#merchant surcharge amex

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What Is An Example Of A Merchant Fee?

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Customized Business Card Printing & Design At Gotprint Com

Getting the best design on your actual property business card is an essential step to profitable extra purchasers. Realty market could be a difficult one, but with the help of actual estate business cards designed properly re/max business cards, you can get pleasure from more clients in the less amount of time. Real property business cards can both be reasonably priced or costly relying on how you're employed on it.

Typically, there's a customer support quantity on the again of the card you could call. If you're a sufferer of a phishing attack and believe your account information may have been compromised, please contact the monetary institution that issued your credit score or debit card to report the incident. Mastercard doesn't contact people to request private information including re/max business cards credit or debit card account data. If you acquired an unsolicited telephone name, e mail, textual content or social media request from an individual claiming to be a Mastercard representative, do not respond. The surcharge that the service provider assesses might not exceed the service provider discount price that the merchant pays for the bank card that is surcharged.

We provide solely the best quality supplies and our professionally designed RE/MAX business card templates, and they’re positive to set you apart from the competitors. We offer extra distinctive designs together with RE/MAX business card templates than any other company on the web. Merchants can charge an additional charge to all prospects who pay with Mastercard® branded bank cards. These charges usually are not allowed on Debit Mastercard or Mastercard pay as you go cards.

We pay explicit attention to a constant and professional look. Stop waisting your money by piece-mealing from different uncertain sources. Amex Offers is a straightforward and simple approach re/max business cards to make your life more rewarding. With presents for purchasing, eating, travel, and extra, there's something for everyone. Adding offers to your Card is quick, straightforward, and better of all, extremely rewarding.

Bleed is brief for all the graphics on a product that will "bleed off the doc" in order that the color continues to the sting of your cards. Most of our business cards require that your recordsdata have a 0.1" bleed. A huge part of our culture at Popl is focusing on sustainable solutions that help the setting. Popl uses know-how as an alternative of wasteful paper to attach professionals, saving forests around the world. Blinq is COVID-safe, secure, environmentally friendly and an actual talking point with prospects.

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7 Great Lessons You Can Learn From Chase Cash Back | chase cash back

Chase and Amex both offer an incredible line-up of reward credit cards, which come loaded with generous rewards. But they are very different in many ways and offer different rewards that make choosing the right one tough. It is important to choose the right rewards card that will suit your specific needs and requirements. If you are looking for a one card that you can use for every purchase including those that are charged at a later date, then an Amex card may be suitable for you.

If you want a high reward card, Chase cash back credit cards may be for you. They have a low annual percentage rate (APR), an exceptionally good reward structure which includes gift cards and air miles. You also get additional incentives such as cash back on gas purchases, gas station surcharges and even on airline ticket purchases.

The rewards offered by Chase are a great alternative to other cards and also a much more flexible choice. You can earn cash back at all the major stores and retailers across the country including Walmart, Macy's, Wal-Mart, Target and CVS. You can also earn money from restaurants at participating restaurants. You can also earn money with online merchants and shopping portals.

Chase cash back cards can be used for almost all types of purchases, although you should know how you can benefit from their rewards before you choose one of these cards. These rewards are very attractive and you could find yourself with an extra $100 per year in cash, or even more depending on how much you spend in a month.

Before you apply for a credit card, it is important to consider whether or not you actually need the card. There are many cards available to people who do not spend a lot of money on their credit card and therefore you may find it a better idea to opt for a debit card which is much more versatile and which offers more credit features. These cards are generally more expensive, but they allow you to build up a good credit record and so, over time, you could get a higher credit line with the company which in turn means a better deal on your next card.

The best cards are those which offer some incentives and so, if you are looking to build a credit history and which you can then use towards Chase cash back credit cards, you may find that a card such a card may be worth considering. or even better still a cash back card. As with everything else in life, you must choose wisely!

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The post 7 Great Lessons You Can Learn From Chase Cash Back | chase cash back appeared first on Cards Vista.

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How to accept credit card payments without a merchant account

How to accept credit card payments without a merchant account

It seems that merchants are always held responsible for fees when a customer pays with a credit card. In some cases, like with government tax bills, lawyers, dentist the customer can be charged the merchant fees and has no choice but to pay them, but it’s unusual that a visa processing fee can just be tacked onto a bill. Until NOW. We can do this for you. This service gives you the option of having the fees come up on the consumers end and no costs to the billing merchant.  When you are billing in the thousands and tens of thousands of dollars, merchant fees can make a huge dent in your profits by the end of the year. 

