I am using paypal now but i 'd like to move to authorize.net and a merchant account. I looked at http://www.creditcardprocessor.com/, there rates seems very low,
Is this real? or there are hidden fees?
Lowest Rates Guaranteed or We'll pay you $500.00!
* No Long Term Commitments
* No Cancellation Fees
Point of Sale / Low Risk / Card Swipe Merchant Accounts:
* V/MC/Check Card discount rate: 1.25% plus .18¢ per transaction
* Monthly Statement Fee: $5.00
* Monthly Minimum: $25.00
* Mid Qualified: 1% plus .10¢ per transaction
* Non Qualified: 1.50% plus .10¢ per transaction
Those rates are definitely for retail processing and specifically - the1.25% + .18 rate would be ONLY for card present, physically swiped Check Cards ONLY. Higher rates will apply for ALL other transaction types.
In fact, if I am reading their Web site correctly... any other transactions for retail transactions that are NOT on a Check Card would fall into the mid or non category which would cost either 1.00% + .10 or 1.50% + .10 more.
Unfortunately, this can quickly result in a HIGHER than normal cost for many retail swipe transactions because you would be presumably be paying 1.25 + 1.00% + .18 + .10 or 2.25% + .28 per transaction on a SWIPE consumer credit (non-check) card which is quite a lot higher than the industry standard pricing on that.
At first glance, it appears that this Web site is using the tired old "teaser rate" approach for the lower cost debit category and then making up for it by surcharging higher than the norm for other categories.
They also do not appear to list their pricing for any Internet payment gateways that they offer which is another key component of the pricing that should really be disclosed.
Last but not least... I find it very curious that this Web site is clearly marketing merchant services under its own brand name but fails to disclose its sponsoring bank(s) which is a direct violation of Visa & MasterCard rules and regulations and one which could lead to some pretty substantial financial penalties.
I would suggest asking them if they are indeed a registered ISO/MSP and if so - with which sponsoring banks and then asking them why they do not disclose this as required by Visa/MasterCard on their Web site. Ask for a contact person at their sponsoring bank to verify that they are an ISO/MSP and see if they provide one.
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