How to avoid paying too much in Credit Card Processing Fees
I’m sure as a business owner you have enough to do without having to figure out how Credit Card Interchange Fees work. The good new is it’s not that complicated. There are hundreds of different interchange fees, what is important is to understand that interchange is essentially the wholesale rate that banks charge each other in order to process a credit card or debit card transaction. It is the cost of doing business, usually around two percent of the transaction amount.
Although the card companies set interchange rates there are things you can do to help avoid paying too much.
Review Your Charges Annually
At least twice a year (generally every April and October), Visa and MasterCard re-assess their processes, regulations and fees then announce rate changes and new fees. Many times your existing provider will layer on additional rate increases above the Interchange adjustments. Call another provider, fax in your merchant statement and have your account analyzed to “catch” these hidden rate increases.
Use an Interchange Pass Through Program
In order to pay the lowest fees when processing credit cards, a merchant’s goal is to pay as close to interchange as possible. A merchant account that uses an Interchange Pass Through pricing method applies processing fees by adding a small percentage to the actual Interchange Rate for every transaction and all dues and assessments are passed through directly at cost. This ensures that you only pay the true interchange rate in addition to a small mark-up that goes to their merchant service provider. Many times your existing provider will layer on additional rate increases above the Interchange adjustments. Call another provider, fax in your merchant statement and have your account analyzed to “catch” these hidden rate increases.
Avoid Downgrades Whenever Possible
A downgrade occurs when a transaction falls to a higher rate then what your business may qualify for. Whenever possible swipe the card at the point of sale device in order to reduce fraud and qualify for your lowest rate. For those of you that own some sort of on-site service or repair business, invest in either a wireless credit card processing terminal or look at some of the newer solutions such as RoamPay or PayWare mobile which allow you to use your mobile phone as a point of sale device.
Obtain the Correct Billing Information
In order to avoid downgrades for Card Not Present Transactions always obtain the correct billing information for the card being used. Credit Card Companies use an Address Verification Service (AVS) for Domestic Cards to determine if the billing information you enter matches the Card you are keying in. Always collect the Billing Address of the Card including the Postal Code as well as the Card Verification Code. The Card Code is the 3 Digit Number at the end of the Signature Panel on the back of the card for Visa, MasterCard and Discover. For American Express it is the 4 digit number on the front right hand side of the card above the last 5 digits of the card number.
Make Sure your Point of Sale Device is Programmed Properly
If your Point of Sale Device is not prompting you for Billing Address information as well as the Card Code, contact your Merchant Service Provider right away to get your device updated in order to pass that information to the Credit Card Companies. Another way transactions can downgrade is if you do not Settle or Batch your transactions within 24 Hours of obtaining an Authorization. Virtually all point of sale devices have the ability to Auto-Settle or Auto-Close at a specified time on a daily basis. If your device does not have that option enabled, contact your Merchant Service Provider right away to get your program updated.
Train Your Staff
If you are not the person directly responsible for processing credit cards at your company it is important that you properly train your staff to avoid downgrades. Routinely observe your cashiers, monitor transactions and carefully review your month end processing statements.
American Express Blue Credit Card – Review
The American Express Blue Credit Card is a cut above many of the other varieties of credit cards out on the market today. Absolutely loaded with advance features, it truly is a card for the tech savvy consumer. It truly is like no other credit card you will find in your wallet, and for many carrying the American Express Blue Credit Card allows them a certain piece of mind that they can’t find in any other card offering any low competitive interest rate. The American Express credit card comes with a low APR rate and no annual fee, but that is just the tip of the iceberg when it comes to reasons one should carry the American Express Blue Credit Card.
It has never been so simple and easy to manage your American Express Blue Credit Card account online. It is simple to view up-to-date billing information including payments made online and transaction charges 24/7. You can also receive automatic e-mail account alerts with your American Express Blue Credit Card. These alerts are offered to help you keep track of your account activity. The automatic e-mail updates help you avoid late payments, keep tabs of your credit line, and more.
