Results 1 to 22 of 22
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03-27-2018, 05:47 AM #1
- Join Date
- Aug 2016
- Posts
- 486
Interchange Plus Pricing. Current best effective rate / basis points?
Hello, every year I evaluate my CC processing and see if better rates are available.
I am currently at 12 basis point.
The last time I calculated it, I think the effective rate was around 1.6.
We do have a brick & mortar store with an actual credit card machine.
But 99.9% of the transactions are card not present, via website payment gateway.
Average 35K per month in credit card transactions being handled though my payment processing..
We do have other payment transactions but they are handled through amazon and paypal.
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03-28-2018, 11:37 AM #2
- Join Date
- Jul 2015
- Location
- Tampa Florida
- Posts
- 501
Send over your January and February credit card processing statements and I will have my Strategic Programming department run a rate review.
Jason H l Sales & Business Development
Quikstone Capital Solutions l Tampa FL
Direct Line & Mobile 813-371-8233 l Fax 813-371-8233 l Text 727-492-8812
Jason.Hausle@quikstonecapital.com
www.quikstonecapital.com
Direct Lender Since 2005
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03-28-2018, 12:45 PM #3
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- Aug 2016
- Posts
- 486
PM sent Jason! Thanks
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03-28-2018, 06:08 PM #4
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,959
Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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03-29-2018, 12:25 AM #5
- Join Date
- Aug 2014
- Posts
- 194
No way your effective rate is 1.6 with 99% card not present. As stated above if you have cost + 12 bps pricing, you have a VERY good rate for a CNP merchant. Unless you are not receiving other value added services from your current processor I would be happy and stay where you are.
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03-29-2018, 09:48 AM #6
- Join Date
- Jun 2017
- Posts
- 2,049
There are Fees stuck in there somewhere
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03-29-2018, 11:49 AM #7
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- Aug 2016
- Posts
- 486
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03-29-2018, 12:03 PM #8
- Join Date
- Aug 2016
- Posts
- 486
Also to be 100% transparent and to calculate a true cost of the money, we need to add in the Gateway fees..
The February Gateway Statement.
Monthly Fee $5.00.
244 Transaction @ $0.05 per transaction = $12.20.
Total Fee for gateway = $17.70.
Now lets recalculate the effective rate.
Sales Total = 35532.66
All fees ($17.70 gateway + $541.29 processing) = $558.99
Effective Rate = 1.573%
Is that right?
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03-29-2018, 02:25 PM #9
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,959
Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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03-29-2018, 05:10 PM #10
- Join Date
- Aug 2016
- Posts
- 486
LOL,, They didn't just give me that rate... I had to work and fight for it, and remain diligent in my pursuit to make it even lower. 12 years ago I was not on an interchange rate.. I did not even know what that meant.. But I learned what it was and how it worked. Then asked my agent about it, and over the years have made strategic decisions to get me where I am as regard to the rate I am at. I am very grateful that some of the members here have PM'ed, and are trying to see if they can do a better deal for me.
If I left to my agent I would be in a flat rate 3% and 2 day funding plan, leasing equipment etc...Last edited by Winning; 03-29-2018 at 05:19 PM.
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03-30-2018, 01:00 PM #11
- Join Date
- Aug 2014
- Posts
- 194
Again, no way that is right. You are missing some other fees. True interchange cost for Card not Present transactions is 1.80% + $.10 and that is for a regular card, rates are even higher for reward and corporate cards. The above is the actual cost your processor would receive from Visa. Assuming they add 5bps and $.03 per tran then your effective rate would be somewhere around 1.9 - 2.10%. If you want to send me your statement, I will show you what your true cost is. I am not even in the CC processing industry anymore but spent 13 years in it. I will not ask for your business, just point out what your true cost is. I would also look at your bank statements and see if there is an additional debit every month from your processor
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03-30-2018, 02:20 PM #12
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,959
I wasn't stating his numbers were correct, just that if his numbers were correct, he had a great rate.
