I've yet to see a topic that couldn't be answered on the WERA board, so.... I'm setting up my business to accept credit cards, and have contacted several of the CC processing businesses to compare rates, fees, etc. Understandably, they don't miss a lick when it comes to making money off each transaction, but I was surprised to read in the fine print from some companies that the agreement is "non-cancellable" for a term of 3 (or 4) years. Once the contract is signed I would be required to pay a minimum fee of approx $110 monthly thru-out the 3 yr term, even if I NEVER accepted a CC. In exchange for this 'non-cancelable" feature, they supply a CC terminal for 'free'. And o by the way, I need to buy their insurance policy or would be charged $600 should the terminal get damaged. Another co. I contacted has no long term contract, but charges a monthly fee for use of the CC terminal. This is most like the route I will follow to get this up and running. Anyone here got a recommendation on the company they are using, or horror story on the company they stopped using? Thanks,
We're using IPayment system purchased through Merchant Warehouse. You can do mail order, online or walk in processing. I only have a wedge, ($60 Swipe machine), but it does not print receipts or anything. You can also purchase a terminal for a bit more. Compare them though, as some are better than others.
Not sure you have provided enough info. The requirements for a merchant account to start up a store front business is different than for an on line business. One of my business partners has started several successful sporting goods stores. When we set up the mechant account for our current start up company, rule 1 was do not lock into any contract. With a few phone calls and meetings, you should be able to find acceptable rates that are able to get you off the ground. As soon as you start processing any amount of business, you can renegotiate and get better rates. Competition is very high to capture cc processing. Number of monthly transactions and avg dollar amount are a big factor in better rates. Good luck.
Rates we've been paying have been reasonable, less then 1.8% on average, which is good for mail order, (that is what we are considered) and we don't have a monthly fee for MC or Visa, however Discover and AMEX both have small fees, generally under $20 per month I believe. Note that rates will vary based on transaction type, for instance, if you do a mail order or online transaction without a verification value, you will get hit with considerably higher rates, and a walk in transaction with a swipe is much lower. The more volume you do, the more you can negotiate at a later date. I have a great relationship with my bank, but they would have had me coming and going with fees, which is why I opted for the service I'm using, I can check everything online, and there was not a large up front investment (processing software under $200) We did have a 1 year contract, but it's done now and so we're just on a monthly basis. I have had absolutely no problems, but then I've not had a charge back, so I can't speak for that part of the process.
