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Answer Upon - 17 Essential Questions You Must Have Answered Before Selecting A Payment Processing Provider
One of the biggest challenges for Canadian company owners is obtaining business financing. As a first instinct, owners usually try to go to the bank hoping for a business loan or line of credit. They soon find that qualifying for bank financing is hard, as the bank will demand collateral and three years worth of financial statements. Although large companies can qualify for bank funding, most small and midsized companies can’t. However, small companies are not out of options. There are two alternatives.If the business sells goods or services to other businesses and your main challenge is that they need money to pay suppliers or employees, the solution could lie in using two little known financing products – invoice factoring and purchase order financing.Most small and midsized businesses have cash flow problems because clients take 30 to 60 days to pay their invoices. Although waiting to get paid is a standard business practice in Canada, it can wreak havoc on the company’s finances. Because, while waiting to get paid, business owners still have to pay employees and suppliers, who coincidentally, don’t like wait
7. Is there a Statement Fee?
- Not all Payment Processing Companies have a Statement Fee, however, some do. The average Statement Fee is usually around $5 or free if you are willing to receive your statement coming to you via E-mail. I am not sure if this is a nickel and dime fee or if it is Companies trying to go green…? I let you decide!
8. Is there a Settlement Fee?
- All Payment Processing Companies have a Settlement Fee. Settlement fees can range from 0.05 cents – 5 dollars.
9. Is there any Minimum Processing Fees?
- All Payment Processing Companies have Minimum Processing Fees, ranging from $5 - $25. Often there are Minimum Processing Fees for each type of card you intend to have processed. Basically, what this means is if you do not do enough business to have high enough fees you will still pay a minimum every month.
- For example: Let’s say your Discount rate 1.85% on Visa and your do a $1000 worth of sales on Visa that month and your minimum processing fee is $10. Well, 1.85% X 1000 = $18.50 in fees that month on Visa.
Running around to several different stores to get supplies for your business is not just a waste of time; it's a waste of money. A business owner needs a place where he or she can get all the supplies they need; supplies to help further what the business is trying to accomplish.Years ago, a business owner would go to countless stores to get the things they need to run their business efficiently. Back then a person would spend a whole day doing that by driving around aimlessly looking for a place that has exact things. One place would sell printers, but they wouldn't sell fax machines, so they would have to go find a place that sells that. Luckily with the evolution of the retail environment, you can get most of what you are looking for in one place.For example; In Germany, they have an establishment called Viking Office Products. If that name doesn't sound familiar, it is Germany's version of Office Depot. This place is basically the place you go to if you have an office business. If it is printing paper, they have loads of it in different lengths and dimensions, as well as printers. And since you are buying t
- Every Payment Processing Provider will have this fee. Discount rates can vary on from as low as 1.59% right up to as high as 5.0%. The Discount Rate is really not a discount. It is a % of your sales that the Credit Card Companies charges the Business Owner to be able to offer their customers to pay with their Credit Card. (Example: If you did $10,000 in Visa sales in one month and your Discount rate was 2.5% then you would pay $250 in fees to Visa that month.)
- Rates vary and are dependent on your Business Model, Business Volume, Average Sale per Customer, Type of Product & Service your business offers, the way you process payments for your products & services: online, telephone, mail-order, or in-store all affect the Discount Rate your business will qualify for.
- Usually High-Risk Business will have higher rates. Businesses that have higher ticket prices, Businesses that process payments via: E-commerce, Telephone (IVR), & Mail-order usually fall under the High-Risk Umbrella.
2. Are ‘keyed in’ Visa, MasterCard & Amex Discount Rates at a different rate then swiped?
- Most Payment Processing Providers will have a different Discount Rate for transactions that are keyed in on POS Terminal instead of being swiped across the POS Terminal. However, there are some exceptions for some businesses that have reoccurring billing.
3. What are the Transaction Rates?
- Transactions fees are sometime called IDP Transactions. Every Payment Processing Company has at least a Transaction fee for Debit and usually for Credit Card Transactions too. It is become more common that any Transaction that is made on your POS Terminal will be considered a Transaction and a fee will apply, whether is it is a void, debit, credit card, refund, batch close, etc.
- Transaction fees can range from 0.05 cents up to 0.50 cents and can be different for each type of transaction, although typical POS Terminal Transactions fees are between 0.08 cents to 0.15 cents. IVR, PC, & E-commerce Transactions fees are usually much higher ranging from 0.35 cents to 0.50 cents.
4. What is the monthly cost for the Point-of-Sale Terminal?
- Most Bank Payment Processing Companies offer: only Rental Program for POS Terminals. Rental costs can range from $20 right up to as high as $100 a month dependent on the type of POS Terminal your business requires.