Marketing, rent, advertising, payroll, utilities, insurance, licensing, certification, it seems like the monthly costs of running a business never seem to end, and the bills just keep coming. The last thing you need is the added cost and hassle of renting or buying POS terminals, and the terminals are the least of your worries. When you have your own POS terminals, it actually costs money to make money. It shouldn’t cost you money to sell your own product or service, especially when you are already considering the money you have to put into your enterprise. Worrying about overhead and taxes, with few customers paying in cash, you now have the added bonus of paying a processing fee on top of everything else.

Cash is no longer king- Plastic is. If you don’t accept Visa and Mastercard, you can say goodbye to most of your potential clientele today, and your business as a whole tomorrow.

One has to consider the processing fees for credit card payments. A few percentage points may seem small, but after a number of large orders, it really starts to add up.

If you sold $23,000 at the Amex rate 1.9%, you would have to pay $437 in fees. What if, instead of being like the Visa merchant next door, with his rented POS terminals, worrying about how each time a credit card is processing, the swipe rate means additional monthly costs, you actually get to keep the entire $23000?

Think of an ecommerce web site that surcharges the customer the costs of accepting the credit card.

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Top 5 Tips for Law Firms to Improve Cash Flow

Thought passing the bar was the hard part? 

Managing a law firm’s day to day operations can be a daunting task - you have cases, mounds of paperwork, deadlines and hours of prep work to ensure a positive outcome for your clients.  Because your services come at a high price, many firms find that it can take up to 90 days or more to get paid.  Meanwhile, your living and business expenses continue to pile up.  

The administrative burden associated with paper invoicing and accounting distracts you from the valuable time you could re-allocate toward building your practice. So, with respect to your time, let’s get right to some solutions.  

Here are the top 5 tips to help your law firm increase cash flow, collect more revenue and improve operational efficiencies:

1. Accept Credit Cards as a Form of Payment 

Offering your clients the ability to pay with a credit card provides your clients with the option of paying off your services over time, rather than all at once.  Here are some powerful facts to consider:

Research shows that firms that offer credit cards as a means of payment collect up to 29% more revenue 

66% of consumers prefer to pay by credit card, the percentage is even higher among millennials

Credit card funds can be deposited into your bank account as quickly as the next day 

If you’re currently waiting three months to get paid by traditional invoice, accepting credit cards is a huge win.     

With so many processors vying for your business, evaluating different pricing proposals can become overwhelming.  However, as long as you insist on what’s called “interchange plus,” or, “cost plus pricing,” your fixed and negotiable fees will be transparent, allowing you to see exactly what it costs to accept credit cards. Pricing options such as “tiered rates,” (which quote different rates depending on card types), or “promotional rates” that offer you a rate without even looking at your bank statements, are oftentimes, very misleading. These types of rates are typically marketing tactics with lots of hidden fees and surcharges. Upon closer review, you may find that the promotional rates only apply to debit cards, or, to Visa and MasterCard card types and not American Express. It is important that you fully understand your rate structure, because your effective rates can wind up being nearly double what you were quoted. Lastly, and perhaps most importantly, remember that it’s not always about rate. Payment processing for law firms differs drastically from how the typical retail and restaurant merchant processes, and there are important regulations around how funds are allocated.  Make sure you find a processor that understands payments regulations and how they apply to law firms specifically.  A seasoned payments professional can offer knowledge and payments technology that is far more valuable than a low rate.   

2. Replace Paper Invoices with Electronic Invoices 

Paper invoicing costs your firm time and money.  Creating and printing the invoice, stuffing the envelope and using snail mail is not the most efficient way to bill a client.  Electronic invoicing is a far less manual solution that will allow your firm to:

create custom invoices online

send invoices via email

provide a means by which clients can pay for your services online, using a credit card, debit card or their bank account (this form of payment is called ACH)

If your services are on retainer, electronic invoicing can be scheduled to automatically send an invoice on a monthly basis, so your fees can be paid timely.  If you’re tired of following up with unpaid invoices, sending multiple pieces of mail and paying for postage, electronic invoicing is a much more efficient way to bill your clients and increase cash flow.

