10 Responses to ““A new way to shop for a merchant account””

  1. dk says:

    Poor merchant… I’m going to cry now… what a sad story…

    Is this post a bad joke or what?! Providing incorrect information to potential merchants is an accepted business practice in the online card processing world. High risk merchants with fake licenses, fake processing history reports, fake PCI certificates(!), URLs unreported to the provider and other goodies is a phenomena you see every day in the card processing world. The virtue of full disclosure has never been a part of merchant/provider relationship.

    So what does your story tell us? That one needs to read contracts before signing them? Oh, thank you! That’s so new! I’m glad I read your post!

    I would expect some more interesting news from a guest author at CCR-r-Us, than this.

  2. Dena says:

    I actually was enlightened by this post.
    I never knew what exactly Interchange meant, I am usually used to seeing one price for a product, reading this post, I admit, confused me and focused me in one…
    on one hand-when searching for the right payment provider I will compare all of the fees structures. on the other hand- I believe I will never know what I pay at the end and for what….

  3. In the name of Justice says:

    “dk” – whoever you may be – your comment says more about you then the industry you seem to present!

    As you speak on behalf of merchants and providers alike, I’m taking a wild guess and assuming you’re something in between, operating some kind of third party processing service.

    This would surely explain why you feel the way you do… In order to provide the aggregation services you’re providing you had to present false representations to your acquirer, and as the merchants you support were declined by any direct merchant account provider, most chances are they are doing the same to you…

    As they have no other option you overcharge them and in exchange report their transactions as non-coded or under the wrong MCC.

    Well, the zone you so naturally fit into is the ugly back yard of the fine regulated industry you shamelessly slander. The good news are that you’re on the losing side. Regulation gets stronger and you and your kind are getting shut down one after the other.

  4. Cindy says:

    This was quite interesting, surely makes me rethink the pricing we have with our different PSPs… however, analyzing the price offers with current and expected volumes and understanding the prices for every card/country etc. is very important!

  5. Nicole says:

    Not sure I follow – what does “mid qualified” and “non qualified” stand for?

  6. CCPrUs says:

    Hi Nicole – Good question!
    One does not expect seeing mid and non-qualified rates in an “Interchange Plus” pricing model…

    Unlike cost plus or pass through models, in 3-Tier Pricing models, different (usually fixed) pricing apply per different transactions in accordance with their “qualification level”: Qualified, Mid-qualified or Non-qualified.

    Those qualification levels are loosely based on Interchange rates and get on-line merchants deep into the red/non-qualified zone, ending paying much higher fees then they originally intended.

    A keyed-in transaction (instead of swiped), for example, usually drops a transaction into the Mid-qualified zone, which means that Roy would NEVER benefit from the original quote he’s been given…!

    Downgrading transactions is a slippery road… Missing AVS, use of a business card or delayed capture – all would usually be good enough reasons to further downgrade a transaction into the Non-qualified zone!

    As it’s clear Roy wouldn’t be happy with the rates actually charged, the hidden early termination fee adds an extra bonus…


  7. Anita says:

    More and more merchant account providers are being infected with ‘promotional’ misleading landing pages.

    The below screen shot shows Intuit-GoPayment pricing web-page.

     Intuit GoPayment Misleading Pricing

    Note that transaction fee is stated at nil, accompanied with a comment stating that: “Elimination of per transaction fee does not apply to American Express transactions. Different discount rates for American Express and JCB may apply”.

    When you finally dig into the agreement opacity layers gradually peal revealing that:

    1. Transaction fee is “assigned by the Agent or sales representative at the time the Merchant applies for an account…”. For Micro-Payments, which was the reason I initially looked for the account, a per transaction fee is the most important fee of all, and reading that transaction fee is eliminated, was misleading, and caused a real waste of valuable time!

    2. There are additional per transaction fees, including AVS ($0.10 to $2.00), Cross Border (Visa 0.4%, MC 0.95%) and Batch fees.

    Fee Fighters and Century Payments are not alone…

  8. CCPrUs says:

    Always read the fine prints…

  9. Brian@Guaranteedlowestcreditcardrates says:

    I just ran a “test” of one of my new clients.
    My quoted rate+fees was 1000 less than the “best” fee fighters provided.

    This is going to be a great tool to show my clients.

    LOL like a bunch of used car salesmen made a website.

  10. WestinPam says:

    It blows my mind about how deceptive some of these merchant service companies can be.

    I agree with Brian, they’re worse than slick used car salesmen.

    We must all reveal other scams that are being run out there on retailers by credit card processors and point out those who show their real rates out front and enable merchants to easily assess their credit card processing costs in advance.

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