Are you overwhelmed when you attempt to decipher your merchant processing financial statement?
Here are ten things (I will give you 11 things) you absolutely need to know to begin to even understand what merchant credit card processing is all about…
by World Wide Merchant Services LLC
1. There are thousands of merchant businesses out there that promise rates that are not possible to achieve
2. Think of a merchant processing as a tangible product that can fluctuate in price depending on what time/day you purchase it, some products can increase substantially due to demand (think of real property or the cost of fuel)
3. Each single purchase equals one swipe/one transaction,these are usually domestic merchant accounts
4. Every time your customer swipes their credit card at any given time that particular transaction may have a different rate depending on the card type and what tier it may fall under
5. The tier level each credit card falls under is under the control of the processor (the bank)
6. The bank puts each credit card into an individual tier, which can have so many variables
7. Additional charges that are not controlled by merchant account providers are added fees that the credit card brands(Visa, MC, Discover, etc.) charge
8. International transactions can be the most costly to the consumer as well
9. The highest cost that you will pay is what is called the interchange rate set by the banks, which again merchant companies have no control over
10. Interchange rates plus World Wide Merchant Services pricing is often substantially lower that if your rates were tiered over the same volume
11. The underwriter (the broker, in this case your World Wide Merchant Services Agent) works on your behalf in trying to get you the best bank for your company type (low, medium to high risk) similar to a lending tree to find the best lender, the better rate… same concept
