Has anyone out there had any dealings with this company that was reccomended by Hamilton? About one month ago I called them and then faxed them one of my statements for an analysis. After about a week I called them back and Matthew Harris said it would be a few more days. Still nothing. I hope they can't read any of my account numbers I blacked out. Hamilton told me they will "pass it on".
Bancorp Cc Service Provider
- Thread starter Bud
- Start date
I am currently deciding on a merchant service provider. Bancorp looks like they charge a flat .20 per transaction + the current "interchange rate". Doing some homework, I found Visa, MC, and Disc. each have a listing of their intercange rates. This rate seems to involve another flat fee plus a percentage. The additional flat fee and percentage vary depending on the type of card. For example, a card with airline miles rewards has a different charge than a card that is issued by a bank as a debit card. Now I know why Citibank can give me rewards, even though I carry no monthly balance, they just pass it through with a higher interchange rate. Another service provider, my local bank, came in at 1.29% across the board plus 0.21. They use an "average" interchange rate. When I mentioned the 0.20 from Bancorp plus interchange, the local said they could quote it that way also. He called back and said 0.16 plus interchange rate. He says many service providers are quoting this way now because it looks like they are being more upfront, using the interchange rate as a "hey look, we don't mark up the rate" sales pitch. It seems a lot like making a decision between a variable rate mortgage and a fixed rate mortgage. With both banks, there are contracts to sign with early termination charges. My local bank also has $10/mo. statements and a initial fee of $75.00.
I am still trying to sort thru my options, but wanted to share some experiences with you.
I am still trying to sort thru my options, but wanted to share some experiences with you.
Harry Rollins
New member
While I would agree that quoting Interchange+ is 'in a way' more transparent - in that it shows you the banks markup, it also doesn't cap your costs.
There are over 400 Interchange rates, varying by card type and transaction circumstances. It will be possible, for instance if someone uses a platinum, airline rewards card for you to pay 4.86% + .22 in interchange before they take on the .16 or .20 'profit'. Banks are switching to this approach because it guarantees they make money all the time - on every transaction, which is simply not the case in most instances.
My approach is to just tell you what your cost will be and then I take the risks on what the balance of interchange rates will be. Sometimes I win, sometimes, well not so good for me.
I'm sorry if this sounds confusing. I'm really thinking of putting on a traveling roadshow, explaining how these fees work. While most of the processors working mainly in the carwash industry are good, there are some mainstream banks that are really taking chunks out of people through this cost+ approach or by hammering you on all sorts of additional fees. All of the fees should be stated in the contract.
If it's not spelled out, you aren't paying it - that's my motto.
There are over 400 Interchange rates, varying by card type and transaction circumstances. It will be possible, for instance if someone uses a platinum, airline rewards card for you to pay 4.86% + .22 in interchange before they take on the .16 or .20 'profit'. Banks are switching to this approach because it guarantees they make money all the time - on every transaction, which is simply not the case in most instances.
My approach is to just tell you what your cost will be and then I take the risks on what the balance of interchange rates will be. Sometimes I win, sometimes, well not so good for me.
I'm sorry if this sounds confusing. I'm really thinking of putting on a traveling roadshow, explaining how these fees work. While most of the processors working mainly in the carwash industry are good, there are some mainstream banks that are really taking chunks out of people through this cost+ approach or by hammering you on all sorts of additional fees. All of the fees should be stated in the contract.
If it's not spelled out, you aren't paying it - that's my motto.
