CardFellow Credit Card Processing Blog

Credit Card Processing

Visa Acquirer Processing Fee (APF)

by Ben Dwyer

The Acquirer Processing Fee is sometimes called the Visa Authorziation Processing Fee. Note that Visa charges a separate acquirer processing fee for debit and credit card transactions. The APF for credit card transactions is $0.0195, and the APF for debit card transactions is $0.0155. For debit, the APF only applies to signature-based debit authorizations, not…

Visa began charging an acquirer processing fee (APF) on July 1, 2009 on all authorizations acquired in the United States. The acquirer processing fee is a flat transaction fee.

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Credit Card Processing

Costco Credit Card Processing = A Big Mistake!

by Ben Dwyer

Costco’s merchant accounts use tiered pricing with bait and switch rates. In short, you will pay through the nose to process credit cards, and you’ll likely be stuck doing it until your multi-year contract expires. Here’s a breakdown of why Costco credit card processing services are so horrible. Note: this article focuses only on Costco’s merchant…

Costco may sell some things at wholesale prices, but it’s not merchant accounts. In fact, Costco doesn’t even provide credit card processing. Instead, they outsource merchant services to a company called Elavon.

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Credit Card Processing

Average Credit Card Processing Fees

by Ben Dwyer

What your business pays in processing fees depends on a number of factors, including the type of card, how you accept cards, if you take PIN or signature debit, and more. It also depends on whether you use CardFellow’s marketplace to allow processors to compete for your business. Those that use CardFellow will pay about…

We get this question a lot here at CardFellow: “What’s the average credit card processing fee for a [insert your business type here] business?” There are easy answers to this question, and then there are the right answers.

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Credit Card Processing

Daily Vs. Monthly Discount Cost

by Ben Dwyer

Some processors only offer daily discounting, while others offer a choice. If you open a merchant account that lets you choose, monthly discount is usually the better option. Let’s look at the differences between daily and monthly discount. Difference Between Daily and Monthly Discount Monthly Discount Easier to Reconcile, Better Cash Flow Daily Discount Harder…

Daily and monthly discount refer to when a credit card processor deducts fees from your business checking account for processing your credit card transactions. There’s a big difference between the two, so give careful thought to which method is best for your business.

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Credit Card Processing

Interchange Pass Through Pricing

by Ben Dwyer

The benefits of interchange pass through (often called interchange plus) are transparency and lower costs when compared to bundled or tiered pricing models. It’s safe to say that pass through pricing allows your business to get the best credit card processing fees, which is why it’s the only form of pricing we allow processors to…

Interchange pass through pricing is a form of credit card processing pricing that allows the actual cost of processing (interchange fees & assessments) to be passed directly to your business.

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Credit Card Processing

Don’t Lease a Credit Card Machine!

by Ben Dwyer

It’s that simple. The article below will provide plenty of reasons why you shouldn’t lease a credit card machine, and this settlement involving a large leasing company is further proof. Credit Card Machine Leases are Nonsense! Benefits of a Lease (According to Processors that Lease Equipment) “It’s Not the Agent, It’s the Processor” Getting Out…

Credit card terminal leases benefit processors not you.

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Credit Card Processing

Visa Network Participation Fee

by Ben Dwyer

We’re leaving this article here for historical reference, but will not be updating it. Instead, new information about the Fixed Acquirer Network Fee (FANF) can be found at the post linked above. Visa has announced a new Network Participation Fee and pricing structure in response to the Durbin Amendment. Part of the amendment allows merchants…

Visa has scrapped what it was calling the Network Participation Fee in place of the Fixed Acquirer Network Fee due to become effective on April 1, 2012.

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Accounting and Finance, Credit Card Processing

IRS Merchant Reporting 6050w

by Ben Dwyer

If you have a merchant account, this information applies to you. Make sure your processor has your correct TIN and tax filing name. Note: The information herein does not replace the advice of a qualified tax professional. Talk to your accountant about the impact of 6050w and your responsibilities under tax law. Section 6050w Overview…

Processors must report all settled payment card transactions under section 6050w. And they must perform backup withholding at a rate of 28% beginning in 2012 for merchants that have incorrect TIN or tax filing names.

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Credit Card Processing exposed