Credit Card Processing

Merchant Category Code: Reporting & Rates

Ben Dwyer
by Ben Dwyer

We will discuss the finer points of MCCs below. What is a merchant category code? How are merchant category codes used? For HSA and FSA Card Acceptance For Consumers Why are merchant category codes important? Can I get set up with a different MCC to get lower rates? MasterCard Merchant Category Codes Merchant Category Code List…

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Originally created in 2004 to streamline 1099 reporting, merchant category codes are now used for a number of different purposes. Of particular importance to businesses is a merchant category code’s impact on interchange fees charged by issuing banks.

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Credit Card Processing

Acquiring Bank — Where the Money Comes From

Ben Dwyer
by Ben Dwyer

An acquiring bank is named for the role it plays in credit card processing. Acquiring banks accept or acquire credit card transactions from banks that issue credit cards to consumers, called issuing banks. An acquiring bank maintains a merchant account for each business it services. A merchant account is an open line of credit that…

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An acquiring bank is a registered member of a card association such as Visa, MasterCard or American Express that provides businesses and individuals with the ability to accept credit, debit and prepaid cards as payment for goods or services.

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Credit Card Processing

What is a Monthly Minimum Fee?

Ben Dwyer
by Ben Dwyer

A merchant account monthly minimum fee really isn’t a fee by itself — it’s more like a benchmark.

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A 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.

Monthly minimum charge

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Credit Card Processing

Basis Points – The Basis for Fees

Ben Dwyer
by Ben Dwyer

This article explains what a basis point is, how to calculate fees using basis points, and finally the role basis points play in credit card processing — specifically having to do with a processor’s markup. What is a basis point? A basis point is a unit of measurement that is equal to 1/100 of one…

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The term basis point is thrown around a lot in the credit card processing industry, but many sales people fail to realize that most people aren’t quite sure exactly what a basis point is, or what it means in terms of credit card processing fees.

dollar signs

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Credit Card Processing

Mobile Showdown: PayPal Here Vs. Square 2019

Ben Dwyer
by Ben Dwyer

The battle for the micro mobile market heats up as PayPal Here enters the ring in direct competition with Square.

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PayPal Here has taken the mobile payments market by storm with a smartphone processing solution that in several ways gets the better of the current market leader, Square.

PayPal Here Versus Square

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Credit Card Processing

What is a Retrieval Fee?

Ben Dwyer
by Ben Dwyer

A cardholder’s issuing bank sends a retrieval request to the processing bank. Then the processing bank sends the request to the business. At this point a processor will assess a retrieval fee. A retrieval request does not involve the refund or reversal of a transaction. A reversal is only initiated if a chargeback occurs. Since…

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A retrieval fee is charged when a customer or the customer’s issuing bank requests a copy of a sales draft in order to substantiate a transaction. This is called a retrieval request, and most credit card processors charge a nominal retrieval fee to process a request.

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Credit Card Processing

PayPal Here Credit Card Processing

Ben Dwyer
by Ben Dwyer

With the Here mobile option PayPal takes direct aim at Square — the market leader in the smartphone credit card processing space. Square has a few things to worry about, too, not the least of which is PayPal Here’s slightly lower pricing and the more accessible phone support for prospective and existing customers. Pricing Swiped…

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Micro merchants and businesses that need to accept credit card payments while on the go have several smartphone credit card processing options to choose from. In addition to Square and Clover Go, one of the big players is PayPal Here, a service that allows iPhone, iPad and Android users to accept credit card payments through their mobile device.

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