I've recently had to cut back on some things and find out where a lot of my money is going. We discovered that our credit card processor was really bending us over. Our last processor was pretty cut and dry with fees they were charging per month. However my local bank came to me and said he can save me so much money if I let my bank process my cards, plus I get the money faster...sounded good. I started getting statements every 3-6 months that really didn't make things clear. So since it was tax time and with the help of another credit card processor rep I discovered many things.
- I get charged a monthly fee (typical)
- Mastercard, Visa, Discover, Amex has different percentage rates (knew that for the most part)
- a debit card, credit card, gift card, store credit card (eg: target, macys, amazon,etc.) all have different percentage rates than above even though they have the visa or mastercard logo
- You are charged a fee if you process over high speed internet but not if you use the "dial up" method
- With mine I couldn't get out of that above fee because my phone was digital and was bundled with my internet package. So since it wasn't analog they said I had to pay the fee.
- Apparently I got into some 3 year contract I do not recall signing, and can't seem to find any record of it. However they're always right.
- Contracts i'm told have a typical early cancellation fee that's usually $300+ I contacted my bank and mine is $25 per month I have left on my contract. So if I have 10 months til my contract is up then I would have to pay $250 to get out of it.
- You have to lease or buy the credit card machine
As you can see my bank obviously fed me some rouffies and date raped me several times over. Not to mention stealing my money, which was really cutting my profits with their fees.
So for the past month in an effort to get some of my profits back and the fact over 50% of my sales are from credit cards I went with the "PayPal Here" I've had a PayPal account for ever so I signed up since it's free and I had nothing to lose.
I used my old phone thats not in service or I can use my tablet as a backup (both connected to my wifi) they mailed me the free card reader, and also sent me a free PayPal debit card to use or I can transfer the funds direct to my bank account. I'm very happy. A simple 2.7% on ANY card or card type, no monthly fees, and no other fees. It's even free to transfer the funds to my bank.
There's similar products out there such as "Square" but they seemed all about the same, i'm sure they all have their pros and cons. I chose the PayPal Here because I already had a PayPal and i've trusted them for years now.
I just wanted to warn anyone out there that are thinking of accepting credit cards. Bottom line is I recommend the PayPal here or similar device. Just make sure you don't get roped into any contracts, and be aware of any and all fees before you sign up with a credit card processor. I hope I saved someone some money...and headache.
If I had a world of my own, everything would be nonsense.....Who in the world am I? Ah, that's the great puzzle. I'm afraid I can't explain myself, sir. Because I am not myself, you see?