Are you paying too much for credit card processing?

Choosing a credit card merchant account for a new online merchant can be a confusing task. When opening a Yahoo! Store, you can accept Yahoo!'s recommendation of going with Paymentech, or go with a well known names such as Wells Fargo. Since it's not easy to find different options, and comparing the various credit card merchant accounts isn't easy (I don't know a comparison engine like Yahoo! Shopping for these,) most people don't know any better. I have to admit, this is how I opened my store. Each month I received my statement, and I didn't understand half of what was on it, except somehow I had a feeling I was paying a boatload of money just for the privilege of taking credit card payments online. Not until I got a call from CMS, Capital Merchant Solutions. Here is a comparison of their fees:

  CMS Paymentech Wells Fargo
Statement Fee: $9.95 $22.95 $7.50
Internet Service Fee: $0.00 ? $31.00 (!)
Monthly Service Charge: $3.75 ? $5.00
Transaction "Discount" Rate (you pay this per transaction) 2.19% 2.69% 2.55%
AVS (address verification fee) $0.05 ? $0.10
Transaction fee (again, you pay this per transaction) $0.25 $0.20 $0.15

I haven't used Paymentech, so I don't know some of the fees (which aren't normally disclosed until you actually talk to them.) Some of CMS's fees were actually higher than Wells Fargo's, but what I did was I faxed my statement over to them (CMS). They called me back, and went over my statement with me, item by item comparing what I was paying to what I would pay with them. The bottom line was about a 25% gain! Wow! That sounded like a no-brainer! So if you think you are paying too much for credit card processing, check out Capital Merchant Solutions, and see how much you can save.


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