CC processing fees

Hoping to open after Jan 1 and having been with Dominos my whole life am clueless about cc processing fees.
Last store I had, the fees ran around 6000/month but that is related to sales.
Guy I spoke to yesterday offered me…

.05/swipe. 35 basis pts and “cost plus” pricing.

No freaking idea what any of that means other than the swipe fee.
Any help appreciated.

Contact Vantiv. I’m at 3 cents a swipe, 0% above interchange. Monthly fee of $24.95.

I believe the guy you spoke with is saying 5 cents a swipe and 3.5 % above interchange. If that’s the correct, do not take it

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Yea, I love the language places like this use. “cost plus” " discount rate". My favorite is the ole insurance “premium”

We should adopt all of this fakery.

Pizza “discount rate”
Wing “premium”
“cost plus” appetizer pricing

Good Lord!!

I started using zero fee solutions and it charges the customer 3.99% to use their card here. It says I give a discount for cash. It automatically figures it on the ticket. No one has complained about it.

That must have been one outrageous volume Dominos. I’m guessing you have those numbers wrong or they had an ulterior motive to pad the fees. I’m processing around $120,000/month in credit cards and paying around $3200. Our overall rate is generally between 2.7 and 2.8% and the huge majority of our charges are keyed in over the phone. We use Heartland Payment Systems and pay “cost plus 6 cents”. There are better deals to be had, but I get great service everytime I call Heartlands 1800 number that I can overlook the 2-3 cents per transaction I could save by going elsewhere.

Cost plus is the plan you want. They basically pass off whatever they get charged per transaction and the plus is how they make money. Believe it or not, it’s the most transparent. The alternative is the tiered plan where they have like 4 different prices, supposedly based on risk. I have no idea how they determine that other than the keyed in vs swiped. Of course they will quote you at the cheapest rate so you will think you’re getting a good deal, but your bill will show up and maybe like 20% actually qualify for that rate.

Also, when you get your bill, take all of the charges from your monthly statement (and I mean all, statement fees, whatever) and divide that by your total sales. That will be your effective rate and that is what matters. Compare that number to some of the more transparent processors like square which is like 2.75% for swiped and 3.15%+15cents for keyed in. Your effective rate should be quite a bit below them, especially if you’re doing a good amount of volume. If it’s not, they are ripping you off.

Just went online and looked ours up for October

Fees $9178
CC Sales $411,950
% 2.23

We use Heartland also. I have no idea what my discount rate is, what my swipe is, what cost plus is, or what my transaction fee is.

Our charge backs were only $850 for the month. I’m super happy with that.

We have some sort of tiered plan.

Im always promised some great rate… at the end im always paying about 2.8% as an effective rate.

Im always curios though about 2 things

  1. Am I paying that 2.8% on driver tips?
  2. Am I paying that rate on the 9% sales tax I collect for the state of New Hampshire?

Yes and yes. Whatever the total is is what gets pushed through interchange

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Effective rate is really all the matters, cost plus is just a little easier to see what you’re actaully getting charged. With tiered, they can charge you higher percentages on certain transactions and you will have no idea why. I learned the hard way with my first processor. I thought I was getting charged typical rates, till I figured out what an effective rate is. They were charging me over 4% each month. Granted, I wasn’t doing much volume at the time, they definitely took advantage of my ignorance. 2.23% with mostly keyed in orders is pretty good in my opinion. I was around 3.15% for my online and 2.6% for the rest, so probably around 2.8% overall. I just switched to Vantiv so I don’t have to use different processors anymore, so I’m curious what it will be at the end of the month.

Not positive, but I’m guessing you can probably write off the fees you paid on the sales tax. I just have no idea how you would ever be able to track that. Probably wouldn’t be worth the time anyways.

Wow Seems so unfair 70% of my sales are CC’s.

So that would be close to $2000 I pay a year in CC processing for a tax they force me to collect for the state

And Im just a small fry on this board

Trade ya, i routinely hit above 90% these days.

Ummm maybe…lol only if that 90% is all online orders

Yes u pay that on tips for credit cards. Some businesses around me take that off of the workers tips. That is legal in Wisconsin but not sure if it is in every state.

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I use heartland. No swipe fees and no batching fees it them. I pay about 2.7% and am very happy with that. It seems to be about the cheapest out there for my size. I do about 18,000 a month in credit cards. Nowhere near most of you…lol

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Thanks, all, for the responses.
Hope everybody had a nice Thanksgiving.
This is going to be an 11-8pm lunch and slice joint so expecting a low ticket but hoping for higher volume.
I’m going to ask what the effective rate is because… yes… that’s all that matters!
Smoke and mirrors, lots of fancy numbers and acronyms are BS… I just wanna know the #%&$ing rate is!
Did do some research and am concerned that the lower ticket I am expecting and the .05 swipe will not be good for me.
So reading your responses… seems like 2.5-3.0% is the range.
I believe I read (here) that calculating the rate is as simple as fees divided by the ticket.
I imagine I then have to be very careful in reading the contract and understanding it.

Ha Ha… my bad! It was $3000/month (on average)

2.3% effective rate with Vantiv

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