Your Year-End Summary is also available online. The Year-End Summary of charges provides one with 24-hour access to an entire year’s worth of account information on your American Express Blue Credit Card. The useful and flexible features make organizing your personal expenses a breeze. You can even download a summary to print out. The Year-End Summary is an outstanding tool for getting your taxes ready and planning one’s budget.
The dedicated folks at American Express Blue Card customer service are there to handle your needs. Around the clock, 24/7 they are there for you. Simply call the number on the back of your American Express Blue Credit Card should you require assistance.
Around the clock, 24/7, American Express Customer Service is there to handle your needs with the kind of service that keeps cardmembers happy and loyal for years to come. For fast and speedy service, you can call the phone number on the back of your American Express Blue Credit Card.
The American Express Blue Credit Card also features a fee-free rewards program.You can easily earn points toward fantastic rewards from the places you like to buy from. Earning one point for virtually every dollar you charge with the American Express Blue Credit Card is easy. It is always easy to enroll in the membership rewards program for cardholders at the sign up page on the American Express website.
ExpressPay is also an exciting payment service you can access with your American Express Blue Credit Card account. ExpressPay makes it super easy to pay for all those everyday quick charges with a simple swipe. This feature of the American Express Blue Credit Card allows you make purchases without having to swipe your card. If in a dash to get somewhere all you have to do is hold up your American Express Blue Credit Card to the reader terminal next to the checkout. This allows you added safety as it exposes your details to far fewer strangers than that of many of the other credit cards. This process is already set up at thousands of locations nationwide. You can visit www.americanexpress.com/expresspay for more information.
[Top]Paul Chehade – Need Help With Debt Consolidation
Paul Chehade – Need Help With Debt Consolidation?
Do you want to take measures to reduce your debt? Are you at wits end from the pile of bills on your desk? If this sounds like you, there is help. Continue treading to learn more about how debt consolidation may work for your situation.
Prior to taking action, do a thorough review of your own credit record. You need to know what got you in your situation. This can help you to avoid making yourself go further into debt once debt consolidation has helped you.
Think about long-term ramifications when you choose a company for debt consolidation. You want to fix your current issues, but you need to know whether a company can work with you as time goes on, as well. Some offer services and classes to help you avoid needing such a loan again.
Are you the owner of a life insurance policy? You may wish to cash it in to pay off the debt. Talk to your insurance agent for more information. Sometimes you’re able to borrow some of what you’ve paid in.
At times, filing for bankruptcy is necessary. However, filing for bankruptcy will ruin your credit score. But, if you simply cannot repay your debts, your credit is probably already damaged. You can get your financial house in order by clearing the decks and starting fresh with a bankruptcy.
An offer for a new credit card that features a low interest rate can be a powerful asset in a plan to consolidate your debts. The interest rates they offer tend to go up once the initial period of low interest ends. You will have to pay the card off quickly before the interest rate goes up.
See a company comes up with the interest rate for your debt consolidation. Fixed interest rates are ideal. That means you will understand how much you will pay in total. Watch out for any debt consolidation program with adjustable rates. If the rates go up enough over the loan period, you may actually end up paying more than the original debt.
How have you accumulated your debt? You must decide this prior to assuming any consolidation loans. Even if you do get a debt consolidation loan, you may still find yourself in debt if you don’t fix the original problem. Therefore, discover the cause(s) of why you are in debt, resolve it, and then pay off your outstanding debts.
Have you considered debt management? If you pay your debts by managing your situation, you’ll be paying less in shorter period of time. There are many companies who will help you negotiate lower interest rates.
When you consolidate debt, your goal is to have a single payment that you can afford to pay every month. Typically, you should have a plan where your debts will be eliminated after 5 years. Some individuals chose shorter or longer plans for getting out of debt. You’ll have an end date for getting out of debt, so you’ll be able to stick with your goal more easily.
If you are looking for a debt consolidation company in Florida or Maryland, realize that they do not need to be licensed. If you live in one of these states, you might want to use a firm from another state which does require licensing. You have no legal protection if you choose a local firm.
There are many people who don’t have a proper understanding on how debt consolidation works and what it can do for you. It can be tough to go through, but easier than having the heavy burden of debt. Take the information in this article and use it to get back on the path of financial stability.
Paul Chehade
Solidary Foundation
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