What do you think about these credit card processing rates?

[Guest12120]

I just got this quote from TSYS Merchant Solutions. It's for my business that is considered "high risk" (travel).

debit transactions - 2% and $0.20,
standard credit - 2.15% and $0.20
business/corporate cards - 3.8% and $0.20,
rewards - 4.05% and $0.20

Monthly fee is $20 and $75 annually for PCI compliance.


Set up fee is $75 but they give $100 for accounts that get approved in February.

The contract is for 3 years.
The early termination fee is $399 the first 12 months, $299 the next 12 months, and $199 the next. After that time it is year to year and $149 termination. I will get 90 day trial.
UPDATE: They agreed to remove the early termination fee altogether.

What do you think?

 

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[Vigilante]

This is the problem

The contract is for 3 years.


But I say that without posting a solution. 3 years is a lifetime.

 

[Guest12120]

The contract is for 3 years.

UPDATE: I negotiated no early termination fee at all

 

[1PercentStreet]

Use stripe.

 

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[Guest12120]

Use stripe.

Declined by Stripe due to the fact that my business is too risky

 

[1PercentStreet]

Declined by Stripe due to the fact that my business is too risky

That sucks, Stripe is awesome.

 

[Guest12120]

I also heard no from Paypal, Chase Paymentech and few others. I think the above rates are pretty good. I submitted the application and should hear back from them in a couple of pays.

 

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[BrianPM]

I just got this quote from TSYS Merchant Solutions. It's for my business that is considered "high risk" (travel).

debit transactions - 2% and $0.20,
standard credit - 2.15% and $0.20
business/corporate cards - 3.8% and $0.20,
rewards - 4.05% and $0.20

Monthly fee is $20 and $75 annually for PCI compliance.


Set up fee is $75 but they give $100 for accounts that get approved in February.

The contract is for 3 years.
The early termination fee is $399 the first 12 months, $299 the next 12 months, and $199 the next. After that time it is year to year and $149 termination. I will get 90 day trial.
UPDATE: They agreed to remove the early termination fee altogether.

What do you think?

These rates are horrible!

Debit check cards true cost is only 0.05% +$0.22. This is mandated by Congress. That means of that 2.00% for Debit/check cards, they're markup is nearly a full 1.95%. Ouch. You said your business is travel - how far in advance are you booking clients? I could maybe help lower your rates, but as travel is higher risk, the timeframe is important to know.

PM me if you'd want to understand more about this.