Credit / Debit Card Fees
Discussion
We have been tied in to one payment provider as it was the only one that intergrated with our CRM however can now use SAGEPAY.
Does anyone know the best current rates for card processing? I have spent thousands in the last 6 months and it's annoying.
It would really help me out as I'm looking to switch ASAP!
Does anyone know the best current rates for card processing? I have spent thousands in the last 6 months and it's annoying.
It would really help me out as I'm looking to switch ASAP!
http://www.barclaycardanywhere.co.uk
New from barclaycard. If youre a customer its free with no monthly fees,no contract. 2.6%. But you cant do customer not present.
New from barclaycard. If youre a customer its free with no monthly fees,no contract. 2.6%. But you cant do customer not present.
I've answered this before on here - it depends what you sell for the large part as to your rate e.g. restaurants are low because food has been eaten so risk of supplier going bust is low. Sofa company with 6 week lead time on delievery, risk is high so rates are high.
Previous answers:
ANSWER 1:
Yes - but there's more to it than just the % charges:
- Cost of leasing vs purchase of the terminal vs soft-terminals
- Bluetooth, wifi or plugged in terminal if going down the physical route
- Cost of the landline it's using (if you've got 80 lines and can save £5 a line then that's a large saving)
- PCI DSS compliance or non-compliance charges
- Qualifying vs Non-Qualifying transactions (a 5 minute in-house IT change saved a client 15% on this)
- assessing risk i.e. how can you make yourselves look less risky (e.g. sofa delivered in 6 weeks is more risky than a meal already eaten)
- When do you get the cash e.g. Day + 1 vs + 4
ANSWER 2:
There are 2 types of merchant terminal contracts
A) Terminal Hire Agreement
B) Service Contract.
A - you are hiring the physical asset, for a sole trader and a partnership of less than 3 partners this type of agreement is protected by the Consumer Credit Act and hence after 18 months the Act requires that the sole trader/partnership can end the Agreement if they want to BUT typically there will be a restocking fee and a termination fee that together would come to a similar amount to the remaining say 2.5years if a 4 year Agreement.
B - is worded differently, you effectively are loaned the terminal and you pay a monthly fee for provision of the service BUT critically is not covered by the Consumer Credit Act so can be as long as you like.
ANSWER 3
Merchant card rates are definitely a bespoke product, there is no "cheapest".
In short it's down to risk, so the % fee (for credit cards) is effectively insurance to cover the risk that you go bust and under the credit card act the bank has to cover the cost of delivering the goods/service or refund. Debit cards are much less about risk, but there is astill an element of risk in relation to fraud so selling laptops would attract a higher price than selling say flowers.
Back to credit cards a long trading, profitable, restaurant would get very low rates in general because the goods has already been consumed when the payment is made. Whereas a pheonix'ed sofa company would get punitive rates because they are not a good credit risk and the lead times are usually long.
So what do you sell and at what volume per year and I'll send you a pm of a merchant card account broker that will be able to sort you out if it's an area they think they can help with.
Previous answers:
ANSWER 1:
Yes - but there's more to it than just the % charges:
- Cost of leasing vs purchase of the terminal vs soft-terminals
- Bluetooth, wifi or plugged in terminal if going down the physical route
- Cost of the landline it's using (if you've got 80 lines and can save £5 a line then that's a large saving)
- PCI DSS compliance or non-compliance charges
- Qualifying vs Non-Qualifying transactions (a 5 minute in-house IT change saved a client 15% on this)
- assessing risk i.e. how can you make yourselves look less risky (e.g. sofa delivered in 6 weeks is more risky than a meal already eaten)
- When do you get the cash e.g. Day + 1 vs + 4
ANSWER 2:
There are 2 types of merchant terminal contracts
A) Terminal Hire Agreement
B) Service Contract.
A - you are hiring the physical asset, for a sole trader and a partnership of less than 3 partners this type of agreement is protected by the Consumer Credit Act and hence after 18 months the Act requires that the sole trader/partnership can end the Agreement if they want to BUT typically there will be a restocking fee and a termination fee that together would come to a similar amount to the remaining say 2.5years if a 4 year Agreement.
B - is worded differently, you effectively are loaned the terminal and you pay a monthly fee for provision of the service BUT critically is not covered by the Consumer Credit Act so can be as long as you like.
ANSWER 3
Merchant card rates are definitely a bespoke product, there is no "cheapest".
In short it's down to risk, so the % fee (for credit cards) is effectively insurance to cover the risk that you go bust and under the credit card act the bank has to cover the cost of delivering the goods/service or refund. Debit cards are much less about risk, but there is astill an element of risk in relation to fraud so selling laptops would attract a higher price than selling say flowers.
Back to credit cards a long trading, profitable, restaurant would get very low rates in general because the goods has already been consumed when the payment is made. Whereas a pheonix'ed sofa company would get punitive rates because they are not a good credit risk and the lead times are usually long.
So what do you sell and at what volume per year and I'll send you a pm of a merchant card account broker that will be able to sort you out if it's an area they think they can help with.
robdcfc said:
The Moose said:
Approximately what sort of monthly volume of dc/cc payments through your terminal? Are they large numbers of small transactions or small number of high value?
Volume is around 20/30 per month average around £200 per transaction
Mr Overheads - slightly OT, but do you know of any payment processors where the payments are received into a different account from the account where the card fees are charged? IE I want to take customer card payments which are immediately received into account X, and then all fees charged to my other account Y. Cheers.
Amateurish said:
Mr Overheads - slightly OT, but do you know of any payment processors where the payments are received into a different account from the account where the card fees are charged? IE I want to take customer card payments which are immediately received into account X, and then all fees charged to my other account Y. Cheers.
Yes there are providers that do this.Gassing Station | Business | Top of Page | What's New | My Stuff