This is one of the rare accounts that is set up on an interchange plus pricing structure. This price system is a much better option for the client – so you will see more and more accounts being written this way as the market demands more competitive credit card processing prices.
1. Summary of all credit card processing sales during the course of the month. Broken down by card type and total amount of sales.
2. Average sale when the business owner runs a credit card.
3. This is a bit different than some of the other statements i’ve reviewed. Instead of having the qualified credit card processing rate here, Sage has put the basis point mark up here. In this case the client is paying 17 basis points over cost.
4. This is the total discount due on the monthly processing volume. This is ONLY the mark up that is due – not all other fees. (Multiply the volume of $35,275.74 times .0017 or .17% and you will get $59.99. You will see on page 2 where the rest of their credit card processing fees are coming from.)
5. Total amount due on all credit card processing sales.
6. Break down of daily merchant service transactions.
1. This is the summary of all of the interchange charges during the entire month of credit card processing. At first glance it may not be easy to see that all of the credit card processing costs being shown here are actually being charged straight pass through – but by doing a little math it is easy to figure out. For example:
Look at the 4th line item: CPS RETAIL CK DB - this is a retail check/debit card transaction – it was swiped through the credit card terminal without a pin number being entered. We know that the interchange cost to run this transaction is 1.03% + $.15 so if we work backwards we can see that this is what is being charged. 603 transactions x $.15 per transaction = $90.45. $18,451.52 x 1.03% = $190.05. Adding these numbers you get $280.50 – therefore – this is cost. You can go through line by line and see that all of these credit card processing transactions are at cost.
You will also see lines called dues and assessments in this section. These are direct pass through from Visa and Mastercard as well. The cost is .0925% for Visa and .095% for Mastercard. Crunch the numbers and you will see that these were marked up a little bit.
2. These are the additional transaction fees of $.10 each. Essentially this makes the clients total credit card processing cost: interchange plus 17 points and 10 cents.
3. American Express and Discover transaction fees of $.37 each! This is a VERY high transaction fee.
4. This is the pin entered debit cost. The client is paying $.40 every time they run a pin entered debit card. This is an older cost structure for pin debit. We now unwrap all pin debit fees – so you will see a transaction fee (typically $.25) and the debit network access fees. (typically .75% + $.17 per transaction)
5. Total additional credit card processing fees.
6. Total fees for the month.
7. The total percentage paid for the entire months credit card processing.
This client actually has a pretty decent rate system set up. Their amex and Discover transaction fees are extremely high – but otherwise the pricing looks ok. We were able to make some adjustments and save them around 11% every month.
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