Index

1. Access or Download Visa Published Rates

2. Access or Download MasterCard Published Rates

3. Category Rate Reductions

4. Pricing Programs

    a. Tiered Pricing

    b. Flat Rate Pricing

    c. Cost Plus Pricing

5. Know Your Rights - Canadian Code of Conduct

6. Charge-Backs

7. MCC (Merchant Classification Codes)

8. Testimonials

9. Top 9 Processors in Canada

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Access or Download Visa & MasterCard Published Rates

1. Visa Link

To Access or Download Your Copy of VISA CANADA Interchange Rates; Click on the Link;

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2. MasterCard Link

Click Here to Access or Download MasterCard Canada Interchange Rates Link;

https://www.mastercard.ca/en-ca/about-mastercard/what-we-do/interchange.html  

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         3.Category Rate Reductions

4. Pricing Programs

a. Tiered Pricing

• Has 3 Elements of Pricing
  Tier 1
  
  Base Rate - a Rate determined under the guidelines of the processor & set by the Person  are Dealing with - commonly using the Consumer Rate cost issued by Visa PLUS a profit margin as the Basis for the rate; e.g. Visa Consumer Card cost - 1.42% PLUS profit of 0.14% = Base rate of 1.56%
  Tier 2
  
  Rate Adjustment a.k.a. Interchange Differential - normally the difference between the Cost of the actual Card presented as payment & the cost of the card used to determine the base rate; e.g. Visa Infinite Rewards Card cost = 1.61% Rate Adjustment is 1.61% - 1.42% = 0.19%
  Tier 3
  
  Non-Qualified Fees - Usually applies to any transaction that is not by the Visa Consumer card and the data on the card is NOT captured by inserting the card into a Terminal and confirmed by the Card-holder's PIN. This is arbitrarily set by the Processor and usually ranges from 0.40% to 0.80%, or an average of 0.60%
  
  
  TOTAL RATE charged from the above  for A Rewards Card is
       1. Base Rate               1.56% - includes 0.14% Profit
  
       2. Rate Adjustment   0.19%
       3. Non Qualified Fee 0.60% - is ALL Profit
  
            TOTAL RATE         2.35% - Total Profit = 0.14% + 0.60% = 0.74% or $74 Profit on $10,000 of Sales
  Things to know;
  Base Rates can Change at the Whim of the Processor
  So can the Non Qualified Fees
  Approximately 90% of all transactions will be NON-Qualified under this program
  You MUST be alert to any changes in rates as they can occur at any time during your agreement period regardless of what Visa and MasterCard do with the Rates Issued to the entire country,
  You CAN be Singled out for a Rate Increase.
  
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b. Flat Rate Pricing

A program where a FLAT Rate is charged no matter which Card is presented for Payment

As of December 3rd 2019 the rates for Commonly known providers of this type of program are;

• PayPal - 2.9% + 30 Cents per transaction + $35/Monthly
  
• Stripe   - 2.9% + 30 Cents per transaction
  
• The Square;
  
  1. Electronically Captured from the Card - 2.65%
     
  2. Manually entered via e-Commerce or Virtual Terminal or on the Square unit - 2.90% + 30 cents per transaction
     
  3.  A terminal costs $499 + tax that has to paid in up to 12 months

1. You are paying a FIXED Fee no matter which card you Accept
   
2. Check the Agreement to find out What Happens When Visa & MasterCard Reduce their Rates - See NEWS to see if Rates are Being Reduced - WHO GETS THE BENEFIT? Take a Guess!
   
3. Profit ranges depend on the card being presented and which Processor is used, e.g.;
   
4.  PayPal & Stripe profits;

• Consumer Card - No Rewards or Cash Back    - About 10% of cards in circulation -1.38% or $138 on $10,000 of sales
  
• Rewards Card   - Cash Back, Points etc.            - About 80% of cards in circulation -1.19% or $119             "
  
• Business Card   - Card with a Business Name - About 10% of cards in circulation  -0.90% or $  90             "
  

   5. The Square

• Consumer Card - No Rewards or Cash Back   - About 10% of cards -1.13% via terminal= $113 Profit OR $198 e-Commerce
  
• Rewards Card   - Cash Back, Points etc.           - About 80% of cards- 0.94%              "      =  $94          "        $169           "
  
• Business Card   - Card with a Business Name - About 10% of cards -0.65%              "      =  $65          "        $150           "

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c. Cost Plus Pricing

A Program where rates Published by Visa and MasterCard are the Cost and a fee (Profit is added) to the rate.

Most Processors providing this program have a Fixed Fee for all cards being accepted;

The processors we are appointed to have agreements as follows;

• First Data - 0.30% is added - this means if you  process $10,000 in Credit Cards REGARDLESS of the card Type; the profit is $30
• Nuvei - 0.35% is added - using the same as above the profit is $35
• Elavon - 0.40% is added - using the same example the profit is $40
  

Things to know;

1. When rates are reduced by Visa or MasterCard you automatically receive the benefit
2. Our Agreements specifically restrict rate increases to the amount of adjustment by Visa & MasterCard and ONLY that amount.
3. You cannot be singled out for a rate increase

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5. Know Your Rights

Canadian Code of Conduct Link

You May be able to Cancel your Agreement; including Lease Agreements for equipment, without penalties if you have not received Proper Notice, or if any changes or additions to Fees have been improperly applied to you - KNOW YOUR RIGHTS!

