Warning: was running my shop on the wrong payment processor for 2 years

I got a call from a customer last month complaining our card reader double-charged them. When I looked into my merchant account statement, I realized I was paying 3.5% per swipe when Square only charges 2.6%. That extra 0.9% on like $40k in monthly sales added up to $360 a month I was just burning. Has anyone else found cheaper processing through a local credit union instead of the big names?

2 comments

2 Comments

alex5243d ago

You mentioned that extra 0.9% adding up to $360 a month, and that's exactly the kind of thing people overlook. I've been running numbers for years and most folks don't realize those tiny percentage points eat into your bottom line more than they think. If you're doing $40k a month, that's over $4,000 a year you're just giving away. I switched to a local credit union a couple years back and got a flat rate of 2.2% on swiped cards, no monthly fees. The catch is their customer service is slower than the big processors, and their online dashboard feels like it's from 2005. But for me, saving that extra bit every month was worth dealing with a clunky interface. Just make sure you ask them for a written breakdown of all their fees, because some credit unions hide setup or statement charges in the fine print.

margaretw413d ago

Actually Alex, I need to gently push back on that 2.2% rate you mentioned getting from your credit union. @alex524, flat rates below 2.5% usually have some hidden catch with credit unions, like a per-transaction fee on top or a monthly minimum you gotta hit. I checked with three local credit unions near me in Ohio and they all quoted me around 2.5% to 2.7% for swiped cards, with a $15 monthly statement fee tacked on. You might have gotten a special deal or maybe they changed their pricing since you signed up. It's smart to have them email you the full rate sheet every year so you can catch any changes. Just thought I'd mention it since a lot of folks here might get their hopes up and then find out their local credit union charges different rates.

-1