Processor's Dirty Little Secrets
Dirty Little Secret #1
You are on the same pricing scheme as the coffee shop down the street and it is costing you a fortune. Here's why: the coffee shop's average ticket is $10, yours is $225. Let's just see how that makes a difference.
In our example above, the rate is the same for both merchants, but the Coffee Shop is paying $0.32 for their transaction...you're paying $5.05 for your transaction.
Dirty Little Secret #2
Your credit card processing statements are confusing for a reason.
Credit card processors know that if they make their statements confusing and hard to read, you won't be able to figure out where they are hiding their junk fees and secret mark-ups. They also know from their insider research that the more confused you are about pricing, the less likely you will be to look elsewhere for a better solution.
Dirty Little Secret #3
Leasing your terminal to you is just another way for your processor to get into your pocket and take your money.
Another mistake many Tire Dealers make is leasing their credit card terminals instead of purchasing them. Of course, many processors offer leasing plans, but you should run, not walk, away from those plans.
The initial purchase is usually around $300, but a lease could cost you ten times that.
Dirty Little Secret #4
Long-term, auto-renewing contracts and early termination fees are a license to steal.
Many Tire Dealers are locked into long-term contracts that automatically renew if not cancelled before renewal. These can have huge fees for early termination. These early termination fees can be as high as $1500!
We don't have long-term contracts or early termination fees. In fact, we help our new merchants get out of their old contracts and will even reimburse you for early termination fees you might have(up to $350).
Dirty Little Secret #5
Dirty Little Secret #5
Be aware of deceptive marketing tactics.
Like any industry, merchant payment processing is littered with distracting and deceptive marketing messages that can trap unsuspecting retail business owners.
The most common trick is to quote a low rate (like 1.25%). Rest assured that their hidden fees are going to eat you up, plus that ultra low rate you were quoted will be the exception, and not the rule.