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THT Brain trust...CC processing experts here?

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THT Brain trust...CC processing experts here?

Old 09-02-2015, 09:35 AM
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Default THT Brain trust...CC processing experts here?

OK, so I have a question regarding CC processing fees/terms. And where better to turn than THT?!

I currently process my CC transactions through my bank, PNC. They have waived the absent card fee, and are fairly competitive I think. I recently received a call from EMS offering me CC processing at "interchange rates", the same rates as bank and other CC processing companies, claiming the are the main processors for those companies. I take it to mean a reduction in fees since I would not be paying the bank 'mark up". This was offered on the premises that we have proven to be a very low risk company, with few or no charge backs or disputes. We process between 40-60,000 a month depending on the time of year.

Does this sound like a scam? I agreed to take a meeting, but will happily call it off if it means i'm wasting an hour of nest Friday.

Thoughts?
Old 09-02-2015, 09:49 AM
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Beware of amounts going up in short periods of time...I want to say I have heard this with EMS.

We use Heartland, but have been courted by a few others that could save us $150-200/mo, supposedly, on $90k/mo in sales. I stuck with Heartland for now as I know their system.

I'll add that we haven't been hitting $90k or more all that much, lately, and are trying to push those with accounts to pay by check and not CC (although that may not fly with CC agreements 100%). Nothing like having a customer push you out to 60 days before paying $50k with an AMEX.
Old 09-02-2015, 10:22 AM
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Promises, promises.

In my experience, if you have a good deal with a CC processor, stick to it.

I switched last year because of integration with software, and will likely switch back end of this year.

Costs are up 20% or so.
Old 09-02-2015, 10:27 AM
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I switched back in 06 cause I felt the 2.4% was was too high, esp with the monthly volume. I started shopping around and started getting the calls like you have. I met with a bunch and actually ended with a " reverse auction " with all the providers. I ended up going with Sam's Club believe it or not lol at 1.04% for Visa/MC. Think Amex was 2.12%. Everyone was more than willing to play with the rates with the exception of Amex which hardly changed. Point is don't take their first offer of you have the volume cause they can do better. Saved a ton of money by switching. As u prob already know POS debit transactions are the cheapest but with good negotiating you can get close to that #.
Old 09-02-2015, 10:30 AM
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Originally Posted by JUST GOT RIVERRED View Post
I switched back in 06 cause I felt the 2.4% was was too high, esp with the monthly volume. I started shopping around and started getting the calls like you have. I met with a bunch and actually ended with a " reverse auction " with all the providers. I ended up going with Sam's Club believe it or not lol at 1.04% for Visa/MC. Think Amex was 2.12%. Everyone was more than willing to play with the rates with the exception of Amex which hardly changed. Point is don't take their first offer of you have the volume cause they can do better. Saved a ton of money by switching. As u prob already know POS debit transactions are the cheapest but with good negotiating you can get close to that #.
I don't think they can change the CC rates...only what the company charges to process it. Could be wrong, though. I have a handy printout somewhere comparing Heartland with one of our courters, if interested in looking at it (and I can find it).
Old 09-02-2015, 10:32 AM
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And depending which card (many different versions of a VISA/MC/Etc depending on rewards type and whatever else) so it makes it that much more difficult to really put a hard number on anything.

And, again, I'm no expert...just what I think I understand the case to be.
Old 09-02-2015, 10:36 AM
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Originally Posted by schoolsout1 View Post
I don't think they can change the CC rates...only what the company charges to process it. Could be wrong, though. I have a handy printout somewhere comparing Heartland with one of our courters, if interested in looking at it (and I can find it).
Right, I'm talking about the processing fees. A POS pin initiated transaction is considered the safest and that is to what I was referring. Most of my transactions were absent card via phone transaction which is somewhat of a disadvantage for negotiating but after a couple weeks of meetings I was able to cut my processing fees on Visa / MC transaction in half.
Old 09-02-2015, 10:40 AM
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Originally Posted by JUST GOT RIVERRED View Post
Right, I'm talking about the processing fees. A POS pin initiated transaction is considered the safest and that is to what I was referring. Most of my transactions were absent card via phone transaction which is somewhat of a disadvantage for negotiating but after a couple weeks of meetings I was able to cut my processing fees on Visa / MC transaction in half.
All of ours are done over phone/internet. I think the "absent" card thing no longer matters, according to the few processors I talked to. That was a major point of mine, but they said it doesn't matter any longer.
Old 09-02-2015, 11:26 AM
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Originally Posted by BlueSpark View Post
OK, so I have a question regarding CC processing fees/terms. And where better to turn than THT?!

