“Rates” Posts

What Is MOTO Credit Card Processing?

What Is MOTO Credit Card Processing?

MOTO stands for Mail Order/Telephone Order and is a credit card processing pricing setup on a Tiered plan. MOTO credit card processing is best suited for businesses that primarily accept card-not-present transactions: Examples include e-commerce and delivery-based businesses. In contrast, Retail pricing is appropriate when the majority of transactions occur in-person. It’s important to establish the correct setup, which depends on the type of business you run. Failing to do so could result in higher rates, incorrect risk assessments and lost savings opportunities. How Tiered Pricing Works With Tiered pricing, transactions are bundled into one of three buckets:…

How to Calculate Your Credit Card Processing Effective Rate

How to Calculate Your Credit Card Processing Effective Rate

When a business is considering taking credit card payments, there are several questions that should be answered before they select a partner, including the following: “What are the terms of the contract?” “What equipment am I receiving?” “What level of support will I get?” “What are the risks involved?” However, there’s another question that most businesses tend to fixate on: “What is the cost?” The answer to this particular question can get quite convoluted. When you say “cost,” are you referring to the cost on your current Interchange-plus pricing plan of a downgraded over-the-phone transaction on an American Express…

What Does Credit Card Processing Cost?

What Does Credit Card Processing Cost?

There are a number of payment providers that enable you to accept credit cards. Whether you interact with them directly or not, there are a handful of fees you have to pay for the privilege of accepting plastic. Some fees, like Interchange, cover the wholesale cost of accepting a given transaction. Others are charged monthly, quarterly or annually. We’ll detail how Interchange works and various fees that can factor into your credit card processing costs. There is no right answer here, so it’s best to understand which fees come directly from the card brands versus which are dictated…

What Are Credit Card Processing Fees?

What Are Credit Card Processing Fees?

As a business owner, you need to make a profit from the goods and services you provide in order to stay in business. This is why fees, especially for the privilege of simply accepting credit cards, can be so frustrating. Credit card processing fees are what the payment providers charge businesses for using their services. They often represent a percentage of your credit card sales. Numerous providers enable your acceptance of credit card payments, and each charges its own fees. Some are charged directly to your business; others are passed down. As a refresher, we’ll cover how the different…

What Are AVS and CVV?

What Are AVS and CVV?

When a customer visits your business and pays with a credit card, it’s fairly easy to confirm the legitimacy of the purchase. A diligent cashier could ask to see photo ID to confirm that the person in front of her is, in fact, the cardholder. The name and face should match. However, for card-not-present transactions, merchants must manually key in the credit card number. Verifying the purchaser’s identity is more difficult when you can’t verify it with an ID. Let’s face it: It would be unreasonable to jump on Skype to see each of your online…