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So after researching several iPhone swipe providers, I settled on Intuit Go Payment a couple months ago.  Big mistake.  I went with them because I thought the rates were decent albeit higher than 1NP because I liked the simplicity of the application and the way it looked.  I didn't think the rates were ridiculous and seemingly cheaper than square.  

 

Oh wait, first statement finally came.  This should be interesting.

 

Bam, an average of 3.6 percent over the last month including the monthly fee so I could get a "lower" rate for swipes.  Somehow every single visa and discover transaction came in at the non qualifying 3.7% rate.  For M/C 45% came in at 1.7, 45% came in at mid and 10% came in at non.

 

*REMEMBER THAT EVERY SINGLE REWARD CARD COMES IN AT THE NON QUALIFYING RATE 3.7%*

 

Now, I knew this was the case when I signed up for the account and I also knew that a relatively high percentage of people use reward cards.  I was in the process of trying to get them to match rates of my previous provider, but that has proved to be a challenge to say the least.  I realize there may have been a mistake in the processing since I can't imagine every one of the 57 visa cards I swiped was a reward card.  The point of this post is to warn you all that there's always a catch and GO PAYMENT charges you almost the highest rate every single transaction.

 

BTW, I swiped every card.  Needless to say, I'm currently provider free.  The good news is that I won't have to pay an early termination fee, but based on this crap experience, I'm waiting for a $300.00 charge to show up on my account from some loophole.  I'll keep you posted.

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Yikes! As a "reward card" user, does this mean that when I buy something from you that it swipes at the highest rate? Yes, that is what you are saying? Is that why Cynthia Davis had me use my PayPal account yesterday when I was shopping at her studio? (probably not)

So, Pete, are you shopping for a new provider and why did you change providers?

Yes, Connie... that IS what it means.  Where do you think the $$ for the "rewards" comes from?  Not the credit card company!  That's passed on to us, the merchants...  So, while it's a good deal for those doing the swiping, whenever I see one handed to me I know it's going to be a bigger chunk of change out of my piece of the pie.  I've started to see artists putting a 2-3% "surcharge" on running a credit card and have wondered about how well that works or if it turns off people from buying all together...

'artists putting a 2-3% "surcharge" on running a credit card and have wondered about how well that works or if it turns off people from buying all together...'

There is, sometimes in the small print, in the credit card merchants acceptance agreement rules about that and that if you do it you could be refused the ability to accept the card for payment. I have seen such in agreements. I an interested also in how others take care of this too.


Is that crazy or what? also, how would they know what you say to an individual while completing the sale? I think if you have a notice about it you could perhaps run into a problem.

 

I have merchant anywhere and it is pricy, but I haven't found anything else yet...still investigating myself.

Right, I remember that... there is something in the agreement that if you take their card you take it for everything. We used to say we had a policy that we didn't take charges under $20.00 (which would have been against their rules) but worked just fine to get us some cash!
Actually, the laws have currently changed so that you can set a minimum now on what you will charge, with the maximum "minimum" being $10.  I'm not sure about the surcharges, however... I have indeed seen signs pop up that say "There will be a 3% fee to process credit cards.", so perhaps the way they're getting around that is that it is a "handling fee".  Still have yet to ask any of those artists how that REALLY works or if it has or has not affected their sales, but it's on my "to do" list next time I see one! 
Oh! I've charged $2.50 for a freaking postcard once on Square...

Thanks Connie & Amy,

 

I basically changed providers from Michigan Retailers because I wanted to use the phone/ipad (the latter is impossible to see in sunlight by the way).  Plus my rep was horrible and never got back to me ever until I called and complained about how he never got back to me.  

My point with this thread was to warn people about the hidden rate programs as it relates to the "reward cards".  As far as I know, it seems like most programs/providers have additional rates when it comes to rewards cards. My old provider considered rewards cards in the qualifying (lowest) rate program, but I also paid $30/month in fees.

I have spent most of the day now looking into different providers and have since learned that Debit cards are used the most followed by rewards cards, then regular cards, and finally business/international cards.  Of course remember the non-swiped entry is a factor.

 

Since then I've found a place called phone swipe and pay anywhere (same thing) but they have a program that charges a higher rate for regular processing, but a 1.05% for debit cards.  I'm still looking though!  Plus they're local here in Michigan.

Out of curiosity, what was it about the Square that you didn't like?  They list a flat fee of 2.75% with no monthly or access fees (wireless, etc.) for swiped purchases and 3.5% for anything manually entered.  Seems like that would be less than what your Intuit was... just wondered why you omitted this option. 

Note about the debit card transactions... that is if they USE it like a debit card and not like a credit card, so they'd have to key in their passcode, and a lot of systems aren't set up to process that type of transaction (on a handheld or wireless unit).  So, if they swipe it and use it like a credit card, you'd still be paying a cc type fee.  Also, with several banks now charging a monthly fee to have and use a debit card, I wonder if that number will get smaller...

I use the Square and have the Intuit as a backup reader.  I recently had Merchant Services with a monthly flat fee of $60.  There I was charged the extra amounts for special cards so after years of having this amount to pay, I know that these fees will apply in almost every service out there, except the Square. It is just the name of the game and the name of doing business as much as it is annoying.  Even if I am to only use the Intuit GoPayment, my overall fees are significantly lower then when I used the Nurit with Merchant Services.
Square, baby, Square...I have yet to hear anything with Square about the tiered fees.  No PCI compliance BS (I don't mean buy-sell)fees, no monthly statements to scrutinize, no store-n-forward...
I don't know if there is a different rule since it is a different kind of business but gas stations here in Buffalo NY charge 3 to 7 cents less if you use cash. So it is the same concept of charging more to use a credit card just stated a different way.

When I set up my merchant account about a year and a half ago I was told that I could not charge more for credit card purchses but I could give a discount for non-credit card purchases.

My provider charges an additional fee for reward card purchases, I think it's 1.1% plus I think 10cents. So it could be more or less than the non-qualified rate. This year I've gotten about 1/3 reward cards.

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