Thread: VISA/MC Merchants

**Blunt** · May 16th, 2006 03:50 PM

I want to have the option for customers to use their visa and mastercard when they purchase goods, but this would only be for rare occasions where it is a large order. I'm pretty sure I don't need an electronic unit, I'm sure that one of those mechnical swipe machines would be good enough. Does anyone know how much is charge for one of those units? Do they still use those??

Thanks..

**Gaffer** · May 16th, 2006 04:30 PM

Look into IVR. Basically what you do is swipe the persons card in your imprinter, and then you call it into the automated system via the phone where it gives you an approval.

It is nice because you need no terminals and it is totally portable. I do alot of business at markets and art shows and it works great.

I use Paymentech, but most merchant companies offer the service.

A

**tkyoshi** · May 16th, 2006 05:27 PM

Good question, i'm very interested in this as well as i've had requests for Visa/MC on occasional large orders.

How much is the fee, is it around 2.9%?

**gmark2000** · May 17th, 2006 12:15 AM

I am using Costco's service. The fees were really low compared to Moneris.

**Gaffer** · May 17th, 2006 12:51 AM

Originally Posted by gmark2000

I am using Costco's service. The fees were really low compared to Moneris.

I also looked at the Costco ones, and their rates were very competetive. The flyer I have here says 1.66% which is good.

You percentage rate will vary dependiong on volume per year. Low volume=higher rate. Keep in mind that there are also minimum transaction fees per month apply per month. In my case, I have to pay them at least $8 per month either in transactions, or flat fee if I dont use. Also of you get a terminal there are rental fees on those too. My IVR requires no terminal rentals so the costs are low. Total fees per month, not including thier % are roughly $20 per month, plus the $75 start up fee.

For me IVR is great, it is cheap, fast easy. I call it my money making machine as my sales easily doubled after I got it. It helps get those impluse buyers to buy now. Also, it is nice for big tranactions as you dont have to carry the customer if it is net 30, you get your money the next day deposited into you bank account.

A

**Blunt** · May 17th, 2006 06:51 AM

Originally Posted by Gaffer

I also looked at the Costco ones, and their rates were very competetive. The flyer I have here says 1.66% which is good.

You percentage rate will vary dependiong on volume per year. Low volume=higher rate. Keep in mind that there are also minimum transaction fees per month apply per month. In my case, I have to pay them at least $8 per month either in transactions, or flat fee if I dont use. Also of you get a terminal there are rental fees on those too. My IVR requires no terminal rentals so the costs are low. Total fees per month, not including thier % are roughly $20 per month, plus the $75 start up fee.

For me IVR is great, it is cheap, fast easy. I call it my money making machine as my sales easily doubled after I got it. It helps get those impluse buyers to buy now. Also, it is nice for big tranactions as you dont have to carry the customer if it is net 30, you get your money the next day deposited into you bank account.

A

Can you clearify.. What company do you use? Do you have a contact number or a web site where I can find more info?

I'll check out Costco and see what they have.
Thanks.

**felix** · May 17th, 2006 07:11 AM

Originally Posted by Gaffer

You percentage rate will vary dependiong on volume per year. Low volume=higher rate. Keep in mind that there are also minimum transaction fees per month apply per month.

Also depends on the type of service you're offering, so I heard. The more risky the business, the more likely the buyers can do a chargeback.

**Gaffer** · May 17th, 2006 10:45 AM

Originally Posted by felix

Also depends on the type of service you're offering, so I heard. The more risky the business, the more likely the buyers can do a chargeback.

You are right. There are also higher fees for internet & phone tranacations since there is a higher chance of fraud.

I use Paymentech http://www.paymentech.ca/, but there are others such as Moneris. I would avoid TD Merchant Services. Their service is slow, and then they went and set up a merchant account without my authorization. I have since pulled all my banking from TD but I still get calls from thier merchant company.

A

**AnginMJ** · May 18th, 2006 09:27 AM

I recently switched companies from Global to Cardex...due to the "great deal" Cardex was offering.

There are some major things you need to be aware of...

- minimum debit transaction fee per month
- card card transaction fee, along with discount which varies from 1.87 up to 2.5 per transaction
- purchase or lease terminal if leasing must provide insurance policy for discounted price in terminal
- month end statements, previously with Global (much more expensive) I received one statement with all transactions on it and discounts removed at the end of the month from my account
- month end statements with Cardex, three different statements, each day monies are deposited into my account with discount automatically removed. Reconciling month end due to this has become a NIGHTMARE!!
- start up fee varies from $50.00 to $100.00

Most financial services have a 3 to 5 year leasing term....that means no matter what you would have to buy out the remainder of your lease AND/OR pay a cancellation fee should you find their system is not working out for you.

I have read through the Costco stuff as I was thinking of going with them and chose Cardex....BIG MISTAKE....I wish I would have given Costco more thought.

Be very cautious and do not make this decision lightly...trust me it may haunt you for a very long time.

AnginMJ

**PoopyP** · May 20th, 2006 07:05 PM

I have had requests for CCs as well. If people physically enter your location and you have to swipe their card then Costco is good. However, if its an online business, and even if its not you can look into online payment options. These are better then the actually machines, since you are charged based on the number of transactions, while the actually machine you rent/lease from the company for a monthly fee, whether you use it 0 time or 10000 a month. Research some companies since if its a rare thing then that machine will cost you more then the profit from your order, over the long term.

**cdnNick** · May 20th, 2006 07:20 PM

psigate.com is another processor. Not sure if you can rent/buy a terminal or if they are strictly a online virtual processor. Their rates aren't too bad depending on your risk. Being a online merchant I am in the high risk bracket and pay the high rates.

**shellysoda** · May 22nd, 2006 09:23 AM

I'm currently with Moneris and they are quite pricey. I may switch to Costco within the next few months as they seem pretty good. When I spoke with them they said that they do offer virtual terminals as well (which is perfect for online/phone in sales). One thing that I love about Moneris is that the money is in your bank account within 2 business days and I'm not sure about Costco but I'm definitely going to check into it further. Best of luck

**ebizimage** · May 23rd, 2006 04:03 PM

Costco one is NOVA, and they offer internet processing as well called viaKLIX. However, NOVA is mainly a US company so although they also process in CAD, they have better knowledge in their USD part.