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Merchant Account Q&A's
Hi everyone I'm Daniel Kim. You guys have lots of questions about credit card processing. I have an answer to all your questions. Here's a little bit about me before you guys start asking away.
I was introduced into this business about 7 months ago to become a sales agent. I liked how this worked and saw so many flaws, then I was told by my boss that I was horrible at selling (I hate him, he lied saying he would give me his car as his tax write off). Now the only thing that stuck me into this industry is the fact that I type fast (which is funny, I don't think 110AWPM is fast). He told me to make a powerpoint presentation for his new sales agents (aka solicitors). I took it and then eventually I started working there. I started off with only $10.00/hr full time then moved up to $15.00/hr. At a measley $15.00/hr aka "Operations Manager", I have dealt with MANY MANY accounts that were getting ripped off.. which of course I wanted to do something about but couldn't at the time.
Anyways, I got laid off (Merchant Solutions), and now I work with Indigo Payments helping businesses save money and doing things right. Boring parts finally over. So, as an experienced agent, I shall explain and answer all your questions.
This is what I see being in the "IN's and OUT's" of the industry:
Let's start with the basics now shall we?
There are banks (Yes they have the $$$) Chase, Washington Mutual, Wells Fargo, etc.
There are processors ChasePaymentech, FirstData, etc.
Some of which are both "bank & processors"
For example.. WaMu (bank) bought TransFirst (ISO) and now TransFirst uses the WaMu financial centers (banks) and merchants can walk into the bank and sign up with "WaMu". Technically they are TransFirst.
I warn you, banks rip people off straight up, unless you know the representative who works there and was your childhood friend.
Now all the credit card processing companies that you see out there are pretty much sales companies.. yes SALES COMPANIES for those BIG banks and processors. They're called "ISO's" as in "Independent Sales Organization" (Look for the "EXAMPLEISO is a ISO/MSP of EXAMPLEBANK" on those ISO websites.)
I have to give it to you guys that the whole industry is just straight MESSED UP. A lot of gimmicks and scams, most of you already know this.
Now let me tell you this, IT DOES NOT MATTER WHICH COMPANY YOU GO WITH. All it matters is what PRICE you get, or settle for.
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Education on fees:
As you would know.. or not know.. there are things called Interchange. Pretty much how "digital money is transferred. They transfer is all sorts of ways.. as a matter of fact, over 550+ ways. Usually they categorize it into 3 tiers.
Qualified
Mid-Qualified
Non-Qualified
Qualified is when let's say for example "John the customer went to your store and bought a pack of cigarettes for 5 dollars, he SWIPED the card, entered his pin number or zip code or signed the receipt.
Mid Qualified is when let's say for example "John the customer went to your store and bought a pack of cigarettes for 5 dollars, and swiped the card, and tada. All done.
Non-Qualified is when for example "John the customer went to your store and bought a pack of cigarettes for 5 dollars, and you had to punch in the numbers manually as well as everything else.
These are ALL EXAMPLES but see all scenarios are different and will be categorized into different tiers. This is VERY important if you merchants want to penny-pinch every cent.
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Now, there are AUTH Fees, Interchange Fees, Transaction Fees, Monthly minimums, Annual Fees, and etc. I mean a WHOLE LOT more etc.
You will find all sorts of offers and deals saying things like "1.39% check cards!" and "$.10 transaction fees!" I will tell you, it's only an advertisement.
Just post below and ask away!
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