Credit Processing - who do you use and how much does it cost?
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  1. #1
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    Default Credit Processing - who do you use and how much does it cost?

    I'm looking for a virtual service, vs one with a machine, i.e. you punch the numbers into a browser. Square is 3.34% but I've heard they come off that pretty quickly if you call them.

    We'd not use it very intensely, but have a few customers who want us to have it - what do you guys use and whats the cost?

    thanks

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    I've been using First Data for the last couple of years. The terminal costs something near $1200 IIRC but you can rent it monthly if you wish. I bought my terminal outright, so remaining monthly charges amount to around $12 for me, plus whatever the premium would be on the various cash back charge cards. Visa costs the most, so it would seem.

    My previous service was Global payments. I also had purchased my terminal from them, and so I probably saved a couple of years worth of rental charges, before the terminal went obsolete and had to be upgraded. That was when I switched to First Data, because they made me shop around. That'll teach 'em

    Customers love being able to use their credit or debit card. No hassle anymore trying to get people to pay with cash or cheques. And I insist on payment on completion now, because I give them all the options to pay. No more big A/R list for me. I still take cheques, as well, if I think it is safe. My risk now is more in the taking orders and payment by phone. I don't typically phone in for an authorization number for those, although that is standard procedure if you want to cover yourself. It takes several minutes of hassle to do this.

    Consider also the risks of any virtual system where you might store a CC or Debit card number: you are liable for security systems to protect that customer data. If you use a terminal, then the payment provider assumes the risk for customer personal data storage.

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    I would recommend stripe. They are the current tech/process leader. You can configure it to do anything you need.

    If you're using a terminal you are probably paying way too much and unknowingly dealing with a bunch of middle men to get your money.

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    Recently switched to Redstone. 2.7% plus all the usual fees always ends up under 3% total. Have been very happy for about a year since we switched.

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    Quote Originally Posted by Mud View Post
    Recently switched to Redstone. 2.7% plus all the usual fees always ends up under 3% total. Have been very happy for about a year since we switched.
    That looks like 3.7% for key in transactions, unless I read it wrong. He'd be better off with PayPal, and at least wouldn't have monthly fees.

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    Quote Originally Posted by Fish On View Post
    That looks like 3.7% for key in transactions, unless I read it wrong. He'd be better off with PayPal, and at least wouldn't have monthly fees.

    No this is keyed in on a browser, because that's what the OP asked for. You can get much lower on swiped transactions.

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    Quote Originally Posted by Mud View Post
    No this is keyed in on a browser, because that's what the OP asked for. You can get much lower on swiped transactions.
    that's what I'm looking for, we're not asked that often for it so do not want to pay for a terminal - months might go be between requests. Square advertises 3.4% but I expect it'll be closer to 2.5 - 2.75, apparently the space is competitive...or at least I hope thats what it will be. I'll let you know what they say

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    You'll have a hard time getting below 3%, especially with few transactions. Watch the add on charges and fees closely, they get jacked up for small users. I started with my local bank, changed banks a couple times as they merged and got bought, and changed providers as they jacked fees. I'm on my 6th merchant provider in 25 years. Redstone is the first provider that isn't tied to a bank I used. i only knew of them because a rep I had with First Data moved over to them.

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    Quote Originally Posted by Mcgyver View Post
    that's what I'm looking for, we're not asked that often for it so do not want to pay for a terminal - months might go be between requests. Square advertises 3.4% but I expect it'll be closer to 2.5 - 2.75, apparently the space is competitive...or at least I hope thats what it will be. I'll let you know what they say
    Let me know what they say. When I used square it was around 3.75% that the fee actually worked out to be. The rate varied a little depending on the amount. I never saw anything down in 3.4% range except for one transaction that was around $2500.

    Be mindful of their user agreement as well... They used to be VERY particular in regards to what you were selling. It has been 5 or 6 years since I used them so it may have changed.

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    I see accepting Credit as much more of a service to the customer than it is to me, and usually have just added to the invoice to add 3% for card payments if that is how they would like to pay. Or add that percentage to the total cost, and say discount 3% for cash or check...same difference but sounds friendlier. (I think they may take closer to 4% in reality) I use Square and have not had any major complaints with it. I would suspect that most of the larger payment processors are not good/cheap for the occasional user. Though I don't have experience with them.

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    Accepting cards was the single biggest thing I've done to expand!

    I started with RBS and it was I don't remember, maybe $20/month before I ran the first card.

    Five years down the road, they're charging me more than $100/month before I ran the first card. When I'd call, I'd get put on hold for ages, or give a callback number and they'd call late or in the middle of a busy day. I finally fired them.

    I love Square! I'm at 3.1% and $0.10/transaction. If I don't use it for two months, no charge!

    If I get in a bind, I can even have same day deposits if I'm willing to pay the extra 1%

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    We have Stripe on our website, and I can manually enter transactions on their site to take payment over the phone. Very easy to use, and I think we're paying about 2.7%. No set up or monthly fees.

    I would NOT recommend Square. We set up with them first, and after a month or two I got a notification that we were being terminated because we sell to the military. We make hand tools, this isn't ITAR stuff, it just happens to be a niche area and our customer is primarily military. If I knew that was Square's view I would not have signed up in the first place.

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    We've had merchant account with local bank for 14 years. All off-line (not card present) sales. Use authorize.net for ecommerce website and virtual terminal for manual orders. 3% flat rate. Everytime I have looked at other providers, they end up being almost identical on the 3%. They may offer much lower on some types of cards (debit) and much higher on other types of cards (perks cards). Really no way of knowing until the transaction clears and the bill comes. I like knowing that it is actually 3%.

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    Quote Originally Posted by LOTT View Post
    We have Stripe on our website, and I can manually enter transactions on their site to take payment over the phone. Very easy to use, and I think we're paying about 2.7%. No set up or monthly fees.

    I would NOT recommend Square. We set up with them first, and after a month or two I got a notification that we were being terminated because we sell to the military. We make hand tools, this isn't ITAR stuff, it just happens to be a niche area and our customer is primarily military. If I knew that was Square's view I would not have signed up in the first place.
    I called square and spent about 30 minutes talking to them. The girl repeatedly told me, if you have a legal business and are selling legal products we do not care what your products are.



    They dropped me less than a year later because my business did not comply with their terms of service.

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    Quote Originally Posted by Mud View Post
    Recently switched to Redstone.
    The gateway I use is Worldpay. They seem to be offering good terms through their own merchant provider, at least according to their site.

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    I use Go Payment from an App. Funny same company as Quickbooks that I have, but through Quickbooks the service charges are higher...nice customer service huh???

    Anyway, the rate is not bad all things considered, plus I tack it onto the invoice. I had started with merchant services leasing, then buying a machine...upgrades, fees %'s...not worth it. BUT I still needed for a couple companies and municipalities I work with. I get the jobs because they can pay by credit card and not spend a day with paperwork and requisitions and and...just hand the card over...too much for a single transaction, we break up the payments for them. Also a great way to collect COD for those customers I don;t wish to offer credit to. They get their 30 days, I get my money.

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    Update: Square hasn't yet responded with a quote. Moneris, they'd have to pay me before I'd fill out their gawd awful 8 page application. What are they thinking? btw their fees are 2-2.8% depending on which card is used, plus $25/month. Best so far is one Costco offers - $8/month and a flat 2.07% fee on transactions. I resent a monthly fee for a browser based thing, but I suppose I can cough up the $8 without too much indigestion considering they're the lowest % charge.


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