3. Offer Payment Plans

Many firms do not offer payment plans to clients because it increases the time it takes to collect your full fee.  Payment plans can also wind up being an administrative nightmare when trying to reconcile multiple payments against balances owed.  While these are valid concerns, offering payment plans may alleviate some of the sticker shock that can be associated with an invoice, and the software available in today’s marketplace can help to automate and reconcile balances on your behalf.  Some law firms feel that presenting a payment plan as an option helps to secure payment in full, since payment terms are a collaboration between the client and the firm.  This arrangement, commonly referred to as “recurring billing,” can be popular with Criminal Defense and Immigration Attorneys and because of the sense of relief your clients may feel knowing that they don’t have to come up with a large payment all at once, payment plans can prove to be an effective tool in obtaining referrals from your clients.        

4. Accept ACH Payments

While yes, it is no longer common to write a check at the grocery store or in a restaurant, the service industry, specifically medical and law practices, still accept paper checks as a form of payment.  If your firm accepts paper checks, know that you can save trips to the bank and maximize cash flow by accepting ACH (automated clearing house) payments, instead of paper checks.  This payment type deducts funds straight from your client’s checking account. Similar to credit card payments, ACH attempts provide an immediate “approval” or “decline,” letting you know the if funds are available.  Another benefit of ACH payments is that financial institutions will clear ACH payments before paper checks.  Consider this: if a consumer has $1100 in the bank and an ACH and paper check for $1000 goes through on the same day: the ACH will process, the paper check will bounce - that can mean the difference between you getting paid, or not.  It is worthwhile to know that credit card and ACH payments, recurring billing and electronic invoicing features can all be supported through the same software called, a “gateway.”  There are many gateways available in the marketplace today and the pricing and functionality can vary dramatically, so again, finding a consultative salesperson that has subject matter expertise in this technology is paramount.  

5. Enroll in Next Day Funding and Amex’s OptBlue Program

Here’s an important tip when signing up for your credit card processing account - ask when you will receive your funds!  All credit card funding times are not equal.  Some processors have funding schedules that require you to wait 48 hours for funds to be available. Enrolling in next day funding can fully optimize cash flow by shaving days off funding time.  Furthermore, funding for your American Express transactions may be delayed an additional 24 hours and show up in a separate deposit, which can complicate reconciliation.  With Amex’s OptBlue program, you can settle all your credit card transactions as late as 11 PM eastern time and get funded for your Visa, MasterCard, Discover and Amex transactions the next business day, all in the same batch.  Both next day funding and the Amex OptBlue program are available through your processor - there is no need to find these solutions through your bank or through American Express.  When evaluating processors, asking for these programs will be key to finding a solution that will contribute toward the success of your firm.       

The credit card processing world has become riddled with regulations and complexities, but a processor and sales representative who specializes in payments for law firms can recommend the right technology and program that supports the diverse needs of your firm, while improving cash flow and reducing administrative costs.  You worked so hard to get to where you are today, take the time to ensure you’re doing what’s best for your firm - and your bottom line.  Ask the right questions, adapt the right technology and know what you’re paying for.   

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What is Credit Card? {Complete Guide}

Credit cards are issued by banks and financial institutions allowing the user to make purchases and pay for various services by borrowing money from them.

Apart from providing the much needed alternative to cash, credit cards also offer you benefits in the form of rewards, cashbacks, interest-free period and much more.

The demand for credit cards in the Indian market is growing rapidly and hence leading banks have launched plenty of credit card options for the customers to choose from.

There are a host of credit cards available in the market having different features and benefits linked to them.

The most popular ones are travel credit cards, shopping credit cards, entertainment credit cards, fuel credit cards, co-branded credit cards, cashback credit cards, lifetime free credit cards, premium credit cards and business credit cards.

Features of Credit Card

1. Alternative to Cash: Having a credit card is a very safe and convenient alternative to carrying a bundle of cash. It can make shopping hassle-free and will also ensure the safety of money.

2. Emergencies: Whether there is a medical emergency or some other kind of urgent cash requirement, credit cards can provide help by making immediate credit available under such circumstances.

