What is Digg?38 Comments
- dalaeth, on 10/10/2007, -1/+8If you aren't paying attention to the details of running your business, then you are giving your money away.
If you only process a couple hundred transactions a day, it may not amount to much, but when you scale up that quickly changes. Let's say you're an online travel agency. Your average order is about $300, your daily volume is about 35K orders, and half of those do not qualify for the lower rate. That .83% translates into just over $43K, PER DAY... almost $16M/year. I'm cheap enough to notice that kinda of money. You?
The point he was making isn't that the charge is THERE, it's that it's hidden away. Is that the kind of behavior you want from the people you're trusting your money to? - Duncan3, on 10/10/2007, -0/+4So who is good?
- bratpack8, on 10/10/2007, -6/+10Why does everyone go beg the government to handle their fights? Go complain to the airline, and start refusing to fly these airlines. That's all we need, the morons in DC to try and fix something else that they will completely mangle.
- shmatt, on 10/10/2007, -0/+3@ryancalderoni
How utterly clueless.. so what do you make a year, moneybags? Tell you what, how about you give away 1% percent of your salary and see if you miss it. I presume from your comment you (or your parents) are loaded... let's say you make $100K. You're losin a thousand dollars my man.. is that being cheap? Give it to me then - Nathaner, on 10/10/2007, -0/+3Very few businesses can clear 43k/day and the ones that do have accounting departments to make sure things like that don't happen.
- shmatt, on 10/10/2007, -0/+2I really wonder about people who instantly jump to the defense of a faceless corporate entitiy. Do you need to put other people down, or are you an industry shill?
To answer your questioin, RTFA. If you did, do it again. The problem with these "T's and C's" is that they're deliberately non-specific. Like this here:
"…transactions that do not meet Visa/MC requirements for best interchange program will be charged a 'non-qualified' rate of 3.27%"
Well WHAT THE ***** ARE YOUR REQUIREMENTS then? Seems like some BS they made up to use their special rate. - Wacer, on 10/10/2007, -0/+2The whole credit card scam is for banks to rob people and businesses to steal as well.
- emjaymj, on 10/10/2007, -2/+3When your online travel agency brings in $4Billion/year, then you'll have a point :)
- vastrightwing, on 10/10/2007, -0/+1Let’s face it, many businesses rely on the consumer not being informed. Buyer be aware. Unfortunately you must scrutinize everyone you do business with. It’s a hassle, but I find myself reading the fine print on everything I buy. Latest examples are gym memberships and security systems. By not fully reading the contracts, you miss expensive things like multi year/auto renew contracts, rate changes, auto bank debits and other nasty things.
My rule is to never agree to do business with anyone until after I have read and understood the contract. This is time consuming in the beginning, but well worth it in the end. - Error601, on 10/10/2007, -2/+3Can't answer perfectly logical question that violates victim excuse...dig down.
- oMeSSiaHo, on 10/10/2007, -2/+3So the company says that they will charge more and braintree is saying they lie?!
You can satisfy Rosie O'donell for an hour with this spam.
I'm sorry if that wasnt funny, I've lost the ability to tell. =( - shmatt, on 10/10/2007, -1/+2what the hell are you talking about. the article doesn't ask anyone in DC to fix anything. But you're right, consumers allow themselves to be ***** in the ass. That's why we get to choose from At&t, verizon, sprint and tmobile. They ALL suck and treat you like *****.
- Ubermann, on 10/10/2007, -1/+2Folks - it all comes down to Visa and MasterCard Interchange Fees. Look them up one day - there are over 300 fee categories. Only a small handful can be labeled as "qualified", the remainder are all non-qual. Rewards cards is the new one - all rewards cards downgrade, because interchange fees are higher. 100% of Interchange Fees are paid to the ISSUING BANK - the bank that provides you with your credit card! So, they make money on cardholder interests AND interchange - nice.
- abw80, on 10/10/2007, -3/+4LMAO this ***** is great, I used to own my own business selling processing. That guy is saying everything EVERY merchant does. the industry has a nasty rep. It's easy to exploit that. I used to tell them all that, they feel they are informed, then the banks ***** them. But even with as honest as I did try to run my business, it's damn hard not to have the banks who really supply the rates not ***** them.
- darkciti2, on 10/10/2007, -0/+1authorize.net
- Nathaner, on 10/10/2007, -0/+1Non-Quals usually come up when the merchant doesn't settle their transactions for a few days and the approval codes expire. Also there are some rewards cards that also don't qualify for basic interchange because of the costs incurred to give back rewards.
- Fritzed, on 10/10/2007, -0/+1There is a reason that non-qualified transactions are cheaper, they are more secure. This is good for us consumers to. I like the idea that ecommerce and mail order merchants must do address verification and keep appropriate records. I don't want them accepting payment from someone based only on the fact that they have a valid card number.
If merchants collect the appropriate information, than they can easily have 90% or more of their transactions be qualified in most settings. If a merchant has over 80% unqualified transactions as this author suggests, than there is something wrong with their business model. - statc, on 10/10/2007, -0/+1I had an online tshirt store a few years ago and I must say having to pay paypal fees is way better than getting raped in 6 month contract with $50 fee(statement, gateway, processing) plus the 2.5% transaction fee from a merchant account.
