This article came across the wire a couple days ago and we think there are some important lessons to be learned from this article:

1.) Keep your data safe: Though the merchant has been able to prove that a data breach did not occur at their restaurant, many merchants aren’t so lucky. This article shows power that VI/MC and the processor has over the merchant.

2.) Hidden Fees Add Up: “In September 2008, the McCombs found that US Bancorp was taking money from its account, they said, with deductions eventually reaching $10,172. To prevent further seizures, they closed the account and found a new bank and processor, they said.” This is the exact reason why the Processing Brokerage was founded, to fight against the rise of hidden fees.

Check out the article and let us know what you think…

BLOOMBERG NEWS ARTICLE ON PARK CITY MERCHANT

Verizon seems to be the next large merchant who has decided to apply a surcharge for customers to use their credit cards to pay bills.  Increasing credit card processing fees seem to be the reason why this is taking place. Visa and MasterCard have taken steps in the past to discourage merchants from this type of practice, we will see if any legal remedies are used here.

Here is the Cnet posting if you would like to read more…

CNET VERIZON SURCHARGE ARTICLE

Happy Holidays, the following is an article from the Wall Street Journal discussing the after effects of the 2010 Dodd-Frank Bill and the recently enacted Durbin Amendment. The article talks about merchants who have an average ticket at or below $10.00 and have now seen their debit card rates increase.  Let us know what you think…

WALL STREET JOURNAL ARTICLE – DEBIT CARD FEES

FOX BUSINESS NEWS ARTICLE

Hopefully our loyal blog readers are enjoying their summer and keeping cool. The following is an interesting article in regard to the new changes that have been imposed on debit card fees. According to investors, these changes make Visa/MasterCard more profitable…

REUTERS ARTICLE ON VISA/MASTERCARD

http://www.cutimes.com/News/2011/1/Pages/Visa-Will-Support-Dual-Interchange-Schedule.aspx

The Processing Brokerage

“When it comes to credit-card fees, bigger companies have more clout with issuers than small ones. But there are ways to minimize costly processing fees, from negotiating to shopping around. Here are eight tips.” – At this point, I am very intrigued! The author is right, bigger companies will always have more clout but that doesn’t mean you can’t have a low rate.

“Negotiate processing fees – To negotiate the interchange rate, which is set by Visa and MasterCard accounts for about three-quarters of merchants’ card acceptance fees, business owners should contact Visa and MasterCard directly, says Trish Wexler, a spokeswoman for the Electronic Payments Coalition, a group representing banks and credit-card networks.” - This statement is incorrect and it is articles like these that confuse merchants on what they should do. Unfortunately, you cannot call Visa and MasterCard directly to negotiate interchange rate as this rate is un-negotiable. There are over 300 interchange rates and though you may not be able to negotiate for a better rate, there are steps that you can take to make sure you process at the most optimal rate. If you would like more information on if you are processing at an optimal rate, contact your processor or us at The Processing Brokerage and we would be more than happy to point you in the right direction.

- The Processing Brokerage

The first issue will be released in January to our permission-based list and we would like to extend you a pre-release invitation. Everyone who subscribes to the newsletter before the end of the year will receive a copy of our handy guide ”7 Tips for Interchange Optimization”. Consider the newsletter and our guide a gift that says thanks from The Processing Brokerage.

We hate spam as much as you do. That is why we want to be respectful to everyone and ask for your permission before we send our newsletter. The newsletter is free of charge and will be exclusively sent to only our permission-based list.

The “Non-Profit Fee Watch” will be focused on best practices and suppling timely information on the payments industry. If you decide not to take us up on this offer, The Processing Brokerage will remove you from our subscription list.

So click here and subscribe now, to the “Non-Profit Fee Watch” and gain the information you need to handle your credit card processing fees.

Happy New Years and to Your Success in 2010,

- The Processing Brokerage

We recently helped a Non Profit client who had not looked at their credit card processing rate since 1999. As it has now been a decade since their last reduction, they thought it was time to see if the market had changed and if they could reduce their fees.  Needless to say, once we provided our analysis and showed them what they should be paying annually, they were shocked! The Processing Brokerage significantly reduced their fees and there are lessons that Non Profits, Associations, and Charities can learn from this case.

What happened to our client is very common for nonprofits as they are naturally focused on their cause and as long as they can accept credit cards, that is good enough for them. If you are a Non Profit reading this right now, this probably sounds very familiar: The last time you looked at your credit card processing was when you decided to take donations online or needed a new merchant account. Since that time, your organization has experienced great growth and success. With everyone being so busy, consistently meeting fundraising goals, and dealing with a scope that has probably broadened; who has the time to look at their credit card processing? Maybe that was you about a year ago and now with a changed economy, your organization needs to change as well. Either way, it behooves you to look into reducing your credit card processing fees further.

There are typically three options that you can take when attempting to reduce your credit card processing fees:

1.) Approach your current processor and ask for a rate review. Every merchant is entitled to a rate review and is something you should do. If this is all you do, this turns into the “all the eggs in one basket” approach as you are relying on your current processor to treat your right.

2.) Request For Proposal. The advantages for running an RFP is that you get proposals from several credit card processors. This approach provides a better chance to achieving a lower rate. The disadvantages for running an RFP is that the process takes a considerable amount of time and its tough to get an apples to apples comparison.

3.) Processing Brokerage. We can negotiate on your behalf with your current processor, we can run an RFP for you that will achieve significant results, and ensure that you are receiving that absolute lowest for your credit card processing. Most Non Profits will qualify to use our Small Business Standard Service that will provide all of those services and more for $360. We are independent experts that work for you and your best interests. We have extensive experience working with nonprofits, reducing their processor fees, and optimizing their interchange fees.

The main thing to keep in mind is that your organization is probably due for a rate reduction. If done properly, your organization should realize several thousands of dollars in savings. The size of the reduction achieved depends on knowing what rate is competitive for you, the right processor, and signing a contract with terms that are fair to both parties.