Card not present, Mobile payments and American Express Merchant account

This article highlights another hidden way we help business to business companies reduce the cost of accepting credit cards. If your company primarily accepts credit cards as Card Not Present, you have a MOTO merchant account. Many merchants are now looking at adding mobile payments to lower the cost of accepting payments. However, just like with Visa, MasterCard and Discover,  merchants need to follow certain rules that almost no one is telling merchants about.

American Express has a non-swiped Transaction fee of .30% for non-swiped transactions on top of their regular Discount Rate. So if you swipe the card, you automatically get the lower rate, yes? No!

Here’s the non-swiped Transaction fee rule: A fee applied to any Charge for which we did not receive both (i) the full Magnetic Stripe, and (ii) the indicator as to whether the Card was swiped.

When you applied for your American Express merchant account, it would have been set up as MOTO. This means transactions are sent with the MOTO indicator. If you swipe cards on a mobile device, your processor or gateway or virtual terminal is still sending the all transactions with the MOTO indicator. So you pay .30% above the discount rate because your system is telling them it’s a non-swiped transaction.

How you can save .30% with mobile payments, without creating a separate mobile merchant account? Our intelligent payment processing platform automatically detects how the transaction is accepted, swiped or key entered, and then will automatically change the indicator to RETAIL (swipe) so that you qualify for the lower rate.

Here’s how it works:

  • Keep your existing merchant accounts.
  • Add our intelligent Virtual terminal for all transaction types and acceptance points.
  • Process all transactions through our Saas payment processing solution.
  • Transactions are dynamically routed automatically to mitigate risk and qualify all transactions for the lowest rates.

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