Is your transaction rate equal to your true cost at the end of the month? This is a quick reminder to check your monthly merchant statement to verify that the percentage you have been quoted is what you are actually paying.
Remember. There is a big difference between the “rate” and the total cost.
Many of my current clients left their former credit card merchant provider because they were quoted a low rate, but didn’t get what they thought they were promised.
A single one-digit number that didn’t live up to it’s simple promise.
If you were quoted a flat 3%, run the numbers. It is an easy calculation.
Say you run $30,000 per month in transactions, and you are expecting to pay just 3% then, it should be $900 in fees.
But…does their rate include all of the add ins that affect the overall cost, such as:
- statement fees
- item fees
- PCI compliance fees
- batch fees
- refunds processed fees
- other fees
If the sales pitch didn’t highlight those areas – you might need to look at the contract – but, you should also do the math. Total deductions divided by total sales processed.
- Does it still add up? (Probably not.)
- Is doing the math as simple as that? (Probably not.)
- Do you believe you are paying more than the percentage you were quoted? (Probably yes.)
Then, it may be time re-evaluate your merchant services.
I feel terrible when colleagues of mine turn to me and ask how they could be charged so much more than the rate they were quoted. It is typically because of the fine print, the aspects of the total cost that weren’t in the sales pitch just highlighting a percentage rate.
If your merchant services rate doesn’t add up to what it was promised, we can break down a true-overall cost estimate for you. With that offer is a promise that you won’t have to sign a contract. Then, each year, we will re-review your account to make sure you are still where you should be. If you are ready, reach out now. We are here to help.
~ May Ann