Card Processing Rates are the most important item on your merchant statement. The terminal rental means nothing by comparison!
Card processing rates are the most important thing to keep your eye on if your card payments turnover is high. You should switch this regularly, or at least each time your contract is up for grabs. email firstname.lastname@example.org or call 07796242029 to switch now.
Here I will show you how to identify your rates and apply any new rates offered by a new supplier. Each of the different card types will be itemized in a section on your bill.
Example – AJ’s News in Stafford Card Payments
Look for % rate – look for penny rate per transaction and on top of this, an authorization fee per transaction on top if applicable. For example, ‘Visa Debit’ transactions x1054 – £10,149 rate 1.2% + 1p + 5p authorization charge.
This means that £10,149 will be charged @ 1.2% and added to this there will be 1054 pennies added. Some charge a penny rate, some don’t and some only charge a penny rate. ie 15.5p per transactions.
So if a % and penny transaction rate this would be the following calculation 10,149/100 *1.2= £121.78 + the pennies x 1054 =£10.54 + the Auth Fee 5p x 1054 = £52.70p
Grand Total for this kind of card = £185.02 in processing fees.
This will be the same calculation for any of the different cards but can be a result of % Penny & Auth fee depending upon which card processing rates are applied or not. Some apply all, some apply some and others apply only one. (contactless payments do not trigger an auth fee)
Each card has a different transaction rate . When you apply your new rates to compare what it could be, you must make sure you know exactly which transaction rates the new company will be applying.
If the new rate is thus. 0.5% of card turnover 0 penny on debit and 3.85p auth the grand total would have been 50.74+0+40.58=£91.32
So now you see that the processing rate is much more important than the standing charges for terminal lease etc.
This rate change would amount to £93.70p per month saving, £1,124.40p per year and a wopping 49.3% saving.
Now try working out your bill and try using the following example of rates.
Debit Card – 0.39% + 1p
Credit Card – 0.89%
Auth Fee – 3.85p
Oh and remember if the transaction is ‘contactless‘ you are not charged the auth fee. How about that for a bonus discount to add on or I should say subtract!?
You may not be advantage of our low transaction rates offered by our terminal or payment facility.
Imagine if you took out the popular internet payment terminal with no terminal rental standing charges for your payments. Imagine even with no terminal rental how much more expensive it will be if they are charging you in excess of 2.75% per transaction!!!
Card processing rates are really the most important part of your bill, unless of course you bill £5 a month for a total of 2 transactions.