February 18, 2009
Know of merchant account providers with really competitive rates?
Joel Ferren asked:
I know there a lot of merchant account providers on the Internet and I’d like to know their websites, but I really have no fondness of surfing to look for them. I’d like to see which ones offer really competitive rates. Suggestions please?
I know there a lot of merchant account providers on the Internet and I’d like to know their websites, but I really have no fondness of surfing to look for them. I’d like to see which ones offer really competitive rates. Suggestions please?
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Comments on Know of merchant account providers with really competitive rates?
From my experience, a lot of times, the ones who offer the most competitive prices are from two groups: those willing to take in high risk merchants and the relatively new account providers. In your case, I’d recommend Adult Merchant Pay, I like what I see on their site.
Finding a credit card processing company can be overwhelming due to different pricing structures and every one claiming to have the lowest rate.
The truth is your rate should be determined by your average size ticket and industry. If you have an average tiocket (sale) under $15 you can get a very low transaction fee about $0.15. Your percentage rate will be a little higher about 1.85% for debit and credit cards. That is the best program for you due to the transaction fee having a greater affect on low ticket transactions.
If your average ticket is above $15, you will pay a transaction fee between $0.20 -0.25 and a percentage rate of about 1.80% for credit and 1.40% for check cards.
The next thing you want to look out for is what you pay for key entered transactions and corporate cards. This is very important. Some place will charge a very low percentage for swiped personal check and credit cards, but charge over 4% for rewards and hand keyed cards. BE CAREFUL.
Now you need to know the difference between a pin based debit and a check card. A check card is charged different (see check card rates above) due to how it is processed. If a customer swipes a debit card and signs for it instead of entering their pin #, you will be charged a % and trans. fee. If they enter their pin #, you can get a flat rate of around $0.65 trans fee and no %. It is important to know your business, and decide wether or not your average ticket is high enough for a pin based transaction to be worth it or not. Usually a $40 or higher transaction amount is when you want to use that pin pad.
Contrancts: Most every credit card processor has a 3 year contract agreement. Very common practice.
You can find out more about rates and other programs here:
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I hope this helps! Good Luck