The Basic Message

This site provides pages of information to help you understand the workings -- and potential pitfalls -- of credit card processing. Don't have the time or inclination to read all that stuff? Here's the executive summary version:

• Every credit card service provider starts with the exact same Visa© and MasterCard© wholesale rates* (called "interchange"). That means every sales rep who walks through your door has the same set of wholesale rates.

• There are hundreds of wholesale (interchange) rates, although your business probably generates only 10 to 20 of them. Some of those wholesale rates are dependent upon the actions you (or your staff) take while running a credit card transaction. In other words, you can make your fees more or less expensive depending on how you run a transaction.

• Your sales rep places a markup (or multiple markups) on those wholesale (interchange) rates. He or she also frequently consolidates the wholesale rates into 3 or 4 retail "tiers" (such as Qualfied, Mid-Qualified, and Non-Qualified). We generally dislike tiered pricing by the way.

• The markup is usually a factor of three things: 1. How much card processing your business does (more is better); 2. How risky your sales are (grocery stores are safer than internet electronics dealers); and 3. How educated you are about credit card processing (Hint: If all you do is ask "What's your rate?", you're in trouble!).

• Your job is to control all the markups and to understand how to process each transaction properly.

• Most importantly of all, find a sales provider that provides ongoing service, advice and support. Demand more than "sell and run".

There you have it. The basics -- and we really mean basics. There's plenty more to learn and consider, and that's what the rest of this site is designed to do. After all, we believe that the more you learn, the more you will understand that Payment Logistics is a company where your bottom line is our top priority.

*Applies to Visa and MasterCard processing only. For an explanation of how American Express and Discover processing differs, please see our Credit Card 101 section.