Total Merchant Solutions is committed to structuring the lowest possible rates and fees for each and every merchant. Rates and fees are base on many different equations. “Interchange” being the main factor. What is Interchange? Interchange compensates card issuing institutions ( Issuing Banks) for their risk and the expenses they incur to process transactions. The fee amount is based on the level of risk associated with funding a transaction, in hopes of encouraging businesses to follow procedures that reduce fraud. Think of it as the fee the “acquiring banks” pays to the “credit card-issuing banks “ in order to process a credit card transaction involving a card holder’s account. The conditions under which you accept credit cards and process transactions all affect how high the fee will be. The interchange fee is determined by the nature of your business and the processing procedures you follow. Visa and MasterCard set these rates by assessing the level of risk associated with funding and expense involved in processing a transaction, Visa.com and Mastercardworldwide.com, have all these fees listed, hence the interchange fee for a face-to-face transaction will be less — usually — than in a mail-order transaction, since the risk of fraud drops considerably if a merchant can swipe a card and compare signatures. Card issuers assign merchants to certain interchange categories reflecting their processing environments. The discount rate set for each merchant assumes compliance with prescribed procedures, and failure to do so, like neglecting to obtain electronic authorization, results in higher fees. For example, a customer makes a $200 purchase, using a Visa card, at a retail store. The interchange category for this Visa transaction is CPS Retail. “Example” The discount rate is 1.85% and .10 per transaction. If all procedures are followed — if the card is swiped, electronic authorization procured and transaction settled within two days — there are no additional charges, and the fee is Around $3.80 to the merchant. However, if the card is hand-keyed instead of swiped, Example, there is a .40% penalty, plus an additional .10 “adjustment fee,” making your bill $$4.70 instead. It would behoove merchants, therefore, to follow procedures as outlined in the merchant guide. A good Merchant Service Provider, Total Merchant Solutions, will help secure the best interchange rates for their merchants, by educating the merchant, keeping the merchant aware of requirements they must meet to qualify for the lowest interchange rates for their business, and keep merchants posted on rate adjustments at least 30 days in advance of increases. Merchant Services Providers are exactly that. They are providing the services required to process credit and debit cards…etc, the customer support, the technical support, the credit card processing terminals, the secured gateway, the housing of the accounts, detail reporting back to merchant….dealing with all the Data Security issues and compliance set by MC & Visa, so on and so forth, therefore charging a fee to do so; but 80-90% of all the fees that are charged go to the Issuing banks, not the processor. ALWAYS be aware of MSP’s that post their rates on their websites and mailers. If they seem much lower than any others that you have seen……….. ”it’s too good to be true”. It might be a teaser rate that will definitely increase over time. Or “It doesn’t apply to your type business”. We at Total Merchant Solutions try to give you a reasonable rate and fee package for the service we supply. We are committed to working with each and every one of our merchants through our Certified Agents, adjusting your rates and your fees as you grow. We will do everything possible to keep our merchants happy and processing, reviewing rates anytime a merchant makes a request. “We are just looking for the opportunity to earn your business!”