Credit Card Processing Fees....Are you confused?

[SolutionsGal]

If your statement gives you enough detail, you can tell your current processor that you are considering taking your business elsewhere because they are offering interchange pass thru (even if that is a fib). Ask them to do a side by side comparison (even if you don’t know exactly what category of cards you are taking, trust me they do)! You want to be as close to interchange pass thru as possible. One of the other threads in this post said he was getting Pass thru plus .10 basis points and $0.10 per transaction. The .10 basis points is where they are making money. Is that a fair profit? Only the individual owner can make that decision. When you look at the interchange chart and see that the rate for restaurant debit category is 1.19% plus $0.10, consider this, I have seen statements that have that category as high as 2%. That is insane because most pizza business have the majority of their transactions from that category. Good luck in your negotiations, I will try to answer any of your questions.

 

[PizzaDiva]

papajoe:

Good to know. Please, next time you post trying to drum up business, state so up front that you work for such and such a company. We try to keep advertising out of this forum.

Before you post such a comment against another member, please consider:

A. ) The post is informative.
B. ) Advertising was not a part of the post.
C.) That perhaps people foreign to credit card processing just might benefit…and
D.) Please define “WE” as used in your last sentence.

PD

 

[steveo922]

papajoe:

There haven’t been many threads about what gas supplier you use or what kind of paper and ribbons you use for the ticket printer. I get 3 people a week asking to compare my credit card processor and charges, if it was a concern of mine, I would of started a thread and asked opinoins.

FYI. There have been at least 5 topics devoted to cc processing since by July 31.

So if you don’t like the thread, and since you have everything figured out on this subject, what are you doing here other than trying to govern who can and can’t start threads?

 

[pizzapirate]

SolutionsGal:

If your statement gives you enough detail, you can tell your current processor that you are considering taking your business elsewhere because they are offering interchange pass thru (even if that is a fib). Ask them to do a side by side comparison (even if you don’t know exactly what category of cards you are taking, trust me they do)! You want to be as close to interchange pass thru as possible. One of the other threads in this post said he was getting Pass thru plus .10 basis points and $0.10 per transaction. The .10 basis points is where they are making money. Is that a fair profit? Only the individual owner can make that decision. When you look at the interchange chart and see that the rate for restaurant debit category is 1.19% plus $0.10, consider this, I have seen statements that have that category as high as 2%. That is insane because most pizza business have the majority of their transactions from that category. Good luck in your negotiations, I will try to answer any of your questions.

So what you are saying is ask them to take a recent statement of mine and compare it to “interchange pass thru”? And that will show me exactly the premium I am paying with them? How do I know if what they are showing me is actually “interchange pass thru”? the website you referred to?

Then how do I know what another company can offer me? They will just say something like .10 plus $.10 per transaction over “pass thru”?

 

[royster13]

Pizza Diva the problem is that there are all kinds of vendors (me included) that could post “useful” information all day long…The problem is that what I consider to be useful might be “dribble” to others…So what if fair game and what is not?

 

[SolutionsGal]

Interchange is the cost that Visa/MC charges to all their resellers. We all get the same cost, it is the rule. The interchange chart that was listed in the earlier thread defines each and every category that Visa/MC has and then it gives you the rate associated with each category of card.

When you move to an interchange pass thru, your statement looks very different, it will show each category and what you were charged for it. So you will always be able to check it against the interchange chart to make certain you are getting the correct rate.

Ask them to generate a “rate structure change document” that states they will be moving you to an interchange pass thru structure and the effective date of the change. Keep this document in your files for proof in the event there is an issue down the road. Keep in mind that they can’t change you to a pass thru pricing plan mid month, they need to start a new month with the new pricing plan.

You won’t be able to compare your statement to the interchange chart because your statement probably doesn’t give you enough detail for the comparison. But you can do this: The qualified rate for Restaurant Credit cards is 1.54% plus $0.10, so if your statement shows that you are being charged 1.80%, they are making .26 Basis Points. Where a processor really makes their money is on the downgrades, transactions they have deemed not qualified and on debit transactions. For instance; restaurant debit cost is 1.19%, and you may see that you are being charged 1.80% for debit, they are making .61 basis points and for downgraded transactions, Rewards Cards, Corporate Cards etc… cost for these are 1.90% plus $0.10, check to see the rate you are being charged for this category. Hope this helps, I know it is really confusing.

 

[papajoe]

PizzaDiva:

papajoe:

Good to know. Please, next time you post trying to drum up business, state so up front that you work for such and such a company. We try to keep advertising out of this forum.

Before you post such a comment against another member, please consider:

A. ) The post is informative.
B. ) Advertising was not a part of the post.
C.) That perhaps people foreign to credit card processing just might benefit…and
D.) Please define “WE” as used in your last sentence.

PD

PizzaDiva,
Thank you for quoting me so we have what I actually said. The post is informative if you want to believe it. I stated please state the company you work for. If this was coming from another pizza operator I would take it more seriously, because I know he/she was not trying to sell me something. Do you really believe she just posted to give us information with no aniticpation for some type of business from it? Everyone does something for a reason and I’m not questioning her intentions to save operators money and also profit. I understand CC processing is confusing and more information for everyone in any aspect of business is needed, but I only asked that she acknowledge the fact that she works for a company and is here for business. “WE” are the pizza operators who have this forum to ask questions, give opinions, vent our frustrations, receive help, discuss marketing, etc. There is a paid advertisement section of this FREE website. Do WE really want them to start posting topics about their product and services? I understand guerilla marketing and that is what is going on here.