3. Making Big Purchases: The whole concept of ‘buy now pay later’ makes it rather easier for people to make some big purchases and setting up an EMI pay back method with their banks.

4. Build Your Credit Score: One of the biggest advantages of owning a credit card is that it is easy to build a credit history through your credit card transactions.

Also, repaying all your credit card dues in time will help improve your credit score which, in turn, can help you in getting loans in the future.

Many times loan applications are rejected because the applicant doesn't have a credit history and having a credit card is one of the easiest ways to build your credit history.

5. Secure Transactions: New credit cards feature the chip and pin system, which adds to their security, hence they are safer than carrying around large amounts of cash and also save you from Credit Card Fraud. In case of online transactions, a two tier authentication system is followed, where apart from the information on the card such as card number, expiry date and CVV, an OTP or secret password is also required to complete the online transaction which is sent to your registered mobile number.

6. Track Your Purchases: When using cash, it becomes difficult to keep track of the purchases. However, with a credit card, you can easily maintain a track record of the transactions that you have made with the help of the monthly credit card statement.

Components of a Credit Card

A credit card is not all about the number and chip; there is a lot more information on the front and back of a credit card. Before using a credit card, you must know the different parts of it.

1. Credit Card Number- It is a 16-digit number that identifies your credit card account with the bank. In case of Amex Credit Card, the card number will only have 15 digits. You need to provide this number when making online purchases. This number is unique for every card hence you should never share it with anyone else.

2. Expiry Date- This is also mentioned on the bottom of your credit card. This is the date through which your card remains valid.

3. Bank Logo- This section includes the branding of your bank. It can be on the top right or top left corner of your card.

4. Card Name- Banks launch different series of credit cards and the same will be mentioned on the card itself. For example, in case of HDFC MoneyBack Credit Card, HDFC Bank is the lender branding and MoneyBack is the card series name.

5. Cardholder’s Name- The primary user’s name is also mentioned on the front side of the card at the bottom.

6. Chip- The magnetic strip credit cards have now become outdated and the new cards have a smart chip on the front side. This helps in preventing fraudulent activities like card cloning.

7. Network Logo- Your credit card would belong to any of the four payment networks- Visa, MasterCard, American Express or Discover. Logo of the same would be on the front side of your credit card.

8. Contact less Sign- If you have a Contactless Credit Card, you would find a sign for the same on the front. You can use a contactless card just by waving it near a NFC-enabled POS machine without having to swipe it.

9. Magnetic Stripe- This stripe contains your card details and plays a major role in making payment at POS Terminals. When you swipe your card, information is sent to the bank through payment network to authorize the transaction.

10. CVV- You will also find additional security code CVV on the back-side of your credit card. You are required to mention it at the time of making online payment.

11. Signature Panel- There is a small panel given underneath the magnetic stripe where you are required to sign. You must sign your credit card before you start using it.

12. Hologram- You will also find a mirror-like hologram on the back side of your credit card. It usually has an image printed on it which is visible when you change the viewing angle. This helps merchants identify valid credit cards.

13. Bank Contact Information- The back side of your card also contains some contact information of the bank. It also includes an address to which the card must be returned if found unattended.

14. Terms and Conditions- If your card has any important terms and conditions related to its usage, the same would be mentioned on the back. For example- “Not valid for payment in Foreign Exchange in Nepal and Bhutan”.

Types of Credit Cards

Travel Credit Cards- A number of banks, nowadays, are offering travel-centric credit cards. These credit cards offer all the normal benefits along with extra focus on travel related features such as airport lounge access, air mile earnings, air accident insurance cover, etc. It is wise to put your travel expenses on these cards for earning more rewards and availing direct discounts at partner flight or hotel chains. Some of these cards may also offer low foreign exchange mark-up fee when you use them at international POS terminals or ATMs. To encourage users, travel credit cards may also offer extra reward earnings on travel expenses.

Shopping Credit Cards- These cards are more focused upon lifestyle benefits such as discounts on apparel, footwear, etc. Shopping credit cards are a viable option for frequent shoppers, especially those who would like to put their monthly expenditure on credit cards. Most of the credit cards in the market have been designed to offer shopping benefits to the users as it is the most common reason why people seek credit cards. Along with general shopping benefits, a shopping credit card can also be packed with a few other benefits such as domestic lounge access, milestone benefits, etc.

