How much should I expect to pay for merchant services?
I am curious who people recommend for merchant services and how much they charge. Bank of America charges 1.99% and 20 cents per transaction, $16 monthly fee (which includes payment gateway), $94 for PCI and a $99 set up fee. I used to use them and these fees are less than they were a year ago, but I still wonder if they are reasonable. Also, does anyone have any recommendation for recurring subscription services. I have used Pin Payments, which was previously Spreedly, but it's been over a year. Thanks.
I use Intuit Payment Network (https://ipn.intuit.com) There is no monthly fee. They charge 50 cents for a bank payment, or 3.25% to receive a credit card payment. Since I use QuickBooks, I just send my clients a PDF invoice which has a link for payment. I can also set up recurring requests online, which automatically sends out an e-mail to my regular clients.
We only provide ESCROW accounts.
Escrow accounts in your name or your client's name from $100K to $30M. This is not a loan.
These are samples from actual client inquiries (rates subject to change):
1. Escrow account POF for $671K. Pricing will be 3.95% for 30 days.
2. The minimum for $750K is 30 days. The 30 day pricing is 3.25%
3. 100k for 6 months. The pricing would be 7 percent for the first month. 2 percent for each additional month.
4. $165,000 and $1,500,000 for 6 months and 12 months:
$165K is 6.75% for the first month and 2% per month for each additional month.
$1.5M is 3.00% for the first month and 1.5% for each additional.
5. Quote for $3.6M for 90-days: 2.85% for the first month and 1.5% for each additional
6. Quote for $400k for 12 months: 3.95% for the first month and 1.6% for each additional month.
7. Quote for $5M for 60 days: 2.75% for the first month and 1.35% for each additional month
8. Quote for $500,000. for 2 years: 3.85% for the first month of each year. 1.6% for each additional month.
We need to know the amount, for how long and if you are the client. Then we can provide you with a quote and that amount has
to be received by the escrow company prior to any verification.
Email us for a quote
I do not have a recommendation for recurring subscription services, but I can comment on the merchant services side of your question.
I can tell you that 1.99% is a little high when compared to the market rate. I ran credit cards for a restaurant and other businesses and our typical rate was 1.3-1.5%. it was a little higher for American Express, but we used so little of that, it didn't make a difference. You should definitely shop around. I know a lot of the companies will wave all set up fees and PCI and will have no monthly fee. They will most certainly not charge .20 cents a transaction. I think we were charged .03 cents per transaction.
These aren't the worst rates out there, but I would suggest looking into companies that focus all of their energy specifically into merchant services. They are typically cheaper with rates, can work with you on setup fees and customer service is generally great.
If you supply your merchant statement to any merchant company, they will work to save you a lot of money and you can work your way down to where you are actually saving a lot more money than at your current rates.