June 27, 2009
Credit Card Terminal Savings
Feeling like your business is being overcharged for bank merchant facility fees ? Business colleagues may be on better rates, or you might feel that you are simply being ripped off ! Bank fees are around every corner when you deal with a bank. This may be for business or personal use. When you use a bank for credit card facilities it is no different.
Opening and closing fees which are often unjustified and not mentioned, ongoing transactional fees, not to mention credit card terminal rental. It can easily cost you hundreds of dollars extra per year in bank fees if you are not prepared to shop around. So how do you shop around for credit card terminal fees?
Fist of all consider going to your bank or credit card terminal provider and asked for a rate review. The answer will most likely be no. However, even if your bank concedes that you are on a very high rate and offers to lower the merchant service fee (msf) percentage you will most likely get locked into a contract with unforgiving break fees.
What are typical fees with an Eftpos Merchant Credit Card Terminal ? The typical fees vary from country to country. For Australian conditions they are as follows: An Establishment Fee for your Eftpos Merchant facility will be typical and in the vicinity of $50 to $100. Break Fees range from $110 to $550 whether or not you are in a contract. The Eftpos Broker will make you aware of these.
The service will usually be free of charge to you the customer, or you may be required to pay a portion of the savings you make. The free of charge service is the preferred option for most business customers but if you pay for the service then the broker will most likely be without mercy in their search of the best Eftpos Merchant Service deal.
The service will usually be free of charge to you the customer, or you may be required to pay a portion of the savings you make. The free of charge service is the preferred option for most business customers but if you pay for the service then the broker will most likely be without mercy in their search of the best Eftpos Merchant Service deal.
Low turnover business can expect to pay around 2% on MasterCard and Visa. Businesses turning over around $130 000 annually on credit card fees can expect to pay 1% as a guide. $200 000 expect to pay around 0.80% . If you have a higher annual credit card turnover than this then your credit card rate should be lower. Note that rates rarely go below 0.70%.
Whether you are in Australia, New Zealand, the UK, Europe or North America then make sure you shop around. At http://firstcreditcardterminal.com we offer some articles and advice that may be of use. Visa and Mastercard wholesale rates appear on their own individual websites. Check these out and see what interchange rates your bank is being charged. This a good indicator to see if you are being ripped off by your bank.
Filed under Finance by
