What are credit card interchange fees?

What are credit card interchange fees?

This is a very good question and is important to understand if your business accepts credit cards or would like to. When thinking about interchange fees, it helps to think of it as a toll way.

Interchange is, in effect, a toll road that must be driven in order to access the card holders (your customer) account information at the card issuing bank. The interchange fee is the toll for accessing that information.

The interchange fee is paid by you (the merchant) to the card issuing bank. The issuing bank collects the fee to recoup the cost associated with enabling consumers with the ability to pay with a piece of plastic.

Another item to be aware of is the assessment fee. The assessment fee is charged directly by Visa and MasterCard to cover their operating costs. The Visa assessment fee is currently .0925% and the MasterCard assessment fee is currently .0950%. Both Visa and MasterCard regularity adjust these fees and typically do so in April and October. The assessment fee is always applied as a percentage the total purchase price of the product or service sold.

What are the current credit card interchange fees?
There are currently 315 different levels of interchange fees. The reason for so many different levels and fees is due to a few factors.

1. The industry of the merchant. The industry of the merchant will be one of the initial factors considered when the interchange fee is applied. Some of the industry specifications include supermarkets, restaurants, hotels, passenger transport, etc.


2. The means in which the card is transacted. The means in which the card is transacted refers to whether the card is present at the time of the transaction and swiped through a terminal or the card is keyed into the terminal for processing.


3. The type of card that is transacted. The type of card that is transacted refers to the type a card presented by the customer. Typical card types include debit cards, check cards, reward cards, international cards and corporate cards.

What are some ways in which to reduce the interchange fees that are charged?

1. Swipe the card through a terminal rather than key the card data into the terminal.


2. Use an address verification service (AVS) when transactions are keyed into the terminal. This service helps to reduce fraud.


3. Run your batch process daily.

Through adhering to these three scenarios you give yourself the best chance at qualifying for the lowest interchange fees. The goal is to avoid being downgraded. You will downgrade (pay a higher interchange fee) when criteria for the lower fee are not met. Every time the transaction moves further away from the required criteria, more risk is associated with the transaction and it will cost more to transact.

Interchange fees for a retail purchase of $100

Example	Visa Interchange Rates	Interchange Charged to You
The card is swiped through a terminal; the transactions are settled an a daily basis	1.68 % + $0.10	$1.78
Transaction is keyed into the terminal, AVS is used; All transactions are settled on a daily basis	1.85 %+ $0.10	$1.95
Transaction is keyed into the terminal, AVS is not used; All transactions are settled on a daily basis	2.39 % + $0.10	$2.49
The card is swiped through a terminal; The transactions are settled on a monthly basis	2.80 % + $0.10	$2.90

I hope this article is helps you and your business understand credit card interchange fees. If you would like additional guidance in avoiding mistakes when opening a merchant account please download our whitepaper.

Automated Payment Processing

Automated Payment Processing

Are you looking for and automated payment processing account for your business? The addition of an automated payment processing solution is an easy way to enable your customers to purchase products without direct assistance. Automation allows you to focus on other areas of your business rather than order placement.

Here are the areas of automated payment processing that we can help with:

• Recurring & Non-Recurring Receivables


• Electronic Check Acceptance


• Virtual Terminal and Payment Gateway


• POS (Point Of Sale) systems

With any business the first step is determining the area of the business that would benefit most from an automated payment processing solution. Once a need is determined the next step to consult with a payment processing provider to determine the very best solution available. Once a solution is identified the next step is to determine the costs. Please refer to affordable credit card processing for a detailed explanation of the cost associated with an automated payment processing system.

Once you understand the costs you are now in a position to make the best decision for your business.

As always please contact us if you would like assistance determining the best solution for your business. (800)917.8026

Automated Payment Processing

Automated Payment Processing

Are you looking for and automated payment processing account for your business? The addition of an automated payment processing solution is an easy way to enable your customers to purchase products without direct assistance. Automation allows you to focus on other areas of your business rather than order placement.

Here are the areas of automated payment processing that we can help with:

• Recurring & Non-Recurring Receivables


• Electronic Check Acceptance


• Virtual Terminal and Payment Gateway


• POS (Point Of Sale) systems

With any business the first step is determining the area of the business that would benefit most from an automated payment processing solution. Once a need is determined the next step to consult with a payment processing provider to determine the very best solution available. Once a solution is identified the next step is to determine the costs. Please refer to affordable credit card processing for a detailed explanation of the cost associated with an automated payment processing system.

Once you understand the costs you are now in a position to make the best decision for your business.

As always please contact us if you would like assistance determining the best solution for your business. (800)917.8026

7 items to consider when looking for affordable credit card processing

7 items to consider when looking for affordable credit card processing

The term affordable credit card processing is thrown around a lot and can mean different things to different businesses. For the purposes of this article we will discuss the affordability of credit card processing in terms of the rates and fees that are charged for the service.