I currently process my CC transactions through my bank, PNC. They have waived the absent card fee, and are fairly competitive I think. I recently received a call from EMS offering me CC processing at "interchange rates", the same rates as bank and other CC processing companies, claiming the are the main processors for those companies. I take it to mean a reduction in fees since I would not be paying the bank 'mark up". This was offered on the premises that we have proven to be a very low risk company, with few or no charge backs or disputes. We process between 40-60,000 a month depending on the time of year.

Does this sound like a scam? I agreed to take a meeting, but will happily call it off if it means i'm wasting an hour of nest Friday.

Thoughts?
I think they should be able to provide you with a projected cost for CC processing. You will need to provide processing amount by card type and volume of transactions. Your average transaction amount will also play a factor. A higher dollar average transaction amount is more favorable to the processor and could give we better rates then a low dollar average transaction with higher volume (with both having the same sales amount) For example $60000 per month with an average of $6 transaction value from 10,000 transactions is a weaker negotiation position then the same $60000 per month with an average of $100 transaction value from 600 transactions.

Definitely review and compare the line item fees projected versus current (i.e. service fees, interchange fees, and per transaction type fees.)

That's how all the negotiates I've experienced had at the minimum.

If you can also show them sales volume growth you can leverage that as well.

In the past I've asked certain fees waived and cut some rates within reason. (i.e. Visa Access Fee is .034 ask to reduce to .031).

Last edited by easy_e; 09-02-2015 at 11:37 AM.
Old 09-02-2015, 03:40 PM
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I sent you a pm with my cell phone number, please call me immediately, this is important and yes, this is very likely a scam if it's the same outfit and it sure sounds like it.

Last edited by Max@MaxMarine; 09-02-2015 at 04:25 PM.
Old 09-02-2015, 04:58 PM
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Originally Posted by mstyle8517 View Post
I sent you a pm with my cell phone number, please call me immediately, this is important and yes, this is very likely a scam if it's the same outfit and it sure sounds like it.
pm sent
Old 09-02-2015, 05:21 PM
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We do a processing at something like 0.3 percent plus interchange rate. Ours is very low volume with high charge amount. Works for us. The biggest a BS factor is the $150 annual fee.

We don't take friggin Amex, though, and never will.
Old 09-02-2015, 06:21 PM
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Originally Posted by billinstuart View Post
We do a processing at something like 0.3 percent plus interchange rate. Ours is very low volume with high charge amount. Works for us. The biggest a BS factor is the $150 annual fee. We don't take friggin Amex, though, and never will.
Years ago we took all of them. Amex and discover were the worst.. 4.5% and up plus the banks BS fees.

Several times we were charged 150-200 per month only running 1-2 transactions that month. The bank fees were excessive.

Now we take square and all cards. 2.75% is a good average for all of them combined.

Could we do better? Probably, but this works for us for now.

I switched banks about a year ago and they sent someone by to discuss cc transactions. I told him I had square, and he was going to send me some pricing. Needless to say I have still not received that pricing...
Old 09-02-2015, 06:50 PM
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Elavon thru Costco woks good for me now. Very simple pricing structure.I changed CC processing about a year ago and happy I did.
Old 09-03-2015, 05:47 AM
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Thanks for all the feedback guys, and PM's.

We have to take amex, 75 percent of my clients use it. They love using that heavy black card ... lol. To be fair, I use my amex as often as possible, I get good rewards for it.
Old 09-03-2015, 05:53 AM
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The vast majority of our customers are large corporations and some of them use purchasing cards. The amount of credit card processing fees is large. We have taken a serious look at multiple companies, tried some of them and in the end get the best rates directly from our bank.
Old 09-03-2015, 06:36 AM
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Originally Posted by mikefloyd View Post
The vast majority of our customers are large corporations and some of them use purchasing cards. The amount of credit card processing fees is large. We have taken a serious look at multiple companies, tried some of them and in the end get the best rates directly from our bank.
We are seeing more and more companies wanting to use CCs...had one call me yesterday (actually, it was Nvoice) wanting to set up a MasterCard payment option for a customer of ours (probably 3rd one using this company), but I told them no, we are trying to stay away from that as much as possible for people with accounts. Sucks, really. Looking really hard at utilizing a discount for cash/check payments.

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