Category Archives: Credit Card Processing Q & A

What is a POS WATS fee?

A pos wats fee is a communication fee that is charged each time a business’s credit card equipment dials the processor’s toll-free 800 number to get or give information. The pos-wats fee is often charged in addition to other transaction fees such as authorization fees, return fees, and AVS fees. Continue reading

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What is a Monthly Minimum Fee

Monthly Minimum FeeA 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. Continue reading

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1.54% “Flat Wholesale Rate”

Q & A: 1.54% Wholesale RateI have a question about a specific company — [removed to protect the guilty]. They are saying the rate they can provide is 1.54% on qualified and mid-qualified cards (“flat wholesale rate”). The only other rate is “up to 4.61%” on non-qualified cards. Then they charge 3 cents per transaction and no basis points. Is this true and possible? Continue reading

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Are Credit Card Processing Fees Negotiable?

Credit Card Processing Fees NegotiableSome credit card processing fees are negotiable, and some aren’t. So, please 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?” 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. Continue reading

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Can I Reprogram My Credit Card Machine For Different Processors?

Reprogram Credit Card MachineSome credit card machines can be reprogrammed to work with virtually any credit card processor, 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 programs may not work with any processors at all. Continue reading

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What is a Good Interchange Plus Rate?

Good interchange plus rateInterchange plus rates vary widely from one processor to the next. How competitive rates are will depend on your business’s processing profile and how you are gathering quotes. It’s also important to understand that interchange plus is a form of pricing; it’s not a single rate. The percentage portion of the processing markup (the “rate”) may not be, and often isn’t the most important fee in determining cost-effective credit card processing services. Continue reading

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