This scenario occurs in nearly every business, but particularly in e-commerce businesses. A customer places an order for one or more items. Let’s say the total cost of the order is $179.50. You process their credit card and collect an authorization number. At some point before you’ve shipped the order and captured your payment, the customer calls back to make a change. Maybe they want to change the shipping address or method. Or maybe they want to change the order itself – more products, less products, or just different products. Regardless, they change something, and that changes the total cost of the order. You probably see this everyday, and you make the changes without ever complaining.

As you already know, the original authorization is good for any dollar amount up to, but not exceeding, $179.50. Any additions to the order that drive the price up will require you to get a new authorization. But what do you do when the changes cause the total cost to drop? If you’re like many merchants, you leave the authorization as-is, and you later collect the new total by manually entering the reduced dollar amount. After all, the original authorization is still valid for up to $179.50, right?

If your merchant account utilizes Cost Plus pricing, you’ve almost certainly seen line items that say “Electronic Interchange Reimbursement Fee” (EIRF) and the corresponding higher discount rates. If your merchant account utilizes 3-Tier or 4-Tier pricing, you may not have seen the term, but you’re still paying for it every month among those transactions downgraded to Non-Qualified.

The Electronic Interchange Reimbursement Fee is assessed when an authorization is settled for any amount other than the authorized amount. This usually occurs when the price dropped due to a change, and the original authorization was used to capture the funds. Let’s look at the $179.50 authorization again. Suppose the customer changed from Second Day to Ground shipping to save $10. When you capture $169.50, your transaction will be downgraded due to EIRF. Cost-Plus accounts will see the actual EIRF rate on their monthly statement. Those accounts with 3-Tier or 4-Tier rate structures will see the transaction downgraded to Non-Qualified. Either way, this will cost you an additional 1% of the total, on average. That means you’d pay about $1.70 more than necessary in fees, just because of the change in shipping rates.

“OK, so how can I avoid these additional charges?” you ask. It’s simple. Make it a habit (or better yet, make it a policy) to get a new authorization number whenever you change an order’s total. Yes, you’ll be charged an additional item fee, but that shouldn’t be more than $0.25. For large orders, in particular, the savings will really add up.

Was this cost saving tip news to you? Hopefully not! If your agent is watching your back, he/she should have already talked to you about it. If not, I’d appreciate the opportunity to earn your business. If you have questions about this or any other topic related to credit card processing,  please don’t hesitate to give me a call.

Contact Brooks Rohrer at Tailored Transactions at 1-888-669-1686 or email me directly at brohrer@tailoredtransactions.com

The proposed new Regulation II, Debit-Card Interchange Fees and Routing, establishes standards for determining whether a debit card interchange fee received by a card issuer is reasonable and proportional to the cost incurred by the issuer for the transaction.  These standards ostensibly do not apply to issuers that, together with their affiliates, have assets of less than $10B.  There are two alternative fee standards that would apply to all covered issuers:

• Based on each issuer’s costs, with a safer harbor (initially set at 7 cents per transaction) with a cap (initially set at 12 cents per transaction); and
• A stand-alone cap (initially set at 12 cents per transaction).

Under the first alternative, issuers that wish to assess an interchange fee in excess of 7 cents per transaction would need to demonstrate that their costs exceed the safe harbor amount by dividing the costs incurred by the issuer with respect to electronic debit transactions during the calendar year preceding the start of the implementation period, divided by the number of electronic debit transactions on which the issuer charged or received an interchange transaction fee during that calendar year, not to exceed 12 cents per transaction.  Costs are defined as only those that vary with the number of transactions sent to the issuer and that are attributable to:

• Receiving and processing requests for authorization of electronic debit transactions;
• Receiving and processing presentments and re-presentments of electronic debit transactions;
• Initiating, receiving, and processing charge-backs, adjustments, and similar transactions with respect to electronic debit transactions; and
• Transmitting or receiving funds for interbank settlement of electronic debit transactions; and posting electronic debit transactions to cardholder accounts, exclusive of fees charged by a payment card network with respect to an electronic debit transaction.

