There are several misconceptions in our industry that lead to confusion about credit card processing rates and fees.
Here we highlight the reality of the top 3.
1. One Low Rate
Misconception: More often than not when a payment processing account executive presents their services they may only quote one rate that sounds something like 1.29% and 15 cents. This can lead the business owner to assume that this is the only rate that will ever be charged for all payment acceptance.
Reality: In most cases there are many different rates applied. These rates are applied depending upon the type of card and how that card is accepted for payment. For example, a corporate credit card has a higher cost than a personal debit card and a swiped transaction generally is less than a non swpied transaction.
2. Free Equipment
Misconception - Account executives for payment services may tell business owners that they will give them card swiping equipment for “free” when they switch to their processing services. They may make this equipment appear to be worth much more than it actually is so it appears like they are giving the business owner a great deal.
Reality - Most things in this world are seldom free. That pricey piece of card swiping equipment most likely can be purchased elsewhere for significantly less than what most Account Executives will lead you to believe it is worth. Usually the higher processing rates, and other fees, cause many small businesses to end up paying for their equipment many times over throughout the term of their contract.
Misconception - Fees such as statement fees, data security fees, batch header fees, monthly minimum fees, and a host of other fees are necessary administrative costs to keep payment processing services operating.
Reality - There are costs to maintain processing services. However, many fees are there to create additional margin and further cutting into the businessowners profit.
There's no doubt the credit card payment processing industry has become increasingly confusing, and many auto dealerships (and small business everywhere) are being unknowingly taken advantage of in this complexity. As a result, many business owners are paying more than necessary for this critical service by thousands of dollars per year. Novera’s transparent and innovative flat fee pricing is changing all of that
The Novera Advantange
- Novera’s consultative approach allows us to thoroughly educate our clients, equipping them to better understand this complicated industry.
- We take the mystery out of the credit card processing business.
- We work with all types of businesses across the country, and one our specialties is auto dealership credit card processing.