I have broken out the major rates and fees charged for credit card processing. Please keep in mind that there will always be other miscellaneous fees, so be sure to read your merchant contract carefully to understand all that apply and when.

Discount/Percentage Rate (interchange): This is the largest total expense for the account and is typically negotiable with your processor. There are typically three discount rates associated to the account (this example is for a retail location). The three discounts rates are referred to as the qualified, mid-qualified and non-qualified rates. The qualified rate is reserved for card present / person present transactions. The mid-qualified rate is reserved for keyed in transactions and certain rewards cards. The non-qualified rate is reserved for corporate and international cards. Some rewards cards will also downgrade to the non-qualified rate. When looking for affordable credit card processing you want to achieve the following for each discount rate:

• Qualified Rate: Between 1.59% and 1.69%


• Mid-Qualified Rate: Between 2.29% and 2.39%


• Non-Qualified Rate: Between 2.99% and 3.09%

Per-Transaction Rate: In addition to the discount rate you will also be charged a per-transaction rate. The per-transaction rate is charged for each transaction that is run through the account. It is important to note that some processors will set up the account to authorize and capture as separate processes, effectively doubling the transaction costs per month. Make sure your processor is authorizing and capturing as one transaction. When looking for affordable credit card processing as a function of the per-transaction rate you want to be between $0.10 and $0.20 per-transaction.

Monthly Service Fee: This is the amount you are charged per month for customer service, account access, statement preparation etc. For an affordable credit card processing account you need to be between $9.95 and $14.95.

Batch Fee: The batch process is responsible for converting the credit card authorizations (promise to pay) into deposit of funds into your business account. The batch process is typically run on all days where authorizations are processed. For an affordable credit card processing account you want establish a rate between $0.15 and $0.25 per batch process.

Monthly Minimum: The monthly minimum is the amount that is charged if the account is not used or used minimally. An affordable credit card processing account will typically have a monthly minimum of $0.00 to $9.99.

Annual Fee: The annual fee is a fee that your business is charged once a year for maintenance of your merchant account. You are best served to negotiate this rate to $0.00.

Termination Fee: This is the fee you are charged if you would like to end your contract early. This fee varies greatly form one processor to the next. Make sure you understand the contract term and termination fee.

If you are looking to set up an affordable credit card processing account we can certainly help. Please contact us directly for a no obligation quote. (800)917-8026. Mention prom code affordable for additional discounts.

Do you need and inexpensive merchant account?

Do you need and inexpensive merchant account?

Do you need and inexpensive merchant account for your business? What defines an inexpensive merchant account? Is the account an inexpensive merchant account if the rates and fees associated with the account are as the lowest they can be? I certainly believe that is one factor. What about customer service and reliability? How does the reliability of the account and available support factor into the “cost” of the merchant account?

When growing your business it’s important to analyze the costs and benefits associated with any strategy intended to increase your bottom line. The addition of an inexpensive merchant account or the substitution of your current account with an inexpensive merchant account can be a very effective way to increase sales while keeping overhead low. Some of the benefits of an inexpensive merchant account include:

1. Convenience and immediacy – Taking your products and services to the internet allows your customers to acquire your offerings at all hours of the day or night.
2. Options and value - All things equal if you are selling the same products as a competitor and provide more options for payment your store is perceived to offer more value.
3. Higher average ticket – According to Dun and Bradstreet it is estimated that customers spend 12% to 18% more when using a credit card for payment.
4. Minimize bad debt – Reduce the instance of bad debt through offering credit card processing. You know the customer has the funds to complete the sale as the authorization tells you before the customer leaves the store.
5. Increased sales – Dun and Bradstreet estimate that the average business can increase sales anywhere between 12% and 35% thought offering credit to patrons.

Now that we have established some of the benefits to establishing an inexpensive merchant account let’s discuss the costs. With a typical merchant account there will be rates and fees associated with the various functions of the account.  Some of these rates and fees include:

The discount rate The transaction fee The batch fee (settlement fee) AVS fee (address verification)

Customer service fee Monthly minimum fee Termination fee Online account access fee Etc

The costs associated with running or establishing a merchant account should be thought of in terms of recurring costs verses prospective (future) costs. The recurring cost of the account can be boiled down to a percentage of total volume processed and is known as the effective rate (ER). The effective rate of an inexpensive merchant account are the fixed monthly costs incurred to attain the benefit of offering credit. These costs are usually the main focus of a business when selecting a merchant services provider. I believe it is important to point out the potential larger prospective (future) costs that can result from selecting the wrong provider.

For most businesses, the revenue from credit card sales represents a significant cash flow source. If this revenue source is interrupted it can put substantial strain on the business operations and can represent significant costs to the business.

