For your High Risk Online Business
Alternative Merchant Processing (AMP), a leader in credit card processing solutions (the acceptance of Visa, MasterCard, Discover and American Express) specializes in working with “high risk” and online businesses. AMP’s merchants include business to business, mail order and e-commerce companies and cover industry categories like adult merchants, electronic cigarettes, sports information, travel, vacation, website design, online hotel reservations just to name a few. In all cases regardless of the industry type, the goal is the same — to develop cost savings solutions with regard to credit card processing that improve cash flow and increase your bottom line profitability.
Our research shows that many CEOs and entrepreneurs are busy in daily day to day issues and, consequently, the attention to credit card transactions and the corresponding costs are not being adequately and properly addressed. Having with many owners in the high risk merchant processing field for years, we have found that this industry faces the same issues as a retailer or restaurant. After all, a business is a business.
The acceptance of credit cards helps in many ways: however, it is important to avoid the pitfalls associated with taking a credit card for payment. Just like we need to maintain our health by exercising regularly, business owners must exercise their financial acumen when analyzing whether they have the best “credit card program” for their company.
Yes, the word “program” is critical as there are different programs and solutions depending upon the needs of the organization. What is your rate is the most common question we hear; yet the base rate is only part of the equation. The credit card industry has numerous “hidden costs” which can, and will, inflate credit card costs. Unfortunately most CEOs, CFOs are unaware of the potential pitfalls and how the additional fees are adversely affecting the bottom line.
Visa, MasterCard, Discover and American Express maintain different rate structures for different types of cards and based upon how a transaction is processed. The Associations, who manage the interchange fees present rates in different forms i.e. qualified, mid-qualified, non-qualified. Credit card companies also have other fees such as batch fees, debit fees, annual fees, voice verification fees, address confirmation fees, etc., I think you can understand the point.
Many credit card companies will offer a low introductory rate, which to a layperson will seem unbelievable. However, what will be unbelievable will be the “downgrades” or penalties that a business will be paying, without even realizing it, because there are so many additional issues that have to be addressed besides a low base rate. In order to run your company in a financially astute manner, you must know your “effective rate” (takes into consideration all charges) vs. your “base rate”, which is the initial rate discussed with your credit card company.
Other issues that are rarely raised is how long until your money is deposited into your bank account – 12, 48 or 72 hours? Why should you have to wait three days to get your money, doesn’t 12 hours sound better? AMP, depending on the credit rating of the business owner and industry type can also provide “next day funding” on ALL Card types including American Express which typically may take as long as 4-5 days to settle. When is your discount fee taken, daily or monthly? Think about the savings on interest, the float of your money plus increased cash flow if your fees were removed at the end of the month? It certainly adds up and these issues will help greatly with your cash management.
Finally, it is important to note that switching processors is not a difficult task and takes only minutes. In most cases there is no fee to switch and it typically involves filling out a brief application. Why not start saving money today on merchant processing for your online business? It is a much better investment to spend your money on improving your company vs. wasting money on the high and hidden costs of your credit card processing fees.