The proposed rule also prohibits ALL issuers and networks from restricting the number of networks over which debit card transactions may be processed.  Again, there are two alternative approaches:

• One alternative would require at least two unaffiliated networks per debit card
• The other would require at least two unaffiliated networks per debit card for each type of cardholder authorization method (such as signature or PIN).

Regardless of which alternative is decided upon, the issuers and networks would be prohibited from inhibiting a merchant’s ability to direct the routing of debit card transactions over any network that the issuer enabled to process them.

Not surprisingly, this proposed rule has encountered great resistance from credit unions and community banks.  In practice, the small institution (under $10B in assets) exemption is illusory.  It is unclear how merchants and card networks would distinguish between small and large institutions.  Would merchants deny debit cards issued by small institutions in favor of debit cards issued by large institutions with the knowledge that the large institutions are limited in their ability to charge higher interchange fees?  In a letter to the Federal Reserve Board, endorsed by the National Association of Federal Credit Unions and the Independent Community Bankers of America, the Financial Services Roundtable stated, “With virtually unprecedented unanimity, every major bank and credit union trade association is writing to express opposition to the rule proposed by the Board of Governors of the Federal Reserve System.”

In congressional testimony, Federal Reserve Chairman, Ben S. Bernanke, Federal Reserve Board of Governor, Sarah Bloom Baskin, and Federal Deposit Insurance Corporation Chairman, Sheila Bair, voiced concerns that could slow implementation of the rule.  Bernanke told the Senate Banking Committee that, “It is possible that because some merchants will reject more expensive cards from smaller institutions or because networks will not be willing to differentiate the interchange fee for issuers of different sizes, it is possible….that the interchange fees available to smaller institutions will be reduced to the same extent we would see for larger banks.”  Bair testified that debit transaction fees would likely force smaller banks and credit unions to make up for lost revenue with higher account fees for their customers and members.

In a letter to the Board, the American Bankers Association (“ABA”) joined every major bank and credit union trade association urging the Board to rewrite the proposed rule on debit card interchange fees.  The executive director of the ABA Card Policy Council, Kenneth J. Clayton, wrote, “…setting price caps is un-American and this is even worse.  Banks won’t even be able to cover their expenses and will lose money on every transaction.  If the rule isn’t changed, the result will be increased fees for bank customers to make up for lost interchange fees charged to retailers.”  This letter also pointed out that free and low-cost checking accounts supported by interchange fees—and that are considered very important to low and moderate income customers—will no longer be available, forcing many Americans out of the banking system.  Card networks have estimated that these interchange fee restrictions will reduce revenue by as much as 75%.

It is not clear what effect the opposition will have on the proposed rule change.  Will the cap be increased to some value more reasonable than 12 cents per transaction?  Possibly.  However, regardless of the outcome of the Board’s rulemaking, it is imperative for all financial institutions to contemplate how they will compensate for lost revenue through debit interchange fees.

For the guaranteed lowest credit card processing rates please visit our website at www.TailoredTransactions.com

You can also call us toll free at 1-800-669-1686 or email us at brohrer@tailoredtransactions.com

A Petroleum Merchant Account can meet all of these special processing requirements at minimal monthly cost to your business. It’s important to work with a merchant services provider who is experienced in setting up petroleum retailers.

Petroleum & Gas Station Interchange Rates

Both Visa and MasterCard has assigned the petroleum retail industry special interchange rates which apply to fuel sales and small ticket items within your convenience store. Here is a listing of some of those special interchange rates that are available to you when setup with a Petroleum Merchant Account

Visa Gas Station Debit – 0.90%
Visa Gas Station Credit – 1.00%
Visa Gas Station Signature Debit or Credit – 1.18%
Visa Commercial / Platinum Debit or Credit – 1.15%

MC Petroleum Service Station Debit – 0.70%
MC Petroleum Base Credit – 1.90%
MC Petroleum Enhanced Credit – 1.90%
MC Petroleum Base World – 2.00%
MC Petroleum Base World Elite – 2.00%
MC Petroleum High Value – 2.00%
MC Petroleum World Business – 2.2%
MC Petroleum World Elite Business – 2.27%
MC Petroleum World / World Elite Corporate – 2.05%

Pay-at-the-Pump & POS Payment Solutions For Your Fueling Center, Gas Station and C-Store

Tailored Transactions specializes in processing credit card and check payments for the petroleum retail industry. We will properly set-up your C-store, fueling center or gas station to start accepting ALL major debit and credit cards including Fleet cards such as Wright Express, Voyager, FleetOne and Fuelman. Our petroleum payment solutions will seamlessly integrate with the latest in pay-at-the-pump payment technology and software innovations. Your customers will have the ability to pay for their fuel or goods quickly, and at the lowest minimal processing cost.

