Frequently Asked Questions
HOW DO I ACCEPT CREDIT CARDS IN MY BUSINESS?
You will need a Merchant Account. With a merchant account you can establish merchant numbers with Visa, MasterCard, American Express, Discover and/or Diners.
HOW DO I ESTABLISH A MERCHANT ACCOUNT?
TPS is your one stop merchant service provider. Once we are selected to support your merchant account we will prepare everything you will need to open your account and obtain merchant numbers from the providers you choose to accept.
WHY IS THERE SUCH A WIDE RANGE OF PRICING FROM DIFFERENT PROVIDERS?
Be cautious of what looks too good to be true---it probably is not. All merchant service providers pay Visa and MasterCard the exact same "Interchange"----the cost providers pay the Bankcard system. Interchange Plus (ICP) is you rate from us. You pay the same Interchange we pay Visa/MasterCard Plus but .40%, forty basis points above cost. High volume merchants may even pay less. Be certain you know ALL your costs going in, not just the attractive swiped discount. Do not accept TIER pricing.
WHAT OTHER COSTS ARE THERE RELATED TO ACCEPTING BANKCARDS?
Bankcard pricing has over 22 levels with downgrades depending on if the sale was swiped, hand keyed and when it is settled. Hand keyed sales have additional requirements that must be reported with the sale to insure you have the best rates available. This is what determines Interchange. Trying to blend these costs into a TIERED pricing discount insures your cost will be higher than using ICP pricing.
ONCE QUOTED A RATE I'M ALL SET, RIGHT?
Wrong. Many providers will quote an unbelievable rate that is nothing more than advertising. You need to know how long the rate quoted is guaranteed and under what circumstances if any could your rate increase. Our ICP pricing insures you will always pay the current Interchange pricing. Your Plus percentage will not change. With TPS you pay what we pay and a low Plus percentage.
AFTER A CREDIT CARD TRANSACTION IS PROCESSED AND WE RECEIVE AN APPROVAL NUMBER THE SALE IS GUARANTEED?
NO. With the approval number in your settlement funds will be transferred to your bank. The card holder, however, has certain rights under which he can file for a "Chargeback", have the sale reversed. Your merchant service provider should be ready to defend your rights and coach you on how your sales can be protected.
HOW DO I RECEIVE COMPENSATION FOR MY CREDIT CARD SALES?
Most providers will deposit funds in the bank of your choice. Be very cautious of those that require you to open an account with them.
WHAT IF I HAVE PROBLEMS WITH MY TERMINAL, SOFTWARE OF GATEWAY?
Only work with a merchant service provider who will help you with equipment failure; and one who is ready to supply you with equipment while yours is being repaired. TPS offers this service at no cost to you other than shipping.
WHAT ARE THE DIFFERENCES BETWEEN TIER PRICING AND INTERCHANGE PLUS PRICING?
TIER PRICING: Merchant service providers using Tier Pricing simply take their Interchange costs and blend it into Qualified, Mid-Qualified and Non-Qualified tiers. Interchange is what all providers pay to Visa/MasterCard, they all pay the same. This allows them to mark-up each tier above their costs to generate additional revenue.
INTERCHANGE PLUS PRICING: Interchange is what Merchant service providers pay Visa/MasterCard for each sale processed using a credit card. All providers pay the same interchange rates, regardless of volume. When your Merchant service provider uses ICP pricing you know exactly how much you are being charged above the providers actual cost to Visa/MasterCard. To stay in business all providers must generate income above their costs to provide other services and support.
WHAT ARE THE INTERCHANGE RATES FOR VISA/MasterCard?
For current Visa Interchange rates, click HERE
For current MasterCard Interchange rates, click HERE
WHY SHOULD I INSIST ON INTERCHANGE PLUS INSTEAD OF TIER PRICING?
This merchant was using Tier pricing and then converted to ICP. Once their Tier pricing is converted to ICP, it resulted in a $390 savings for the month. Provide us with a recent Visa/MasterCard processing statement using you Tier pricing and we will give you a comparison of what you now pay to our ICP pricing program. See sample below:
|TIER Pricing Before
|Interchange Plus Compared to TIER
|Click here for a FREE QUOTE!