Skip to primary content
Skip to secondary content

Card Not Present, CenPOS, credit card processing

B2B Cloud payment processing technology blog about increasing profits, efficiency and security.

Card Not Present, CenPOS, credit card processing

Main menu

  • Blog Home
  • Christine Speedy, Author
  • Interchange Rates
  • How much can I save?
  • Glossary: Payment Processing Terminology
  • Merchant Alerts & Rules Links
  • Merchant Security : PCI Compliance (Sticky)
  • Contact

Category Archives: new business

Who is best value merchant account for new business?

Posted on December 4, 2008 by cspeedy
Reply

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:)

Posted in new business | Tagged merchant account, new business, rewards cards | Leave a reply

Search

Newsletter

privacy

Categories

  • CenPOS (299)
    • knowledege base (25)
  • EBPP (36)
  • ecommerce (25)
  • Equipment-POS (173)
    • EMV (28)
    • virtual terminal (45)
  • ERP (21)
  • industry news (306)
    • dealer services (14)
    • government news (57)
    • merchant blunders (1)
  • managing costs (98)
    • chargebacks (14)
  • Merchant Services (303)
    • changing payment processors (11)
    • check and ACH (2)
    • ecommerce (11)
    • level 3 processing (28)
    • merchant account Q&A (53)
    • mobile payments (31)
    • new business (1)
    • non-profit (15)
    • Payment Gateway (57)
    • recurring billing (12)
    • Review (5)
  • Misc (6)
  • online payments (30)
  • podcast (1)
  • rates (88)
  • security (189)
    • Credit Card Authorization Form (18)
    • data breach report (14)
    • federal & state laws (7)
    • fraud protection (38)
    • identity theft (19)
    • PCI Compliance (77)
  • terminal functions (5)
  • terminology (15)
  • video blog (22)

Recent Comments

  • Christine on Verifone PCI 3 End of Life Terminals
  • Rich on Verifone PCI 3 End of Life Terminals
  • Cenpos | TECMAZA on CenPOS universal processing platform
  • Cenpos | TECPLAC on CenPOS universal processing platform
  • global evenconnect group on How do I reset Ingenico ISC 250 or 350 terminal?
Proudly powered by WordPress