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Media Release
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MERCHANTS MAY BE PAYING UNNECESSARY PROCESSING FEES THAT DRIVE PRICES UP
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- Merchants' Choice Card Services Nationwide
Reveals Smart Alternatives for Retailers
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| Hackensack, NJ, September 23, 2000:
"Before a retailer sets up shop on the corner or on the Internet, one
of the first things he or she needs to do is learn the basic rules of the
game," according to Arthur Bergman, President of Merchants' Choice Card
Services Nationwide, one of the largest credit card processing organizations
in the US. "And the First Commandment is Thou Shalt Not Pay
Unnecessary Fees," he continued. |
| "Many of customers may have had previous
experience with credit card processing companies and found them lax,
non-communicative, or lacking follow-through," said Bergman. Some
retailers do not even know the name of their processing representative.
"We are committed to being accessible, and to promptly and personally
responding to a merchant's needs," he added. The company helps
retailers determine requirement, compare offerings, then offers a proposal
that optimizes cash flow while protecting the privacy of the consumer. |
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| Consumers are bullish on credit card usage
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| The growth of credit card usage among
Americans is startling. The average American household has a balance of at
least $7,500 (with at least one credit card), compared to ten years ago when
the average balance was just under $3,000. Of the approximately 105 million
households in the United States, almost 75% have at least one credit card.
In 1999, American combined usage of major credit cards (MasterCard, VISA,
American Express, and Discover) totaled more than $1 trillion.
Meanwhile, on-line charges continue their explosive growth (of $16.8
billion), 17% over 1998 revenue, according to industry figures. How do
retailers cope with the challenges and requirements from the more than 500
million VISA, MasterCard, Discover and American Express cards in circulation
in the United States? |
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| Free Audit for Merchants
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| To prevent merchants from making costly
mistakes, Merchants' Choice Card Services Nationwide offers a FREE audit to
qualified retailers. "This audit helps determine how much a merchant is
really paying for processing fees; it also reveals the many hidden costs
that can drain cash flow and diminish a company's performance," said
Bergman. |
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Comparison of Fees Among
Credit Card Processing
Organizations |
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Typical Fee Categories |
Other Processing Cos. |
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Account
termination fee
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up to $300 |
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Annual membership fee |
up to $200 |
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Application fee |
up to $200 |
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Authorization fee (Amex & Discover)
Batch closing fees |
per transaction
.30 per day |
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Chargeback fee |
$15-25 per transaction |
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Minimum processing fee |
$5-25 per month |
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Programming fee |
up to $250 |
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Re-programming fee |
up to $250 |
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Setup fee |
up to $250 |
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Statement fee |
$9-12 per month |
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Transaction fee |
.10-.35 per
transaction |
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Watts line fee |
.08 per transaction |
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| Since 1990 Merchants' Choice Card Services
Nationwide (www.swipethecard.com)
has provided an extensive array of services for merchants, including FDIC
-insured processing banks. |
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