The credit card terminal that we recommend for inside your convenience store or service station is the Verifone Vx570. It’s specifically design with your industry in mind. Here are some of the key benefits that it provides:

• Can accept all Fleet Cards (most terminals do not)
• Gift and Loyalty Card Compatible
• IP Compatible
• Fuel Price printed on customer receipt
• Bold Display – Easy to read menu
• Built-in Printer

We can sell you this state-of-the-art terminal at cost, with no mark-up! We also offer FREE shipping on all equipment purchases.

Our Payment Technology Protects You Better

Our powerful processing technology is ideally suited for petroleum retail merchants facing the latest winds of change. From the latest encryption regulations to fraud protection and check conversions, our Petroleum / Pay-At-The-Pump solutions have several programs in place to help you limit your liability and reduce the chances of fraudulent activity.

» Address Verification System (AVS)
AVS reduces fraud and charge backs at the pump by mandating that customers must enter their credit card billing zip codes. If a customer fails to enter the correct zip code or enters it wrong, he/she is directed inside the store to sign for the transaction and to show their card.

» Frequency Checking
This provides merchants with the ability to choose the number of times from one to five, a credit card can be used at the pump within a 24 hour period. If a cardholder reaches his or her limit, he/she is directed inside to sign for their transaction and to show their card.

Datawire Highspeed Internet Communication

We provide a cost effective IP solution to the petroleum industry for pay-at-the-pump credit card processing utilizing all major networks and platforms including Buypass and Paymentech. Internet-based transport is now seen as the preferred alternative to various traditional transport networks (dial-up, leased lines, VSAT, private networks) that have been the standard for some many years.

» Advantages of IP Transport Solutions:

• High Speed secure transactions at a fraction of the cost of satellite
• Ongoing enhancements to Internet backbones enhance end user service levels and up-time.
• Automatic rollover to a speedy dial back-up line.
• Ability to accept Loyalty and Rewards card transactions in real-time.

» We Are Certified With:

• Verifone Ruby
• Verifone Topaz / Saphire
• Gilbarco G-Site
• Gilbarco Passport
• Wayne Nucleus

If you are currently using a different type of platform or hardware than what is listed here. Please contact us anyways if interested, we may still be able to help you!

Better Security – Lower Cost – Higher Profit Margins

Because of the thin margins within the petroleum retail  industry, it is important for you to select a qualified merchant services provider that truly understands both your industry and the technology involved with it. Tailored Transactions processes for hundreds of petroleum retailers nationwide, we have the knowledge and technology needed to offer your fueling center or C-store superior service at minimal costs.

Visit Tailored Transactions online to learn more about setting up a Petroleum Merchant Account:  www.tailoredtransactions.com/petroleum

You can also contact their office directly toll free at 888-669-1686 or email them info@tailoredtransactions.com

Basically they want public utility companies to start pushing their customer base to pay their utility bills on credit cards more.  Whenever Visa and MasterCard want to grow in a particular industry segment, they offer reduced interchange fees in return for the hopes that those businesses will push for higher more credit card usage. They believe this to be a win-win situation for all parties involved. One thing is for sure, waste disposal, garbage disposal, and roll-off companies can now take advantage of extremely low processing rates, meaning minimal processing fees each month for their business.

