Credit Card Processing
What is Interchange
Federally regulated price set by card issuers to apply a % rate on every individual card based on the card's risk grade
1.69-1.87%
What is dual pricing
A program that legally allows a merchant to offer a different price for cash and card payments, offering a discount for paying with cash
Cost of Rewards 1
1.76%
Who are Celero's main competitors (list at least 2, parent organizations only)
FiServ, Global, FiS, Square
What is a Basis Point
1/100th of a %, used as a form of processing fee that charges a business to run electronic payments
Merchant has a HAT, mostly Card Present, mostly debit, what is the expected RATE RANGE for merchant?
1.39-1.79%
What product can deliver payment ability for merchants out in the field?
Mobile solution
Cost of Retail Tier 1
1.54%
What is an effective rate and how is it calculated?
A merchant's average cost per transaction, fees divided by volume
What are the 4 main forms of pricing structures?
Interchange Plus, Tiered, Flat Rate, Flat Rate with Full Surcharge
Merchant has a LAT, what is the expected RATE RANGE for merchant?
2.5-3.5%
What is the name of Celero's Field Service software?
RazorSync
High Average Ticket, Low-Medium Transaction Count, 50%+ Card Present
1.69-1.87%
How do you find out a merchant's average ticket? (ie. math formula)
Total card sales divided by total transactions
Explain Durbin Debit
Part of Frank-Dodd act, regulated the rates a bank with over $10 billion dollars in assest is allowed to charge on debit cards.
What are Square's fixed rates (3 rates)?
2.6% + $0.10 - swiped
3.5% + $0.15 - keyed
2.9% + $0.30 - invoiced
What product can deliver an invoice to a client?
Gateway
High Average Ticket, Low-Medium Transaction Count if 50%+ Keyed
1.9-2.3%
How do you figure out a merchant's per transaction fee if not explicitly listed? (ie. math formula)
Total Transaction Fees charged divide by total transactions
What are the 3 aspects of Credit Card Processing that go into what a merchant pays for in terms of overall merchant processing fees?
Interchange, Pass-thru Fees, Processing Fees
Merchant has a HAT, 60% Keyed, mostly debit. What is the expected Rate for merchant?
1.9%
What are 4 models of terminals that Celero sells?
Dejavoo, Ingenico, PAX, Clover, Swipe Simple, iProcess, Magtek
Difference between Retail Key Entry and Card Not Present
Consumer is present, but card is not read via Swipe, Dip, or NFC. Card Not Present has transaction ran without customer present with card in hand
What is the difference between an integrated and non-integrated software solution?
Integrated has card processing tied into the software, non-integrated takes payments outside of software.