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Merchant Account Comparisons Explained

Recently we received a phone call from a client that found us online.  They felt they were paying too much in credit card processing fees, and asked us for a merchant account statement audit.

After receiving their statement we lined up all the costs and fees they were currently paying, and placed our rates and fees side by side.

Now, this is the critical part, because every now and then I’ll hear something along the lines of…

Yeah, I’ve had a cost analysis done before.  They’re all pretty much the same.

No they are not.  In fact, I discussed merchant account comparisons in an early post that you can check out when you get a chance.

Between you and me, my audit sheet is the most accurate and detailed one in the merchant processing industry (i.e. honest).  Period.  No one even comes close. And if you’d like to challenge me on that point, send along your statement and wait for the results.

I’ve seen lots of other so called rate comparisons from other companies, because my clients pass them along to me!

The point is, for an audit to be valuable to YOU, it needs to accurately reflect what you are REALLY paying.  Otherwise, any “projected” savings will be totally meaningless.

So back to the business owner and our most recent audit.  After completing the analysis we were able to save him 10.9% on his processing fees.  The annual savings projected out to roughly $635 per year.

Now, can you guess what his next question was, not counting “where do I sign up?”

It was “how can you save me this much money per year?”  So I’ll let you in on a little secret, just between us…

Your Bank, Costco, and Merchant Accounts

How is it that I’m usually able to save clients, on average, 14.8% on their processing fees?

It’s simple.

Get ready for this.  It’s because…

I don’t have to pay corporate kickbacks. I’ve cut out the person in the middle because I don’t have corporate relationships with banks and other institutions.

Let me explain.

Most banks (and Costco) do not actually handle your merchant account.  In fact, when people go to their local bank and are asked for their merchant account business, what the bank is REALLY doing is referring you off to some large “mega processing” company employing young, inexperienced sales reps needing to meet quota.

That’s the truth.

Now, the question remains.  Why would you bank do that?

And the answer is deceptively simple.  Because they want to make money on your account without providing any service or value to you for it. It’s free money.

See, the mega processing companies give the banks that refer business a part of the monthly income.  That’s the kickback part.  It goes something like this…

you refer the business, we’ll set them up, and pay you each month for the referral.

So why is this a problem for you?

Well for one, this is one of the factors why you’re overpaying for your merchant account.  By cutting out the banks and other companies that stand between you and your merchant account, I’m able to save folks lots of money each month.

But there’s another issue as well.  And it works like this.  Say you run into trouble with your account down the road.  Maybe your terminal breaks.  Or your stuck in a lease.  Or money didn’t get deposited into your account.

Who do you call?  Your bank?

If you do, they’ll kindly tell you that they don’t handle that stuff, and then you’ll get referred to a call center somewhere (Manilla, India, who knows), spend countless hours on the phone, and hope that your problem gets resolved quickly.

Hey, it’s your money, right?

Now, when your bank acts like a toll booth quietly collecting money from your account, why didn’t they tell you up front that you’re getting referred to one of their “corporate partners” and that they don’t handle any service issues?

Why didn’t they just come right out and tell you this?  Could it be that they are abusing your trust?  Hoping that you’ll just sign up, not question rates, so they can collect a check on your hard work?

If you think banks are above all this, then you haven’t been paying attention to the news over the past couple of months.

Request a Merchant Account Review

Well, if this is all new to you and your just getting started thinking about accepting credit cards for your business, get a copy of my free report by clicking on the big yellow button on the top of the right hand column.

And if you think you’re overpaying, we’d be happy to do an accurate audit of your merchant account.  Just fax us your most recent merchant statement to get the process started.

Now, if you’re still on the fence, here’s what a few of our clients are saying about us:

“I noticed that your rates are much better than the other companies I have been researching. Your company looks like the most organized out of all the companies I have researched. And you have been the most upfront and helpful out of all the companies I personally contacted. Thanks again for your attention, professionalism and great business ethic!”

Vanessa Baculo, President, CTG Promotions, Inc., Miami, FL

“For 2 years, I’ve struggled with my merchant services…too high of fees, uncooperative “customer service reps”, and feeling locked into something that I wasn’t ever sure of.  Basically, it sucked.  Now I can sleep at night.  Thank you Amp Your Cash Flow!”

Julie Braun, Julie Braun Design, LLC

I guess that just about does it. Oh, one more point.  A good friend wondered why I called it an “audit” instead of a cost analysis.  Especially since the word “audit” has so many negative connotations.  Well, here’s how the IRS and AMP are different…

1. The IRS audits you because they think you paid too little.  My audit uncovers areas where you paid TOO MUCH.
2. The IRS audit process is painful, tons of paperwork and receipts to collect and send in. My process is easy. Just your latest merchant account statement.
3. The IRS wants you to pay more. I want you to pay less.

Guess that’s about it.  Also, if there are other topics you’d like me to discuss, please leave a comment on the site.  I really want this site to be about YOU and your needs. Does that sound fair enough?