Credit Card Processing

[keithd]

OK,

I'm looking for merchant credit card services right now and I was wondering what the industry standard was as far as average percentage and cost per transaction.

I know a similar question was posted awhile back with a link to a site with the actual rates visa and MC charge, but for the life of me I can't find the thread (and the search function is of no help). If anyone knows of that site or the thread a reference would be great.

Also, how many of you guys out there are using a computer system which runs credit cards via an IP address instead of over the phone lines? I hear this is the new thing as it's much quicker and in some cases even cheaper.

Finally, any opinions on pre-authorizing cards when someone opens a tab. It seems useful to avoid getting stiffed, but I've been told there may be some liability involved since you're actually tying up someones money for 48-72 hours.

Thx guys,
Keith

[David]

Depending on your ability to negotiate, it's an open book.

I know people that are paying 4 to 5% per transaction and others that are only paying 2%.

Ask the others in your area what they are paying and what financial institution they are using.

With today’s economy, the banks are really doing what ever they can to get the business.

[G-Dog]

Absolutely check with you neighbors and competitors. You might check with the Chamber of Commerce too.

As far as pre-auth, try it for a minimum such as $5. If it goes through it's a good card. This won't stop someone from exceeding their limit but will protect you from fraud cards. Check with your merchant service company. Some charge .25 just for an auth with no purchase. That is a cost you need to decide if it is necessary.

Good luck

[advancemellc]

My company, AdvanceMe Inc., does credit card processing through Cornerstone Payment Systems, and we guarantee to meet or beat any processor quote and we also specialize in providing money to your industry up to $125,000. Let me know if you are interested!

AdvanceMe Inc.
advancemellc@aol.com