Credit Card Processing Company HELP!

Archived From: Finance
  • Page :
  • 1
  • Text Only
Voting History
rated:
I have been put in charge of researching credit card processing companies for our small office. We have been with Merchant Services through Sam's Club for years, and never thought anything of it. Singular has been trying to get our accounts for a few months, and actually does seem to offer a better service at much lower fees. I was wondering if anyone could suggest a company you have had positive experience with OR those to STAY away from.

It seems every search I am doing is just taking me to places that rank their own services and number one. Thanks so much in advance.

Member Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

If you aren't on a cost+ model then you need to be. None of this flat rate crap.

ryoung81 said:   If you aren't on a cost+ model then you need to be. None of this flat rate crap.
It depends - for small volume the extra cost of a flat rate service (like Square) is worth avoiding the typical hassles of a traditional merchant account.

The best thing to remember is to never expect to actually receive what a processor promises when signing up. It all comes down to them all being the same service with different reseller faces...

Not sure what a cost+ model is. We are a small dental office. Singular is offering 2.55%

How about Costco CC Processing - MC / Visa / Discover LINK

IrishSix said:   Not sure what a cost+ model is. We are a small dental office. Singular is offering 2.55%

Cost plus means that they charge you whatever their actual cost is plus a markup. This means that there are tons of different rates, but it is generally cheaper than a fixed cost or three tier type plan.

BPANZER1 said:   How about Costco CC Processing - MC / Visa / Discover LINK

This is what my company uses (it's actually through a company called elavon). There aren't any hidden fees and their rates are very competitive. I looked at the cost plus type companies but in the end never found one that was worth the switch. We don't run a ton (maybe 10k/ month max) so it might make sense based on volume.

Cost plus is usually called interchange plus. A good starting point is cardfellow.com. They will give you information plus quotes. All the companies the deal with use interchange plus and none of them have cancellation fees. SAMs club, costcos evalon use tiered pricing

Thanks everyone! REALLY have helps so much! I knew I could count on the FW crew!

IrishSix said:   Not sure what a cost+ model is. We are a small dental office. Singular is offering 2.55%
Does that cover AMEX, VISA Signature, etc ?

Even if it does, with enough research, you should be able to beat 2.55%

I've had good luck with FirstData. I have contact with a senior account exec over there if you're interested. Basically, he only offers interchange wholesale cost plus pricing (as it always ends up costing less than tiered pricing) and he was able to readily beat my previous pricing and anything else I threw at him. Also, he's been in the industry 15 years and was easily able to read and explain all of the various fees on my previous statement, so if you're confused about any of the fees you've read about, or found on competing offers, he'd be able to explain them to you. Just PM me if you want his contact info.

Good post OP. I am in a similar boat, looking for a credit card processor for my small business.

meph said:   BPANZER1 said:   How about Costco CC Processing - MC / Visa / Discover LINK

This is what my company uses (it's actually through a company called elavon). There aren't any hidden fees and their rates are very competitive. I looked at the cost plus type companies but in the end never found one that was worth the switch. We don't run a ton (maybe 10k/ month max) so it might make sense based on volume.


Elavon offers interchange+ pricing. All big providers do. Wal-Mart and Sam's use First Data and they are similar to Costco's offering. I use to use Elavon but switched to my bank (TD) because their markup was half of Elavon's and the interchange rates are the same. Smaller banks were even less.

If you process a lot of debit cards (with or without pin) interchange+ is the only way to go. The transaction is capped at .22 cents plus 5 basis points (.05%) Travel/reward/business credit cards will process at a higher rate (2-2.7%).

Check this out, maybe you are looking into a list of credit card processing companies.
http://www.staff.com/blog/comparison-of-credit-card-processing-c...

It's a list of over 15 companies with a comparison of its features and services.

are there any processors can that process debit(at a low fee) for a very small account ~20k/mo

I would recommend the following

1. Check with your bank, most banks are partnered with an acquirer to offer merchant services. Your relationship to the bank is worth a lot, and they are unlikely to risk the relationship over a merchant account so you tend to get better service than you otherwise might.

2. Don't get locked into a contract. I know Elavon (US Bank, Costco, Bank of The West, et al..) Does not have contracts, I believe Heartland is also contract free

3. Buy your equipment from the processor. You will be able to negotiate a better rate, and when something goes wrong, it gets fixed. Otherwise you get the finger pointing with the processor blaming the equipment vendor and the equipment vendor blaming the processor, with you stuck in the middle, with no service while customers are walking out of your store.

4. Use a rep. They seem to be able to get better pricing than going directly to the processor. The direct sales channels seem to have more pricing restrictions.

5. You'll get better service from your rep if you let them make a little commission. I've had half a dozen merchant accounts over the years, and every time I shopped for rock bottom pricing I ended up with headaches and crap service. Its refreshing too when your calls are actually returned the same day, and you don't have to play the 1-800 game. Press 1 to this, press 2 to that, Please wait while we direct your call.... click... dial tone..

6. Buy from someone you trust. The merchant processing industry isn't regulated like banking, insurance or financial services. Pricing isn't as simple as "cost plus is best". I made this mistake and learned the hard way. There are a seemingly infinite number of ways that you can get screwed.

Good luck

I would definitely recommend Stripe. It kind of depends on your workflow but it has changed the way I do business. I will process about $25,000 this year. Most of my transactions are online and now they are automatically charged. However, they have an app for the iPhone, iPad, and I'm sure Android where you launch the app, key-in the card info and tap "charge". It's a breeze!

There is no contract, no monthly fees, no surprise fees, refunds are easy, sign-up is easy because there is not really an approval process. I can not emphasize enough how pleased I am with Stripe! (No I'm not affiliated with them).

I recently had Intuit GoPayment. The first few years were ok. However, recently they started charging extra fees. Had to pay for PCI compliance, then a new monthly minimum, etc, etc. Trying to cancel that account took 6 months, with about 10 phones calls and faxes. I really disliked them after that.

I have some experience with Elavon too, and at that time they required a contract. Also, I was able to find equipment cheaper online than buying directly from them.

Link to my request for Processing help on FW back in October.

Anyone use "Newtek Business Services". One of the local credit unions is recommending them. I see they don't have great reviews for loan processing, anyone have experience with their credit card processing ?



Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

TRUSTe online privacy certification

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2014