Posts Tagged ‘Credit Card Processing’« Older Entries |
Tuesday, December 31st, 2013
Square, the little white box that made life easier for small businesses and start-ups, allowing them to take credit cards without any real hassle has made a change to their fee schedule that has many business owners upset. The company has decided to end its flat fee rate for small firms, instead switching them to the pay by transaction model that everyone else is subjected to.
Beginning on February 1st the flat rate monthly fee that many smaller businesses opted into saved thousands of dollars per year in credit card processing fees. Instead of paying on every transaction, business owners who had $21,000 or less in credit or debit transactions a month were given the option to play a flat monthly fee of $275 for use of the service. There is a huge net of business who use the service as opposed to more traditional credit card processing options.
With the loss of this service, business can be expected to pay thousands of dollars more a year for credit card processing fees, an expense that will cripple many entrepreneurs. Small business owners who paid for the service felt betrayed after learning that it is being discontinued and are considering a switch to other payment processing options.
The fee will go up to 2.75% for every credit card that is swiped through a reader and 3.5% plus an additional 15 cents for every transaction that is manually entered, This is a massive difference between the flat rate fee of $275 a month. For any company that is working in the lower bracket, this clearly means substantial fees for them.
Square has stood by this policy change despite their customers’ objections and will put it into effect on February 1st, 2014.
Wednesday, November 20th, 2013
Mobile payment solutions, which let you accept credit cards using your cell phone, are a welcome innovation for many small businesses. Square is one such solution, and for some circumstances it’s a perfect one: It plugs into a variety of mobile devices and uses a simple, attractive interface to allow you to accept credit card payments.
Square Reader, launched nearly two years ago, was a huge hit among Square’s merchant customers. But a few things have always bugged Square about Reader’s design. Now it’s fixed them.
Square has just released a new version of the Square Reader, which has both a sleeker, thinner design and a completely overhauled electronic interior.
Square has basically replaced the off-the-shelf components in the card reader with its own custom-designed parts.
In previous generations of the Reader, Square was using the same magnetic read head – the sensor that grabs data from a credit card’s magnetic strip – that you would find in any tape deck built since the 1980s. Square felt it could do better, so it redesigned the read head. The new read head and a redesigned card-gripping spring allowed Square to make this new Reader 45 percent thinner than its predecessor.
Monday, April 1st, 2013
Hello to our loyal blog readers. We have a link to a great post from Forbes in regard to some of the happenings in the credit card processing industry. This article briefly talks about: Internet Sales Tax Gaining Support in the Senate and how fees are growing higher…
Thursday, January 12th, 2012
Happy New Year!
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…
Tags: Credit Card Processing, Credit Card Processing Fees, Credit Card Processing Fees Legislation, Merchant Account Services, Processing Brokerage
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Thursday, December 8th, 2011
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…
Tuesday, October 4th, 2011
As many of you know, the Durbin Amendment went into effect on October 1, 2011. The following is an article from Fox Business News that explains what this means for merchants…
Tags: Credit Card Processing, Credit Card Processing Fees, Credit Card Processing Fees Legislation, Durbin Amendment, Interchange Fees
Posted in Credit Card Processing Legislation, Durbin Amendment, Industry News | No Comments »
Thursday, June 30th, 2011
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…
Tuesday, January 11th, 2011
Happy New Year everyone! The following is some news we are following in regard to upcoming changes in interchange fees with Visa and specifically those that pertain to the acceptance of Visa Debit cards…
The Processing Brokerage
Monday, February 15th, 2010
Every couple of weeks, I like to browse the most recent payments industry articles that have been published online to see what people are saying. For the most part, I very rarely read anything that is not published by a reputable site. With that being said, I was shocked to read this weekend an article posted online by the Wall Street Journal (WSJ) titled “For Businesses That Accept Cards, Tips for Cutting Fees“. The following is how this article started:
“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