Waste & Garbage Disposal Businesses Are Now Considered To Be A Public Utility

Waste Disposal and Garbage Disposal companies are now consider to be a public utility by Visa, MasterCard and Discover. This new classification allows your sanitation or roll-off business to receive the lowest credit card processing rates allowed to any industry within the United States. Y0u will need a merchant services provider who understands how to correctly register and setup your business with a Utility Merchant Account, so that you are able to take full advantage of these special reduced rates and fees. A Utility merchant is able to receive a processing fee of less than 1/2 percent. There is an additional registration process that is required during the process of approving your new Utility merchant account. These low utility rates are not just something that can simply be assign to your company, it requires special setup on the part of your processor.

How Do You Know If Your Business Qualifies As A Public Utility?

The criteria for your sanitation or roll-off company to be considered a Public Utility is that your business must meet just one of the following four guidelines:

• Scheduled Daily or Weekly Residential Trash Pickup
• Scheduled Daily or Weekly Rubbish Removal
• Scheduled Daily or Weekly Roll-Off service
• Scheduled Daily or Weekly Container Service (Removal is required within that same week)

If your business meets any one of the above criteria, you then qualify for a Utility merchant account and can receive this special preferred pricing.

Utility Pricing: All Your Business Pays Is A Set Transaction Fee, There Is No Fixed Percentage Rate!

The most important benefit to understand about this program is that there is NO FIXED percentage rate associated with utility credit card transactions. Your only processing cost is the transaction fees listed below for each card type. You only pay this fee regardless of the dollar amount of the sale.

Visa Debit – $0.75
Visa Credit – $0.75
Visa Commercial – $1.50

MC Debit – $0.45
MC Credit – $0.65
MC Commercial -$1.50

Discover Debit – $0.75
Discover Credit – $0.75
Discover Commercial – Normal Rate

These rates apply to both swiped and keyed-in transactions.

Example: If you were to accept a Visa consumer credit card payment in the amount of $1,000, all you pay is $0.75 cents in a processing fee. That’s it!

Tailored Transactions will provide your waste services business with our expert industry knowledge combined with the necessary tools to make accepting payments easier and more affordable. You will keep your incoming utility payments flowing smoothly by offering your customers multiple payment options, all the while guaranteeing that you are paying minimal processing costs. Our Waste Services Payment Solutions are built with the main objective of saving your business both time and money each month. Your success is our success!

Please visit Tailored Transactions online to learn more:  http://www.tailoredtransactions.com/waste_services

You can also call our office directly toll free at 888.669.1686 or send us an email at brohrer@tailoredtransactions.com

So now that you’re ready to start accepting credit cards, the question remains, how do you sort through all the different options in order to get started?

At Tailored Transactions, we believe that the smartest business decision is an informed one, and to that end we are committed to teaching you everything we know about how to accept credit cards payments securely and at the lowest possible monthly cost to your business.

How to Accept Credit Cards

First, you’re going to need to setup a merchant account. This is a financial account established solely for the purpose of accepting credit card and debit card payments, and it is set up entirely separate from your personal bank account. A merchant account also serves as an agreement between your business, a merchant bank and a payment processor for the settlement of credit card and/or debit card transactions.

To set up your new merchant account, you will need to choose a payment processor, like Tailored Transactions. Now most banks also offer merchant services, and your local bank if they haven’t already will probably try an persuade your business to use them since you already do your banking there. But their application process is much more rigid with more stipulations usually built into their contracts. They do not offer all of the options and benefits of a payment processing firm like us. And lastly but most important, their rates will always be higher because they are the 3rd party within the payment processing industry. They all have a processor just like us who actually handles their processing for them, while they cross-sell the services as their own. So they have to mark-up their rates and fees in order to make a profit on them. They are the “middle-men”.

Once your merchant account is established, you need the proper hardware or software to process credit card payments. Your options depend largely on the type(s) of business you operate and how you will be accepting these payments. Whether they will be in person, over the telephone or online through a website.

Point of Sale (POS) Terminal

This is most common method for accepting credit cards in a retail, or face to face, environment where the credit card is present. There is a wide array of POS terminals by manufacturers like Verifone and Hypercom from which to choose. If those names sound familiar, it’s likely you see one or both everyday when you go into a store or gas station. Tailored Transactions can offer your business a wide range of counter-top terminal solutions including two Free Terminal Packages which you can learn more about by visiting our Terminal Equipment Page.

