Why Searching for the Lowest Credit Card Processing Rates is a Mistake

Shannon Andrade |

May 31, 2012

WHAT ARE YOUR RATES??!! 

That is the first question many merchants ask.  Unfortunately for them, it is perhaps the least important thing to focus on.  Many companies post either deceptively low rates or ones which only apply to a small fraction of transactions, knowing it will draw these merchants in.

Merchant Warehouse is different.  We focus on the total cost and guarantee, in writing, to have the lowest or we pay you $100.  It is our sincere hope that you will read this short explanation about rates and how deceptive they can be.  We promise it will help you save money, whether you ultimately choose us or not.

Look at the difference between a hypothetical “qualified” rate of 1.69% and 1.72%.  It might seem huge.  Remember though that we are talking about percentages.  Does it seem like a big difference when we look at 0.0169 vs 0.0172?  Imagine a retail merchant with $10,000 in monthly processing.  The difference between the rates?  $3 a month! 

In short, rates are an important factor, but they are only one of many you need to consider.  Make sure you get a full summary of rates and fees, regardless of which merchant services provider you talk to.  Consider the entire package, including any equipment or software costs as well as whether you are locked into a long term contract or have cancelation fees.  Ask who provides the tier 1 support should you have questions or problems and look at the BBB ratings and the customer testimonials.

We look forward to showing you how we can set you up with the best deal and not just the lowest rates.