Credit Card Processing Services Compared: Square Reader, Costco, Bank of America, and Wells Fargo

Strategic Insights -

Merchant Services, a company with 25 years of experience, has compared the credit card processing services of Square Reader, Costco, Bank of America, and Wells Fargo. The company has found significant differences in the rates and fees charged by these services, making it challenging for merchants to choose the best option. The new EMV credit card terminal offered by Merchant Services is free, with no statement fee, no yearly fee, and no minimums. Furthermore, merchants who sign up before December 3 will receive free paper for two years.

Key Takeaways:

  • Square Reader charges a base retail Visa/MC rate of 2.75% and a key-entered rate of 3.5%.
  • Wells Fargo charges a base retail Visa/MC rate of 1.8%, but a lease for the terminal costs $35 per month or a purchase price of $500.
  • Bank of America charges a base retail Visa/MC rate of 1.69%, but has varying rates for different types of cards, including rewards cards, business cards, and foreign government cards.
  • Costco charges a base retail Visa/MC rate of 1.99% and 25 cents, with a $100 setup fee, a $25 monthly minimum, and a monthly fee of $9.95.
  • Merchant Services offers rates of 1.25% for debit/credit cards without PIN, 1.65% for base Visa and MasterCard, and 20 years of experience in the industry.
  • The EMV Terminal offered by Merchant Services has a retail value of $495, while the POS has a retail value of $1295.

Statistics:

  • Square Reader's base retail Visa/MC rate is 2.75% higher than Merchant Services' rate of 1.65%.
  • Wells Fargo's base rate of 1.8% is lower than Square Reader's rate.
  • Bank of America's rewards card rate of 3.19% is higher than its base retail rate of 1.69%.
  • Merchant Services offers a free EMV Terminal and POS to merchants who sign up before December 3.

Sources:

  • M2 PressWIRE, "Square Reader, Costco, Bank of America, Wells Fargo: Credit Card Processing, Card Card Reader (C)1994-2015 M2 COMMUNICATIONS RDATE:29112015"
  • Merchant Resources, "Merchant Account, Credit Card Processing Services, Business Solutions"
  • ABNewswire, ((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties.))