Credit Card Processing Savings Analyses: Proceed with Caution

In the game of credit card processing for businesses, each should entrust their financials to the best possible provider. One way to go about this is to submit to a savings analysis. This is generated by various competitors as a means to indicate what the business will spend and how much they could possibly save by dealing with that particular provider. This, however, can be risky, as companies tend to not be entirely forthcoming in their savings projections, often showing more savings than are possible to reel your business in. Let’s get the nitty gritty on savings analyses, shall we?

Analysis Process & Misleading Information:

When a credit card processing savings analysis is performed, you hand over a recent financial statement of your current merchant accounts and credit card processing activities to a prospective competitor to review. Upon looking over the information, this company will come back to you, effectively saying in writing, “OK, this is what we can save you in processing fees.” A breakdown should be included, showing such details as how much money you brought in (as per the statement provided to the competitor), the percentage you’re being charged for those total earnings and the total fees due. Additional dues, such as those for individual transactions below or above $1,000 may also be indicated, as well as a NABU fee.

From here, a side-by-side comparison is done between current numbers and prospective ones. Things can become a bit muddled here, as this new company may purposely omit fees from their projection to trick you into thinking that you stand to benefit from additional savings. For instance, an article from Practical ecommerce shares that MasterCard transactions incur higher fees for transactions over $1,000, however your new company may choose not to share this information on your report.

Your Responsibilities & True Merchant’s Promise

In addition to omitting data, a company may alter it, hiking up other fees via surcharge. Practical ecommerce advises, and True Merchant wholeheartedly agrees, that if you choose to engage in savings analyses, you must verify the information you’re given. While a competing provider may have the ability to alter a report, it is your duty to systematically check the information, striking down any unnecessary fees and credit card interchange rate errors and finding holes in the proposal. A thorough review needs your involvement, so be sure to have all pertinent information in your own records—your statement used to generate the analysis, an application for the company’s services and especially their terms and conditions. Comparing your merchant statement with the terms and rates outlined in their contract will ensure that the analysis being prepared for you is truthful and accurate.

True Merchant lives and operates by a policy of honesty and fairness. We promise the best rates and services that we can realistically give to you, all-in-one flat rate.  We strive to make processing as simple and painless as possible, never leaving you confused or surprised. Affectionately called True Rate Pricing, your business never has to worry about transaction fees, monthly fees or additional unexpected expenses that other providers might sneak in. Honest and affordable; that’s the True Merchant promise.

It may be helpful to see what different companies can offer you when shopping around for the right credit card processing provider for your business. However, it is essential to play a cautious and active part in this to best protect your company. Easier yet, entrust your credit card service and processing needs to True Merchant. With no false promises and no gimmicks, you know you’re in good hands with us!

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Vice President of True Merchant.
Really Nice Guy.