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Credit Card Processing

Rolling Reserve

by Ben Dwyer

For example: If your merchant account has a 5% rolling reserve for 18 months, the processor will withhold 5% of your gross sales. The 5% of sales that are withheld will not be accessible to you for a year and a half. Why are rolling reserves imposed? Transactions Affected by Rolling Reserves Effects of a […]

A rolling reserve allows a credit card processor to withhold a pre-specified percentage of your gross sales. The processor deposits the held funds into a non-interest bearing account for a pre-determined period of time that is specified in your merchant processing agreement.

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Credit Card Processing

Best Credit Card Processing: Define, Learn, Search

by Ben Dwyer

Define Best: What’s Really Important Best Rates — A Big Mistake Learn the Fundamentals of Processing Focus on Markup Pricing Model Terms Search Define Best: What’s Really Important The problem with the word “best” is that it’s subjective. Its meaning is unique to the person using it, and when it comes to credit card processing, […]

You won’t find the best credit card processing unless you define what “best” means for your business, and then learn the fundamentals of processing before setting out in search of a processor.

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Credit Card Processing

Credit Card Processing Companies: A Who’s Who

by Ben Dwyer

This article will give a sense of the players involved in keeping this system running smoothly, and shed some light on what credit card processing fees actually pay for. Card Brands (Visa/Mastercard) Issuing and Acquiring Banks Credit Card Processors/Merchant Acquirers Independent Sales Organizations (ISOs) & Member Service Providers (MSPs) Aggregators Integrated Software Vendors Card Brands […]

From a business’s point of view, credit card processing is a straightforward system — swipe, sign, and the customer leaves with their purchase. However, making a customer’s experience so hassle-free requires a complex array of companies working behind the scenes to ensure that credit card payments are processed securely and efficiently.

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Credit Card Processing

Merchant Category Code: Reporting & Rates

by Ben Dwyer

We will discuss the finer points of MCCs below. What is a merchant category code? How are merchant category codes used? For HSA and FSA Card Acceptance For Consumers Why are merchant category codes important? Can I get set up with a different MCC to get lower rates? MasterCard Merchant Category Codes Merchant Category Code List […]

Originally created in 2004 to streamline 1099 reporting, merchant category codes are now used for a number of different purposes. Of particular importance to businesses is a merchant category code’s impact on interchange fees charged by issuing banks.

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Credit Card Processing

What is a Monthly Minimum Fee?

by Ben Dwyer

A merchant account monthly minimum fee really isn’t a fee by itself — it’s more like a benchmark.

A monthly minimum fee is one of the more confusing credit card processing fees because it’s not really a fee at all. A monthly minimum is more accurately described as a benchmark that may result in a fee, rather than as a fee by itself.

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Credit Card Processing

Basis Points – The Basis for Fees

by Ben Dwyer

This article explains what a basis point is, how to calculate fees using basis points, and finally the role basis points play in credit card processing — specifically having to do with a processor’s markup. What is a basis point? A basis point is a unit of measurement that is equal to 1/100 of one […]

The term basis point is thrown around a lot in the credit card processing industry, but many sales people fail to realize that most people aren’t quite sure exactly what a basis point is, or what it means in terms of credit card processing fees.

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Credit Card Processing

Are Credit Card Processing Fees Negotiable?

by Ben Dwyer

Before you can negotiate credit card processing fees, you have to know which fees are flexible. Credit card processing is like any other industry in that there are fixed costs and markups. Fixed costs are those that a processor can’t change, and markups are open to discussion. Understanding the components of credit card processing cost […]

Some credit card processing fees are negotiable, and some aren’t. If you’re looking to lower credit card processing fee, put the spreadsheet aside for a moment and read this article before you call another processor to ask the fateful question, “What’s your rate?”

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Credit Card Processing

Can I Reprogram My Credit Card Machine For Different Processors?

by Ben Dwyer

If you’re wondering if your credit card machine can be reprogrammed, here’s the scoop: Some credit card machines can be reprogrammed to work with virtually any credit card processing service, while other machines will only work with a specific processor. Older credit card machines that don’t have the proper hardware and memory to support modern […]

Businesses that are considering switching credit card processors wonder, “Can I use my credit card machine with another processor?”

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Tag: processing basics

Rolling Reserve

Best Credit Card Processing: Define, Learn, Search

Credit Card Processing Companies: A Who’s Who

Merchant Category Code: Reporting & Rates

What is a Monthly Minimum Fee?

Basis Points – The Basis for Fees

Are Credit Card Processing Fees Negotiable?

Can I Reprogram My Credit Card Machine For Different Processors?

Credit Card Processing exposed