Internet

This is the most common method for accepting card not present (CNP) credit card transactions, especially for E-commerce or MOTO businesses. It empowers you to process transactions right through website via a shopping cart and payment gateway, or from your desktop by transforming your PC or laptop into a “virtual terminal.” You can learn more on how we can setup your business in this manner by visiting our Internet Merchant Account page on our website. There you will find information on the multiple payment gateway / virtual terminal packages that we offer. All our Internet solutions guarantee secure online processing at the lowest available monthly cost.

Wireless

This is the perfect credit card processing solution for mobile merchants. Especially those who frequent trade shows and conventions. A Wireless Merchant Account can offer your business different choices on how you can accept credit card payments. Tailored Transactions offers a free wireless terminal, the Nurit 8400, which works just like a counter-top terminal and you are able to take it just about anywhere as it works off of our nationwide GPRS network.  It’s also possible to transform your smartphone or mobile device into a wireless terminal with a simple app. Our application is compatible with the Iphone, Android and BlackBerry opertating systems. And lastly, you can also use a payment gateway and run your payments through your laptop or I-pad.

Software

Credit card processing software makes all types of transactions effortless and easy to track. Whether a face-to-face, web or wireless transaction, processing software makes accepting credit cards simple. One of our software offerings is our Exclusive Intuit QuickBooks Plugin which will allow you to process credit card and check payments right through QuickBooks software. There is no additional uploading or downloading of  of files needed, all transactions are ran directly through your QuickBooks interface and allow for automatic population of data and client information fields.

Phone Authorizations

If you work out of your home, or if your operation just doesn’t have a heavy sales volume, you still want your transactions to be easy, reliable and secure. Phone processing is the way to go. Maybe you only accept a hand full of credit card payments each month, you can utilize your telephone and simply run voice authorizations to complete your transactions. Our customer service department is available 24/7 and can help you in this manner.

Now that you’re informed, why not contact Tailored Transactions today for a free rate quote?! Let us show you just how little it will cost your business to start accepting credit card payments.

You can visit us online at www.TailoredTransactions.com or you can call our office directly toll free at 888-669-1686

Be ready to grow your business by accepting credit cards in as little as 24 hours with Tailored Transactions!

One of the major monthly expenses that many property management companies find themselves having, is their processing fees from the credit card and check payments they accept from their tenants. Fortunately, this is one expense that can be dramatically reduced while not sacrificing quality of service.

Tailored Transactions has specialized in processing credit card and check payments for the Property Management industry for more than 11 years. We have the industry knowledge and experience to ensure that your company’s merchant account is properly setup to take advantage of the preferred programs that are available to you. Below we explain some of those programs and how they can help reduce your monthly credit card processing fees by up to 50% each month.

MasterCard Now Offers A Special Processing Rate Of Only 1.1% On All Rent & Lease Credit Card Payments

Back in the Spring of 2008, MasterCard created a special interchange category for the Property Management industry called the Real Estate Credit Classification. This new program offers property managerment companies a special low processing rate of only 1.1%, on all consumer debit and credit card transactions for both short-term and long-term rent and lease payments. This new low rate also applies to all application or security credit card payments.

Cost-Plus Pricing Is A Must For Property Managers

Convenience Fees Will Help Offset A Majority Of Your Processing Costs

The Property Management industry is only one of a select few industry’s that is allowed by Visa and MasterCard to charge a convenience fee on credit card transactions. By properly setting up and charging this fee, you can offset roughly 80-85% of your overall monthly processing costs, tremendously reducing your out-of-pocket expense.

There are some specific guidelines that you must adhere to in order to stay in compliance. Tailored Transactions will work with your company to help properly setup and implement this convenience fee, and ensure that it is set for the right dollar amount to offset as much of your processing costs as possible each month.

Free Credit Card Terminal Packages & Multiple Payment Gateway Options From Which You Can Choose

Your property management company will have it’s choice from our multiple processing equipment and software packages.

