new business
6. Fees are based on the number of tickets you have and the average dollar amount of the tickets.
7. Businesses are rated on loss ratios and certain businesses have higher rates than others based on the type of business they run. Optical is higher than OD's MD'S
8. The way you processes your credit cards and the types of credit cards you process greatly affects the charge to you. Certain gift cards, corporate cards and so forth on can be 3 to 5 times the normal rates.
9. The contracts are extremely complicated and they are deliberately that way, as is the billing and reconciliation.
10. Only the phone company and Yellow Pages are more outrageous in the fees and add on charges.

I am currently in training with a local company that wants me to offer CCP services in my rep area to my optical accounts. They are not a national wide company but if you will P M me I will try to get the name of some independent companies in your area. I am hoping I can get some additional income calling on the same people. They would at least see me every 8 weeks. Most accounts have never met their credit card sales rep in person.
Hope this helps.

Rep

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My last post to this thread was in 2006. We've never used the bank for the reasons you stated.

As I stated, we review our processing contract yearly, and own all of our equipment, so far, I think we're getting a pretty good deal.

It is important to note how much room their is when negotiating these contracts. Don't ever take the first number they offer, and make sure you know the lingo before you sit down to talk.

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Originally Posted by Johns

My last post to this thread was in 2006.

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Next time I will start a new thread. I figured it would be easier bumping your old hread. Who knew people would skip my post and answer your 2 year old one..except Lenny who provided a firm contact. :cheers:

Hey Doc!

Debit card in your bussines is not going to work.
You are going to end up with Amex and other perked bussines cards and pay a non qualified transaction fees on them. Dont be surprised to pay up to 6%!
Advise. When you negotiate take a bigger percentage on regular charges and lower % on cards with perks. They have no clue what you are going to have!
The other problem is that you dont swipe the card.....

Does any B2B swipe a card?

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Originally Posted by LENNY

Hey Doc!

Debit card in your bussines is not going to work.
You are going to end up with Amex and other perked bussines cards and pay a non qualified transaction fees on them. Dont be surprised to pay up to 6%!
Advise. When you negotiate take a bigger percentage on regular charges and lower % on cards with perks. They have no clue what you are going to have!
The other problem is that you dont swipe the card.....

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Quote:

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Originally Posted by LENNY

Hey Doc!

Debit card in your bussines is not going to work.
You are going to end up with Amex and other perked bussines cards and pay a non qualified transaction fees on them. Dont be surprised to pay up to 6%!
Advise. When you negotiate take a bigger percentage on regular charges and lower % on cards with perks. They have no clue what you are going to have!
The other problem is that you dont swipe the card.....

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Why would debit cards for his type of business not work?

Hi everyone...

I am no longer in optics but previously worked for a major chain (if you look at my previous posts from a while back, I think it will be obvious where). At my current job, I partner with one of the nation's largest credit card payment processors, and I definitely think I may be able to help anyone looking to lower their processing fees. PM me for more info.

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Originally Posted by For-Life

Why would debit cards for his type of business not work?

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Are you going to give Doc your pin number?
Thats the only way to use a debit card as a DEBIT card!

Quote:

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Originally Posted by LENNY

Are you going to give Doc your pin number?
Thats the only way to use a debit card as a DEBIT card!

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forgot that doc was a manufacturer. I thought he was a dispenser. Long days cloud my mind.