1. This section summarizes the total merchant card services sales for the month. You can clearly see:
-Card type (v = Visa, m = Mastercard)
-# of sales, sales amount, returns amount, net sales, and average sales
2. Here you can see the total amount paid to the processor in credit card processing fees. (On some statements this number only represents the total for additional charges.)
3. 1.75% is the base rate that was paid to process Visa and Mastercard transactions. With a three tier rate system this would be called the “qualified” rate, which is typically the lowest rate you will pay to the credit card processor.
4. This is the discount due on this portion of the bill. In this statement this total only represents the qualified rate total. You will see on page 2 that there are MANY additional fees for other card types.
5. Daily credit card merchant services deposit summary.
1. These are all of the merchant account charges that are not “qualified”. You can see that on this statement their are not just additional mid and non qualified charges, but an actual breakdown of the interchange categories that the client is being charged for. These interchange categories are set forth by Visa and Mastercard. What the business owner pays for each transaction type is set forth by the merchant bank. Typically these are lumped together into two categories, mid or non qualified. A better option for the business owner is when these costs are charged through an “interchange plus” pricing structure. You can easily see the different card types that this business owner accepted over the course of the month.
2. Here you can see the merchant services fees that the client was charged for taking these different card types. In red you can see the percentages that were charged for these sales. Let’s take a look at the first category (Visa rewards 1) to figure out what percentage was charged for this transaction. The client was charged $67.53 for $11.070.61 in sales. If you divide the fee by the sales amount you end up with .61%. This is being charged in addition to the “qualified” rate of 1.75%. Therefore, when this business accepts this type of Visa rewards card they are being charged a total of 2.36%.
3. The monthly fee charged to the client, $7.50 in this case.
4. The fee charged for returns – on a per transaction basis. This client paid $.15 each.
This particular client had a hybrid pricing system. They were paying a qualified merchant account rate but instead of mid or non qualified charges they were being charged for each interchange category (at a markup). By switching them to an iterchange plus pricing structure we were able to reduce their monthly merchant processing service fees by over $350.
We have the most lucrative merchant service sales positions available in the country. Selling credit card processing is one of the best sales opportunities in the country with which to achieve financial success. Learn more
To learn more please visit www.capital-bankcard.com
Tags: credit card merchant services, credit card processing, merchant card services
