Merchant Fee

Video Transcription

Good day and thank you for taking a few moments to watch this video. My name is Matt Crawford and I'm with Quantum Merchant Services and I’m going to spend the next few minutes talking about a rather generic term in the merchant services industry; the merchant fee.

The merchant fee as you might have guessed from the very nature is money merchants pay for accepting Visa and MasterCard. Now this term is all encompassing, it was once explained to me that there are 36 different ways a merchant can be built for Visa acceptance, MasterCard acceptance, Interac acceptance, or American Express acceptance. All these different fees, whether it is a per-transaction fee, whether it is a percentage fee, whether it is a percentage of the overall transactions, we all bundle this up together and simply refer to it as merchant fee or the fee merchants pay for accepting credit cards.

It’s important to understand there is multiple ways for you to be built on because you shouldn’t be fixated on a single fee. For instance, someone may offer you a very attractive percentage on your Visa and MasterCard but they offset that by charging a very high monthly fee. So don’t look at your fees individually, don’t consider whether this offer I just got in the mail looks really attractive because one of the fees is lower than what I’m paying now? Rather think of it as a whole, think of what comes out of your account at the end of each month. How much does it cost a month to accept Visa and MasterCard.

Don’t think of individual fees, or the bigger lump we have here, the “merchant fee”. There’s so much more going on than a single fee. Really focus on your cost but focusing on your cost to have a better understanding of the offer that you’re presented with how it compares to how you’re currently doing business.

Thank you very much for your time.