The Merchant Processing Guru Tip#2: One size does NOT fit all! In the credit card processing industry there are three basic things that make up how you are charged for the cards you run. The first is the card type, a debit card (when it is processed as a credit card, not using a pin) will cost different to run than a normal credit card. A rewards card is different than a commercial card, etc.
Next is the transaction type, this is how you run the card, mainly whether it is swiped or keyed-in on the terminal or online. How you key in the information that is requested makes a big difference also, if you skip any of the information like zip code, CVV# (the 3 digits on the back of the card) you will be “downgraded” to a more costly rate. So you always want to input as much data as you can when keying in cards to satisfy the AVS (Address Verification Services) requirements.
Thirdly is, your industry type. Yes, the industry you are in can make a huge difference if you are with the right processor. A regular retail store is quite different to a restaurant or café, but yet most café’s & restaurants are paying regular retail rates which cost them far more than is necessary. The requirements of a restaurant are quite different to a retail store and the Associations (Visa & MasterCard) know this, so they have set up a whole different category for restaurants and many other industry types that will allow them to lower their costs. Find out more on my next post or contact me to talk about how you could benefit from an account that is tailored to your specific industry needs.