Essential questions to ask:

1. Do you have a cancellation fee? New businesses always pay more than established businesses because no one knows how much revenue you’ll really generate. Rule #1 - don’t sign a contract that has a cancellation fee,. You need flexibility to renegotiate or move on as your business grows.
2. What will my cost be for Rewards Cards? More than half of all cards presented by consumers are usually REWARDS cards. (Cards with points or miles that accumulate for the benefit of the card owner). The fee for processing these cards is higher than other cards. Since this is the most common card presented, in order to compare companies, you need to know what your cost will be for Rewards cards. In reality, there are many different rewards cards rates- your processor should at least be able to tell you what your l_owest cost possible is for these cards_. Don’t compare ‘qualified rate’ if that’s what’s offered, compare Rewards Cards rates because that’s what you’ll hit most often.
3. Will my statement show what levels of interchange I hit? If the statement doesn’t break out the cost of the types of cards listed, such as below, look elsewhere to avoid hidden charges.

Here’s something to help you calculate and compare costs: VERY ROUGH
65% rewards cards
20% debit cards
5% corporate cards
10% regular credit card (consumer retail)

Make a spreadsheet- put in columns for cost per transaction, sales per transaction, etc.
So if you projected $100,000/mth in sales, $65,000 would process at rewards rate, $20000 at the debit rate etc.
Now you have a much better comparison of numbers.

Choosing the right vendor. By asking the questions above, you can narrow your list. I realize the terminology is greek to anyone dealing with this for the first time. But that’s OK. You’ll sound super knowledgeable to anyone you talk to (translates into a better deal) and the point is to narrow your list. You may contact me for a quote 954-942-0483, 9-5 ET:)

Short introductory video message for building suppliers looking to improve profit margins.

What 3 things do you need to know to compare credit card processing rates?

1. What is the quoted rate?
2. What are the criteria to qualify for that rate?
3. What is your cost if you do not qualify for the quoted rate?

The same questions put in merchant account lingo?
1. What is the qualified rate?
2. What are the criteria to qualify for the qualified rate?
3. What is your cost if you do not the criteria for qualified rates?

Notice these questions don’t even ask what is the monthly minimum or what is the statement fee. If your business is doing any volume, these are just not a factor. Most businesses that do their research online will only find the quoted rate. There may be some fine print about rates, but in many cases, the information is missing. What’s almost always missing are the non-qualified rates. So you sign up online with a preliminary application, then afterwards they send you an email saying you have been approved and now they need more information. The full details must be disclosed at this point, but most businesses don’t understand or don’t want to spend any more time looking for another deal because they already spent all their time finding that one!

Always request via the contact form or email the full contract details.