Most businesses are looking for ways to save money and cut costs associated with processing credit cards online or offline. Whether you are a small retail store or a large supermarket chain or restaurant, getting the best merchant account rates is always the best thing you can do for your company to save more money. As one of the leading merchant services providers in this industry, we offer business owners and startup companies the lowest rates possible. We literally offer pass through rates as low as 1% and $0.05 per transaction.
We figure why charge more and have you look around later for lower rates and fees when we can provide that upfront whether you are big or small? We figure if we make the least amount possible to help you save money, you will in turn stick around for the long hall and that is our strategy to success in this industry.
As a merchant account provider, we try to educate our merchants about this business because they need to know how banks and financial institutions work to allow for a company to accept credit card payment online or at a retail shop. For starters, when you open a merchant account, the bank has to indirectly lend you the money to process. If you are looking to process $20,000 per month, the bank has to set aside $20,000 to allow for you to process that volume on a monthly basis. The banks or financial institutions do not collect money from the various processors until a month later. That is why this is called credit card processing (with emphasis on credit). For you to get pay within 24 to 48 hours every time you batch out at the end of the day, the bank has to credit you that money and then collect money at the end of the money for fees associated with you account.
In other countries such as China, Japan, Korea, etc, merchants only get paid once a month for transactions they have processed so in a sense they bank is not providing a line of credit for them to process. The bank in these countries collects all fees and monies due before paying out to businesses what they have processed. It’s a pretty though way to conduct business if you need to replace inventory on a daily basis.
So in the US, there are certain risk categories associated with certain business types or how a business processes transactions. For example, any transaction that is conducted where the customer is not physically present to swipe their credit card, is consider higher risk than if a person’s credit card is swipe. That is why banks are slow to approve online merchants.
Visa, MasterCard, Discover and American Express as well as the various financial institutions consider PIN based debit transactions to be the lowest risk. Why? Because the customer has to be present to first swipe their credit card in person. Secondly, they have to key in their pin number for the transaction to complete. Merchants are rewarded by accepting PIN based debit payments by not paying a discount rate (or percentage rate). Businesses are only charge a per transaction fee ranging from $0.10 to $0.25 per the transaction. Businesses are awarded because chargeback for using this payment type is virtually impossible. The reason why you pay more when the credit card is not present or if it’s not a face-to-face transaction where the consumer has to provide their signature in order for the purchase to be approved, is the risk is low. Online truncations are more susceptible to credit card fraud.
Menexis provides some of the lowest discount rate today. Please call us today to see who we can help you save more money by switching over.
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