"The local Rep" vs. higher quality service​​

by Kelly E. Nelson

This topic is important because it relates to service, and good service = lower rates.  The merchant wants someone they can look in the eye when things are going well, and someone they can strangle when things are not.  But “local” doesn’t necessarily mean “knowledgeable”.  Most merchants don’t know true service because most have never had “proactive help with their qualification issues”.   If more than 5% of your transactions are coming through at EIRF, Data Rate I, Standard, Commercial Standard, or “Non” Qualified, you need a service upgrade because these are "downgraded transactions" that should not be there.  The "National Rep" is usually more knowledgeable and can help you eliminate the downgrades, many of which cost .50% or more.  If you have never heard of "qualification issues" it is time for an objective third party analysis.

An improperly programmed terminal is costly​

by Kelly E. Nelson​

Transactions can downgrade due to risk factors, but the more information we pass along with the transaction the better the Associations feel about risk resulting in a lower interchange rate.  This is known as “qualification savings”.  For example, a Visa Card Not Present transaction requires AVS (Address Verification), or the transaction will downgrade.  It is not unusual for a provider to program the terminal incorrectly to actually force a merchant’s transactions to downgrade, frustrating the merchant who is doing everything correctly.  The provider benefits because these transactions will come in at the much higher “downgraded rate” (Non Qual 3.25%-4.50%).

Non-Profits are routinely being overcharged​​

by Kelly E. Nelson

Non-Profits (501c3's) are entitled to "Emerging Market" rates, which benefits them in 2 ways:

A)  Visa E-Commerce and Card Not Present transactions should be coming in at the Base Swiped rate.

B)  Visa Rewards Card transactions should come through at the Base Swiped rate.

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If you are a Non-Profit and your provider is charging you a simple "one rate" then you are not set up to benefit from Emerging Market rates for Non-Profits and are being overcharged by 20%-30%.  Regulated Debit Card transactions make up more than 50% of all online donations, and should be coming in at a rate of well under 1.00%.

B2B Wholesalers benefit from "Level III" processing​​

by Kelly E. Nelson

Businesses who accept Visa and MC from other businesses are subject to the highest surcharged card rates in the industry, even at True Interchange.  But there is a way to lower the Interchange itself in these processing environments, it is called "Level III" processing.  Level III processing software allows the merchant to pass along line item detail with the transactions, which benefits them in two ways:  A)  It lowers the Visa Purchasing Card and Corporate Card (and all MC Commercial Card) Interchange  by .70%, and B)  It entitles the merchant to the special Large Ticket rate for bulk orders of 1.45% + 35.  Merchant who routinely do 100k transactions save $1200.00 per 100k transaction with Level III.

Been with the same processor forever?​​

by Kelly E. Nelson

The longer a business has been with their current provider, the more likely it is that they have hidden fees.  This is remedied with an objective 3rd party review.  After all, if your current provider was "taking liberties" they would not likely tell you about it themselves.  In addition, there is never any need to get locked into any kind of contract with an "early termination" fee.

There are four ways to reduce your fees

by Kelly E. Nelson

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1)  Lower the "Base Rate" - Also known as the "Front" rate or the "Advertised" rate.  This rate is typically good for 20% or less of your transactions because it is only good for a "Basic" credit card that is swiped face to face.

2)  Apply "Pass Through" - Also known as "Interchange Plus".  Most of the cards you accept are "surcharged" cards (Rewards, Commercial, International, Enhanced, etc) that do not come through at your base rate.  If you are not currently getting these cards at "Cost", Pass Through or Interchange Plus can eliminate your hidden fees.

3)  Improve your "Service" - If your current provider has never proactively called you up to help you with your downgrades, then you have never been properly "serviced" and it is costing you 1000's per year in unnecessary fees.

4)  Reimbursement on Credits/Returns - If you are not currently being reimbursed on Credits and Returns, or worse - being charged for them - we can help straighten out your account.

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