Credit Card Merchant News - What's New ?
Rewards cards becoming widespread!
Monday, January 12, 2009 - Fort Lauderdale Sun-Sentinel - McNelly Torres, Staff Reporter
(Excerpt)
"...a recent survey found that as many as 70% of all credit card transactions include reward cards", said Brian Riley, research director for bankcards at Tower Group, a research firm that tracks consumer credit card spending.
What does this mean for you as a merchant? That as much as 70% of the credit cards you accept from consumers may be linked to cash back, airline miles or another reward program. These credit cards will not process at your lowest Qualified rate, but will be kicked up to Mid-Qualified or, with some processors, even Non-qualified rate, costing you more to accept them. Those rewards the card issuers hand out to consumers are paid for by you, the merchant. Reward programs do encourage consumers to use their cards more, so there may be a trade-off in this for you.
Meanwhile, it would be wise to check what kind of rate you are paying for this type of card. Many processors will set you up by selling you a low Qualified rate, but that rate is not the rate at which you end up processing the majority of your cards, and the processor has set higher-than-usual rates for Mid and Non qualified cards. Their "good deal" may not be so good after all !
"What's in your wallet?"
Friday, August 22, 2009
Merchant Cash Advance USA has a new site, informational for merchants interested in learning about getting a cash advance against their future credit card sales.