Is an Ipad POS system a good idea?

[YeOldeStonecat]

While talking about credit card processing, check out some of the better merchant services around you...versus Square. Square may be free "up front"...but they do bend you over for the processing with that .2.75%. They are padding the actual credit card processing quite a bit.

Some better local merchant processing can get you closer to 2%...or if you go with some of the big ones, even down in the high 1.something range. Even lower into the mid 1.something range if you do the Interchange Plus contract.

For use we don't do a ton of our AR via credit card, most of our clients pay via check.
But for some business types that do a huge volume via credit cards (large package stores for example)....getting to 1.5% or lower is a big deal for them and puts a lot more in their wallet.

 

[Your PCMD]

Cash drawer too.

No. I deal mainly now with commercial and everyone pays with company CC or company check. My few residential I have pay with CC/Debit card or personal check. I honestly have not had one customer pay in cash in over 2 years. Regardless, I do keep a cash "bag" though just in case. The same $75 has been in it for the same 2 years. No one uses cash anymore - well, here where I am.

@YeOldeStonecat you are kinda right. Yes Square is a bit high. But think about this. Its not just CC processing. Its an entire POS system too. Not to mention, that with "most" merchant accounts, you have to pay bi-annual compliance fees too. Plus batch fees. Being 90% mobile like me, it pays to have just Square. Even my own business bank couldn't match them with features. They could do 1.75% + 30 cents, but no "free" POS. That they wanted $12.95/mo for.

 

[YeOldeStonecat]

Yeah I know being "mobile", services like Square make sense. I just get amazed when I see it used at a store register...when volumes of sales go through on a daily basis. People didn't do their homework there...and that's a good amount of money tossed down the toilet. "entire POS system"..well...sort of a stretch, more like a little POS app. But fine, for small shops with little inventory/items...it's enough POS to get a sale through and paid. It's great for kiosk stands at outdoor flea markets, and mobile people...sure.

 

[drpcfix]

While talking about credit card processing, check out some of the better merchant services around you...versus Square. Square may be free "up front"...but they do bend you over for the processing with that .2.75%. They are padding the actual credit card processing quite a bit.

Some better local merchant processing can get you closer to 2%...or if you go with some of the big ones, even down in the high 1.something range. Even lower into the mid 1.something range if you do the Interchange Plus contract.

For use we don't do a ton of our AR via credit card, most of our clients pay via check.
But for some business types that do a huge volume via credit cards (large package stores for example)....getting to 1.5% or lower is a big deal for them and puts a lot more in their wallet.

This is a myth - you cannot get into the 1's - you are referring to the way some price at "interchange + 1.x%", or they say 1% plus $0.50 per transaction plus other fees plus a contract.

The only way to compare prices is to use net effective pricing, take the entire month of processing and divide it by the total fees you paid for all merchant related fees. We have some good threads on this if you want to learn more, suffice it to say you can't beat square by very much even if you do a lot of revenue - it'll be barely cheaper. (Like half a point)

 

[YeOldeStonecat]

This is a myth - you cannot get into the 1's - you are referring to the way some price at "interchange + 1.x%", or they say 1% plus $0.50 per transaction plus other fees plus a contract.

Actually it's not a myth in his case...he is part of a "group" with other large chain package store owners that his account rep that works between Chase bank and PurePayment....I just looked again at the e-mails from his rep that I worked with in setting up his system when we put in his prior POS system at a couple of locations. Getting into a big "group" like he did does_indeed_bring your fixed rates, not interchange plus, down into the high 1's as I stated above. He called it a consortium or something like that) Granted..that kind of setup is un-obtainium for us single shop guys. But it's true. People just have to put the energy into looking into it (which...often doesn't happen)

 

[fencepost]

People just have to put the energy into looking into it (which...often doesn't happen)

Energy == time. There are a lot of cases where I'd rather spend a few dollars more rather than spend time dinking about looking for the best possible bargain, to the extent that it's a sore point between me and a coworker who's always hustling for the "best deal."