- Nathaner, on 10/10/2007, -0/+1Do you mean every PROCESSOR? Because the one I work for takes on average only .8% while visa/mastercard takes the other ~1.6%
- inactive, on 10/10/2007, -0/+1"anywhere from 10% to 80% of your transactions are going to be Non Qualified and fall into the 3.27% rate category"
Perhaps, but there are actual REASONS why your transactions will be downgraded to Mid or Non Qualified.
The only way for a transaction to be rated qualified is to have the card present, swiped, and it must be a traditional consumer (not corporate) card that IS NOT a rewards card.
If you key in a card, that's Mid Qualified. If you swipe a rewards card, that's mid qualified.
If you swipe a corporate card, that's Non Qualified. If you incorrectly key in a card or don't verify the address, that will also cause the transaction to downgrade to Non-Qualified.
So stating that anywhere between 10 and 80% of your transactions will be Non-Qualified is absurd, because it doesn't say anything. Some merchants sell primarily to businesses. In those cases they will be running corporate cards, therefore they will incur the downgraded rate of non-qualified.
The problem is two fold. Merchants don't ask enough questions. Processors know this, and use it to their advantage. Listen, if you want to buy a bridge from me, I'll sell you one. But don't blame me when you don't ask simple questions.
What's this rate? Why would I get this rate?
Take his answers and ask other processors. Then take those answers and ask another merchant in a similar business and compare their current rates. It's called doing your homework.
Quit being a baby. You're not going to get your hand held through life. Learn it. - dlsteve, on 10/10/2007, -0/+0I find it funny that costo doesn't even use the credit card service they provide, due to the fact that they charge to much. We had to work out a special deal with AMEX to even take them.
- inactive, on 10/10/2007, -0/+0.
- payment, on 05/20/2008, -0/+0It just shows how careful you need to be when opening up a merchant account. You can always try ImGlobal Solutions - www.imglobalsolutions.com since they actually show you each qualified and non-qualified rate you will receive. We all know how frustrating it can be when you find all of those other hidden fees. Good luck!
- inactive, on 10/10/2007, -0/+0Well WHAT THE ***** ARE YOUR REQUIREMENTS then?
They don't list the requirements. It's an ad for rates, not an explanaiton of how the Interchange and Assessment System works.
Get a ***** clue. You don't know what you're talking about. - ryancalderoni, on 10/10/2007, -6/+6proof you are cheap enough to notice, or poor enough to care
- PatrickBrown, on 10/10/2007, -1/+1You say that, but I find very few people willing to take this into practice.
It comes down to: you complain to the company and nothing happens (you are 1 customer).
Then others will suggest: Stop being a customer. I have done this for a variety of businesses yet I know of no one else (personally) that does this. At the same time, I find many, many people preaching the same philosophy but not acting on it themselves. When confronted, they say "I have no choice."
For this reason, government exists. Government is there for the people. It is in fact NOT what you can do for your country but what your country can do for you. I would rather have my legislator take real action than to simply boycott the business (where I am often alone in my effort).
The problem of course occurs when your legislator does not act. Unfortunately, the only response to this is in fact the same original response that you suggested be offered to the corporations: complain. Unfortunately, you are complaining to the people that have job security (90% incumbency!), accept money from the businesses in question, and do not like the political system to be changed (both Republicans and Democrats want the election system to remain in place as it provides each party guaranteed elections with no threat from third parties).
For these reasons, the US has a very stable government. However, the same reasons also cause the United States to have less of a democracy compared to much of Europe. Change cannot be initiated because of the current system wishing to maintain its power (two parties wishing to dictate government) and the plurality has a life style that gives the populace a general apathy towards real democracy. - YoColdRain, on 10/10/2007, -0/+0i'll second that!
- inactive, on 10/10/2007, -0/+0Third dumbest thing I've heard all day.
- inactive, on 10/10/2007, -0/+0OR, learn about the service you're buying so you can make an INFORMATIVE decision.
- inactive, on 10/10/2007, -0/+0Interchange & Assessments are 1.64% + $.1
Interchange + Assessments = COST
That's what processors are charged by Visa/MasterCard and the Issuing Bank for processing a credit card. It's impossible for your employer to charge .8 %.
Unless they operate at a loss. - litecandles, on 10/10/2007, -0/+0You didn't get raped. You just didn't read the agreement carefully.
Rape is an act of power and the victim has NO control over it.
I don't wish you to be raped or a loved one to be raped either, but coming from a victim, you comparison is rude and wrong. - inactive, on 10/10/2007, -0/+0First Data Corporation. They are the biggest on the planet. They process for 75 of the forbes 100. (McDonalds, Walmart, Starbucks_ etc.
- Scooby420, on 10/10/2007, -1/+0Stop complaining and find another company to handle your transactions.
- GoldMaster, on 10/10/2007, -1/+0Find out what Social News Sites are discussing this post over at metagg.com…
- torched, on 10/10/2007, -2/+1Consider it punishment for not paying in cash.
- Error601, on 10/10/2007, -11/+8How can it be hiding if it's right there in the agreement?
- petermcneely, on 10/10/2007, -9/+4I highly recommend Braintree (the site owner) for online payment processing. Very, very good service and clear pricing in a horrible industry.
- rcollamore, on 10/10/2007, -7/+1This is very common folks. Costco and Quick Books are ISO (Independent Sales Offices). They make their money by "giving" you the qualified rate very cheap, but they kill you on downgrades. If you're a business owner and interested in honest processing, email me: rcollamore@gmail.com
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