Credit Cards

[RBSLynkman]

@NY Pizza

@RBSLynkman

@ResortPizza

interesting, i thought all Credit Card Merchants were charged a percentage based on sales. Exactly how does cost plus 8 cents work?

Resort,

Cost Plus is exactly what it sounds like:

Cost is the “Wholesale Rates”, aka Interchange and Assessments, that the Associations (VISA/MC) charge DEPENDING upon Card Type (Debit Card, Credit Card, Rewards Card and Corp Card to be simplistic) and how these Cards are presented (Swiped or Handkeyed) You can find Interchange Rate Disclosures at Both visa.com and mastercard.com (Between the 2 Associations there are over 300 Interchange categories)

Interchange is paid to the Card Issuing Bank and Assessments to the Associations.

Plus is simply the fee that we (Processors) charge to handle the money. This can either be in cents, Basis Points or a combination of both.

Cost plus is the best pricing because there are no “Markups” like there are in Tiered Pricing.

Scott - question:

My CC sales per month are running about 24 - 25000 on 1400 - 1500 transactions … about 400 transactions totalling 10 - 12000 are unscanned (delivery sales). Approximately half of these are Visa/MC debit card sales. My question is, Am I getting hosed? Also, do I need DSL to integrate with my POS (Point of Success)? Nice as DSL would be, it really is not available to me at this time.

No way to tell if your getting “Hosed” without analyzing a statement!?
I can do an analysis for you if you want me to…simply Fax a current statement to 512 287 4876 along with an email address and I will send you a side by side Breakdown.

As for POS, the software uses PCCharge as a Module for processing Cards. It works best on DSL but dial-up is an option. We are certified on PCCharge.

[famouspizza]

Scott,

Can you verify that when you manually input a transcation with a 3 or 4 digit VCC code it does NOT give you a lower rate. I thought all along that was the whole point, but I was told that the only thing that does is help with chargebacks but nothing to do with getting a better rate on those transactions…is this true?

Thanks!

[RBSLynkman]

@famouspizza

Scott,

Can you verify that when you manually input a transcation with a 3 or 4 digit VCC code it does NOT give you a lower rate. I thought all along that was the whole point, but I was told that the only thing that does is help with chargebacks but nothing to do with getting a better rate on those transactions…is this true?

Thanks!

That is correct. The CVV (Card Value Verification) code is simply a “Red Flag” code for MOTO transactions. If the code matches you can be fairly certain the person giving you the number ACTUALLY has the card in their hand and it is not a stolen card, otherwise, if it doesn’t match, then you have the option to not make the delivery and face a potential Chargeback.

Address Verification Service, aka AVS, is the one that will give you a Better Rate. If the address/Zip code matches the billing Zip Code for the card, the phone order (hand-keyed) transaction only downgrades to Mid Qualified instead of Non Qualified.

AVS and CVV are used to help fight Fraud.

[famouspizza]

thanks for the clarification

[Integraoligist]

I just met with a rep from Heartland yesterday, we’re 50% counter sales and 50% phone sales with an average ticket of slightly over $20…
He said that any ticket under $14.99, it’s cost +.04, $15 and over is cost +.06

[canukfanlady]

ResortPizza, being we are neighbours, I have priced out all the processors I could find. The best I could get was by joining the Restaurant Association and using their member benefits with global payments.

Let me know if you need any more info.

[royster13]

canuckfanlady how do their rates compare with the Chamber of Commerce plan?..Joining the chamber also gives you other benefits and networking opportunity…

[Daddio]

@canukfanlady

ResortPizza, being we are neighbours, I have priced out all the processors I could find. The best I could get was by joining the Restaurant Association and using their member benefits with global payments.

Let me know if you need any more info.

I found the Canadian Ferderation of Independant Businesses was my best rate.

[canukfanlady]

I am a member of cfib, what is their rate? I know it’s chase, paymentech, but not their rate i just joined a month ago