Traditional Credit Card Processing

Ideal Merchant Services will find for you the lowest cost to process your customer's credit card payments.

The Process Defined

There are four participants involved in the credit card transaction process. One is the Merchant, which is the party that receives the credit card payment (you). The second is the Merchant’s bank, which is referred to as the acquiring bank. The third is the issuing bank that issued the card to the customer. The fourth is the customer, which is the person using his/her credit card to make a purchase.

These four parties work together to complete each transaction and this is done effortlessly and safe.

What Factors Detemine Pricing:

Pricing can be tiered pricing, interchange plus (wholesale cost plus) or flat rate pricing. Depnding on your business type, the types of cards you accept, the ways in which you accept cards (swiped, keyed-in, online, card holder present, cardholder not present, over the phone), the volume of specific types of cards you receive (high cost reward, mileage, corporate cards, debit cards or basic credit cards, risk factors, your monthly volume and your average ticket sale determines the rate structure that will be best suited for your business.

The Two Types of Fees

When it comes to merchant account fees, there are two types of fees. There are Wholesale Fees and Markup Fees. The difference between the two has to do with being negotiable and non-negotiable. Interchange Pricing is the most transparent pricing model, but also the most complicated. Basically, Interchange Plus is combination of both the wholesale (by issuing bank) and markup (by processor) fees.

The Two Types of Fees

Interchange (Wholesale) fees are non-negotiable and determined by the credit card issuing bank—they are the pre-determined fees that they charge for making the transaction possible.

Markup (PLUS) fees, however, are negotiable and should reflect a fair price. These fees can vary from processor to processor.

Tiered Pricing is a bundled or tiered pricing structure, which a majority of businesses use. Tiered pricing categorizes credit card transactions in the three different categories. With the tiered model, you have qualified, mid-qualified, and non-qualified transactions.

    1. Qualified Transaction ( Swiped Rate-debit/basic credit card):

    The lowest rate charged per each transaction when the card is physically swiped through a credit card terminal.These types of transactions assume the lowest risk and involve a personal card rather than a business card.

    2. Mid-qualified transactions:

    This is the rate charged when a transaction is manually keyed-in using AVS - Address Verification Service (card #, expiration date, address, zip code and CVV code all match). By manually keyed, this means an employee or owner takes down the information relative to the card, but the owner of the card is not present, or does not swipe and sign the transaction.

    These types of transactions are deemed to be “Mid-Qualified Transactions” when one or more of the “Qualified” conditions were not met.

    3. Non-qualified transactions:

    This type of transaction rate is charged when manually keying-in a transaction without using Address Verification Service. Non-Qualified Transactions are when one or more of the “Qualified” conditions are not met, or:
    When the transaction is electronically deposited (batch transmitted) greater than 1 day from the authorization date or when the card that was used for the transaction was of a business or commercial card

    Flat-rate pricing is a billing platform in which the merchant is charged one discount rate regardless of the type or volume of card transactions.

    Submit a processing statement and Ideal Merchant Services will beat or match your existing rate. If your rate is exceptional, I will tell you that too!! If you are a new business tell me your monthly volume, your average ticket size and your business type to get a quote. If you are an existing business submit 2-3 statements to get a side by side analysis and receive a competitive quote. (The statements will show us the type of cards you usually see in your area.)

    These types of transactions are deemed to be “Mid-Qualified Transactions” when one or more of the “Qualified” conditions were not met.

Standard Credit Card Processing

Ideal Merchant Services and our processing partners will offer your business a fair and competitive payment solution that works for you. We have solutions that include everything from flat rate pricing to tier pricing and everything in between. If you have statements available, we can offer side by side comparisons and uncover ways to save you money. Ask about hard wired terminals, wifi enabled terminals or 4G mobile platforms.

Mobile Processing:

If you think your business could benefit from a mobile payment solution that includes WiFi, Bluetooth and 4G mobile processing then Ideal Merchant Services is here to help. We can provide your business with handheld terminals to phone swipes. These are perfect for anyone on the go!

Virtual Payment Solutions:

Eliminate terminals completely. Send invoices directly from your phone or desktop. Enjoy a centralized place to set up monthly membership payments, track revenue and conduct transactions. Standard processing and no-fee credit card processing solutions are available.