- Private Label Payment Processing Companies usually only offer: Lease-to-own or Buy-out Options on their POS Terminals. Lease-to-own usually run on 48 month leases with a 10% buy-out option at the end. Lease-to-own POS Terminal prices range from $30 - $80 dependent on type of POS Terminal. Buy-out POS Terminal prices, typically run from $999 - $1800 dependent on type of POS Terminals.
- *** Two very important questions to ask before buying a POS Terminal: A) What are the warranty conditions? B) Is the POS Terminal Smart-Card Ready?
- PROS & CONS of Renting Vs. Owning:
PROS: When renting a POS Terminal if you require a new POS Terminal is usually will be fixed or replaced at no cost to you.
CONS: Rental only: You pay rent forever. If you have been renting a POS Terminal for $40 a month for 5 years, then you just paid $2400. If you have been renting a POS Terminal for 10 years at $40/month then you just spent $4800 & no asset in your business. When you can own a Basic POS Terminal for as little as, $1000 and now have another Asset in your Business.
SIDENOTE: Most Private Label Companies will offer some type of life-time warranty, sometimes at no extra cost, sometimes for an additional fee. However, it always comes back to the question of whether it is better to Own or whether it is better to Rent…? – I will let you decide!
5. What are the Set-up Costs?
- Every Payment Processing Company will have set-up fees, some more then others. Set-up fees can range from $50 - $300. Usually the set-up fees are one-time only set-up fees for Visa, MasterCard, Amex, & Debit Cards – usually around $25 per card. Some Companies also charge an initial set-up fee for programming POS Terminals or a fee for Initial Training. Set-up Fees can greatly vary from Company to Company.
6. Are there any application fees?
- Not all Payment Processing Companies have an Application fee, however, some Companies do. This is usually a non-refundable fee, whether you are approved or not. Applications fees can vary from non-existent to $300.
7. Is there a Statement Fee?
- Not all Payment Processing Companies have a Statement Fee, however, some do. The average Statement Fee is usually around $5 or free if you are willing to receive your statement coming to you via E-mail. I am not sure if this is a nickel and dime fee or if it is Companies trying to go green…? I let you decide!
8. Is there a Settlement Fee?
- All Payment Processing Companies have a Settlement Fee. Settlement fees can range from 0.05 cents – 5 dollars.
9. Is there any Minimum Processing Fees?
- All Payment Processing Companies have Minimum Processing Fees, ranging from $5 - $25. Often there are Minimum Processing Fees for each type of card you intend to have processed. Basically, what this means is if you do not do enough business to have high enough fees you will still pay a minimum every month.
- For example: Let’s say your Discount rate 1.85% on Visa and your do a $1000 worth of sales on Visa that month and your minimum processing fee is $10. Well, 1.85% X 1000 = $18.50 in fees that month on Visa.
Hot dry summer weather brings about heat and drought stress on summer annuals. Stressed plants such as the forage sorghums can occasionally accumulate dangerous concentrations of nitrates. These high nitrate plants, either standing in the field, or fed as hay, can cause abortion in pregnant cattle, or death if consumed in great enough quantities. Nitrates do not dissipate from suncured hay (in contrast to prussic acid), therefore once the hay is cut the nitrate levels remain constant. Therefore, producers should test summer annual hay fields before they cut them for hay. Stop by any County Extension office for testing details. Testing before cutting gives producers an additional option of waiting and allowing for the nitrate to lower in concentration before harvesting the hay. The major sources of nitrate toxicity in the South and Southwest will be summer annual sorghum type plants, including sudan hybrids, sorgo-sudans, sorghum-sudans, millets, and Johnsongrass.Some of the management techniques to reduce the risk of nitrate toxicity (Note: the risk of this poisoning cannot be totally eliminated), include:Test t
- Most Payment Processing Providers will have a different Discount Rate for transactions that are keyed in on POS Terminal instead of being swiped across the POS Terminal. However, there are some exceptions for some businesses that have reoccurring billing.
3. What are the Transaction Rates?
- Transactions fees are sometime called IDP Transactions. Every Payment Processing Company has at least a Transaction fee for Debit and usually for Credit Card Transactions too. It is become more common that any Transaction that is made on your POS Terminal will be considered a Transaction and a fee will apply, whether is it is a void, debit, credit card, refund, batch close, etc.
- Transaction fees can range from 0.05 cents up to 0.50 cents and can be different for each type of transaction, although typical POS Terminal Transactions fees are between 0.08 cents to 0.15 cents. IVR, PC, & E-commerce Transactions fees are usually much higher ranging from 0.35 cents to 0.50 cents.
