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Banking industry

Credit Card Processing Fees: A Comparative Analysis of Popular Providers

Strategic Insights

— 2 min read

Merchant Resources, a company specializing in credit card processing services, conducted a thorough comparison of various providers, including Intuit QuickBooks, Costco Merchant Services, Square Reader, Wells Fargo Merchant Services, and Bank of America Merchant Services. By calling each provider's customer service, Merchant Resources uncovered significant differences in their fees, rates, and contract terms. The analysis highlights the importance of carefully evaluating credit card processing services to avoid exorbitant fees and ensure transparency.

Key Takeaways:

  • Intuit QuickBooks Payments charges a swiping rate of 2.4% and 25 cents, while non-swipe rate/reward cards are charged at 3.4% and 25 cents. Software costs $10 per month, and only sells swipers for iPads or iPhones.
  • Costco Merchant Services has a base retail Visa/MC rate of 1.38% and 19 cents, but requires clients to be executive members, paying $110 annually, and charges a terminal lease or purchase fee.
  • Square Reader charges a base retail Visa/MC rate of 2.75%, but has no monthly fees, making it suitable for seasonal merchants. However, merchants consistently processing over $10 per sale in Visa/MasterCard volume per month have better options through Merchant Resources.
  • Wells Fargo Merchant Services charges a base retail Visa/MC rate of 2.2% and 25 cents, with a lease terminal for $35 for 48 months or purchase terminal for $699. However, sales representatives failed to disclose the non-qualified rate.
  • Bank of America Merchant Services has a base retail Visa/MC rate of 1.69%, but charges higher rates for mid-qualified and non-qualified transactions. The terminal cost is $28.95 per month or $599 purchase fee, with no contract until personal information is submitted.
  • Merchant Resources offers a 0% pin-based rate and no monthly fees, charging only 1.25% for debit/credit cards with no pin, and 1.65% for base Visa and MasterCard, Discover. They provide a free terminal, cellular phone swiper or POS for restaurants.

Statistics:

  • Intuit QuickBooks Payments charges 2.4% and 25 cents for swiping rate, and 3.4% and 25 cents for non-swipe rate/reward cards.
  • Costco Merchant Services base retail Visa/MC rate is 1.38% and 19 cents.
  • Square Reader base retail Visa/MC rate is 2.75%.
  • Wells Fargo Merchant Services base retail Visa/MC rate is 2.2% and 25 cents.
  • Bank of America Merchant Services base retail Visa/MC rate is 1.69%.
  • Merchant Resources charges 1.25% for debit/credit cards with no pin, and 1.65% for base Visa and MasterCard, Discover.

Sources:

  • Merchant Resources, www.credit-card-processing.com
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