Fuel Credit Cards- As the name suggests, fuel credit cards offer extra benefits in the form of fuel surcharge waiver and bonus reward point earnings when you use them to refill your vehicle. Some banks have partnership with a brand of petrol pump and you can get benefits only when you refill at those stations whereas some banks offer benefits at all fuel pumps. The amount of surcharge waiver depends on the type of card you have.

Grocery Credit Cards- If you shop for groceries using your credit card, it is better to get a grocery credit card. These cards offer extra reward points or cash back at select supermarkets and departmental stores helping you save more on groceries. Just like shopping credit cards, grocery credit cards can also offer some other privileges like milestone benefits, lounge access, concierge facility, etc. At the same time, there may be other credit cards that offer grocery rewards as additional benefit over and above a focused benefit.

Entertainment Credit Cards- For those who love to go to movies, concerts and events, entertainment credit cards are a great option. These cards offer extra rewards and cash back when you pay for movie ticket booking. Some of these cards are co-branded with platforms like BookMyShow. Usually, the offers on entertainment credit cards keep changing so you must stay updated with the latest offers on your card to make the most of it.

Co-branded Credit Cards- Some credit cards are co-branded with airline, hotel, store or other brands. When you shop at their partner brands, extra rewards and cash back will be offered to the user. An example of co-branded credit card is Air India SBI Signature Credit Card. It gives you extra benefits when you book Air India Flight Tickets. Complimentary access to Air India’s Frequent Flyer Program- Flying Returns adds to the co-branded benefits.

Rewards Credit Cards- Credit cards that offer extra rewards than usual are known as rewards credit cards. Such cards may also offer bonus reward points as milestone benefits when you reach a particular spending level. Bonus rewards may be offered as welcome benefit as well. For example, Citi Bank Rewards Credit Card offers 1 reward point for every ₹ 125 spent on the card. It offers up to 2,500 bonus reward points as welcome benefit and 300 bonus reward points on reaching monthly spends of ₹ 30,000. Such credit cards can be really useful for those who frequently use their cards for shopping, dining, etc.

Cashback Credit Cards- Some leading banks offer cashback credit cards that provide instant cashback on certain types of cards. Citi Bank Cashback Credit Card and HDFC MoneyBack Credit Card are the two most popular cashback credit cards. Cash back can be availed in two forms- either a portion of the amount spent will be directly reversed into your credit card account or you will earn rewards and you can convert it into direct statement credit.

Kisan Credit Cards- A relatively new addition to the types of credit cards offered by leading market players, Kisan credit cards in India are provided to rural farmers in India so that they can get access to credit at preferred interest rates. Mostly, Kisan credit cards are offered by public sector banks to help farmers avail credit at reasonable rates and through organized channels.

Student Credit Cards- The student credit card market in India is still in its nascent stage but banking on the probability of growth in the not so distant future. Some card issuers have started introducing these. These cards are on offer only to students who are 18 or older and enrolled in full time education at an institute.

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Top 5 Reasons To Get A Prepaid Debit Card On-line

Debit Playing cards Vs Credit score Playing cards To Get A Pay as you go Debit Card On-line

Transactions made via a credit card are extra secure as in comparison with those made through a debit card. 1,000 or extra in purchases together with your new Card within the first three months of Card Membership. Wells Fargo is pumping the brakes on customers utilizing their credit score playing cards to purchase bitcoin -- the bank has banned credit card cryptocurrency purchases. Below are another facts regarding debit playing cards. The funds provided to varsity students as help for their training prices are being robbed by service charges. Banks use dependent figures to determine what your living costs are. So, if you are able to repay your debt in time, credit cards are a handy thing. The worry, presumably, is that folks will borrow money after which be saddled with massive amounts of debt they cannot pay back on account of Bitcoin's fluctuating value. Now on the entire this formulation works advantageous but typically the Amex is just not accepted so I then use the Natwest however I settle for this as part of doing enterprise.

