credit card machine fees

[sparkerauto]

hey guys, I have a question right now I'm paying about $600-$700 in credit card possessing fees threw my company. that's based on 30k in sales. Is this high? Anyone use a company that they would suggest? thank you in advance !

[mmotley]

I would advise that YOU personally call your current processor and make sure that you are not under contract. Sure, you can haggle with them on rates, but if your under contract, you better find out what it takes to get out. 

Also, do not fall for a new processor who claims no contract, or that they can make a special deal and negate the contract agreement. Most contracts state "no strike throughs" so your rep writing "no contract" on your contract is total b.s. 

Looks like you're paying about 2.3%, which is a little high, but not terrible. Find out when your contract is up first, then start shopping around. 

[sparkerauto]

I am in no contract with my current company. I have had another company quote me saying they will change me no fees on debit cards and on everything else it would be 0.30%. This sounds to good to be true though. 

[mmotley]

Did YOU personally call and verify you are not under contract? I had a rep come in and say he would call and make sure I wasn't under contract. He came back 2 days later and said 'I called your processor and they said you weren't under contract'. That's why I stress that YOU call and verify. Some reps are ruthless and will lie or say anything to get you to sign their contract. 

Agreed, that does sound too good to be true. I would make sure there is no contract. You'll literally have to read through the entire 10+ page agreement, but it's worth it. I'd be VERY suspicious. 

[xrac]

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[mmotley]

10 hours ago, xrac said:

Be wary about what you are promised and what they tell you.  Ask for the name of 2-3 businesses that have been using them for more than 1 year.  Talk them and see what they say and what their actual costs are.  I have had great rates like that promised, signed up and then got baited and switched. They were outright crooks.  Currently I am paying about 1.7% total costs no contract and no equipment costs. 

This is why I say to make sure you're not signing a contract. Tell them if they keep their rates fair, you'll stay. 

[Brown'sAuto]

Be wary about what you are promised and what they tell you.  Ask for the name of 2-3 businesses that have been using them for more than 1 year.  Talk them and see what they say and what their actual costs are.  I have had great rates like that promised, signed up and then got baited and switched. They were outright crooks.  Currently I am paying about 1.7% total costs no contract and no equipment costs. 

Nice. Do you mind sharing the processing company's name?

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[xrac]

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[Topauto]

We use Dharma Merchant service out of California. It Took two weeks of research to finally understand the shell game of credit card changes. Everyone pays the same % for the bank /service charges and each card has different processing fees. What you pay over that is the scam . When we switched to Dharma the first month we saw a $200 savings.  Still cost a lot money each month to process C/C. We feel it is cost of doing business.

[hargraves]

When I had my shop I went to www.cardfellow.com, I was able to shop several companies and selected Netcom Pay Systems, My rates with amex averaged 1.75%, It was a cost plus with no contract and was the best program I had used in over 25 years of accepting cards.

[tyrguy]

18 hours ago, Topauto said:

We use Dharma Merchant service out of California. It Took two weeks of research to finally understand the shell game of credit card changes. Everyone pays the same % for the bank /service charges and each card has different processing fees. What you pay over that is the scam . When we switched to Dharma the first month we saw a $200 savings.  Still cost a lot money each month to process C/C. We feel it is cost of doing business.

Kind of funny how whenever someone talks about a industry they are not part of profit is referred to as a "scam".

[xrac]

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[tyrguy]

That's not what he was referring to as "scam". He said " Everyone pays the same % for the bank /service charges and each card has different processing fees. What you pay over that is the scam ." So what he's really saying is every service passes the same bank costs along and what you pay over that is their profit. Actually, not even net profit, just gross profit. He said nothing about contracts or fee creep. My comment was just that you always hear people refer to some industry's charges as a scam or ripoff when they have no idea of the costs of doing business in that industry. As we all know, it happens to us all the time. 

[Russell McCloud]

I recommend "First Data". Rates as low as 1.5% all inclusive. It varies a bit based on the type of cards the company receives. The Canadians put a bit of a pinch on us during the winter, last year it got close to 2% a couple of times.

[Jmazur]

I have been with electronic payment systems for over 2 years, and my average fees for both locations are always right around 1.8% for the month. What i like better than anything is that i have a local rep that is excellent with customer service. If there is an issue with a machine, he comes out and fixes it personally, or he calls the company and handles it. I have never had to sit on hold waiting for support. That aspect is a huge value for me.

 

[spencersauto]

We are using go payment from quick books. 1.6%, 25cents per transaction and 19.95 per month. No hidden fees, deposits within two days and fees are dedcuted at same time as deposit.