Credit Card Fees

[fentory]

I am new to the business and have been shopping for a credit card processor.

The best I have found so far is called "pass-through" billing whereby the processor charges $.08 flat fee per transaction in addition to the credit card company fees. Credit card company fees appear to be the same regardless of the processor.

THis seems to amount to a total of about 4% on a $5.00 ticket.

Does this seem like a reasonable deal? Should I be looking anywhere else in particular?

Many thanks,

Fentory
Ann Arbor, MI

 

[neglid]

Read this article. Nothing but the whole truth.

http://www.informed-merchant.com/

 

[davidsbiscotti]

I don't even review my merchant statements anymore. They're full of complicated codes and "discounts" and adjustments.

I've switched companies a couple of times because they came in and promised to save me tons. The overall percentage of the sales were the same, regardless of who I use.

Currently:
Visa & MC 4.5% (clears my account the next day)
AmEx 3.5% (takes two days to clear my account)
Discover (almost no one paid with it, so I cancelled it)

 

[villagejoe]

I just signed up with a credit card processing company that got referred to us by our POS system provider. I shopped around with other companies for the best rates and then sent the quotes to the company I wanted, and they matched the best price. I recommend doing this if you find a company that you would like to work with but that might not have the most competitive rate.