We frequently address questions from merchants currently using the Costco Wholesale Merchant Processing. Costco’s merchant partner is Evalon, formerly Nova Information Systems.

Eariier this year, some Costco member merchant rates were increased, though on the surface it looked like a decrease. It really depends on your business whether you’d be better off or not. In most cases, businesses will pay more.

COSTCO PUBLISHED MERCHANT RATES, April 2010.

Visa/MasterCard Qualified (Traditional Credit & Signature Debit) 1.48% plus $0.20 (reduced)
Visa/MasterCard Qualified Rewards 2.20% plus $0.20 (increased)
Visa/MasterCard Partially Qualified 2.96% plus $0.33
Commercial Non-Qualified 2.96% plus $0.33
MasterCard Non-Qualified 3.80% plus $0.33
Pin-Debit Transaction Fee $0.12

Previous blog readers know these numbers above are pretty meaningless for comparing merchant rates. What really matters is your effective rate. You get the qualified rate when the customer uses their check card and signs for it instead of entering the pin number. Debit card usage is definitely on the rise so the lower rate is a good thing. But how many of your transactions will qualify for the qualified rate vs the other rates? Reference this article for a more important number to use when comparing rate plans.
how to calculate credit card processing effective rate
In addition to the above fees, processors are passing along  .30% or .40% international fees launched in 2009 by Visa and MasterCard, also called cross border service fees. These are fees for foreign issued cards. There’s no way out of this one. Everyone pays it. Since no one knows how many foreign cards you’ll be presented with, it’s usually an extra line item on your merchant statement. I’d be vary wary of any deal that did not separate out these fees.

Based on the April rate changes, I’m staying neutral on processing up to $100,000 annually via the Costco membership plan. Anything over that, I’d look at other options.

As previously announced, First Data will discontinue support of the Mobitex wireless network and will decommission connections effective Merchants will no longer have wireless merchant service as of 8/30/2010. You do not need to change merchant processors, but you do need to change your wireless network. Depending on your current hardware and software set up, you may need to update software, update software settings, or change your wireless equipment. 

 URGENT SITUATION?

If you’re processing via the Mobitex wireless network ONLY, then your situation is urgent. Call for an immediate FREE consultation. Be prepared to share existing merchant account, hardware, software and any other relevant POS information. We’ll need make, model, and version information as appropriate. You can also fill out our FREE Merchant Account Analysis contact form.
There may be new technologies for credit card processing since you last looked. We’ll ask questions to understand your payment processing needs and how different methods could affect your costs before we recommend a wireless solution or anything else.

What are Mobitex alternatives for CDMS or GPRS that you can use on First Data? 
If you still need a wireless network vs another type of technology, Apriva®  is probably the most popular. With Apriva you simply choose the best network for you. You may even already have Apriva, but are using the Mobitex Network and now just need to choose a different network. Link for current Apriva GPRS, CDMA and Mobiitex network coverage maps.

Wireless connections are basically going to compare to your cell phone reliability. So if you don’t have good connectivity now with your cell phone, choose a different network. Check with your friends.

Another option is offered by Way Systems. Their terminals can be boarded ( configured for your merchant account) for the Way or via Apriva. We have cheap wireless credit card terminals specials ongoing for certain Way products right now.

The wireless credit card terminal discount is back and even better.

The Way 1581 Mobile Payments Solution is among the cheapest wireless terminals we know of to accept credit cards wherever you are- even on the golf course. Perfect for any event indoors or outdoors, collect money for auctions, dinner and tournament fees. Kit includes a wireless terminal and printer and works on any GPRS network.

Mobile means no boundaries. Not tethered by wires, nor restricted by WiFi availability. So merchants can accept payments anytime anywhere.

The New MTT 1581 empowers merchants everywhere with the limitless possibilities of a truly mobile POS terminal. This revolutionary offering from WAY Systems has the functionality mobile merchants demand for successful, secure transactions anywhere. The terminal’s stylish, sleek form factor fits easily in the palm of your hand, combining the convenience of a mobile phone with the power to accept payment anywhere, at anytime.

• Works virtually anywhere
• Best mobile coverage available (GPRS)
• Supports all major processors
• Customer support included (24/7 Helpdesk)
• Easy-to-use retail mobile credit and debit application
  • Optionally supports tip (retail), toll, invoice number, cash receipt, AVS, CVV2, Amex CID (as supported by your processor)
• Shipped ready “Out-of-the-Box” with setup and activation completed

Now with Essential Organizer Features including:

• Calendar with appointment capability
• Alarm Clock
• Calculator
• Note features
• Stopwatch
• Address Book

MTT 1581 Technical Specifications

Dimensions

• Height: 4” (102 mm)
• Width: 2.5” (64 mm)
• Depth: 1.44” (37 mm)

Weight

• Total Weight: 5.5 oz. (156g)
• Printer: 8.8 oz. (250g)

Wireless Communications

• Dual band GSM TM 850/1900 MHz
• International frequency 900/1800 MHz

POS Transaction Storage

• Store and forward transactions

POS Processor

• High performance 16 bit microprocessor optimized for low power consumption

Security

• MULTOS 4.06+ Link Security Module
• PKI (for key exchange between
• MTT and Server)

Printer

• Mobile thermal printer, infrared communications

Magnetic Stripe Card Reader

• Tracks 1, 2 and 3

Keypad

• Uses telephone style keys for data entry
• Uses internal PCI PED compliant PINpad for PIN entry DUKPT, 3DES

Smart Card Reader

• EMV Level 1 (in process for 2008)

Battery

• Up to 50 hours stand-by time
• Up to 300 transactions per charge

CLICK TO BUY:

Wireless Terminal - Way Systems MTT 1581