Blog · Payments · November 15, 2010
[Weekly Kick] How Do I Interpret Credit Card Processing Ads on Google?
Video Transcript:
If you’re surfing around the net or googling and you see a credit card processing offer that says something like accept credit cards for 1% or 1.03%, that’s not really the rate, it’s a teaser rate is they’re telling you that for one type of transaction, which usually is a very small minority of the total transactions that you’ll encounter. They’ll charge you one point zero, three percent.
What you really care about is what the overall rate will be, which in all cases is a lot more than 1.03% percent, so just be very, very careful of those kinds of offers. They’re designed to confuse you and they’re not telling you the whole story.
One Comment
Fighting a chargeback, or paying too much?
The chargeback tool works with any processor. The statement audit is free.
The standard pricing model is 3 tiered pricing, qual, mid & non-qual to cover all the different types of cards. If that wasn’t confusing enough, some have created another tier, making it four. The forth one breaks out check cards, debit cards that can be processed as a credit card. These debit cards must have the V/MC logo on it. Yes, the 1.30% may sound great, but only covers that single type of card and will not be the majority of your transactions.
Plus, all the companies I have ever seen that like to promote such a low discount rate, are normally the ones that lure you in with it and have much higher mid/non-qual rates than everyone else. Some could even try to push expensive leases and other terms that are highly profitable for them.
Go with an honest and upfront processor and an IC plus pricing model is always a good path to take as well.
Curtis