Mastercard & Visa

Video Transcription

Hi my name is Tony Grant, and I'm here today to discuss with you MasterCard and Visa. MasterCard and Visa are the dominant issuers of credit and debit card to financial institutions who in turn issue them to their consumers and clients. (We are) There's been a push recently in the last several years to move towards a cashless society. No longer our consumers are carrying cash and credit, they are carrying plastic. MasterCard and Visa dominate the credit card marketplace. You may also hear of American Express, Discover Card, China Union Pay but nobody has the line sure quite like Master Card and Visa does. If you are a business and want to accept Credit and Debit Cards from your customers, you want to have a Merchant Account. Merchant Account allow you to process those transactions and there are several different ways in which you would obtain authorization for those types of transactions.

One thing to be careful of, is if your customer present you with any type of rewards card, anything that they are getting air miles, frequent flyer miles any type of rewards; you as the merchant is actually paying a higher transaction, a higher rate on those transactions. One quick easy way to determine what the cost of your merchant account is to your business, is to calculate the effective rate. And that is done by calculating the overall fees that you pay in any particular month divided by the volume of transaction that you process in that month. That's the easiest calculation to determine exactly what your merchant account is costing you. Thanks.