Free Terminal Package # 1 – Hypercom T4210 High Speed Terminal Click Here

Free Terminal Package # 2 -Hypercom T7 Plus Click Here

Available Payment Gateway / Virtual Terminal Options:

• Authorize.net (Free Setup – $99.00 Value)
• Revolution Payment Gateway (All-In-One Payment Solution)
• eProcessing Network
• IC Verify
• Skipjack
• PC Charge
• Virtual Merchant

If you are interested in using a different type of payment gateway, simply let us know. We are compatible with most all mainstream payment gateway companies.

We Can Offer Your Property Management Company The Keys To Lower Fees And More Convenience!

With our customized property management payment solutions, you will be able to accept application and rent payments from your tenants in person, online and over the phone, with ease. You will have the peace of mind of knowing that your monthly processing costs are minimal, with the convenience and time savings benefits that our processing equipment packages offer. We want your main concern to be managing your properties, not your payments.

You can visit Tailored Transactions online to view all of our Property Management solutions here: www.tailoredtransactions.com/property_management.html

You can also contact our office directly and speak with one of our Merchant Business Consultants by calling toll free (888)-669-1686

We look forward to speaking with you and Earning your business!

Why Do You Need A Level 3 Merchant Account?

Purchasing cards (p-cards) are issued to large corporations and government agencies as their main method for purchasing products, goods and services. Purchasing cards possess more features and capabilities than standard consumer credit cards. P-card transactions are estimated to reach $200 Billion in 2011, up from $110 Billion in 2005.

Think your business is too small to land a lucrative government contract? Think again. Almost a quarter of all federal contracts and 40% of all subcontracts go to small businesses. Consider that more than 350 federal entities participate in GSA’s SmartPay program— using purchasing cards (p-cards) to make purchases of goods and services needed for their operations, spending more than $27 billion on over 90 million transactions in fiscal year 2007. Purchasing cards allow them to make purchases quickly and more conveniently than previously used methods of purchasing. Because of these benefits, more agencies are attempting to shift purchasing to vendors that accept these type of credit cards. This trend  is expected to continue grow well into the future meaning more and more sales opportunities for your business.

Corporations and businesses are also aggressively adopting purchasing, corporate and business credit cards to help reduce administrative expenses and eliminate unneeded paperwork and additional man hours.

Level 3 Merchant Account Benefits:

The benefits of  setting up a Level 3 Merchant Account are many for your business. By accepting  p-cards as payment, you will improve your profitability by reducing payment time from 30-60 days to only 24-48 hours.  Reduce collection expenses and reduce the cost of floating funds until payments are received.  Qualifying for Level 3 processing rates will reduce processing costs significantly over traditional retail and MOTO merchant processing rates and fees. Having Level 3 processing will also increase your competitiveness in winning new federal government contracts and may even be a requirement in order to do so.

Level 3 Interchange

For the card types that can qualify for Level 3, address verification, invoice number, tax amount, and line item detail fields like product code, item description, item quantity, unit of measure and extended item amount must be submitted with the standard sales information.

MasterCard and Visa Interchange differ for Level 3 in both rate and qualification requirements. With Visa commercial Interchange, submitting tax amount data is important to qualify for Level 2 rates. For tax exempt transactions, Visa offers Level 3 and B2B Interchange for 35 select industry categories as the next best rate. MasterCard’s commercial Level 3 program is know as Data Rate III and these Interchange rates are available for Corporate, Business, Purchasing, Fleet, World Business, World Elite Business, World Corporate, World Elite Corporate charge types. MasterCard’s Interchange includes a Corporate Large Ticket program.

Two Things Are Key For Properly Setting Up A Level 3 Merchant Account

1. Insist on an Interchange Pass-Through pricing structure, without it you will not be able to obtain all the incentives rates available.
2. Make sure you are using a secure, PCI compliant Level 3 payment processing technology. This is why it is crucial for you to select an experience merchant services provider who understands Level 3 processing.

While there are many things to consider, these two are crucial when considering a Level 3 Merchant account.

Level 3 Payment Processing Technology

Standard counter-top credit card terminals are not capable of supporting Level 3. Payment solutions that support Level 3 processing include payment software that can be  installed on a PC or a virtual terminal and payment gateway that can be accessed through a secure web site application. I recommend the virtual software to avoid having card holder data stored on your local PC. With evolving Level 3 requirements, the virtual software is always the most updated and secure option and multiple users can access the service on any computer with Internet access.

