Card processing is becoming an increasingly competitive arena with new pop up resellers appearing all over the country. What many businesses need to be aware of is that there are only a handful of Merchant Banks out there processing payments so transaction rates aren’t hugely different from one merchant account provider to another.
Where the difference lies is between High Street Banks and resellers. Resellers tend to charge much lower rates than the Banks due to the competitive nature of the industry. New businesses naturally use their Business Banks when starting up to provide card machines and merchant services then stay with them not realising the savings they could be making by switching.
Educating the industry is key to saving businesses money especially in these difficult times for the high street. By switching to an independent organisation that resells the merchant accounts, businesses stand to save up to 50% on their card processing costs.
As an example, if a retailer accepts card payments on credit cards to the value of £12,000 over the course of a month and currently pays 2.4%, this equates to £288. At this level of card turnover, an independent will be in a position to offer you in the region of 1.2% therefore costing you £144 per month. This generates a saving of £1,728 over the course of a year.
In essence, any business can obtain low rates on transaction costs but what really makes a supplier stand out from the crowd is service, support, reputation and longevity in the market place.
I recently saw a post on LinkedIn which aptly stated “The bitterness of poor quality remains long after the sweetness of low price is forgotten”. This may sound like a contradiction to the point made about making savings however if the service, support and longevity of a company is evident in addition to making great savings then your business will benefit financially and operationally.