Subsequently, if any of the given components is specified mistakenly, then such a card quantity will not be valid. So you are caught as to which plastic you favor best: credit card or debit card. One other great importance of a debit card is that if you are finding it troublesome to obtain a credit card, this card can act as a stand in which may mean you can make plastic transactions particularly to minors. This service consists of regular month-to-month reminders when statements are generated and card holders can easily access their final six months’ statements from anyplace throughout the globe. The card offers complimentary access to airport lounges, airline annual airline credit, and different travel benefits. The card can be used to make cash withdrawals topic to curiosity and handling charges. The privileges might be utilized by quoting “Standard Chartered Privileges” previous to ordering, making reservations or cost. Zero p.c financing can quickly flip into an 18.9% interest rate very quickly and enforced retroactively too.

You may arrange future funds, recurring payments, and naturally one time solely payments. For one factor, its a topic of conversation thats totally different from the standard “what do you do? You'll get a foul credit score file, which may prevent you from getting a mortgage or a mortgage whenever you really want or need one. Though you will have to be cautious as to where you look and which one you select. Now that' Credit Card Statute Of Limitations In Pennsylvania , particularly for those who must be taught stricter financial habits. There may be a need for monetary institutions to develop credit score risk scorecard. Generate fake Credit Card numbers for eCommerce testing purposes If you haven't already figured it out, this doesn't generate legitimate credit card numbers. Some Venmo employees' feeds show them utilizing the app to pay for purchases from fast-meals chains like Taco Bell, confirming that the company is indeed testing one thing exterior its core features. Utilizing a debit card as an alternative of writing checks saves you from showing identification or giving our private info at the time of the transaction.

When you discover your card, just unlock it and start using it once more. This card is the debit card. Actuallly Blue is named as the card members launch pad to standout shopping and leisure rewards and one-of-a-form experiences. Editor's Observe: BankAmericard Money Rewards has some attractive money back options. This result in the renaming of BankAmericard to Visa and Master Charge adopted suit by altering its title to Grasp Card. But earlier than doing that, check with your credit card firm, in case your card has this selection (its normally default with excessive vary playing cards like: gold or platinum). Though we offer information on the products provided by a variety of issuers, we do not cowl each accessible product. Used responsibly, credit score cards are a useful gizmo and supply intensive client protections not available with an ATM debit card. There are card companies who're prepared to grant approvals for these with no credit score whereas denying candidates with dangerous credit score.

In other words, a debit card makes use of cash you've, while a credit card makes use of cash you do not have. You dont have to fret about not having sufficient cash on you once you go to a Sears store. There are lots of advantages to having a card and most of all it's convenient, especially if you have to do enterprise each day. Co-signing is one other option to prove your credit provider that you are trustworthy, especially if you happen to do not have any relevant assets. And possibly in the close to future, I won’t have to get a damned new debit card number every year. Do this over time, and watch this credit card rebuild your credit score rating. Credit Playing cards Of The future can also be completely different than private scoring. See the credit limit: Completely different cards offer totally different credit restrict -- the utmost complete quantity for purchases, steadiness transfers and cash advances. It's normally seen that credit cards giving you gives like merchants discount, petrol surcharge waiver, gift voucher and so forth. usually have a higher charge of interest.

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Why US Credit Card Bonuses Are So High — And Why That May Change

One perk of being an American? Access to uniquely high credit card sign-up and earning bonuses. 100,000-point offers have been dominating headlines the last few months and have only slightly cooled down in 2017. We have cards that can earn 5x or 3x rewards on bonus categories, 1.5x points on every purchase, 2% cash back on everything — even 10% cash back on bonus category purchases. Today, I’ll take a look at why the US has such high bonuses compared to the rest of the world, and why it may change (for the worse) going forward.

International Comparisons

The United co-branded cards offered in Japan come with much lower sign-up bonuses than their US counterparts.

With few exceptions, credit card sign-up bonuses are significantly higher in the US than the rest of the world. During my three years working in Japan, I routinely came across United co-branded cards with offers of 3,000 and 10,000 miles — bonuses my Japanese co-workers were excited to pursue. Compare that to the currently available 50,000-mile bonus for the United MileagePlus Explorer Card here in the States, or the 70,000-mile bonus if you’re lucky enough to be targeted for the higher offer. The Japanese version of the Gold Delta SkyMiles Credit Card from American Express is offering an 8,000-mile sign-up bonus, compared to 30,000 bonus miles here in the US — and we’ve seen 50,000-mile offers in the past as well.