Since he states 99.9% is CNP, I agree with you he is not @ 1.573
Link to current MasterCard Interchange :
https://www.mastercard.us/en-us/abou...terchange.html
Visa Interchange :
https://usa.visa.com/support/small-b...ions-fees.html
BTW, I am currently involved in merchant processing, but, I do not participate in the race to the bottom.
If the only item important to the merchant is the "lowest rate" I'll pass on the account.Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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03-30-2018, 03:52 PM #13
- Join Date
- Aug 2016
- Posts
- 486
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03-30-2018, 04:26 PM #14
- Join Date
- Aug 2016
- Posts
- 486
Here is a redacted version (all my identifying info removed) of my Feb 2018 Statement...
https://www.dropbox.com/s/viomaakpnq...ement.jpg?dl=0
Take a look at it and let me know my error in figuring out my effective rate..
There is 1 fee on there that I did not include in my original calculation.. because it is a fee that will no longer be on my statements..
The 19.99 SAQ/SCAN INCOMPLETE Fee. That was on there because I did login and answer the pci compliance questionnaire and scan.
That has been done, and the fee will not reappear for at least 12 months.
So according to that invoice, the total amount deducted is 561.28. take away the 19.99 fee, the total would have been 541.29. I used the 541.29 to come up with my effective rate.
Please take me to school, if I did something wrong. I am here to learn!
ThanksLast edited by Winning; 03-30-2018 at 04:29 PM.
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03-30-2018, 05:52 PM #15
- Join Date
- Aug 2014
- Posts
- 194
There is the answer, $28k of the $35k in monthly processing was via debit cards. Which has a much lower interchange rate. As long as you keep taking that % of debit cards your effective rate will stay below 2%. Congrats on those rates, very good for CNP merchant with that amount of montly volume.
Agree with Dave, race to the bottom is one of the main reasons I sold my portfolios a couple of years ago.
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03-30-2018, 07:56 PM #16
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
Those rates are fine. Your agent probably only makes $5 a month off of you in residuals. He probably dodges your phone calls lol!
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03-30-2018, 11:33 PM #17
- Join Date
- Aug 2016
- Posts
- 486
What's up with all the negativity & the assumptions?
Be honest, For the most part do you all think your clients are "not to sharp" (to put it nicely), and most of the time don't know what they are talking about?
To me, it seems like a better way to respond would have been something like..
"Wow, that is a great rate. Do you mind sharing one of your statements? Would love to see exactly how your processor is acheving that for you." VS "You don't know what you are talking about, it's no way in hell you are at a 1.573".
Just Saying... Sometimes it's not what you say, it's how you say it..
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04-05-2018, 05:19 PM #18
- Join Date
- Aug 2016
- Posts
- 486
So looking at my newest statement for March.. I calculated an effective rate of 1.442. Last month I calculated it at 1.523. Is that normal for it to change that much month to month?
32,122.98 Sales
463.22 Deducted
equals 1.442 Effective rate
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04-05-2018, 05:21 PM #19
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- Jan 2016
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- 435
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06-08-2018, 11:16 AM #20
- Join Date
- Dec 2015
- Posts
- 610
I think it’s less negativity and more just experienced businessmen hearing numbers that don't "seemingly" make sense and just responding with their input. Of course, you can have a lot of experience doing something a long time, but the wrong way, so what do I know.
I'd love to meet your processing agent though. I'm also curious how you're getting so many debit card transactions with the card not present.
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06-08-2018, 12:57 PM #21
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,959
Interchange Rates
Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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07-20-2018, 03:49 PM #22
- Join Date
- Aug 2016
- Posts
- 486
I have a direct to consumer manufacturing company. The customers login to shop and pay directly on our website, or they call in and place orders by phone. So I guess most of our customers use their own money that's in their bank account vs using traditional credit card.
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