Does anyone know where the best deals are for credit card machines and reasonable rates?
Tired of calling places for rates just want it in writing. Pricing per credit card charge, rates of credit cards, debit cards, and checks. Monthly rates and rental, lease, or to buy is the better way?
Is anything less fun than deciding on a merchant processor?
Many of the questions you have asked have varying answers depending on your type of business. What type of cards will you be taking? What is your anticipated total volume and average ticket size? Will you swipe cards or will you be taking phone, mail and/or internet orders?
MasterCard and Visa have over 240 different rates for processing credit and debit cards. These rates vary and are divided into categories based on type of card (Visa Rewards, MC Corporate, Debit, etc.) as well as manner of processing (swipe, key entered, etc.) or even the industry. Every merchant processing company is charged the exact same rate by MC and Visa no matter how big or small and then decides on what rates they will then pass on to their merchants. These rates vary depending on the annual amount processed by an individual merchant.
Most reputable processors offer very similar rates. In general, you should look at these processors and decide which one best suits your individual service needs. Those processors who claim massive savings in comparison to the rest of the pack are usually somewhat suspect as they simply can’t offer savings beyond the rates charged to them by MC and Visa and the margins are actually very small. They will make their money off of you somehow so read the fineprint.
That said, if you are expecting relatively low $$ average tickets, look for lower transaction fees and accept slightly higher % rates. For higher average tickets, accept higher transaction fees and look very carefully at the % rates for all types of cards as higher average transactions usually encourage Visa Rewards, MC World and other specialty card usage. Most processors who offer “the lowest rates” charge really high fees for these types of cards. Also, if you expect to key enter many of your transactions, be careful! The rates for these transactions can be very high and must be processed properly or you will be charged the highest rates/fees that can be assessed.
Lastly, your equipment needs should be accessed on an individual basis. DO NOT LEASE! This is where many processing companies make their big dollars and lock you into their services. Never agree to a term agreement - you should be able to change processors whenever you want. Your volume, processing needs and financial situation should dictate whether you buy a new or refurbished machine and what its capabilities are.
If you would like more info, e-mail me at or give me a call at (920)993-9433. I can help you wade through the muck and find out what you need. If we are a good choice, I’ll let you know. If not, I’ll point you in the right direction.