🚀 go-pugleaf

In article <01bd483e$08e8f920$LocalHost@default>,
  "A.P." <aparsons@tinet.ie> wrote:
>
> I have a high volume low prices business. Transactions are only a few
> dollars.
> Is it possible to have an account where I would only pay a percentage of
> the turnover in fees, without the extra transaction charge?
> Can anybody tell me where I should go to find such an account?
> Alternatively, if I must establish my own account can anybody tell me why
> the set up costs are so high?
>

     There are banks which will quote you a "percentage only" discount rate.
This is called an "unbundled rate" in the business.  The transaction fee is
included (hidden).  The reason for this is because the Visa and MasterCard
networks charge that way -- a fee per transaction plus a percentage of the
amount of money moved.

     For instance, for the sake of discussion, suppose that a merchant has an
average ticket size of $100, and the bank's normal rate is 1.6% plus 20 cents
per transaction.  Applying those charges to an average sale, we get
.016*100+.20 = $1.80  The bank might offer the merchant an unbundled rate of
1.82% just to be on the safe side.

     In practice, you would be well-advised to shop for a bank (processor) who
charges the smallest possible transaction fee ... typical is 20 cents ... and
accept a slightly higher discount rate in order to get it.

     Your success will depend upon your true volume.  If you are processing
more than $25,000 per month, you may have some negotiating room.  Feel free to
contact me if I can be of assistance.

     As to why startup costs are so high, I dunno.  We charge an application
fee, which varies from bank to bank and location to location, but rarely
exceeds $150.  In my experience, people who offer "no application fee"
services usually just eat the bank's application fee and make up for it on
equipment lease costs.  are making their money on

We offer "used" and "refurbished" VeriFone brand equipment, with warranties,
at very decent rates.  We *can* set merchants up on a lease, but recognize
that this is often not in their best interests.  (Buying is usually less
expensive.)  Sometimes we rent equipment on a month-to-month basis ... three
months minimum, but only when we are reasonably sure we can get the equipment
back if the merchant goes out of business.  I don't want to take advantage of
this List's hospitality by quoting prices, but let's just say that it doesn't
need to be as expensive as people usually think.

     JSb.




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