Credit Card Merchant Fees

Status
Not open for further replies.

Beta4Me

Established Member
Joined
Nov 10, 2012
Messages
1,098
Points
395
The company I work for is looking into taking credit cards as a payment method for the first time. They're a B2B in transport and logistics.

I was wondering what sort of credit card processing fees people have been able to negotiate with merchant service providers (in particular for Visa/MC but also Amex) and which ones they've used.

The company is estimating to quite quickly process about $100K/month heading up to around $250K/month within a year.

Any personal experience/thoughts are appreciated.

Thanks!
 
AMX001595_Travel-Insider_1100x260

opusman

Senior Member
Joined
Jun 27, 2006
Messages
5,871
Solutions
1
Points
985
What sort of turnover are you processing to get rates that low?
 

Danger UXB

Active Member
Joined
Jun 3, 2008
Messages
831
Points
305
1.49% on AMEX( this I understand is quite a good rate but other may disagree)
Possibly higher than that for V and MC. It's due to the transaction surcharges they (NAB) put on premium V and MC cards. I would have to check to be absolutely sure but I know the last time I did the maths it was hovering around 1.5%.
Locked into NAB due to the Hicaps thing so please don't suggest I move unless you think I should be able to negotiate better
 

cove

Enthusiast
Joined
Feb 15, 2008
Messages
14,107
Solutions
1
Points
1,330
Many/most of our customers are using Premium and Super Premium Visa and MasterCards where they are chasing maximum returns by using their credit cards for frequent flyer points or other benefits.
We are wholesalers and manufacturers so our customer base using credit cards is way more sophisticated than the general public who might pay with a debit card.
 

albyd

Established Member
Joined
Apr 7, 2011
Messages
2,066
Solutions
3
Points
395
It's due to the transaction surcharges they (NAB) put on premium V and MC cards. I would have to check to be absolutely sure but I know the last time I did the maths it was hovering around 1.5%.
Locked into NAB due to the Hicaps thing so please don't suggest I move unless you think I should be able to negotiate better

Not sure if it's still running but Suncorp can do hicaps and they were offering medicos 0.8% surcharge across Visa/MC (including premium cards & debit cards at same rate & eftpos at the usual flat rate) on a 2 year contract. May be worth checking out of you're not locked into a contract. One more thing merchant services line can have a 30 minute on hold time. Not sure about NAB's standard there and how often you have to call them.
 

Danger UXB

Active Member
Joined
Jun 3, 2008
Messages
831
Points
305
Not sure if it's still running but Suncorp can do hicaps and they were offering medicos 0.8% surcharge across Visa/MC (including premium cards & debit cards at same rate & eftpos at the usual flat rate) on a 2 year contract. May be worth checking out of you're not locked into a contract. One more thing merchant services line can have a 30 minute on hold time. Not sure about NAB's standard there and how often you have to call them.
Will definitely investigate. Thanks for the tip.
 

Beta4Me

Established Member
Joined
Nov 10, 2012
Messages
1,098
Points
395
The clothing wholesaler dad was working at last year had 0.7% blended Visa/MC on about $10K/month turnover. I didn't realise how good a deal that was until you all posted!
 

cove

Enthusiast
Joined
Feb 15, 2008
Messages
14,107
Solutions
1
Points
1,330
We have several million dollars a year processed on Visa and MasterCards so the Bank we used became anxious about some/ most of our customers using premium and super premium cards to pay their accounts. The use of these cards has exploded recently compared with ordinary non points earning cards in our clientele.
 

Danger UXB

Active Member
Joined
Jun 3, 2008
Messages
831
Points
305
We have several million dollars a year processed on Visa and MasterCards so the Bank we used became anxious about some/ most of our customers using premium and super premium cards to pay their accounts. The use of these cards has exploded recently compared with ordinary non points earning cards in our clientele.


This is also my problem
basic V/MC rate =.949%
premium can go up to as high as 2.2%

the whole lot averages out to 1.66% last month for V/MC which makes my amex 1.49% rate look good
 

cove

Enthusiast
Joined
Feb 15, 2008
Messages
14,107
Solutions
1
Points
1,330
Danger UXB I saw the BANK coming with the mixed rate idea so I nixed that in the bud as there is no easy way to check all the charges. Getting the most out of the Bank is a game like Frequent Flyer points.
 

bismarck

Established Member
Joined
Jan 28, 2010
Messages
1,052
Points
405
Paid a deposit on a wedding venue recently and they wanted 3.5% for Visa/MC :shock:

Thanks but no thanks.
 
Joined
Nov 18, 2011
Messages
8,590
Points
970
Qantas
LT Silver
Just rec'd notice that all ActewAGL accounts - gas, electricity and water, will charge .55% on credit cards direct debits. Drat.
 

Pele

Member
Joined
Jul 17, 2014
Messages
334
Points
215
Gday

Went to the Bowan Island Bakery at East Village shopping centre at Waterloo, Sydney for the first(and last) time a couple of days go. Forget accepting Diners or Amex, no chance. They had EFTPOS free of charge but using any paypass(debit or credit) incurred a fee and they split it into standard cards(1.5%) or Premium/Super Premium(2.2%) surcharges. What a joke. As a consumer i can tell you the easiest way to p*ss me off is to do stunts like that. I wont be back and will tell as many people as i can not to go there. Just build the merchant fee into the cost of the product/service. If your business cant survive without that surcharge then it is screwed anyway.

As for merchant fees NAB charged a business i used to work for: a Visa/ Mastercard rate of 0.80% plus GST and the Amex rate was recently negotiated down from 2.75%(!) plus GST to ~1.75% plus GST. This company would put through well into the 7 figures each month on each card type.

Pele.
 
Status
Not open for further replies.
Top