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Merchant Account Rates & Pricing - Interchange Plus, Tier Based & Flat Rate Comparison 

BancardSales
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27 сен 2024

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Комментарии : 45   
@naposapo81
@naposapo81 3 года назад
The answer is always - depends on the business and their needs
@Bancardsales
@Bancardsales 3 года назад
We offer customized solutions so, yea you'll hear me say that a lot. Better to get a solution you'll use than to buy something that is not ideally suited for you, right?
@Aezuz
@Aezuz 3 года назад
Thanks for your great videos! Cheers from Brazil!
@melodiew9847
@melodiew9847 2 года назад
Great video. Very informative. I'm currently trying to decide between Interchange+ or Fixed rate. I am a new small quick service business so IDK where how much my sales will be and my tickets I'm guessing will be under $15. How would you go about deciding which merchant account would be best?
@brandsmart3857
@brandsmart3857 Год назад
Which pricing structure do I think is "potentially the most transparent"? IMHO, interchange Plus is much easier for anyone to understand, providing greater simplicity for statement analysis. It also offers less opportunity for creating hidden fees or adding additional unseen built-in costs.🦓
@Bancardsales
@Bancardsales Год назад
Thanks for watching and commenting Brand Smart! Have a great day! -Brian
@danielrobinson2936
@danielrobinson2936 2 года назад
They're just different. Regardless of transparency, effective rate will vary depending on business type.
@Bancardsales
@Bancardsales 2 года назад
Exactly. Thanks for watching! -Brian
@tome3427
@tome3427 2 года назад
Which one is the most transparent? If you know how to read the structure, it's Interchange. Which one is the best for a specific business? That all comes down to multiple variables as outlined in your video, e.g., Card Type Mix ( Debit versus Credit), Credit card Mix ( Retail vs. Rewards vs. Corporate), method of accepting ( card Present vs. CnP). Integration ( its value vs. cost ). For the average business owner to know which is best considering all the factors is almost impossible to figure out on their own, What I find disturbing are some of the non-transparent tactics used in the industry today. For instance, Upserve uses an Interchange plus pricing with an off statement monthly fee debited directly from the merchant's bank account and not included on the statement. Also, in general, I view Payfac pricing as another way the industry is taking advantage of the merchants. They signup with these software providers that lock them into proprietary processing, which leads to non-competitive pricing. Anyhow, enjoyed your video. Thank you
@Bancardsales
@Bancardsales 2 года назад
Thanks for the comments Tom. As for the non-transparent tactics used, I suppose there's an additional argument there that I just barely touched on in the video. One argument could be that if the merchant knows that there is an off-statement fee coming out of their account then it's completely transparent. They know about it, and agree to it, so everyone is on the same page. If you're comparing total merchant account costs (from one provider to the next, for example), then you would need to be aware of that fee so you're doing an apples to apples comparison. That's where it might become a "grey" area. Thanks again for watching. ~Brian p.s. are you a business owner? or are you in the payments business?
@swetha2244
@swetha2244 3 года назад
Thank you so much for such a great video explaining the differences. I have a small grocery store, & cc cards are mainly swiped.I have been using merchant processing company for 17 yrs of my business, but I am still not able to figure out all the charges... they always have a way to get your money. I am using tsys merchant services now, but their pci compliance charges are atrocious... then you have to keep up with every 3 months... so I was thinking about switching to square although per transaction rate is higher... at least I don’t have to worry about these unknown charges... what do you suggest? I appreciate your help. Thank you again.
@Bancardsales
@Bancardsales 3 года назад
Swetha, is your business located in the USA? If so, reach out to me and we'll discuss your options: Www.bancardsales.com/call
@joykumardeb7944
@joykumardeb7944 2 года назад
Awesome video!
@Bancardsales
@Bancardsales 2 года назад
Thanks Joy and thanks for watching !
@hammadahmed3984
@hammadahmed3984 4 года назад
Hi just want to know one more thing that is this the fees of around 2.0% which is charged by payment gateway for a credit card payment. So now will the mstercard and visa card also take their online trasaction fees which can obviously make it around total of 4% charge.
