Entrepreneurship & Small Business

Please recommend Credit Card merchant service for small business

  • Last Updated:
  • Aug 13th, 2017 11:50 pm
[OP]
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Dec 10, 2004
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Thornhill

Please recommend Credit Card merchant service for small business

I am trying to find a merchant for my relative who has a small part time business and she makes about 15-35K/year with about $700-4000 per transaction. My merchant wont work as it's for high volume and she does not like Square, which I recommended to her as they charge between 2.9/%+30c to 3.4% which is a lot. She is hoping to find something that would be less than 2.5%.
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Deal Addict
Dec 16, 2005
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what about moneris? I don't know what their fees are but they have small business products
[OP]
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Thornhill
mech9t5 wrote:
Aug 10th, 2017 2:27 pm
what about moneris? I don't know what their fees are but they have small business products
I don't know much about it. Usually big companies such as moneries are more suitable for larger volume as they charge monthly fees between $10-20/month plus per transaction %. I know her online store is season dependent and most of the purchases are closer to the Winter(September-February).
From my calculation on the minimum 15K she may do each year she will pay about $450 in credit card fees to Square. So, if say Moneris is charging $10/month that's close to 1% and then the merchant needs to charge about 2.1% just so that they can be on par with Square up. So, in essence, with this monthly fee, they would need to charge her about 1.6-1.8% to make the switch worth it.
In addition to that I've read on the news a while back how moneris charges "exit fee" of $300 when you decide to quit, even though your contract ends!
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dazz wrote:
Aug 10th, 2017 3:02 pm
I don't know much about it. Usually big companies such as moneries are more suitable for larger volume as they charge monthly fees between $10-20/month plus per transaction %. I know her online store is season dependent and most of the purchases are closer to the Winter(September-February).
From my calculation on the minimum 15K she may do each year she will pay about $450 in credit card fees to Square. So, if say Moneris is charging $10/month that's close to 1% and then the merchant needs to charge about 2.1% just so that they can be on par with Square up. So, in essence, with this monthly fee, they would need to charge her about 1.6-1.8% to make the switch worth it.
In addition to that I've read on the news a while back how moneris charges "exit fee" of $300 when you decide to quit, even though your contract ends!
ya. there are a few others that come to mind but the reality is, for a small business the fees are going to be high. Either you pay in the % per transaction or a monthly fee + lower % per transaction. Maybe monex group? Again, don't know their pricing but they have POS terminals and "Square like" attachments for mobile.

also you don't mention if it is online only or phyiscal POS. online only will be cheaper.
[OP]
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Thornhill
mech9t5 wrote:
Aug 10th, 2017 3:40 pm
ya. there are a few others that come to mind but the reality is, for a small business the fees are going to be high. Either you pay in the % per transaction or a monthly fee + lower % per transaction. Maybe monex group? Again, don't know their pricing but they have POS terminals and "Square like" attachments for mobile.

also you don't mention if it is online only or phyiscal POS. online only will be cheaper.
It's online. From what I know, she sends invoices with Square and clients pay. I don't think she does anything in person.
Deal Addict
Mar 16, 2006
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Unless she is doing e-commerce transactions, there is no reason for her to take credit card only.
Get clients to pay e-transfer which has 0% fee...only like $2.50 per transfer.

I use TD as tiny percentage is not worth the headache with other companies.
Jr. Member
Feb 18, 2014
137 posts
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A virtual terminal is all you need. Recurring costs should be under $30 per month. Rates are tricky but for non corporate cards, rates should be between 1.9% - 2.0%. Lastly, and very importantly, stay away from providers that do not clearly outline cancellation fees.
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Oct 14, 2007
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Mississauga
Join CFIB and get their preferred rates.
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Feb 18, 2014
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shepkraft wrote:
Aug 11th, 2017 12:04 am
Join CFIB and get their preferred rates.
Rates work out to an uplift of 0.27%. Can do better without paying the annual fee of $300 + $30 per employee...
Jr. Member
Feb 18, 2014
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mech9t5 wrote:
Aug 10th, 2017 3:40 pm
ya. there are a few others that come to mind but the reality is, for a small business the fees are going to be high. Either you pay in the % per transaction or a monthly fee + lower % per transaction. Maybe monex group? Again, don't know their pricing but they have POS terminals and "Square like" attachments for mobile.

also you don't mention if it is online only or phyiscal POS. online only will be cheaper.
Read reviews of Monex on this and other threads...if you still think they are a good option, proceed at your own peril.
Member
Apr 6, 2010
488 posts
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Toronto
mech9t5 wrote:
Aug 10th, 2017 3:40 pm
ya. there are a few others that come to mind but the reality is, for a small business the fees are going to be high. Either you pay in the % per transaction or a monthly fee + lower % per transaction. Maybe monex group? Again, don't know their pricing but they have POS terminals and "Square like" attachments for mobile.

also you don't mention if it is online only or phyiscal POS. online only will be cheaper.
Please refrain from giving advice if you don't have a clue about the subject:

1 - Read the Monex thread to find out what people's experience with them was.
2 - Online only is always more expensive than physical POS,

Cristian.
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Cristian_01 wrote:
Aug 11th, 2017 7:46 am
Please refrain from giving advice if you don't have a clue about the subject:

1 - Read the Monex thread to find out what people's experience with them was.
2 - Online only is always more expensive than physical POS,

Cristian.
Online more expensive? What about terminals? Those aren't free. PayPal is 2.9% plus $.30 flat. If you know so much, where are your recommendations?

Did I recommend monex? Did I say they were good? I just said they have a wide range of products. Guy was looking for small business as cheap as possible. I know monex offers small business products. He can do his own research as I clearly stated I don't know their pricing.

Idiot.
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Apr 6, 2010
488 posts
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Toronto
mech9t5 wrote:
Aug 11th, 2017 7:57 am
Online more expensive? What about terminals? Those aren't free. PayPal is 2.9% plus $.30 flat. If you know so much, where are your recommendations?

Did I recommend monex? Did I say they were good? I just said they have a wide range of products. Guy was looking for small business as cheap as possible. I know monex offers small business products. He can do his own research as I clearly stated I don't know their pricing.

Idiot.
You want to go easy on those insults - they aren't arguments and it makes you look bad.
Btw, you can get a terminal for some $20 per month (cheapest) with average rate around 1.90% plus $0.05. EVERY provider offers just about the same range of products for all businesses.
And when you mention only ONE provider from a vast array you clearly recommend them. Get it?
Cristian.
Jr. Member
Feb 18, 2014
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Cristian_01 wrote:
Aug 12th, 2017 8:00 am
You want to go easy on those insults - they aren't arguments and it makes you look bad.
Btw, you can get a terminal for some $20 per month (cheapest) with average rate around 1.90% plus $0.05. EVERY provider offers just about the same range of products for all businesses.
And when you mention only ONE provider from a vast array you clearly recommend them. Get it?
Cristian.
Assuming the typical transaction is the Infinite Visa, actual cost is 1.71%. Add assessment fee and you are at 1.80%. With this in mind, 1.90% is likely a bit of a stretch.
[OP]
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Thornhill
gamechanger wrote:
Aug 12th, 2017 10:50 am
Assuming the typical transaction is the Infinite Visa, actual cost is 1.71%. Add assessment fee and you are at 1.80%. With this in mind, 1.90% is likely a bit of a stretch.
Infinite visa is a premium rewards cards and those are more expensive. I found a few merchants who clearly outline what THEY pay to the bank and a lot of cards are between 1.9-2.2. Add their % then monthly fee they charge( seems like a good money maker for most of them) and it's at least 2.7-3.4 for a lot of typical cards.

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