If it looks cheaper, then is it really cheaper?

I probably get a few Business Owners a week who respond to a detailed merchant account quote that I email them w/ ‘what a great deal so and so company is offering’ without wondering “why does this deal sound so good compared to other ones?”

Transparency (as you’ll see in this example), Track Record (do they have any Happy Customers?) and Competitive Pricing (fair, not rock bottom) are the three most important things to look at when looking for Merchant Services for your business.

Here’s a great example to illustrate what Point of Sale Companies are leaving out of their quotes to appear ‘CHEAPER’.  Name is changed in this example.

“Thank you for the information.  However I am still checking other companies & so far I have found one that has lower rates than you offered for most of the fees ..

I have found :

• Visa fees : 1.49 %
• Monthly Statement fee :6.95 per month
• Purchase :$849.99
• Transaction Fee :.08 each
• Lease fee was the same

Thanks
Susan”

Here was my response:

“Hi Susan, I hope that when you choose to do business with someone, that you don’t just look at price.  I always look at how someone begins a relationship w/ me and what is their track record.

1. To make a profit, if a company sells the visa & mastercard rates at 1.49% (wholesale from visa & matercard is 1.55%-1.65%), then they have to add 1% for mid and non qualified rates.  Which is stated at 1/2% in my quote to you- 3/4% LESS on your total credit card volume per month.
2. What this person failed to tell you is that it’s $6.95 X two statements (1 for debit and 1 for credit), which equals $13.90/month.  I quoted you $10/month- $3.90/month LESS.
3. They quoted you 8cents/ trans and failed to mention the $10/month debit minimum they impose.  Sometimes a company has a $20/month debit minimum.  My quote has zero debit minimum- $$$ LESS.

Susan, between our two sites: CanadaCardProcessing.com and CanadaPaymentProcessing.com we have OVER 80 POSITIVE CUSTOMER REVIEWS ON OUR LEVEL OF SERVICE & PRICING and over 300 ARTICLES/POSTS on the Canadian Payment Processing Industry and how it affects Small Business Owners.”

One has to always remember that… you ALWAYS get what you pay for, so it is important to prioritize where we want the savings in our lives and where we can sacrifice quality.  When it comes to Merchant Services, this is one area of your business where you DO NOT want to go dollar store quality.  If they truly have the prices that they quoted you, and not just some introductory gimmick, then you will lose in service- every time.

Click Here For a FREE NO Obligation Merchant Account Quote!