@DNadolski
@DNadolski 3 года назад
Gateway fees are a different beast and you are correct in noting that they do charge on top of what you have arranged with your interchange plus payment processor. When it comes to gateways though it's not usually a % like you describe TBH. Instead, it's a flat rate monthly fee of like $25 and they charge $.10 per transaction on average. So a really good and honest processor will first, try to use a gateway that has no fees if at all possible which will depend on your setup. Second, if the gateway fees are unavoidable then we build the cost into our processing and basically give you lower rates to offset the cost. That way we get your business, you don't have to pay for the gateway really and you have a company you can talk to and trust who you have built a relationship with that is going to advise you as you grow. That said, the bottom line is if your effective rate (what you pay per month divided by what you brought in) is at 4%, you are paying WAY TOO MUCH. Now bear in mind that your effective rate will fluctuate from month to month because you don't know how many corporate cards vs debit cards etc. you are going to get so the interchange will always vary based on the cards your customers use. Does that make sense? But that said if you are at 4% you... really need to reevaluate your processing my friend. I hope that helps!
@eleyavang8499
@eleyavang8499 2 года назад
What do you think about Stax by Fattmerchant? Are they transparent with their fees? Not sure if they are interchange or tiered.
@lalitakahol7185
@lalitakahol7185 4 года назад
I am setting up a freelance copywriting business, but how go I connect to connect to the credit card on an invoice. Which is better for me? Merchant or an Aggregated account? Thanks. I like the way you explain thinks slowly.
@DNadolski
@DNadolski 3 года назад
Hi Lalita! There are a couple of ways to go about this that I have seen in the field. One way is invoicing people directly off of Quickbooks if you are using it, and the other way is to go through your credit card processor who usually has the ability to arrange for clickable invoicing.
@siddharthsid3638
@siddharthsid3638 4 года назад
I need merchant for my e-commerce store based on shopify
@iotoro6148
@iotoro6148 4 года назад
Did u find one? Are u non resident?
@Bancardsales
@Bancardsales 4 года назад
Which pricing structure do you think is "transparent"? Interchange Plus pricing or Tier/Flat Rate? Let me know in the comments below. Thanks for watching! -Brian
@manifesttation7003
@manifesttation7003 4 года назад
BancardSales hi sir! I hope you can still see my comment. I am planning to sell online in usa and I’m currently residing at the Philippines. Which payment getaway would you suggest for me to use. Subscribed 😃
@alanwolf9202
@alanwolf9202 4 года назад
@@manifesttation7003 cdncanuckwolf@hotmail.com
@kaydunbar8856
@kaydunbar8856 3 года назад
This is a great video! I was just approved for a business line of credit from 1st Merchant. But this being said they will charge 2.99% for each transaction. YIKES!! I am a new business and trying to keep my cost low. I am not sure what to do. But this video has been very helpful. I want to business line of credit but in order for me to receive this amount I have to open an account with them.
@DNadolski
@DNadolski 3 года назад
Hi Kay! You know, TBH a 2.99% per transaction flat rate might be better than you think. The video says it pretty well... if you are just starting out and are doing under $2,000 per month in volume, honestly it's the way to go. Where you want to go with an interchange plus processor is after you hit that $2,000 mark and grow. That said, it is very common for folks to go with their banks for processing (especially at first), but know that most of the time if you do want to go elsewhere , you have the right to do so AND you won't even have to switch banks! Hope that helps! And BTW, I love this video and send it to many of my clients. I'm heartened to see something so helpful and informative out there.
@JuanMartinez-lw4ye
@JuanMartinez-lw4ye 2 года назад
Hi Brand .first thanks for sharing that information ..very helpful . I am open a new business were all my customers will use their personal credit cards to pay . Avearge bill is between $2800 to $4000 ... total customers per month are 30 ....big question is all those trancsaction will be generated overseas ...most of them from Latam and tbey will be paying trougth my website ...which sistem will you recomend ?? Thanks
@Bancardsales
@Bancardsales 2 года назад
Where are you and your business geographically located? What country are you in? And what country is your business located in?
@kylegleich
@kylegleich 2 года назад
New to this. The rate I just agreed to is IC+0.10BPS and $0.05 cents per transaction credit and debit. I want to work this into a cash discount. How much of a percentage should I average to take off for non card. I also want to know thoughts on keying card or cards on file, since these are at a higher rate should I even offer?