There are multiple choices from which your company or business can choose according to your preferences and cost. When you speak with one of our merchant consultants, ask about your choices and the differences in each.

Remember the important thing is working with a merchant services provider with experience and know how in setting up a Level 3 merchant account. Tailored Transactions has over 10 years of experience working closely in the B2G industry and processing government purchasing card payments. Let us help your business setup a Level 3 Merchant Account, saving you both money and time and allowing you the opportunity to secure more lucrative government contracts in the future.

Visit Tailored Transactions online at www.TailoredTransactions.com or call their offices toll free at 888-669-1686. You can also email then for more information at info@tailoredtransactions.com

As a B2B or B2G business, you will find that business, purchasing and government (GSA) credit cards makeup a majority of your overall credit card sales. These credit card types are rapidly replacing the more inefficient and expensive paper purchase orders. Commercial credit card usage is estimated to top $190 Billion in 2011 according to a recent Federal Reserve Study.

Setting up a B2B merchant account to correctly accept commercial and government credit card payments is much different than setting up a normal Retail or MOTO merchant account. Without the correct rate structure and payment processing technology in place, accepting these card types as payment will become extremely costly to your business.

Avoid Tiered Pricing And Bill-Back Pricing

The reason behind the much higher processing rates and fees commonly associated with keyed-in and commercial credit card transactions, is mainly due to having your merchant account incorrectly setup on either a “Multi-Tiered” or “Bill-Back” pricing plan. Both of these pricing methods are wrong and very costly for any business within the B2B or B2G industry’s. The reason is that they will cause a majority of your credit card transactions to downgrade to much higher processing rates. This in turn will cost your business more money in processing fees each month.

Visa’s New B2B Rate

In the fall of 2007, Visa created a special B2B interchange category that offers a low processing rate of only 2.1% on all Visa commercial, purchasing and government credit card transactions for selected industry’s. This B2B rate is well over one-half of a percent lower than the normal Level 1 rates offered to other industry’s. The list of current eligible industry types can be found by Clicking Here. This special B2B rate alone will immediately lower your monthly processing fees by an average of 15-20%.

Level 2 Processing

Level 2 processing will be added in addition to Cost-Plus pricing to your merchant account. It requires special setup of your credit card terminal or payment gateway, so that it prompts for additional required Level 2 data when accepting commercial and government credit cards. This information makes the transaction more secure in the eyes of the card issuing companies, which allows your business to receive significantly lower interchange rates. Lower rates means lower processing fees.

The difference between Level 1 and Level 2 interchange rates can range from .35% – 1.2% depending on the card and transaction type.

Cost-Plus Pricing

Cost-Plus Pricing will give your company the ability to process ALL credit card and transaction types at their actual preset interchange rates. Interchange is the preset base rate (cost) by Visa, MasterCard and Discover for each card and transaction type. There are currently over 195+ interchange rates between Visa, MC and Discover.

Our processing rate is then applied as a flat fee on top across the board. We will charge you the same processing rate (basis points) regardless of the card or transaction type. This is the reason our program is named Cost-Plus Pricing

Let The B2B Payment Experts Help Your Business!

Tailored Transactions has a wealth of experience in processing payments for the B2B and B2G industry. We specialize in correctly structuring your merchant account to take full advantage of all the preferred pricing that is available from Visa, MC and Discover.

Visit us online at www.tailoredtransactions.com/b2b_b2g or call our office directly at 888-669-1686 to learn more on getting setting up with a B2B Merchant Account.

For example, you may have a base discount rate of 1.64%, but with downgrades and surcharges added in, you may be paying well over 2.40% and that’s just on consumer credit cards.  (Total Monthly Fees divided by Total Visa/MC Monthly volume (hit % key) equals your True Effective Rate)

How we lower your “Effective Rate” and save you money:

We offer Straight Pass-Through Pricing at True Bank Cost on all “Back End Surcharges”: Commercial Cards, Rewards Cards, Debit Cards, Keyed Transactions, (Mid-Qual, Non-Qual) etc.