4. What is the monthly cost for the Point-of-Sale Terminal?
- Most Bank Payment Processing Companies offer: only Rental Program for POS Terminals. Rental costs can range from $20 right up to as high as $100 a month dependent on the type of POS Terminal your business requires.
- Private Label Payment Processing Companies usually only offer: Lease-to-own or Buy-out Options on their POS Terminals. Lease-to-own usually run on 48 month leases with a 10% buy-out option at the end. Lease-to-own POS Terminal prices range from $30 - $80 dependent on type of POS Terminal. Buy-out POS Terminal prices, typically run from $999 - $1800 dependent on type of POS Terminals.
- *** Two very important questions to ask before buying a POS Terminal: A) What are the warranty conditions? B) Is the POS Terminal Smart-Card Ready?
- PROS & CONS of Renting Vs. Owning:
PROS: When renting a POS Terminal if you require a new POS Terminal is usually will be fixed or replaced at no cost to you.
CONS: Rental only: You pay rent forever. If you have been renting a POS Terminal for $40 a month for 5 years, then you just paid $2400. If you have been renting a POS Terminal for 10 years at $40/month then you just spent $4800 & no asset in your business. When you can own a Basic POS Terminal for as little as, $1000 and now have another Asset in your Business.
SIDENOTE: Most Private Label Companies will offer some type of life-time warranty, sometimes at no extra cost, sometimes for an additional fee. However, it always comes back to the question of whether it is better to Own or whether it is better to Rent…? – I will let you decide!
5. What are the Set-up Costs?
- Every Payment Processing Company will have set-up fees, some more then others. Set-up fees can range from $50 - $300. Usually the set-up fees are one-time only set-up fees for Visa, MasterCard, Amex, & Debit Cards – usually around $25 per card. Some Companies also charge an initial set-up fee for programming POS Terminals or a fee for Initial Training. Set-up Fees can greatly vary from Company to Company.
6. Are there any application fees?
- Not all Payment Processing Companies have an Application fee, however, some Companies do. This is usually a non-refundable fee, whether you are approved or not. Applications fees can vary from non-existent to $300.
7. Is there a Statement Fee?
- Not all Payment Processing Companies have a Statement Fee, however, some do. The average Statement Fee is usually around $5 or free if you are willing to receive your statement coming to you via E-mail. I am not sure if this is a nickel and dime fee or if it is Companies trying to go green…? I let you decide!
8. Is there a Settlement Fee?
- All Payment Processing Companies have a Settlement Fee. Settlement fees can range from 0.05 cents – 5 dollars.
9. Is there any Minimum Processing Fees?
- All Payment Processing Companies have Minimum Processing Fees, ranging from $5 - $25. Often there are Minimum Processing Fees for each type of card you intend to have processed. Basically, what this means is if you do not do enough business to have high enough fees you will still pay a minimum every month.
- For example: Let’s say your Discount rate 1.85% on Visa and your do a $1000 worth of sales on Visa that month and your minimum processing fee is $10. Well, 1.85% X 1000 = $18.50 in fees that month on Visa.
Finding the right staff is critical, as we discussed in the article "Finding Staff to Complement Your Business". But what about keeping good staff? Is it important? Is it worth the effort to keep the right folks on the job? Let’s look at the four areas that staff turnover affects – in a business of any type. Those areas are: Productivity, Revenue, Customer Satisfaction, and Long Term Viability.EFFECTS ON PRODUCTIVITYIncreasing work for the remaining staff... This is rather obvious, but think about the work that’s being left undone. If a staff member has to cover the phones because the receptionist has quit, she is going to omit work somewhere. In the choice between her regular work or answering the phone she’ll do the one she feels is more important. But in her consideration she has to think of the effect of unfinished work on other folks in the business, and she will likely make her choice based on the amount of flak she thinks she’ll get from others. If she’s conscientious, her sense of duty will play into it; but one of those jobs will not be done well, and staff and customers know it’s not being d
- Private Label Payment Processing Companies usually only offer: Lease-to-own or Buy-out Options on their POS Terminals. Lease-to-own usually run on 48 month leases with a 10% buy-out option at the end. Lease-to-own POS Terminal prices range from $30 - $80 dependent on type of POS Terminal. Buy-out POS Terminal prices, typically run from $999 - $1800 dependent on type of POS Terminals.
- *** Two very important questions to ask before buying a POS Terminal: A) What are the warranty conditions? B) Is the POS Terminal Smart-Card Ready? - PROS & CONS of Renting Vs. Owning:
PROS: When renting a POS Terminal if you require a new POS Terminal is usually will be fixed or replaced at no cost to you.