@Bancardsales
@Bancardsales 2 года назад
Kyle, if you going to surcharge or add a fee to your sales with the merchant account you need to do it properly. Feel free to grab a time here with me to discuss it. Complimentary. Www.bancardsales.com/call/Brian
@ACantu-de8pg
@ACantu-de8pg 3 года назад
Interchange plus is the only true transparent pricing model for the merchant. By the way do you do private consulting?
@Bancardsales
@Bancardsales 3 года назад
Yes, payment and software consulting is part of our business offerings. If you'd like to talk, feel free to use this link to schedule a call: www.bancardsales.com/call/brian
@dankierson
@dankierson 3 года назад
Just learned of interchange and scheme charges lately. As you say, the only way to compare is to generate the putative effective rates for both merchant and aggregate providers on the same list of monthly transactions. One point from experience: while aggregators like PayPal are always forthcoming on their total rates, merchant account providers are usually only explicit on things like value rate, transaction fee, merchant a/c charge and payment security charge. No figures are offered for interchange rates or card scheme charge or many other variables. A person new to e-payments might just compare the value rate and transaction fee with those of aggregators and think yhat going with the merchant provider was a no brainer. Not so...
@Bancardsales
@Bancardsales 2 года назад
Hey Dan, you always need to get an apples to apples comparison with all the rates and that's why I teach using effective rates as the main "end all" comparison factor. yes there's a lot that goes into the pricing with interchange and that's also why I teach it here for the public to view and learn. There's a learning curve with everything (some steeper than others of course) but nonetheless, if it's new to someone they have to learn the basics. Thanks for watching! Are you a business owner? Or are you in the payments industry?
@e.davidjohnson2797
@e.davidjohnson2797 3 года назад
Very informative, is there any training courses that you provide to newbies?
@Bancardsales
@Bancardsales 3 года назад
E. David, what sort of information would you like to learn? Are you selling online? Starting a retail business? Please elaborate and there might be other videos I have that can help you. Lmk. -Brian.
@aliceprince3096
@aliceprince3096 3 года назад
THANK YOU BRIAN THIS REALLY HELPED ME OUT. I AM JUST STARTING A FOOD TRUCK BUSINESS AND LOOKING TO PURCHASE A FOOD TRUCK AND MY VOLUME IS LOW BEING STATIONARY SO I WAS CONSIDERING DOING A FLAT RATE WITH CLOVER BUT YOU REALLY HELPED ME TO UNDERSTAND MORE ONCE AGAIN THANK YOU SO MUCH!!!!
@Bancardsales
@Bancardsales 3 года назад
Hey Alice, Thanks for watching and glad to be of service. FYI, we help set up Clover equipment and manage merchant accounts (better rates/pricing than the flat rate programs on the Clover website, btw) so if you'd like to talk about that just use this link to schedule a call with me: www.bancardsales.com/call/brian
@SimX9000
@SimX9000 2 года назад
Only pricing worth a damn is Interchange + 0% + 10 or 15 cents a transaction. That's it, the rest of the modules are all garbage and trash.
@ZaidsExperience
@ZaidsExperience 4 года назад
Duuuuuude, helpful AF! Thank you so much!
@Bancardsales
@Bancardsales 4 года назад
You're welcome! Glad it was helpful! Thanks for watching.
@AlejandroVargas-mh5bt
@AlejandroVargas-mh5bt 2 года назад
I believe that despite the interchange plus model being more transparent in terms of knowing how much the merchant platform provider is making the flat rate model is more convenient. In the end the costs will somehow get transferred to the end user and with that being said if the customers know exactly what they are paying, meaning they can forecast their costs, then they will be able to price their product accordingly and absorb the cost of the merchant platform. Everything truly depends on the business life cycle but if you have a product with decent elasticity you should be able to increase the price to cover the costs, if your product has high elasticity then you might not want to use a flat rate pricing provider.
@dennisomalley1360
@dennisomalley1360 4 года назад
Thank you Brian,
@Bancardsales
@Bancardsales 4 года назад
You're welcome, Dennis! Thanks for watching!
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