subject: Ten Things To Know About Your Merchant Account [print this page] 1. There are thousands of merchant businesses out there that promise rates that are not possible to achieve. A very low introductory rate may not be possible for your business type or may only be achievable on some of the sales transactions. The outcome of your rates will vary and will each transaction
2. Think of a credit card processing as a tangible product that can fluctuate in price, some products can increase substantially due to demand (think of real property or the cost of fuel how that fluctuates). Athough different, but very simliar in the sense that not every transaction will process in the same way with the same rate
3. Each single purchase equals one swipe/one transaction or one sale
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, how fast it gets paid or settled and under what tier
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 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
