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1.75% may be competitive and better than rates of some merchants receive; however, I had a negotiated rate of .4% for one of my businesses. One of the problems
by will_brown 12y ago
1.75% may be competitive and better than rates of some merchants receive; however, I had a negotiated rate of .4% for one of my businesses.
One of the problems with the entire industry is misinformation, unlevel playing field (inability for your average merchant to negotiate the best rates), and the unscrupulous nature of the sales tactics of the merchant services themselves.
- pm90 12y agoIf you don't mind, could you please share how you got such an amazing rate? Were you negotiating on behalf of a huge corporation? Had a lot of sales? Gave them other business?
- will_brown 12y agoIn the scheme of things it was probably a combination of many things. I am a lawyer; the account was for the law firm (not a large corporation); on the scale of things I would not say a lot of sales but the sale price per transaction was ~$150-$1500; I think above all being knowledgeable about the competition and the time/willingness to negotiate.
- btian 12y agoDo you know how the .4% gets split? I watched a Khan Academy video quite a while ago, https://www.youtube.com/watch?v=nRzTaWZ6ebs https://www.youtube.com/watch?v=nRzTaWZ6ebs and Sal says the interchange fees charged by banks is on the order of 2%.
- sliverstorm 12y agoWhy should a small merchant get the best rate? Big clients get the best rates because they a) have more clout but also b) have orders more volume