Those prices don’t seem very good to me. I’m paying interchange +6 cents with Heartland and processing 70-80K monthly. Other franchises in our company are paying 3 cents over with a different company. I will be looking to change as soon as my contract is up.
So what does your bottom line percentage work out to be at the end of the month? For November I paid 3.88% at my busiest location for in-store credit card processing, and a brutal 6.0% for our online web orders.
Same for us. Total costs of CC processing / CC sales comes in around 2.7-2.8%. Regardless of the bizarre Chinese menu of CC processing costs… it is the total of fees / sales that matters. Simply take 2-3 months processor statements and add together the total costs shown and divide by the total CC billing from those statements to see what you are paying. Since different companies charge a different mix of monthly fees, swiping fees, mark-up on pass through costs etc I think this is the best way to get a real comparison.
In our retail business we pay about 1.9% but almost 100% of transactions are “card present” and the average transaction is about $180 vs our pizza delivery business which is about 20% card present with an average of around $35.
Are you swiping the cards at the door, like the orders come to you “pay upon delivery/pickup”? My web orders process online and then come into the store paid. What PoS system are you using… I’m thinking about shopping around again.
No, I’m not processing at the door. I’m using Prism by Microworks. When a customer orders online, it processes online and comes into store as paid but the card processes via my software, the same that runs the credit cards we key in on phone orders. In the end of day credit card detail report, there is no indication of which transactions were keyed in the store and which were submitted via online order.
Rob, from what little bit I know of your business, I’m assuming you will be in their middle tier, between 40K and 100K monthly volume. At this volume, you really should be able to beat those rates by a lot. For my business those rates would move me .3%. It doesn’t sound like much but would amount to well over $2500 for the year.
I scrutinized my last statement and am shocked that my processor is adding a half a percent onto interchange. I’m supposed to be on interchange plus 5 cents.
Payment depot sent my a clients statement with similar volume and 50% keyed in / 50% swiped transactions. The significant savings will be there now.
They also gave me their best membership plan (interchange plus 5) for a discounted price to help me recoup my processor change fee my pos company gets