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Banking industry

Merchant Resources Compares Credit Card Merchant Services to Rivals

Strategic Insights

— 2 min read

Merchant Resources, a credit card processing company, has released a comparison of its services with those of several major rivals, including Costco Merchant Services, Intuit QuickBooks, Square Reader, Wells Fargo Merchant Services, and Bank of America Merchant Services. The comparison reveals significant differences in rates, fees, and equipment costs among the various providers.

The analysis by Merchant Resources found that Intuit QuickBooks Payments charges a swiping rate of 2.4% and 25 cents, with non-swipe rates for rewards cards at 3.4% and 25 cents. In contrast, Costco Merchant Services offers a base retail rate of 1.38% and 19 cents, with rewards cards at 1.99% and 19 cents. Square Reader charges a base retail rate of 2.75%, while Wells Fargo Merchant Services has a base retail rate of 2.2% and 25 cents, with mid-qualified rates at 3.1% and 25 cents.

Merchant Resources also discovered that Costco requires its merchants to be executive members, paying $110 a year, and charges a terminal lease of $30 a month for 2 years or a purchase price of $489. Bank of America, meanwhile, charges a base retail rate of 1.69%, with mid-qualified rates at 3.19% and non-qualified rates over 4.35%. Wells Fargo's sales representative failed to disclose the non-qualified rate, and the company charges a lease of $35 for 48 months or a purchase price of $699 for a terminal.

In contrast, Merchant Resources offers competitive rates, including 1.25% for debit/credit cards with no pin, 1.65% for base Visa and MasterCard, and 2.2% for Discover cards. The company also provides free terminals, swipers, and point-of-sales systems, and offers no monthly fees.

Key Takeaways:

  • Intuit QuickBooks Payments charges a swiping rate of 2.4% and 25 cents, with non-swipe rates for rewards cards at 3.4% and 25 cents.
  • Costco Merchant Services offers a base retail rate of 1.38% and 19 cents, with rewards cards at 1.99% and 19 cents.
  • Square Reader charges a base retail rate of 2.75%, and Wells Fargo Merchant Services has a base retail rate of 2.2% and 25 cents, with mid-qualified rates at 3.1% and 25 cents.
  • Merchant Resources offers competitive rates, including 1.25% for debit/credit cards with no pin, 1.65% for base Visa and MasterCard, and 2.2% for Discover cards.
  • Costco requires its merchants to be executive members, paying $110 a year, and charges a terminal lease of $30 a month for 2 years or a purchase price of $489.
  • Wells Fargo's sales representative failed to disclose the non-qualified rate, and the company charges a lease of $35 for 48 months or a purchase price of $699 for a terminal.

Statistics:

  • 2.4% swiping rate for Intuit QuickBooks Payments
  • 25 cents fee for Intuit QuickBooks Payments
  • 1.38% base retail rate for Costco Merchant Services
  • 19 cents fee for Costco Merchant Services
  • 2.75% base retail rate for Square Reader
  • 25 cents fee for Wells Fargo Merchant Services (mid-qualified rate)
  • 3.19% mid-qualified rate for Bank of America
  • 4.35% non-qualified rate for Bank of America

Sources:

  • Merchant Resources comparison of credit card merchant services
  • Costco Merchant Services rates and fees
  • Intuit QuickBooks Payments rates and fees
  • Square Reader rates and fees
  • Wells Fargo Merchant Services rates and fees
  • Bank of America Merchant Services rates and fees
  • Merchant Resources press release (M2 PRESSWIRE via COMTEX)
  • Comtex SmarTrend Alert (4-23-2012 for WFC @ $32.60)

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