None of these transactions come in at the “advertised” base discount rate! That initial “low” base rate they approach you with is nothing more than “bait” to lure you in, only to overcharge you on the backend with higher fees. At least 80% of all merchants don’t currently have Straight Pass-Through Pricing on these items, because most all processors like to make additional profit here.

Bottom Line: By applying Straight Pass Through at True Bank Cost to your merchant account, we completely remove your Hidden Fees. This can mean $100’s to $1000’s of dollars per month per location in savings for merchants doing 15k and up in monthly Visa/MC volume.

It’s pretty simple. A Merchant will either choose to have Straight Pass Through, or they will choose to have hidden fees attached to their merchant account. The choice is clear…!

Contact Tailored Transactions today to learn more on their Cost-Plus Pricing program. It is Guaranteed to save your business money each month.
Visit us online at www.TailoredTransactions.com or call our office direct  toll free at 888-669-1686

An estimated 10,000 credit card or debit card transactions occur around the world, every second of the day. In 1989, credit card sales totaled $69 billion a year. Flash forward to 2006, and credit card sales were more than $1.8 trillion that year. Today, that number is even higher, with more than $2.5 trillion in transactions each year. What business owner does not want their fair share of that $2.5-trillion pie?

Your customers want to be able to “charge it.”  Here’s some reasons why:

• They can stay home and shop, avoiding crowds, especially during the holiday season.
• Credit cards eliminate the risk of carrying cash when they go out.
• By using a credit card and paying it off over time, customers can improve their credit scores and boost their credit limits.
• A responsible credit card user knows his limit. It is printed on the credit card statement every month. There is no surprise how much you have spent or have left to spend.
• Customers can track their expenses with credit cards.
• Credit cards are convenient. If customers pay them off each month, the convenience comes at no expense. And good customers may even qualify for special rewards or cash back, based on use.
• Credit cards afford people money they may not have on hand to pay for goods they want immediately. Of course, this is not good when people get so deep in debt they cannot escape, but the system works to the customers’ benefit when used appropriately.
• Credit cards come with free record keeping, free reward points and other features. They also come with safeguards, such as insurance on stolen purchases, life insurance for travel paid by credit card and extended warranties on purchases made with a credit card.

As you can see there are many reasons that your customers not only want but need to be able to pay with their credit or debit card for your goods or services.

Benefit’s For The Merchant

Credit card payments are also good for the merchant. Studies show that most people will spend more money than planned when they can pay their bills with a credit card instead of cash. An easy payment system means your customers stand ready to give you extra business.

One way you can entice customers is to offer a rewards card. Smart business owners need to be ready to tap into this market where 60 percent of consumers go out of their way to use a rewards card. Using the card allows them to accumulate points with every dollar they spend. They can build toward free air miles, deep discounts, or free merchandise.

There are other, more technical ways you, the merchant, can make it easy for your customers to pay. These practices are made available through the right merchant account, such as the ones that offer:

• A quick turnaround on credit and debit authorizations.
• A networked, integrated PC or stand-alone system that offers flexibility.
• One-key re-authorization.
• A reporting package that is specifically designed for your retail business.

The benefits of your merchant account go beyond those just for your customers, there are many for you the business owner as well.

Some of the equipment you’ll want to use includes:

• A check imager that converts checks to secure electronic documents.
• A dial-up credit card terminal that will process all card types, complete the transaction and authorize the sale.
• Internet-connected terminals, or an integrated smart card reader, that has the same processing capabilities.
• A PIN pad that meets PCI security standards and works with your processing equipment
• Software that support all levels of purchasing cards.
• “Tap and Go” systems that make use of new technologies, including radio frequency-based, contactless payments using a credit card, key fob or cell phone.
• A wireless, portable payment device that gives you reliable and secure transaction processing.

The benefits of establishing a merchant services account for your business are multitudinous, for both your customers and your bottom line. Find the program that is right for you now. At Tailored Transactions we customize our payment solutions to meet your individual business needs and requirements. From credit card processing to electronic check conversion, from gift cards to merchant cash advances, we offer many different solutions to help your business not only save money but grow and prosper.

You can visit us online at www.TailoredTransactions.com or you can call our office toll free at 888-669-1686