Credit Card Processing

Enhanced Merit 3

Enhanced Merit 3 is a MasterCard interchange category. Interchange fees are essentially the wholesale cost of credit card processing and generate income for banks that issue credit and debit cards. The word “Enhanced” refers to the type of credit card, and “Merit 3” refers to how the card is accepted and processed. The Enhanced MasterCard…

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Enhanced Merit 3 is a MasterCard interchange category.

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Credit Card Processing

Transaction Integrity Fee (TIF) Visa

Effective April 13, 2012, Visa began charging a Transaction Integrity Fee (TIF) of $0.10 on transactions involving Visa debit and prepaid cards that do not meet CPS requirements (more on this later). The Transaction Integrity Fee will not apply to Visa credit card transactions. Transaction Integrity Fee Details of the Transaction Integrity Fee Transaction Integrity…

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In 2012, Visa added a Transaction Integrity Fee to its list of charges for accepting a Visa credit card at a business.

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Credit Card Processing

Fixed Acquirer Network Fee (FANF) Visa

Visa’s new Fixed Acquirer Network Fee increased credit card processing fees across the board.

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Effective April 1, 2012, Visa began charging a Fixed Acquirer Network Fee (FANF), previously called the Network Participation Fee (NPF). The FANF is a monthly fee that will affect all businesses to a varying degree.

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Credit Card Processing

Merit 3 MasterCard Credit Card Processing Fees

Merit 3 is MasterCard fancy way of referring to a card-present transaction. Merit 3 can actually apply to several different interchange categories based on card brand, type and qualification. Merit 3 (or Merit III) is a MasterCard interchange qualification for credit and debit card processing fees. A Merit 3 transaction is settled within one day…

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Merit 3 (or Merit III) is a MasterCard interchange qualification for credit and debit card processing fees.

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Credit Card Processing

1.54% “Flat Wholesale Rate”

I 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 a three-cent credit card transaction fee and no basis…

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Sometimes it’s easier to explain pitfalls in credit card processing by using real situations our clients have encountered. The 1.54% “flat wholesale rate” is one example.

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Credit Card Processing

Are Credit Card Processing Fees Negotiable?

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. Understanding the components of credit card processing cost…

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Some credit card processing fees are negotiable, and some aren’t. 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?”

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Credit Card Processing

American Express Discount Rate & Merchant Account

For the most up-to-date American Express pricing, use CardFellow’s quote comparison tool. American Express Pricing Models Closed Loop Network American Express Discount Rates American Express Settlement One Point Settlement Should You Accept American Express? American Express Fee Credits Opening an American Express Merchant Account Transferring an American Express Merchant Account Getting the Best Amex Pricing…

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In the past, American Express was the most expensive credit card to accept; a reputation that it hasn’t shaken despite introducing a new pricing structure to bring costs more in line with other card brands. There’s a lot of confusion of American Express discount rates, pricing models, and settlement. We’ll untangle it in this article.

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Credit Card Processing

How to Read an Intuit Merchant Statement

This tutorial will show you to read an Intuit merchant statement, and it will highlight the aspects of Intuit’s credit card processing servicesthat make it expensive and opaque when compared to more competitive options that we will cover. The methodology that we use to analyze an Intuit merchant account statement is outlined in our article…

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Understanding an Intuit merchant statement means reading between the lines.

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