Each month, your monthly credit card processing report is received by you from business transacted during the past month. Needless to say, when it will come in the mail, you are anxious to see all the money you made and start all the money up, aren't you? Yah right...if you start it at all, you just cringe at all the expenses that have been taken away from your sales. But hello, it's a privilege you know to accept credit cards and spend those fees....aren't you thrilled?Okay, let us be honest here for a minute. When you weren't accepting plastic as payment for the goods and services that you sell, you'd definitely be missing potential business. So, with this said, let's just accept the need of the necessity all and proceed to better understanding everything you are investing in. While promoting my services, stores could hand me their unopened claims with which to complete an analysis for them so how exactly does that sound to you?When I was active in the field, I found that often. When offered a sealed envelope I'd often ask if this is an unusual condition or did they simply never look at them. Regrettably, the latter solution seemed to be the main one most often obtained. Believe me, I understand why this is so because frequently, these disgusting points are downright complicated.All right, let me scold you that fall into this category just a bit here. You absolutely must start opening and, moreover, knowledge, these products instantly. So allow me to see if I could break them down a bit for you here to make the process a bit easier. A lot of them are divided into a few groups as follows:IMPORTANT NOTICES OR STATEMENT NOTIFICATIONS
Typically, this will be on the first page and will be where your supplier will alert you to any changes to your statement such as pricing data changes, industry news. If you ask me, that is among the most important sections to always READ THOROUGHLY. This really is especially crucial in the months before October and April annually. In each one of these 8 weeks, Visa and MasterCard modify interchange charges which may have a direct affect your pricing. So, continually be certain to be alert and get answers to anything you see published there.TRANSACTION SUMMARY
In this section, you'll commonly visit a total breakdown by card kind of the amount of transactions and total dollar volume for each. This is an excellent place to do a quick analysis to see what your typical solution is on plastic. Simply just take your total dollar volume divided by the total amount of purchases and there you have it.CARD FEE SUMMARY
Not all processors will use the same vocabulary but, in this section, particularly if you're on a pricing structure, you'll see a breakdown of total volume/transactions for each level sort like Qualified, Mid-Qualified, Non-Qualified or 1st, 2nd, 3rd, 4thTier pricing. You'll start to see the price and per product fees outlined. If you are in a Price Plus pricing design, this section will be a lot longer, and more revealing because it lists each card and transaction type with suitable fees.DAILY DEPOSIT DETAILS
On your own part this section might take up numerous pages and actually doesn't justify an intensive investigation. It is just a show of your daily amounts per terminal and the numbers you see here, must match with deposits built to your lender within 48 hours of each order. Contact your provider.SUMMARY OF ALL FEES, if you see any mistakes
This could be the area that offers you a great analysis of what you're REALLY INVESTING in this privilege of taking credit cards. Here you'll find totals for Batch Fees, Debit Access Fees, Statement Fees, Merchant Advantage Fees, Equipment/Supplies Fees, PCI FEES, Monthly Service Fees.....FEES, FEES, FEES (a number of which you may not even understand what they're for so, ASK THE QUESTIONS). Regardless, just take the "Total Fees for all Terminals" range and divide that by the total dollar amount that you did for the month and that will give your "Net Effective Rate." So, as an example, if total fees were $1,157 merchant services.72 and total volume was $41,700.85, the Net Effective Rate is 2.78%. These, by the way, are actual amounts from a record that a merchant recently handed me saying, "I question it is possible to beat my rate....I am at 1.51% plus $.25" which, obviously, is what his supplier concentrated on when actually offering him on the partnership. As you may picture, after giving this merchant an intensive knowledge on this industry and customizing a suitable pricing technique for him, you know who he's handling with now.The important thing here is that I truly want to get home to you is this....READ AND UNDERSTAND YOUR STATEMENT, MONTHLY. Actually, processors understand that a lot of merchants only don't make an effort to get more deeply into your pocket and do so and quite frankly make use of this to their advantage. Keep more for you personally and offer less to them. Until next time, I wish you an effective 2011.
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