 

[YeOldeStonecat]

Energy == time. There are a lot of cases where I'd rather spend a few dollars more rather than spend time dinking about looking for the best possible bargain, to the extent that it's a sore point between me and a coworker who's always hustling for the "best deal."

Absolutely agree. Obviously it doesn't need to be said...you have to be capable of doing the math to see if your time is worth it. Hence, why I stated above...for smaller shops that don't do a lot of credit cards (I don't think we shove more than 200k annual through them...we don't do much on CC at all...it isn't worth it to save a percent 'n change, most of our payments are via check).

But for places that pump a few million annually through CC's...or even a couple-o-hundge a month...obviously spending time to save in .25% is easily...easily worth it. Some basic math and there can be a comma in the amount of money saved each month, and factor for the whole year...that's easily worth my time.

Time is money, spend an hour or two using the noodle and shopping...I'd say those kinda numbers would be worth my time.

But, hey, it's a free country, people are allowed to find the highest % credit cards and loan rates they want.....it's their wallet.

 

[drpcfix]

Getting into a big "group" like he did does_indeed_bring your fixed rates, not interchange plus, down into the high 1's as I stated above. He called it a consortium or something like that) Granted..that kind of setup is un-obtainium for us single shop guys. But it's true. People just have to put the energy into looking into it (which...often doesn't happen)

No, you are not understanding how processing works.

First of all, nobody, absolutely nobody gets below interchange - https://www.helcim.com/us/pricing/visa-mastercard-interchange-rates/

You can see from this that interchange on MANY cards is over 2% - which means even your friend is paying over 2% on some cards even if his processor is breaking even.

(The one caveat is if you try to force all your customers to use pin debit, your average will go way down. This is not common, and not how you compare rates between processors.)

The best you WILL see is interchange + some basis points, which means they get cost and are just charged a partial percent.

When someone is getting "1% processing" or whatever (anything below 2%) it's actually "interchange plus 1%" - which ends up averaging anywhere from 3%-5% when you look at their net effective, which you haven't by just quoting a "vanity rate figure" without the whole picture (like, share one of their statements and we'll all see the real picture)

 

[YeOldeStonecat]

No, you are not understanding how processing works.

First of all, nobody, absolutely nobody gets below interchange - https://www.helcim.com/us/pricing/visa-mastercard-interchange-rates/

You can see from this that interchange on MANY cards is over 2% - which means even your friend is paying over 2% on some cards even if his processor is breaking even.

(The one caveat is if you try to force all your customers to use pin debit, your average will go way down. This is not common, and not how you compare rates between processors.)

The best you WILL see is interchange + some basis points, which means they get cost and are just charged a partial percent.

When someone is getting "1% processing" or whatever (anything below 2%) it's actually "interchange plus 1%" - which ends up averaging anywhere from 3%-5% when you look at their net effective, which you haven't by just quoting a "vanity rate figure" without the whole picture (like, share one of their statements and we'll all see the real picture)

Actually I do understand the process, back when I was assistant manager of a store we used to manually rack credit cards through manual swipes on carbon paper, hand write amounts, and call a phone number to get authorization. You were probably still a tadpole swimming in your dads nuts back then.

I've said my part...if people want to settle for the easiest setup that comes with 2.75 or more...that's your right to do so, it's your money. My only message (trying to be helpful)...you can shop around and save so much money, it's worth the effort. (well, in my opinion anyways).

 

[drpcfix]

Actually I do understand the process, back when I was assistant manager of a store we used to manually rack credit cards through manual swipes on carbon paper, hand write amounts, and call a phone number to get authorization. You were probably still a tadpole swimming in your dads nuts back then.

This totally refutes what I said about interchange

 

[kwest]

This totally refutes what I said about interchange

You can't teach an old cat new tricks.