Possible interruptions can result from any number of network issues very common in the processing industry. Interruptions are inevitable and the true costs associated with the interruption are determined by how long it takes to correct the problem.

It is very important to select a processor that has a support staff that is available and knowledgeable in order to ensure merchant processing down-time is kept to a minimum. At Maxx Merchants our dedicated in‐house approach to the entire merchant service process is our mission. Our commitment to merchant customer support is of the utmost importance, leading to our industry high merchant retention rate. We are one of very few payment processors offering dedicated 24/7 technical support staff that are employees and not subcontractors.

At Maxx Merchants we are able to offer you the ultimate inexpensive merchant account as your recurring costs (ER) will be very low and your prospective (future) costs are minimized with the best support in the industry. What does that translate for you? Increased profits!!

Please call us directly to get started (800)917-8026.

Starting an eCommerce website?

Starting an ecommerce website

Are you at the point where you need to start an ecommerce website to begin the process of offering your products and services online? If the answer is yes then I have a handy little guide to help get you started.

The process of starting an ecommerce website begins with the website itself. It is always best to select a website that gives you the ability to update your content, products, prices, etc., on your own rather than relying on the developer. Some popular CMS (content management systems) include Wordpress, Drupal and Joomla. You will want to select the platform that work best with your shopping cart. We talk about that in just a bit.

The next consideration when starting an ecommerce website is selection of a shopping cart. The shopping cart software allows you to set up your products and services for sale on the Internet. There are many commercially available shopping carts available to choose from. You will want to select the cart that offers the functionality you are looking for. You will want to look for a cart that offers merchant tools, supports many payment options, offers configuration for shipping and taxes, offers real-time statistics and reporting, and has the appropriate security. You will also want to select a shopping cart that is compatible with your payment gateway. This will illuminate the cost associated with integrating your shopping cart and merchant account. Maxx Merchants is compatible with over 25 commercially available shopping carts.

Your next step when starting an ecommerce website is the hosting service. The hosting service provides a home for your website on the Internet and allows your customers to reach you. You will want to select a hosting service that offers the appropriate functionality for your site and shopping cart. Most services offer various packages for a monthly service fee. I like doteasy.com as the hosting is free and they let you upgrade as necessary for any functionality you might require.

So you have your website, your hosting service and your shopping cart all dialed in but the most important part of starting an ecommerce website is accepting payment.

There are 2 pieces that need to be considered when starting an ecommerce website; The Payment Gateway and the Merchant Account.


The payment gateway is the application that connects your website shopping cart to your merchant account. The job of the payment gateway is to collect the credit card information from the customer, encrypt it and sent it to the merchant account for processing. When selecting a payment gateway you want to select one that is compatible with your shopping cart, offers good pricing, has the ability to facility all payment functions (payments, voids, refunds, etc), offers robust fraud protection, is PCI compliant and has an interface for you to run reports on your sales. The Maxx Payment Gateway offers all these features giving you complete control over your transactions.

Next is selection of a merchant account. The merchant account’s job is to authorize the card that is being used for payment and then deposit those authorized transactions into your bank account. It’s important to choose a merchant account that offers good rates on processing, has 24 hour turn around on settled transactions, offers live customer support, has high approval rates and low merchant attrition. You want a processor that stands behind your account and consults you as to the very best way to set up your ecommerce website. Maxx Merchants can provide you the level of service you expect for your merchant account.

The last piece of the puzzle in starting an ecommerce website is your marketing. All of your efforts are wasted if no one knows your site exists. Make sure you design your site with all the current search engine optimization (SEO) techniques. You will also want to post your new site on all the most popular social networking sites.

Good luck and if you need any assistance I am here to help and you can contact me directly. Alex Neir – (800)917-8026, alex@maxxmerchants.com, www.maxxmerchantservices.com

Maxx Merchants announces a partnership with a POS system for the medical marijuana industry, Denver

Maxx Merchants announces a partnership with a POS system for the medical marijuana industry, Denver

Maxx Merchants is proud to announce or partnership with MJ Consulting and Support to provide POS systems for the medical marijuana industry in Denver. Maxx Merchants has achieved very high approval rates for Medical marijuana dispensaries in Denver. Now with their affiliation with MJ Consulting they are able to offer an industry specific POS system for the medical marijuana industry. This industry specific POS system for the medical marijuana industry is called Keystroke POS and it offers a number of very powerful, distinct functions for the medical marijuana industry.

Some of these functions include:

• A Gram scale interface


• Security camera interface


• Automated tiered discounts and pricing based on member type and quantity purchased


• Customer tracking – ability to store red card and other picture information


• Ability to monitor inventory shrinkage with real time access to inventory


• Assignment of medicinal properties for each strain carried


• Integrated Credit Card Processing

As a medical marijuana dispensary owner you want to service your patients in the very best way while keeping tight control over your business. That is why the Keystroke POS system for the medical marijuana industry is the very best choice.

