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Trading Ease For Transparency With Interchange-Plus

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Frank Kehl

Frank Kehl

Expert Analyst & Reviewer: Payments, Merchant Accounts at Merchant Maverick
Frank Kehl has been researching and analyzing merchant services, payment gateways, and international money transfer services since 2015. He has a Bachelor of Science degree from Penn State and a Juris Doctorate from the Ventura College of Law.

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56 Comments

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    Benjamin Lickteig

    Great article, I am opening a chronic pain clinic in the next few months and realizing the process of taking a payment is far more complicated than I had anticipated!

    What are your thoughts for a medical service business that needs HIPPA compliance. Some of our services range from 75 to 10,000 dollars where percentages matter. We are trying to compare many different services but one that is towards the top of our list is EPOSnow and they partner with EVO which advertises at the interchange plus rate (0.20 +10 cents). Is what we were quoted at.

    This sounds great but they have A LOT of negative reviews– what am I missing and what if any companies do you recommend? We do not have any inventory and only provide a service.

    Thank you in advance for your assistance.

      Jessica Dinsmore

      Hi Benjamin,

      Dharma or PayJunction would be much better options. PayJunction even specializes in working with the medical services community. Definitely check them out. As for EVO, we’ve got an in-depth review that covers what you’re missing, if you’d like to take a look. I hope that helps!

        Sam

        Hi

        Thanks for the informative article. So how is it that some charity sites can only charge 0.5% processing rates e.g. charitycheckout.co.uk? There must be an even cheaper option than what is mentioned in the article. I would appreciate if you could clarify this for me.

        Thanks

          This comment refers to an earlier version of this post and may be outdated.

          Jessica Dinsmore

          Hi Sam,

          Interchange rates for charitable donations are much lower than they are for normal business transactions, probably because the chargeback rate is extremely low. CharityCheckout actually has a rate of 0.5% + 20p per transaction and a £19.99 monthly subscription fee. Also, interchange rates are lower in the EU than in the US under EU law. At the moment, it’s unclear whether the UK will continue to follow those limits post-Brexit.

            This comment refers to an earlier version of this post and may be outdated.

            Clothilde Blankenship

            Questions I sent to https://www.merchantmaverick.com/trading-ease-transparency-interchangeplus/ 9-28-19

            Hi,

            I’m a semi-retired older small business owner who did processed my clients cards with Chase for years, then closed it down when I retired (they raised prices at every opportunity!)

            Now I’ll have a new book coming out and will be selling books and related consulting. Book sales will be $25 per charge; consulting and speaking fees will average $2,000 – $7,500 and could go as high as $15,000 per event. Sales will be spotty and irregular depending on the success of the book (and gigs that flow from that) and how “retired” I really become.

            Example: One day I may sell one book to someone I run into locally; the next day I may process 20 sales at $25, another a $1,500 speaking fee.

            When I did this 15 years ago, sales of the book alone averaged $2,500/mo.

            I have done lots of research, but keep running into extra high fees, terrible customer service, bad reviews, etc. I just turned down First Data through my bank for those reasons.

            I am now considering FATT, Host and Payline. I’m looking for a system that’s both mobile (for on-the-road or back-of-the-room sales,) or could be used online at my desk (such as after a local presentation.)

            Would you please recommend a vendor that can do all that and accommodate Amex, Discover as well as the regulars, and maybe even take PayPal and ApplePay?

            (I rejected PayPal for my processing since their Terms of Service state explicitly that they may release any or all of my *personal private* data including SS number and birth date “in other countries where we cannot guarantee privacy.” Yikes!)

            Regarding PCI: I wrote an article about PCI compliance about 10 years ago, so studied it then. I don’t want my computer scanned. I know there is an updated way to handle it – EMV? Forgot the initials.

            Thanks in advance.

              This comment refers to an earlier version of this post and may be outdated.

              Emily Hale

              Hi Clothilde,

              I hope to clear things up for you. All things considered, you’re on the right track with Payline as you can expect transparent pricing and solid service. They’ve earned our highest 5-star rating and we can confidently recommend them. You may also want to consider Square because of transparent pricing and you’ll get a lot of options to sell online. (Plus they cover PCI compliance with no scanning needed on your PC.)

              When it comes to reviews, negativity bias affects all of the big players in some way, so keep that in mind when you are researching options. As far as PCI, a lot has changed, and I encourage you to read our post, What Is PCI Compliance and How Does It Affect Your Business? In general, solutions like Square and Payline reduce your scope, meaning that by utilizing their software, you won’t be actually storing anything on your system, and won’t require the scans you may have had to in the past with other solutions. Hope this helps and best of luck on all of your endeavors!

                This comment refers to an earlier version of this post and may be outdated.

                Clothilde Blankenship

                Thanks very much!

                  This comment refers to an earlier version of this post and may be outdated.

                  elan neuman

                  Thank you the informative article. I am currently looking at switching our vendor to cardconnect due to their interface with our Electronic medical records system. I am being quoted a pass through interchange fee of 0.3% plus a (visa/mastercard/ assessment fee of .13%). How would you say that compares with other merchant company fees?

                  Additionally, is it standard language in the contract to allow then to automatically debit bank account if anything is owed, and hold any monies if there is some default?

                  Thanks

                    This comment refers to an earlier version of this post and may be outdated.

                    Jessica Dinsmore

                    Hi Elan,

                    We’d strongly recommend a thorough reading of our CardConnect Review before making any commitments. Is it possible that your EMR is compatible with any other providers? PayJunction specializes in working with the medical services community, and they would be a much better option, if that’s the case.

                    Regarding your quoted rate, it’s probably interchange + 0.3% + $0.13 per transaction, which is a decent rate. However, CardConnect is known for adding a lot of additional account fees, so it might not be such a great deal overall.

                    And finally, the contract provision allowing the provider to automatically debit any money owed and hold funds is standard throughout the industry. Every provider will include this provision in their contracts.

                    I hope that helps!

                      This comment refers to an earlier version of this post and may be outdated.

                      Anna

                      We are in the restaurant business with monthly volume of $320,000 per location. We use the POSitouch system and have WorldPay process our credit cards. For some reason we are having trouble getting EMV readers that are compatible with POSitouch. POSi wants us to use their processing company Shift4. Any reviews on this company?

                        This comment refers to an earlier version of this post and may be outdated.

                        Jessica Dinsmore

                        Hi Anna,

                        We’d actually recommend switching to a different provider, as you can see, we don’t score Worldpay very highly. We haven’t yet reviewed Shift4, however our understanding is they’ve merged with Harbortouch, who we score even lower. At your monthly processing volume, any of our top-rated providers that offer interchange-plus pricing would be a better choice. Making the switch won’t be cheap, though, as you’ll have to replace all your current POS systems. It’s probably worth it in the long run if you’re currently lacking EMV equipment. We wish you all the best!

                          This comment refers to an earlier version of this post and may be outdated.

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