The Link to the Canadian Code of Conduct is;

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5. Charge-Backs

• When this occurs a Customer reports the dispute to their Credit Card Issuer who decides to investigate the dispute or not.
• Disputes must meet the Issuer's terms and be within a specified time period AFTER the sale or they will be declined.
• The customer will have a reversal of the charges placed on their Credit Card account pending resolution of the dispute. If Found in the Customer's favor the reversal will be permanent; if not the charge is re-instated.
  
• Merchants are notified of the Charge-back by their Processor and will have the amount of the sale taken out of their bank account pending resolution.
• If the merchant fails to respond to the Charge-back within the Time Specified by their Processor; the amount will not be restored into the Merchant's bank account and will be permanently withheld.
• IT IS CRITICAL that the Merchant responds and provides as much detail as possible about the dispute.
• IT IS CRUCIAL the Merchant has a Terms of Sale Policy which includes Returns & Refunds that clearly spell out the procedures to protect themselves against disputes.
• If Done Correctly; a Merchant can protect themselves against all Disputes as long as they Follow Prudent sales practices.
• In today's On-line environment it is critical for a merchant to protect themselves against fraud.
• A Proper Terms of Sale Policy that Specifically addresses On-line sales can effectively minimize fraud
• FeeBeaters will provide advice at no cost to all of its clients to Minimize or eliminate Fraud & Charge-backs.
  Contact Us to take advantage of this service by clicking here.
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  6. MCC (Merchant Category Codes)

  MCC Codes (or merchant category codes) are assigned to merchant accounts during the set up process and are used to differentiate between types of business & industries.

  Each industry has different transaction patterns and differing levels of risk (potential for fraud). MCC codes are used by issuing bank to determine if they will except the transaction.

  MCC codes can also effect the merchants processing rates. An improper classification could cause a merchant to pay higher than necessary processing fees.

  There are approximately 500 different MCC Codes used by Visa and it is important for a merchant to make sure they are assigned to the appropriate code.

  To download the List of Visa MCC Codes Click on the following link;

  www.dm.usda.gov/procurement/card/card_x/mcc.pdf 
  

  
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  7. Testimonials
  

  • • Jose - Sign Store
    I have been trying for two years to reduce the amount I paid in Credit Card Processing Fees and had no success
    A friend referred me who had saved a substantial amount of money so I decided to try them out.
    I am happy to report that I saved $1,440 per year.
    I would definitely recommend them to anyone that needs to reduce their rates.
    
    
    • Robert - Paint & Wallpaper Store
    I am a client and so is my Sister-in-Law.
    I am providing this testimonial to encourage others to assess their services and save money.
    They take the time to clarify how the industry charges fees and what to avoid.
    They also explain how they reduce your costs by placing you on the proper pricing program.
    I highly recommend you spare the time to see what can be done for you.
    If they can save you money they will tell you; more importantly, if they Can't They will also tell you.
    
    
    
    • Georges - Travel Agent

    After years of over-payments and tiered pricing to a branded credit card processor that chose to review our books at their whim or delay payments after we had pre-approval for processing multiple credit amounts on the same day, we spoke to them and  found a supplier that accepted our travel business and has set rates with no surprises saving us a lot of money

    • Chris - Photo Studio

    I strongly recommend you use the services this company provides.

    They took our photo studio away from the expensive Tiered Pricing Program we were on and put me on a Pricing Program with no surprises. 

    It was one of the best and smartest moves we have done for our business

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          8. Top 9 Processors in Canada

(source; https://www.payfirma.com/engage/canada-top-payment-processors/ Aug 2019)

• 1.Elavon  3rd in the World* - Bidder on Our Website (Payvida)
  2.First Data  1st in the World* - Bidder on Our Website (Millenium)
  3.Global Payments  5th in the World*
  4.Moneris
  5.Payfirma
  6.PayPal  (Used As A Comparison on Our Website)
  7.The Square  (Used As A Comparison on Our Website)
  8.Stripe
  9.TD Merchant Services
  * Source; James Melcer, e-Commerce Professional - Aug 2019
  
  

  The Credit Card Processing Industry is Huge and American Express is credited with starting the industry we all know today, in 1958!

  MasterCard followed in 1966 and what we know now as Visa arrived, in 1970.

  For a Brief History visit https://bebusinessed.com/history/history-of-credit-card-processing/

  You can spend Hours looking at the statistics of the Industry and finding out just about anything you want to know by clicking on this link https://www.creditcards.com/credit-card-news/credit-card-statistics.php

  Here are some statistics you may find interesting relating to Canada;

  source https://www.canadamobilepayments.com/credit-card-statistics/

  •76.3 million Visa and MasterCard cards are in circulation in Canada.

  •A study by IHS Global Insight1 found that electronic payments have contributed $196 billion to the Canadian economic growth in the last 25 years.

  •94% of Canadians have a debit card. Within Canada itself, non-cash payments account for 90% of the total value of consumer payments.

  •Cash accounts for only around 10% of the total value of all consumer payments in Canada, and it only accounts for a little more than 40% of the number of transactions.

  •87% of owners of smartphones or tablets use their mobile devices to shop – Nielsen

  •94% of Canadians have a debit card to use at retailers or at ABMs to make transactions.

  •92% of Canadians have at least one major credit card.

  •46% of Canadians use online bill payment as their primary tool for paying bills.