It starts with the management of all your patients information including copies of their red card and drivers license. This information is brought up easily on your monitor when the patient checks in. Once your patient makes their selection you easily control inventory with your integrated gram scale and bar code scanner. When scanned, the medical properties are displayed to staff members to coach the patient to select the proper medicine for their specific ailment. If the patient selects multiple strains the Keystroke POS allows you to apply discounts across the entire purchase and not just by product. When the correct medicine is selected, and purchased the receipt reflects the medical properties of each strain so that your patients can evaluate the effectiveness of the medicine. At the same time the inventory level for the strains purchased is updated to reflect the sale amount.

Tight control over your business functions is critical for success. In addition, providing a higher level of customer service ensures loyalty. Take your business to the next level with Maxx Merchants and our industry specific POS system for the medical marijuana industry.

To schedule a demonstration please call (800)917-8026.

Redlands Country Club selects Maxx Merchants for their credit card processing.

Redlands Country Club selects Maxx Merchants for their credit card processing.

Redlands Country Club has selected Maxx Merchants for all their credit card processing needs. Maxx Merchants was selected based on careful analysis of Maxx’s ability to facilitate the needs of the country club. Redlands Country Club needed a solution that enabled credit card processing for multiple functions within the club. Redlands needed a credit card processing solution for their restaurant, pro-shop, back office and snack bar. Maxx Merchants suggested and approved two merchant accounts for the country club. One merchant account was set up for merchandise sales, membership dues and back office credit card processing needs. The second merchant account was set up for the restaurant and snack bar. Separate merchant ID’s (MID’s) were set up to facilitate easy reporting and enabled the country club to accept tips in the restaurant and snack bar.

Redlands Country Club elected to utilize Maxx Merchants virtual terminal with an associated external card reader. The association of the external card reader in conjunction with the virtual terminal ensures the club receives a card present transactional rate. This solution was implemented in the restaurant, pro-shop and back office. The snack bar was set up with a Nurit 2085 as there was only a telephone line available at the counter.

Maxx Merchants operates out of Denver, Colorado but we are able to help businesses all over the US and the world. If you are looking for a credit card processing solution for your country club than we can help. We can set up your merchant account quickly and at very competitive rates. In addition to our outstanding solutions and rates we are one of the only credit card processors that offer support staff employed by our company that are accessible 24/7. We do not subcontract our customer support. This ensures that all merchants speak to a live person on each and every call, leading to our industry low merchant attrition rate. Let us prove to you that we have the right combination of service and solutions to make your credit card processing a success.

For direct inquiry please dial (800)917.8026.

High Approval Rates on a Merchant Accounts for a Medical Marijuana Dispensary in Denver, Colorado

High Approval Rates on a Merchant Accounts for a Medical Marijuana Dispensary in Denver, Colorado

Maxx Merchants is your source for merchant accounts for a medical marijuana dispensary in Denver. We have a detailed understanding of the business and can provide the tools necessary to offer your patients the payment options they expect. Many other Colorado banks such as Wells Fargo are turning away businesses looking for merchant accounts for a medical marijuana dispensary. Not Maxx, we have relationships with many financial intuitions across the country and have successful opened numerous merchant accounts for medical marijuana dispensaries.

The medical marijuana dispensary industry has traditionally been a cash based business but with increased competition it becomes important to offer convenience to patients. As with any business it is not reasonable to expect patients to visit the ATM before patronage at the dispensary. Through the addition of a merchant account for your medical marijuana dispensary you are making it easy for your patient to shop with you and return.

Our merchant accounts are easy to set up and facilitate 24-hour turn around on settled charges. All that is needed to set up the merchant account for a medical marijuana dispensary is a state issued business license that indicates the business is a dispensary, a US bank account tied to the business, driver’s license and application.

The merchant account can be set up with a physical terminal that allows for card to be swiped. We recommend the Nurit 2085 as it is a reliable, cheap terminal with printer.

If you have a computer system we recommend the Maxx Merchants virtual terminal. The Virtual Terminal allows for you to capture the transaction through terminal running on your computer. A nice feature with the virtual terminal is the robust reporting it offers. You can run detailed reports on the spending habits of your patients and offer promotions for classes, new services or medicines etc. Again, the idea is to create a more sticky relationship with your patients so they realize the value of your dispensary over the hundreds of others opening every day.

Let Maxx Merchants help you set up a merchant account for a medical marijuana dispensary. A merchant account for your business makes it convenient for your patients to shop with you. Maxx Merchant also offers additional products that help you connect with your patients and offer additional value that you competition is not able to match.

Please contact us directly if you are interested in getting an account set up. (800)917-8026