CONS: Rental only: You pay rent forever. If you have been renting a POS Terminal for $40 a month for 5 years, then you just paid $2400. If you have been renting a POS Terminal for 10 years at $40/month then you just spent $4800 & no asset in your business. When you can own a Basic POS Terminal for as little as, $1000 and now have another Asset in your Business. SIDENOTE: Most Private Label Companies will offer some type of life-time warranty, sometimes at no extra cost, sometimes for an additional fee. However, it always comes back to the question of whether it is better to Own or whether it is better to Rent…? – I will let you decide!
5. What are the Set-up Costs?
- Every Payment Processing Company will have set-up fees, some more then others. Set-up fees can range from $50 - $300. Usually the set-up fees are one-time only set-up fees for Visa, MasterCard, Amex, & Debit Cards – usually around $25 per card. Some Companies also charge an initial set-up fee for programming POS Terminals or a fee for Initial Training. Set-up Fees can greatly vary from Company to Company.
6. Are there any application fees?
- Not all Payment Processing Companies have an Application fee, however, some Companies do. This is usually a non-refundable fee, whether you are approved or not. Applications fees can vary from non-existent to $300.
7. Is there a Statement Fee?
- Not all Payment Processing Companies have a Statement Fee, however, some do. The average Statement Fee is usually around $5 or free if you are willing to receive your statement coming to you via E-mail. I am not sure if this is a nickel and dime fee or if it is Companies trying to go green…? I let you decide!
8. Is there a Settlement Fee?
- All Payment Processing Companies have a Settlement Fee. Settlement fees can range from 0.05 cents – 5 dollars.
9. Is there any Minimum Processing Fees?
- All Payment Processing Companies have Minimum Processing Fees, ranging from $5 - $25. Often there are Minimum Processing Fees for each type of card you intend to have processed. Basically, what this means is if you do not do enough business to have high enough fees you will still pay a minimum every month.
- For example: Let’s say your Discount rate 1.85% on Visa and your do a $1000 worth of sales on Visa that month and your minimum processing fee is $10. Well, 1.85% X 1000 = $18.50 in fees that month on Visa.
Restaurant owners don’t run a cash machine 24/7. They face the reality of being observed by thieves undercover and this alone is a serious threat not only to the business but to the safety of the management, staff and customers. The most difficult part about this harm is there is no certain point one realizes that there is a thief lurking around the corner waiting for the right time to attack. And the sad part about it is there are a big percentage of theft casualties done by employees.Yes, that’s right. Employee theft is one of the serious threats that a restaurant owner has to accept. Each year, there is an estimate of over $52 billion loss because of this reason. The percentage is up to 95% and the numbers already indicates a high risk of getting robbed by one of your employees anytime.The fact is, there is no actual way of stopping this sad reality but it’s best to still think one step ahead of the culprit. You need to start to work on your very own backyard to prevent employee theft. Make sure that you’re aware with your employees’ behavior physically, mentally and professionally. Analyze your employees’ ha
5. What are the Set-up Costs?
- Every Payment Processing Company will have set-up fees, some more then others. Set-up fees can range from $50 - $300. Usually the set-up fees are one-time only set-up fees for Visa, MasterCard, Amex, & Debit Cards – usually around $25 per card. Some Companies also charge an initial set-up fee for programming POS Terminals or a fee for Initial Training. Set-up Fees can greatly vary from Company to Company.
6. Are there any application fees?
- Not all Payment Processing Companies have an Application fee, however, some Companies do. This is usually a non-refundable fee, whether you are approved or not. Applications fees can vary from non-existent to $300.
7. Is there a Statement Fee?
- Not all Payment Processing Companies have a Statement Fee, however, some do. The average Statement Fee is usually around $5 or free if you are willing to receive your statement coming to you via E-mail. I am not sure if this is a nickel and dime fee or if it is Companies trying to go green…? I let you decide!
8. Is there a Settlement Fee?
- All Payment Processing Companies have a Settlement Fee. Settlement fees can range from 0.05 cents – 5 dollars.
9. Is there any Minimum Processing Fees?
- All Payment Processing Companies have Minimum Processing Fees, ranging from $5 - $25. Often there are Minimum Processing Fees for each type of card you intend to have processed. Basically, what this means is if you do not do enough business to have high enough fees you will still pay a minimum every month.
- For example: Let’s say your Discount rate 1.85% on Visa and your do a $1000 worth of sales on Visa that month and your minimum processing fee is $10. Well, 1.85% X 1000 = $18.50 in fees that month on Visa.
