Fees on Refunds

MerchantProcessingNMCredit Card Processing/ Merchant Services

When a merchant runs a transaction, the amount is assessed a rate and a transaction fee. Generally the rate is an assessment of risk and the transaction fee is a cost for accessing the digital network. When the merchant refunds a transaction, only a transaction fee is charged. The rate is not charged a second time because there is no … Read More

Understanding “Pass Through” Fees on Your Merchant Statement

MerchantProcessingNMCredit Card Processing/ Merchant Services

Your processing salesman told you about rates and transactions fees. But what are all those other fees called assessments, acquirer fees, wats fees, FANF fees, Nabu Fees, etcetera, and etcetera and etcetera? The interchange rates and transaction fees are what the issuing bank receives for issuing your customer credit. On top of that are assessments which go to the brands, … Read More

Secret #3 – The Myth about the Effective Rate

MerchantProcessingNMCredit Card Processing/ Merchant Services

The effective rate is the total monthly cost of credit card processing divided by the volume of processing. The effective rate usually varies from 1.5% to 4%+ depending on the merchant’s industry and type of transactions. If a merchant receives mostly debit cards which have a low risk and low interchange rate, the effective rate will be a lot lower … Read More

Secret #2 – The Secret of the So Called “Hidden Fees”!

MerchantProcessingNMCredit Card Processing/ Merchant Services

These are possible, extra surcharge fees for the processor. They are not usually included in a rate comparison, so look them over carefully on the processor’s application. Many times these fees are not listed on the credit card processing salesman’s comparison. They are only on the application. Many times they are denoted in very small print. So ask to review … Read More

Secret #1 – Are you being proposed Tiered Pricing or Cost Plus Pricing?

MerchantProcessingNMCredit Card Processing/ Merchant Services

There are three determinations of the fees for accepting credit cards: the interchange cost, the brand fees and the processor’s surcharge. This is the rate and transaction fee set by the bank associations to collect “interest” on the money “loaned” to the cardholder for 30 days until his credit card payment is due. The bank that issued the card to … Read More

PCI: It’s Worth It for Your Business

MerchantProcessingNMCredit Card Processing/ Merchant Services

No matter if you’re a small business or a large corporation, if you accept credit card payments, you need to ensure that you’re PCI compliant. The Payment Card Industry Data Security Standard (PCI DSS) was created to ensure that both merchants and consumers are safe from data compromise. For business owners, PCI compliance means completing the PCI DSS Self-Assessment Questionnaire … Read More

Protect Your Business & Your Customers with P2PE

MerchantProcessingNMCredit Card Processing/ Merchant Services

Stories of large data breaches are becoming all too common an occurrence these days. As consumers continue to have their sensitive information stolen by means of everyday purchases, both customers and merchants are wondering how they can keep their information safe. While there are several measures a vendor can take to improve the security of their payment data, P2PE or … Read More