Other countries don’t fare much better. Flying Blue co-branded cards available to residents of the Netherlands have bonuses beginning at 2,500 miles and increasing to 20,000 miles — but the highest bonus is only available with the card that has a €600 (~$636) annual fee! Australia may be the closest in the world to American bonuses, with a few Qantas cards running significant sign-up offers and the Australian American Express Platinum Card awarding a 100,000-point bonus. However, you’ll need significant Qantas points to book an award on that airline (and will have to pay ridiculous fuel surcharges), and the Australian Platinum Card carries a $1,200 AUD (~$925 USD) annual fee.

Even if you earn some of the same transferable loyalty currencies overseas, their value is not the same as in the US. American Express Membership Rewards cardholders in Canada can only transfer to Aeroplan, Alitalia, Asia Miles (Cathay Pacific), British Airways, Delta, Etihad and hotel chains including Hilton and Starwood. Even then, many of the transfer ratios are worse than here in the US.

What’s the reasoning behind the great deals we get here in the states? Three things:

Competition, Interchange Fees and Culture

The Chase Sapphire Reserve has upped the competition among premium travel rewards cards in the US.

The market to get new cardholders in the US is a fiercely competitive one. There are so many card issuers and so many different products that issuers need to have large bonuses and perks to attract customers. We saw what happened last year with the introduction of the Chase Sapphire Reserve with a 100,000-point bonus: Amex responded in kind by sweetening the benefits of the Platinum Card from American Express and the Business Platinum Card from American Express OPEN. The competition and number of card issuers in foreign countries is nowhere near as high as in the US.

Second, card issuers use frequent flyer miles and reward points to encourage American consumers to swipe their cards as many times as possible. This is because they earn a fee for each transaction. These interchange fees — falling under the broad umbrella known as merchant transaction fees — are charged by a card-issuing bank to an acquiring bank for the acceptance of card-based transactions. More simply said, merchants are charged by card issuers for the privilege of being able to accept your credit card. These fees are not insignificant and drive billions of dollars in revenue each quarter for credit card companies. The more they incentivize us with rewards to use the card, the more fees they receive.

Internationally, interchange fees are much lower than in the US. In 2015, the European Parliament voted to limit interchange fees to 0.3% on personal credit cards, considerably lower than the roughly 3% here in the States. That means there’s no profit margin for card issuers to incentivize a consumer with a rebate worth 1-3% to swipe their card. Similar legislation and interchange minimization practices have occurred in Australia, New Zealand and South America.

Third, America is a credit-crazy culture, with the average American household operating on plastic and carrying thousands of dollars of credit card debt. This is not the case around the world, where there is much smaller desire for and access to personal credit. Therefore, there’s no requirement for the rewards that go along with the credit. If you plan on visiting Japan with your wallet full of credit cards, you’d better find a good ATM debit card with no international ATM fees and head to the nearest 7/11 convenience store upon landing to withdraw plenty of yen.

Future Changes

If interchange fees imposed on merchants drop, issuers could rein in rewards and sign-up bonuses. Image courtesy of vm via Getty Images.

A couple years ago, I looked at the reasons behind the disappearance of rewards-earning debit cards. Thanks to legislation passed as part of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act named the Durbin Amendment, interchange fees were capped on debit card purchases. Banks no longer had a reason to incentivize consumers with rewards to use their debit cards as often as possible. That meant no more miles or points for swiping your debit card, and increased fees on every other aspect of your banking experience so the bank could make up that lost revenue.

Interchange fees in the US could be lowered in the future due to new legislation or due to new point-of-sale and payment technology. Once these fees drop, we’ll go the way of Europe where there is no incentive for credit card issuers to lure us with huge rewards bonuses and earning capabilities.

Credit card issuers want profitable customers who carry balances and pay obscene interest rates, rather than those who earn the sign-up bonus and don’t use the card. Chase felt a $300 million drop in quarterly profits thanks to the Chase Sapphire Reserve new customer acquisition costs. CEO Jamie Dimon says he wishes it’d cost more because he knows the majority of those customers will carry balances and be profitable in the long run.

