Has anybody “truly” looked at each individual transaction fee description on their statement??? After trying to save money and switching from Worldpay to Sams Club First Data card processing, I went thru each line of fees and after being on the phone for literally 2 hrs with First Data, I discovered that when a customer adds a tip onto their credit card and we as merchants key in that tip you get slammed for it with a fee called “transaction cleared other than priced”. I had exactly 11 tips added on in March and at an average of $2 per, I was charged $5.81, so for $22 worth of tips I only actually received $16.19. So to offset this I am no longer accepting tips thru credit cards, I am asking customers to tip in cash
Honestly I am soooo freaking sick & tired of this monopoly fee crap these credit card companies are charging us merchants
You got a bad deal - never heard of that one. I process close to 160k a month for my 3 shops combined and don’t even hit 3% with all fees combined. Our POS authorizes for 15% above price so we can add a tip and if it is more than 15% there is no charge. I am with First Data but at the direct level - no middle man to take a piece of the action. Transaction fees is where the money adds up and I am at 3 cents. I have been quoted by other vendor companies trying to get my business some LOW % but then 30 cent transaction fees.
So by changing your policy you are telling customers you dont want tips basically?
CC fees are about 3% of my total sales. Sucks. It’s about the same as rent for me. About %80 of our biz is CC. We don’t get those “transaction cleared other than priced” fees tho. Only on a manual entry from a phone order or a weak mag stripe do we get an “extra” fee like that. I use Basys as my processor. And yeah the statements are a pain to read. There’s different fees associated with every brand of card out there. Not just visa, mc, amex, discover etc…but for example Visa southwest airlines reward cards swipe at $0.11/swipe then %1.7346 of the transaction, and mastercard bank of america preferred cards swipe at $0.14/swipe then %1.56738. Numbers are made up here, but yeah it’s a pain in the ass. I actually think that AMEX has the most straightforward pricing structure.
Yep she got a bad deal. Mine is very similar to yours. Only AMEX is 3%, the other 3 are 2.5% and 11 cent transaction fee is only for unswiped cards (delivery phone orders). No fee for swiped cards or online orders (dine-in/carryouts/online orders) Transaction fees will kill you.
Yeah basically Im telling my customers if they want to give me a tip to give it in cash. Before I switched to first data, I never had a tip line or button on my machine so it never was an issue with customers giving me cash for tips.
The more shops you have the better rate you get. I have only 1 shop not 2-3-4 or more. I only process roughly $5k a month in credit cards and my total fees usually on an average run $150-$170.
I tried a little experiment this last weekend, I unplugged my MSR’s and told the cashiers we are unable to process any cards. I just wanted to see how dependent people are on plastic. It was a deal breaker for a few tables. And I saw many checks in the cash drawers at close , and for paltry amounts under $20.00 !
It scares me that people have become so darn dependent on their plastic these days, and how many people don’t even have a measly $20.00 in their pocket !
Well you can put me in that category GotRocks, tho i have never had a CC, just visa debit card. I stopped carrying cash regularly almost 20 years ago. The convenience is part of it, and the other part is i spend money faster when i have it. Guess i am the opposite of everyone in that respect.
Daisy1 - the issue is the processor or the person who set you up on your worldpay. They are not up front with the fees or transparent.
I’d love the opportunity to sit down, look at your statement, explain the way it works and put you in a better processing deal. One that you won’t have to worry about all of the above listed issues.
Lemme guess, in order to get out of this deal, it will cost you $300 termination fee.
I would call up your current company and tell them you are moving your processing over to another company. That is the most ridiculous fee I ever heard.
Demand They give you interchange plus or cost plus pricing and you should be good.
I have a general rule of thumb. I divide my monthly charge into my credit card volume and if it falls at or under 3% , I’m good.
im not with Worldpay. Im with Firstdata. You are more than welcome to stop in and look over my statements and see what you can do better for me. never hurts for a second opinion
If anyone is interested in getting below 2% with no hidden fees, no monthly fees ever
and a 100% guarantee no mark up on interchange …
We can do it all via phone and email
That’s great!
Because Debit, by LAW is the lowest Visa/Mastercard interchange rate for merchants only 0.5% plus .22cents
Unfortunately, the law only restricts Visa/Mastercard not your PROCESSOR … This law passes in 2001 actually made a loophole for processors to make more money.
Google interchange and see how much YOUR processor marks up interchange if you dare.
Oh…and if you can read your statement.
And IF they name interchange by the actual name
Good luck
First data is the worst offender in the industry with these hiiden transaction fees and thats just the tip of the problem. And i have never heard of direct level with first data. no middle man? I just got out of a horrible deal with them after I screamed at the lady that signed me up. My fault I know…we live and learn
I am truly not in the position to cancel and have to fork out almost $400. at this point. All my funds are tied up because I am in the process of moving my business
