The Swypit Show with Kevin Hodes: Why Do Different Cards Have Different Processing Fees

Hey did you know that when your customer pays with one of these credit cards you pay a different rate each single time? We're gonna talk about that today in this episode of the Swypit Show Hey did you know that not all credit card processing fees are created equal? You've got reward type cards, you got hand keyed entered, you got eCommerce, you've got all these different things that happen to bring up the reason why you pay specific rates for specific types of cards

And it even varies on the actual SIC code of your business There's so many variations but you know what?, "Hey guys why don't you bring up those rates now so we can at least take a look at them and see where we are on the scope of things" So here's the secrets some of the credit card processors don't want you to know This is actually the actual cost to process credit cards You can see this on my website at SWYPIT

com Click on the facts section, click on the interchange rates, and then it will show up right there You can see these I publish them I want it very transparent on my website

But the cool thing about it is is I'm gonna explain it to you because it's got so much gobbly gook of information in there that you just won't understand But let's just say that maybe you were an automated fuel dispenser and you took a debit card, well that's what I was talking about standard classification codes This is the rate structures that you would pay if you were that type of business and of course this is how it works Now, if you can move this up a little bit for me I will go through Let's take a look at this one here, CPS retail to card-not-present debit

So that's a debit card Everybody's got a debit card You've got a debit card, well here's the debit card rate and when that happens so this is the cost You can move up a little bit more I want to look at this one here

So now we're let's say you're a hotel and you're taking payments for hotels or rental cars and it was a debit card Maybe it was something as a not present debit card these are the rates This is the cost to process a credit card and now as a business owner yourself, you probably mark up your product maybe 40% Well here we can't markup this forty percent would be astronomical so companies like mine or another processing organization has to mark up their processing fees to make a small profit As you can see we're talking about pennies nickels and dimes

You make a small profit or well maybe make forty percent in our case we're making a very small profit So if we're marking up just a little bit you always know where a profit is If you know where the profit is then you'll know where the company that you're working with is and when someone comes along and says hey we could save you five million gazillion dollars you'll be able to say there's no way possible because all you can do sir or woman is take away the actual profit So anything above this would be the profit to the organization that's when you decide that you want to make changes That's when you want to get away from the pain from the other company that's when you want to jump to swipe it maybe

But more importantly when if you go up here and scroll I think this is the last one here Let's say you're a supermarket okay Supermarkets prepaid retail prepaid these are gift card type programs Here you got a small ticket prepaid Let's see what else we have here just on here

Okay here's eCommerce, so let's just say you were purchasing a product on amazoncom it doesn't matter if you do gazillions of dollars in processing like them, they gonna pay the same interchange rates You're gonna pay the same rates that they pay So here you got here's an e-commerce preferred retail 175

No one can change these This is static and you can always see it and on their website And that's what I really want to drive home is that you can actually see what people pay or should be paying Now all you have to do is negotiate the price that you want with the individual that has come into your business We have to make a small profit

We're going to give you the very best in pricing, the very best to make you as profitable as you can, and as long as you're on the right pricing structure you will make more money So if you liked the video you just watched and you want to gets swyping with SWYPIT, click the link below or call 1-877- 379-9748 and I'm Kevin Hodes and our prices are insane