I’ve been lurking and contributing on this sight for 8 years (back when PMQ was actually a quartley mag). I’ve seen Kam Karrington blast his own Black Book to get people buying it (its not proven though). I’ve been around when Big Dave, Kam Karrington, Jim Fox, Pitt Stop Pizza, snowman, Steve Green, Tom Boyles, Otis Gunn, DWF Pizza Man, and recently, Gobpile, Nick, WA Dave, AdpizzaGuy and all the others were regular contributors to this board.

What I’m trying to say is that this forum has long had an independent spirit to it and while it is nice to have info that we may not know of, there should be an honesty involved in what your agenda is. So steveo and pizza diva, please re-read my original reply. I hope you have had a prosperus day and a week ahead.

 

[RobT]

Pizza Pirate,

   Here is all the info you need on merchant processing.

http://www.informed-merchant.com/articl … -plus.html

I used Transparent FS and i am very happy with the results. The only way to save money with Credit card acceptance is Interchange Plus. If you are on the Tiered pricing, you’re losing a ton of money if your doing some serious volume. When i called my previous merchant to close the old account, they were offering me the world to keep me. I would call your current processor and demand Interchange Plus, or your gunna switch out.

 

[PizzaDiva]

royster13:

Pizza Diva the problem is that there are all kinds of vendors (me included) that could post “useful” information all day long…The problem is that what I consider to be useful might be “dribble” to others…So what if fair game and what is not?

Royster, good point. I point you back to the origin of the Owner of this board. What is dribble to some (certainly Diana is NOT dribble) may be of great value to others.

I shall not Police the board and I expect other members not to do so either unless they have been assigned. It contains the trolls on both levels.

PD

 

[PizzaDiva]

papajoe:

PizzaDiva:

papajoe:

Good to know. Please, next time you post trying to drum up business, state so up front that you work for such and such a company. We try to keep advertising out of this forum.

Before you post such a comment against another member, please consider:

A. ) The post is informative.
B. ) Advertising was not a part of the post.
C.) That perhaps people foreign to credit card processing just might benefit…and
D.) Please define “WE” as used in your last sentence.

PD

PizzaDiva,
Thank you for quoting me so we have what I actually said. The post is informative if you want to believe it. I stated please state the company you work for. If this was coming from another pizza operator I would take it more seriously, because I know he/she was not trying to sell me something. Do you really believe she just posted to give us information with no aniticpation for some type of business from it? Everyone does something for a reason and I’m not questioning her intentions to save operators money and also profit. I understand CC processing is confusing and more information for everyone in any aspect of business is needed, but I only asked that she acknowledge the fact that she works for a company and is here for business. “WE” are the pizza operators who have this forum to ask questions, give opinions, vent our frustrations, receive help, discuss marketing, etc. There is a paid advertisement section of this FREE website. Do WE really want them to start posting topics about their product and services? I understand guerilla marketing and that is what is going on here.

I’ve been lurking and contributing on this sight for 8 years (back when PMQ was actually a quartley mag). I’ve seen Kam Karrington blast his own Black Book to get people buying it (its not proven though). I’ve been around when Big Dave, Kam Karrington, Jim Fox, Pitt Stop Pizza, snowman, Steve Green, Tom Boyles, Otis Gunn, DWF Pizza Man, and recently, Gobpile, Nick, WA Dave, AdpizzaGuy and all the others were regular contributors to this board.

What I’m trying to say is that this forum has long had an independent spirit to it and while it is nice to have info that we may not know of, there should be an honesty involved in what your agenda is. So steveo and pizza diva, please re-read my original reply. I hope you have had a prosperus day and a week ahead.

 

[PizzaDiva]

papajoe:

PizzaDiva:

papajoe:

Good to know. Please, next time you post trying to drum up business, state so up front that you work for such and such a company. We try to keep advertising out of this forum.

Before you post such a comment against another member, please consider:

A. ) The post is informative.
B. ) Advertising was not a part of the post.
C.) That perhaps people foreign to credit card processing just might benefit…and
D.) Please define “WE” as used in your last sentence.

PD

PizzaDiva,
Thank you for quoting me so we have what I actually said. The post is informative if you want to believe it. I stated please state the company you work for. If this was coming from another pizza operator I would take it more seriously, because I know he/she was not trying to sell me something. Do you really believe she just posted to give us information with no aniticpation for some type of business from it? Everyone does something for a reason and I’m not questioning her intentions to save operators money and also profit. I understand CC processing is confusing and more information for everyone in any aspect of business is needed, but I only asked that she acknowledge the fact that she works for a company and is here for business. “WE” are the pizza operators who have this forum to ask questions, give opinions, vent our frustrations, receive help, discuss marketing, etc. There is a paid advertisement section of this FREE website. Do WE really want them to start posting topics about their product and services? I understand guerilla marketing and that is what is going on here.

I’ve been lurking and contributing on this sight for 8 years (back when PMQ was actually a quartley mag). I’ve seen Kam Karrington blast his own Black Book to get people buying it (its not proven though). I’ve been around when Big Dave, Kam Karrington, Jim Fox, Pitt Stop Pizza, snowman, Steve Green, Tom Boyles, Otis Gunn, DWF Pizza Man, and recently, Gobpile, Nick, WA Dave, AdpizzaGuy and all the others were regular contributors to this board.

What I’m trying to say is that this forum has long had an independent spirit to it and while it is nice to have info that we may not know of, there should be an honesty involved in what your agenda is. So steveo and pizza diva, please re-read my original reply. I hope you have had a prosperus day and a week ahead.

Papa,

Yes, we do need new and informative contribution. With respect to any names you listed above, I have no comment. Some are/were fantastic, others not. Who am I to bring that sort of drama in? BTW, you missed ALOT of names.

PD

 

[royster13]

So are you saying I get to decide what is “useful” and have a field day? Or better still, Gregster gets to decide what is useful and go to town?..I think not…