Fact: More millionaires owe their millionaire status to Network Marketing than any other method of business.As you read every word of this article you will become amazed at how you can easily create wealth with Network Marketing. Simply by putting into practice the same methods the most richest people on earth use.O What is Network Marketing? All the top people use it, and are cashing in on it already. The masses try to hide it, and it's that secret word called Network Marketing.Network Marketing is a method of business which removes traditional methods of marketing, and puts people like you and me in the driving seat. In effect we become associates of a proven company with a proven product. And can take this as far as we want!Network Marketing gives us the ability to transform not just our lives, we can transform the lives of our friends and family, and whoever else we want to help as well. The skies the limit with Network Marketing, especially when you take a look at the compensation plans of some of these opportunities out there.How can we cash in on Network Marketing? So Kozan,
7. Is there a Statement Fee?
- Not all Payment Processing Companies have a Statement Fee, however, some do. The average Statement Fee is usually around $5 or free if you are willing to receive your statement coming to you via E-mail. I am not sure if this is a nickel and dime fee or if it is Companies trying to go green…? I let you decide!
8. Is there a Settlement Fee?
- All Payment Processing Companies have a Settlement Fee. Settlement fees can range from 0.05 cents – 5 dollars.
9. Is there any Minimum Processing Fees?
- All Payment Processing Companies have Minimum Processing Fees, ranging from $5 - $25. Often there are Minimum Processing Fees for each type of card you intend to have processed. Basically, what this means is if you do not do enough business to have high enough fees you will still pay a minimum every month.
- For example: Let’s say your Discount rate 1.85% on Visa and your do a $1000 worth of sales on Visa that month and your minimum processing fee is $10. Well, 1.85% X 1000 = $18.50 in fees that month on Visa. Therefore, you have cleared your minimum of $10 and you have nothing to worry about. Now if you take the same rate and minimum, but you only made sales $250 that month on Visa. Well, 1.85% X 250 = $4.62 in fees that month on Visa. Therefore, you did not make you minimum and would be required to make the difference up of $5.38.
10. Is there a Gateway Fee?
- Most Payment Processing Companies usually have a Gateway Fee, but usually only for IP POS Terminals, PC, & E-commerce Payment Solutions. Gateway Fees can range from $5 to $45 a month.
11. Is there a Monthly Maintenance Fee?
- Some Payment Processing Companies have a Monthly Maintenance Fee others do not. If they have it, it is usually a Fee that is with IVR, PC, & E-commerce Solutions, however some Companies have it on POS Terminals solutions too.
12. Is there an Added Value Fee?
- Some Payment Processing Companies have a Monthly Added Value Fee and some do not. This Fee usually ranges from $5 - $10 a month.
13. Is there a Low Achievers Fee?
- Most Payment Processing Companies have a Monthly Low Achiever Fee. Low Achiever Fees can range from $5 - $20. This is why it is important to get your monthly/annual estimate of total business volume correct on your Visa, MasterCard, & American Express Applications. Most Merchant Account Providers have 25%-35% error lenience. If you are not sure it is always better to under estimate your monthly/annual sale amounts when applying for Credit Card Merchant Accounts.
14. Is there a Chargeback Fee?
- Most Payment Processing Companies have a Chargeback Fee. Chargeback Fees can range from $10 - $50. A Chargeback is when a Card Holder holds a dispute on a Visa or MasterCard or Amex Transaction that came from your business. If the Card Holder wins the dispute, they will be refunded their money and you will be charged a chargeback fee – it’s a similar fee to bouncing a cheque. - It is always the Merchant burden of proof to prove that the Card Holder had used or bought the product or services from your business. This is why is so important to check that on Credit Card Purchases that the signature matches the back of the Card Holders Credit Card and if it does not to ask for Photo ID.
15. What are the Technical Support Service Hours?
- Most Payment Processing Companies have a Help Desk/Technical Support. However, not all are 24/7. Some are better then others. The best thing to do is to get the Help Desk # and give it a call a few times through out a day to see what kind of service you would get.
16. How soon can you have a new POS Terminal in my Business if my POS Terminal is not working & can’t be fixed via the phone?
- Payment Processing Companies can vary on this. Some can have one to you within 24 hours others can take 2 – 4 weeks before they have a new POS Terminal to you. The question you have to ask yourself is how long can your business run without one in your business?
17. How long does it take to initially get set-up with full services?
- Most Payment Processing Companies usually take at least 2 weeks (sometimes as long as 4-6 weeks) to have your application processed, merchant accounts set-up, POS Terminal programmed and shipped to your business ready to use. However, there are a few Payment Processing Companies that can have one ready in your business in as little as five business days.
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