In order to try and avoid unprofitable customers, major card issuers are making their own restrictions. Citi has put a 24-month window from opening or closing a card within the same rewards type before you’re eligible for a bonus again. Chase has instituted the 5/24 rule, and American Express has placed once-in-a-lifetime bonus restrictions on certain cards. I don’t foresee these restrictions becoming lax anytime soon.

Bottom Line

If you haven’t realized how good we have it in the US, I hope you’ll take notice — while also keeping an eye open for future changes to our points-rich society. While there’s no indication that sign-up offers and earning rates will drop in the immediate future, the current system of ever-increasing bonuses and access to almost as many cards as you want will certainly change over time — and not necessarily in the favor of the consumer.

How are you planning for the future of card bonuses?

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Credit Card Processing Rates – Are You Paying Tiered Pricing or Cost-Plus Pricing?

Tiered Pricing

With this pricing format, the processor throws all transactions into three buckets with only three rates. Generally, one bucket is for swiped transactions, one for keyed transactions and rewards cards, and a third for business cards or keyed-in rewards cards. The buckets are called qualified, mid-qualified, and non-qualified. This pricing system allows for an easy to understand merchant statement because there are only 3 rates listed instead of multiple rates and fees on multiple types of card transactions. However, generally, the processor is charging a slightly higher surcharge than with cost-plus pricing. The processor has to make sure he has his buckets covered for all the scenarios of rates. Tiered pricing gives the advantage to the processor. Interchange Cost-Plus pricing gives the advantage to the merchant.

Some processors have an expanded variation of tiered pricing with six or more buckets. They add additional buckets for swiped rewards cards, keyed-in rewards cards, swiped debit cards, and keyed-in debit cards. They can even get more creative than that with extra surcharges on any cards that are mid-qualified or non-qualified.  This pricing is so confusing that it is difficult even for a veteran in this industry to disentangle.  This type of pricing is used deliberately to confuse the merchant and pad the pocket of the processor and the processor’s salesperson.

With tiered pricing, it is nearly impossible to figure out how much your credit card processing salesman and the processor are adding on to Interchange for their profits.

Interchange Cost-Plus Pricing

The Interchange Rates are created by the issuing banks.  They decide how much “discount” or interest they need to make for issuing the credit to cardholders, ie loaning the cardholder the money. The Interchange rate chart is a complicated system with over 100 different categories of rates and transaction fees depending on the risk of chargebacks and fraud.  Debit cards have a lower risk and have a lower rate than corporate cards which have a high risk and a high rate.  There are multiple conditions in between broken down by industry, type of card, and whether the card is swiped or entered over the phone or via the internet. All those conditions have different risks, different rates, and different transaction fees.

With Cost-Plus Pricing, you get charged the actual Interchange rate and transaction fee, the brand fees (for Visa, MasterCard, Amex and Discover) plus an extra percentage rate, and an extra transaction fee for the processor’s surcharge.  The processor also adds monthly and annual fees.  The processor needs to make money for servicing the merchant account. The rates and fees should be fairly straightforward on your merchant statement as to whether the fee is an Interchange fee, pass through brand fee, or a service fee from the processor.  When they are not, the processor could be trying to hide something.

True Story – Only Charging 1% Scam!

  One of my long time clients called me and asked a strange question.  She was so tired of companies calling her to switch her processing that she finally said yes, she would listen to the salesman’s pitch.  She made an appointment with him and called me and asked if I would be at her side explaining what they were going to tell her.  So I agreed.

  We had her statements out ready to show the salesman when he showed up.  He walked in, introduced himself, and immediately opened his mouth and started to rattle off that he had rates as low as Walmart, only 1%.  I immediately recognized the scam coming out of his mouth, so I asked if that was 1% over wholesale Interchange rates. He asked who I was and we explained.  Then he immediately and quickly excused himself and left.  He knew that I knew his scam. He certainly didn’t have rates of 1%, which was lower than the wholesale Interchange rates. He was adding 1% on top of Interchange for Cost-Plus Pricing.

It’s a Challenge to Compare Tiered Pricing to Cost-Plus Pricing!

Comparing the two types of pricing is like comparing apples to oranges, unless you have access to the entire Interchange Rate Chart. Give us a call at 505-296-2847 if you want us to analyze your statement.

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The post Credit Card Processing Rates – Are You Paying Tiered Pricing or Cost-Plus Pricing? appeared first on Electronic Money Company.