Merchant Discount Rates?

[kjs50]

Hello,

I received a cold call from someone who is part of a group that offers discounted merchant account rates on a "wholesale" basis. They said roughly they are 1.5% - 2% for Internet. I currently pay 2.23%

They only thing that sounds fishy is that before I said I would send them my information, I requested the online networks they can work with (I currently am on Authorize). They said they would not be able to provide this, only an account executive would be able to provide this and until I send them info, I cannot speak to an account executive.

So I said I would not send them my information. Just wondering if anyone else is truly a part of a program like this and if there is any way to get a lower discount rate.

Thanks.

[Shak]

be careful when it comes to people handling ur CC stuff

they do a runner with a week or months worth of takings, and you could be destroyed

shak

[CernyM]

General rule: people who can afford telemarketers to cold call prospects do not typically offer the least expensive options.

Corrolary: The least expensive Internet merchant accounts are likely to be found by looking on the Internet.

[coconutz]

You could always ask your current provider for a "rate review" to see if you qualify for a lower rate. It would depend on a number of factors; average ticket price, volume, chargebacks, etc. You might be able to get a lower rate.

[digitalv]

The rate they're promising isn't uncommon, as I'm currently paying 1.8% myself, but this company doesn't sound legit and I wouldn't give them any information. It sounds like they're trying to get your social security number and/or banking information.

First off, anyone selling an INTERNET merchant account would know what freaking Gateway they're using. And no real sales person would say you're not allowed to talk to anyone higher until you turn over personal information - that just doesn't happen in a legitimate business.

The rate you pay depends mostly on your credit score - unless you're a public company, you signed a personal guarantee when you got your merchant account, so you're personally accountable and your personal credit score is what matters the most to them. Second would be your D&B rating, how long your company has been in business, and your charge-back ratio. Third and final factor is transaction volume. I forget whether it was $50,000 or $100,000 a month required to get to 1.8% but it was one of the two. I think it was $250,000 a month to get to 1.5% but I don't really remember.

Anyway if all of these items are favorable you can definitely get below 2% for mastercard and visa. American Express is higher, but they also have discount programs based on transaction volume. I'm with Wells Fargo, since they're a real bank there is no "middle man" making a percentage off of every transaction, which is the case with most of the "E-Commerce" places like Innovative Merchant Solutions, ECX, etc.

Plus Wells Fargo uses the Authorize.Net gateway, my personal favorite. If your credit score and transaction volume justifies the lower rate, go for it. Wouldn't hurt to call your current provider and tell them you're shopping around.

[JonR28]

I pay 2.79% because I am with a "high risk" bank. Apparently two 18 year-olds with no credit and a dot com dream are not easily trusted. However I would never trust anything sent to me in the mail or told to me over the phone. Authorize.net is great and you can find their resellers on their website. I tried wells fargo too but they laughed me out the door.

These people are going to try and make you buy software or hardware terminal for hundreds of $$$. I woudln't do it.