The problem: A narrow cancellation window on an automatically-renewing contract, constant rate increases, and high commercial card usage.
The solution: CardFellow’s no cancellation fee guarantee, lifetime rate lock protection, and expert assistance with commercial cards.
Jim McCormac wasn’t thrilled with highway construction starting near his business, but credits it with a shift from running a deli to running a successful box lunch delivery company. He didn’t need customers to come to him – he could go to them. After years spent running the deli, the shift seemed natural.
Image courtesy of Best Box Lunches.
Best Box Lunches would deliver anywhere in St. Louis, providing gourmet meals guaranteed to be on time and mistake-free. Business was booming, but there was one problem: his credit card processing fees were out of control. “By the end, our rates were nearly 3.7%,” Jim says, noting that he’d receive rate increases every six months to a year. Even worse, his automatically-renewing contract had a specific, narrow window for cancellation. If work got busy and he missed that window, he’d be on the hook for another year. Jim knew he was overpaying, but researching his options for credit card processing seemed like a big undertaking, and his focus was on growing his business. “If you don’t have the time, you end up putting it off. Finally, we had time to go back to it, and that’s what led me to CardFellow.” Like many business owners frustrated with credit card processing, Jim turned to the internet. CardFellow’s policy of no cancellation fees jumped out right away. “A $0 cancellation fee, and in writing… that’s big to me.” With that assurance, he began considering the quotes he received through CardFellow’s processing marketplace.Accepting Commercial Cards: Convenience vs. Fee Savings
As a box lunch provider, Jim has a lot of corporate clients and accepts commercial credit cards. This presented an interesting challenge for Best Box Lunches: getting the lowest interchange rates for commercial cards requires providing more information (called “enhanced data”) at the time of the transaction, but providing enhanced data can take extra time or special equipment. The standard process for providing enhanced data includes keying in transaction information through an online portal, called a "virtual terminal," on a computer. But Best Box Lunches prefers to handle payments at the client’s location when the driver arrives. The nature of the business means that some customers may add meals or make adjustments to their order and it was easier to settle the bill upon delivery. It was important to have a quick process that wouldn’t delay the customer or driver. Jim wanted to weigh the savings of providing enhanced data against the convenience of not using a virtual terminal, and CardFellow helped him do just that. By calculating the real costs with and without enhanced data, CardFellow provided Jim with the info he needed to make an informed choice for his business. We also showed Jim that there are two “levels” of enhanced data, called level II and level III, and that qualifying for either one would still provide savings over his current solution.The Best of Both Worlds
With CardFellow’s help, Jim found a credit card processor that was able to provide the speed and convenience he needed with the lower costs he wanted. Instead of a virtual terminal, the processor offered a credit card machine specially set up to prompt for enhanced data. The result is that Best Box Lunches receives level II interchange rates on many commercial transactions, which is unusual when using a standard machine. While the company wouldn’t be eligible for lower cost level III interchange rates, Jim was satisfied with the savings he’d receive over his old solution by qualifying for level II. For Best Box Lunches, the difference between level II and level III wasn’t large enough to justify the hassle of a virtual terminal; a decision Jim was able to make with confidence due to having all the facts and numbers.Ongoing Expert Support
While considering his options, Jim was impressed with CardFellow’s attentiveness, explaining that he appreciates that his representative answers his own phone and answers questions thoroughly. “You don’t feel like you’re being rushed. He’ll take time with you and not act like he needs to go do something more important.” What would Jim say to other business owners that may be considering CardFellow? “Give them a chance to find a new vendor for you with no commitment.” He stresses the great service he’s received, saying, “Recently, [my CardFellow rep] sent me an email to see if we’re still getting the best rates and offered me a new audit, following up with a phone conversation. Who does that?!” CardFellow does that. How will we exceed your expectations? Try CardFellow today!
Ben Dwyer began his career in the processing industry in 2003 on the sales floor for a Connecticut‐based processor. As he learned more about the inner‐workings of the industry, rampant unethical practices, and lack of assistance available to businesses, he cut ties with his employer and started a blog where he could post accurate information about credit card processing. As the blog gained in popularity, Ben began directly assisting merchants in their search for a processor. Ben believes in empowering businesses by providing access to fair, competitive pricing, accurate information, and continued support. His dedication to transparency and education has made CardFellow a staunch small business advocate in the credit card processing industry.
