Merchant Services Options

Merchant Services are what the banks call credit card processing (and debit card processing, etc).

We are currently looking at two options:

TotalmerchantConcepts.com

This is the outfit that is hooked up with our new credit union.

From Eric at TotalMerchantConcepts dot com (see email to C7 on September 19, 2006).

For pricing, it varies based on how you process the credit cards.

• 1.60% + .22 (Swiped Check Cards)
• 1.75% + .22 (Swiped Credit Cards)
• 2.05% + .22 (Swiped Rewards Cards)
• 2.35% + .22 (Key Entered W/AVS transactions)
• 3.05% + .22 (Swiped Corporate or International Cards)or(Key Entered W/O AVS transactions)
• $8 Monthly Statement Fee
• $10 Monthly Minimum (Either this charge OR the percentages listed above) -- WAIVED
• $29 Annual Fee (billed 6 months after you begin processing)

• $49 Reprogramming Charge if you use your own equipment.

Portland Merchant Services

This is a one person company in the neighborhood. He bills himself as a transparent credit card processing company.

He gave us a list of what Interchange charges him (and the other services we're considering), and says he add 10 cents and .35% to everything. This makes it easy to tell his exact rates for any given type of card we process.

He also gave us a sheet entitled 5 Questions Credit Card Don't Want You To Ask. He does strike us as honest.

Innovative Merchant Solutions

This is an Intuit company (or one that was swallowed up by Intuit) that has visited us in the past.

Samantha Witter from Intuit-IMS stopped by. We talked some shop and this is what we came up with.

We can use our own Machines, no need to buy. While our average transaction stays under $25 our rate is:

• Rate: 1.73%
• Transaction Fee: $0.10
• Monthly Fee: $7.50
• Batch Fee: $0.25
• Startup Fee: $12.50

This would be for accepting MasterCard and Visa only.

What we need for the application:

1. 501(c)(3) form
2. articles of incorporation
3. Voided check

The person that signs the application should have good credit. The organization will be held responsible for any mishaps, not the signer.

Some Assumptions

We've got no hard data, but the Thrift Store customers "seem" to want to pay in plastic, which means we'd see a drop in cash and probably an overall rise in sales income. Most of this would be likely be debit purchases, but some (especially purchases greater than maybe $50 might be credit card purchases).

At the Front Desk a number of people are sent to the ATM machine each day. Sophia guesses 20% of the folks would use plastic instantly, and that many of them would pay the suggested amount, rather than a lower amount they happen to have on hand. So Front Desk donations would also rise.