CardFellow Credit Card Processing Blog

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We’re leaving this article here for historical reference, but will not be updating it.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

5 Great Ways to Get Ripped Off by Credit Card Processors

by Ben Dwyer

1 – Get bundled pricing. Bundled pricing is what you want if you’re a fan of hidden surcharges and paying (way) too much for credit card processing. Ready to get ripped off by credit card processors? Go for bundled (also called tiered) pricing. Type the term “credit card processing” into your favorite search engine and…

We’re always talking about how to lower credit card processing fees. So, this post keeps things interesting by taking a break from the norm to discuss five sure-fire ways to get ripped off by credit card processors.

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Credit Card Processing, Legal

Minimum Charge for Credit Card Purchase

by Ben Dwyer

The short answer is: Sometimes. The longer answer is that it depends on the type of card. You’ll have to follow applicable rules as well. Credit cards: Yes. It is acceptable for you to set a minimum charge on credit card purchases as long as you abide by the stipulations as set forth in your processing…

Many businesses wonder: Is it legal to require a minimum purchase amount for card transactions?

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Credit Card Processing, News

The Dodd Frank Wall Street Reform and Consumer Protection Act Financial Reform and Your Business

by Ben Dwyer

Within that, a relatively small portion of the act – the “Durbin Amendment” – has made decisive and controversial changes in the way debit cards are processed. These changes are meant to lower the financial burden on businesses and are already affecting businesses across the United States. What is Interchange? Changes in the Durbin Amendment…

The Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted in response to the late-2000s recession, contains the most comprehensive set of changes to financial regulation in the United States since the Great Depression.

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Credit Card Processing exposed