Fattmerchant as CC processor?

[LittleMissPizza]

Hi all,

I posted in another thread (credit card fees) and didn’t get any responses so I thought I’d create a new thread. I was researching credit card processors/rates as this seems like the obvious place to start when trying to cut costs and came across a company called Fattmerchant. They processes for: interchange + 8 cents/transaction + $99/month membership cost. Switching would save us thousands of dollars a year however being that they are a newer company, there doesn’t seem to be much feedback on the interwebs about them and I wanted to hear any feedback as to whether anyone has used them? I love their model of transparency and not locking the customer into a contract so I am very intrigued.

 

[d9phoenix]

My questions to them would be:

1. Do you have to use their equipment (and you do you have to buy it) ?
2. Not all POS companies allow access, can you verify your POS system will integrate ?
3. can they provide a report before hand to make sure it has everything me and my accountant can use ?

 

[LittleMissPizza]

I asked them 2 of your 3 questions and the answers they provided were:

1. You have three options when it comes to equipment:
   -Use your own equipment so long as it is an unlocked machine
   -Buy a machine (not through them) and have them download their files onto it which I assume they support many different models as they support our current Verifone VX 520
   -Purchase a machine from them which becomes yours, I believe the cost was about $200
2. They do not integrate with our current POS system (Point of Success) but this wasn’t a huge sticking point for us as we currently do not have our CC machine integrated into our POS system. We have a separate machine that we swipe the card and enter the amount of sale. However, it is potentially possible one could purchase a gateway to allow Point of Success to integrate with Fattmerchant but I didn’t get that far as I explored the cost of the gateway through our current processor and the cost was nearly 2k so I couldn’t justify that for us.
3. What report you are referring to specifically, I could ask them for you on my next call with them.

 

[d9phoenix]

Every month i download a monthly statement from my CC processor (First Data until i can switch to Vantiv). It has all my costs broken down and all charges clearly listed.

I only verify the amounts paid out each month, but my accountant verifies the rest of the info when she balances the books each month. If you use an accountant i would speak with them to find out what they need. If you do not use an accountant, just make sure the report they provide (on whatever reporting cycle they use) has any and all the information you need to balance your books.

 

[LittleMissPizza]

Every month i download a monthly statement from my CC processor (First Data until i can switch to Vantiv). It has all my costs broken down and all charges clearly listed.

I only verify the amounts paid out each month, but my accountant verifies the rest of the info when she balances the books each month. If you use an accountant i would speak with them to find out what they need. If you do not use an accountant, just make sure the report they provide (on whatever reporting cycle they use) has any and all the information you need to balance your books.

Ahh yes, we receive our monthly statement from our current processor (we can also access online) that outlines exactly our total sales and then all the fees they charged us, so I take the number of dollars that went into our account from credit cards against total sales and I get our monthly CC processing percentage. Fattmerchant has a merchant portal in which you would be able to do this in the same fashion as they explained to me.

 

[Steve]

Ahh yes, we receive our monthly statement from our current processor (we can also access online) that outlines exactly our total sales and then all the fees they charged us, so I take the number of dollars that went into our account from credit cards against total sales and I get our monthly CC processing percentage. Fattmerchant has a merchant portal in which you would be able to do this in the same fashion as they explained to me.

Did you go this route?

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[LittleMissPizza]

Did you go this route?

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We have not made the switch yet. In a strange twist of events Vantiv (the CC processor of our POS system) reached out to me and when I told them that I wasn’t interested because I found a rate that was very appealing, they offered to meet the same exact terms as Fattmerchant including month to month term, same rates, etc. The only reason I even entertained Vantiv’s offer was because they would be able to integrate into our POS terminal instead of having a separate unit like we currently do. To integrate into our POS with Fattmerchant would be about $1,000 for the payment gateway. I would much prefer to use Fattmerchant as I prefer them as a company over Vantiv due to their transparency and customer service but it is a pretty nice plus for us to be able to process cards through our POS terminal which sways us towards Vantiv at this point. But I will update when we make the final decision!

 

[d9phoenix]

I will be switching from First Data to Vantiv soon because of problems with First Data recently. The main reason for the change is they will meet First Data’s rates, just as they will with you and Fattmerchant. Seems they are trying to build their customer base and willing to match any better rates for now.

 

[Steve]

We have not made the switch yet. In a strange twist of events Vantiv (the CC processor of our POS system) reached out to me and when I told them that I wasn’t interested because I found a rate that was very appealing, they offered to meet the same exact terms as Fattmerchant including month to month term, same rates, etc. The only reason I even entertained Vantiv’s offer was because they would be able to integrate into our POS terminal instead of having a separate unit like we currently do. To integrate into our POS with Fattmerchant would be about $1,000 for the payment gateway. I would much prefer to use Fattmerchant as I prefer them as a company over Vantiv due to their transparency and customer service but it is a pretty nice plus for us to be able to process cards through our POS terminal which sways us towards Vantiv at this point. But I will update when we make the final decision!

Seems like you’re in a win win. As long as they match word for word what FattMerchant is offering, then you don’t need to switch and you can swipe internally

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[tguag]

I am happy with vantiv…but also first rule of negotiations is never take the first offer; play the two against each other and see how low they go. Remember all credit card possessors do the same thing, go with the one that’s the cheapest and makes your life easy.

 

[noreason]

Yeah I never understood when companies come at me with, “we’ll match the price”. I’m not going to deal with the headaches of switching just so I can pay the same exact amount. The only person winning in that situation is them. Sysco does that a lot with us. Annoying.

Definitely put on your negotiating hat because those credit card guys will try and get you for every point they can when there is no reason for it really other than your sales might be lower than the next guys.

 

[LittleMissPizza]

Yeah I never understood when companies come at me with, “we’ll match the price”. I’m not going to deal with the headaches of switching just so I can pay the same exact amount. The only person winning in that situation is them. Sysco does that a lot with us. Annoying.

Definitely put on your negotiating hat because those credit card guys will try and get you for every point they can when there is no reason for it really other than your sales might be lower than the next guys.

I should clarify, we currently do not use Vantiv, we use another processor and I have been unhappy with their mobile processing app for our drivers in addition to the small nickel and dime fees (statement fee, PCI compliance fee, etc.). This lead me to do some research on potential processors and thats how I came across Fattmerchant. Then in casual conversation with our POS tech he mentioned that he would have Vantiv reach out to me because they have never not been able to beat a rate that he knew of anyway. I would not stay with our current processor even if they offered to match the rate. For us, the most important part is having a month to month contract without any termination fees, in my eyes this is more likely to keep the processor honest and also gives us the option to leave if we aren’t happy.