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Credit-Debit Cards Processing Fees


Finaritwo1

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I’m curious about the processing fees merchant Companies charge on average. Since most of the sales are between $1-$1.50 I’ve being quoted 5.95% per transaction for the wireless transactions and a monthly service fee of $7.95 I’ve owned a couple of brick & mortar businesses with credit card processing but was being charged between 3%-3.5% at most . I currently have 8 machines with that accept debit-credit cards in my new route. 

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From my own research, my own direct knowledge, and the regular discussion here on this forum, I can tell you that things don't usually go as low as 3-3.5% for vending with MOST processors.  I have heard that you can get cheaper rates at some banks but I truly don't know much about it.  What I can tell you is that 5.95% and 7.95/month is the general price for USA Technologies and they are the single most common credit/debit processor in the US for vending machines.  I just think if there was a significantly better deal out there, we all would have heard about it by now on this forum.  I think one of the things about other stores is that the average prices on merchandise is typically way higher than $1-$1.50 per transaction.  A single transaction at a convenience store is likely to be well over $5, with some transactions being much much more if you are buying gas or cases of beer or cigarettes... they probably take that all into account in various businesses and give you a lower rate simply because they still make good margins.... I mean, if your average card transaction is $15 for example, and you make 3%, you still walk away with 45 cents on average per transaction.. where as getting 6% on a $1.50 soda is only 9 cents.  I think that's why the fee is so much higher with vending.

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AngryChris is right, and 7.95 a month is a really good deal! Mine is double that with Greenlight/Cantaloupe. But the card readers are about half my sales. A few of my locations it’s 85-90% of my sales, some locations about 10-15%, and the rest are about 50/50. Most busy young adults and mid-lifers don’t always have cash on them, so without the readers, your losing sales. 

I’m gonna have to look into that 7.95 a month thing. Dang! I’m paying to much on that part. 😳🤯

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