Credit Card Processing Fees

negotiating with your payment gatewayIf you’re selling online or selling in your store or farmer’s market stall you know about credit cards. But do you know all about the fees that credit card processing can cost you? We’ll break this down and make it simple to understand. Here are the basic fees.

Pass Through and Bundled Pricing

Your merchant services provider or payment gateway will charge you pass through or bundled pricing. What’s the difference? Pass through means that you have complete transparency into the detailed fees that you are being charged. Bundled means that you generally pay one price and you don’t see the details. Which is better? In most cases you will want pass through pricing.

Authorization, Capture, Refund and Void Fees

There are four basic components of a credit card transaction. We’ll explain each one of them below.


When you send the customer’s payment to your merchant services provider you are sending an authorization. This is to check the credit card and see if a payment can be made. This stops bad credit cards or expired credit cards from being used. The authorization request also sets aside money on the customer’s credit card. Credit cards have dollar limits so this reserve needs to be booked.


When you receive an OK from the payment gateway on your authorization you are ready to ship the product to your customer. Before you ship the product you will send a capture request to the payment gateway. This capture request does the actual charging on the customer’s credit card. Some payment processors will do an automatic capture for you. Generally you will want to capture the authorization within 48 hours or less.


Customers will be dissatisfied and ask for their money back. You will investigate the refund to be sure a purchase was made and then send the refund to the payment gateway.


A Void is used to cancel an authorization. Suppose you are out of stock of the product that your customer purchased. You have no product so you need to void the authorization request.You should ask the payment gateway to give you a quote on each one of these items.

Interchange Fees

Interchange is the name of the fee paid to the credit card network. It’s a standard fee that is publicly available. Most payment gateways will want to pay this for you on your behalf. By doing this the payment gateway has more control over the money they make from you. You need to ask for a “pass through” rate. This is where you pay the interchange fees directly to the credit card companies and your fees to the payment gateway are separate. This can get difficult as the payment gateway will tell you that you’re not big enough to make this worthwhile. That can sometimes be true. But try asking all three of your payment gateways.

Gateway Fees

Gateway fees are monthly fees for using the gateway. These are not important fees and you normally can request that they be removed. Gateways will often charge a monthly maintenance fee. This fee goes straight into the payment gateway’s pocket and there is little value. You can negotiate removing this fee by telling the payment gateway provider that you believe in paying for work. Therefore, you want to pay them when there is a transaction.

Implementation Fees

Implementation can have a cost for the payment gateway. Most payment gateways will have people and processes ready to help you. So this is a fee that you should remove. In some cases you won’t be able to if you have a low volume or complicated integration that needs testing. However, there should not be much of a fee here as the payment gateway provider should make money from a steady flow of transactions and not one time fees.

Chargeback Fees

Chargeback fees have three components. Reciepts, representment one and representment two.
Receipts are when you the merchant request prove that the customer authorized the transaction. The payment processor pulls an electronic receipt for you. Representments are when you collect compelling evidence that the customer has made a purchase from you. There are two representments. These are known as representment 1 and representment 2. (Thank goodness the naming here is not complicated.) The payment gateway provider will charge you for each item.

Receipt: You request and receive a transaction record from your payment gateway provider. You will typically have your own records. But its good to get a price on this in case you need it.
Representment 1

Representment 1 is when the evidence you collected that shows you made a sale to the customer is passed to the customer’s bank. Why the bank? The bank is who sold or issued the credit card to the customer. There is a fee here for the payment gateway to help you through this process.

Representment 2

Representment 2 happens when the bank tells your payment gateway that they agree with their customer. In Representment 2 you have more opportunity to present your case. There is a fee for this service.

Other Fees

There are other fees that we will cover in the next installment of this series. But let’s first do a quick recap of the steps to negotiate with a payment processor.

Here is more information on merchant accounts, merchant services and payment gateways.

Epson TM-T88V & ReadyPrint T-20

The TM-T88V is the brand new variation to Epson’s industry leading TM-T88 point of sale printer series. Designed for use in food service and retail environments the TM-T88V presents extra pace and features and reliability than ever before. Briefly that is Epson’s fastest and most dependable printer. It has handy drop in loading. It has a average reputation gentle, feed button on off change interchangeable interface energy wire standard USB interface and the money drawer port. Epson’s rate potent ReadyPrint T20 thermal printer is the today’s variation to Epson’s power effective factor of sale printers. Designed notably for low quantity shops it combines normal point of sale printing functionality with excessive reliability and more than one ease of use facets.In short this can be a less expensive variation than the TM-T88V. Just like the TM-T88V it has handy drop in loading, normal repute light feed button convenient on off swap the again is just a little extraordinary in that it has a USB interface that’s not interchangeable. It has an integrated power provide versus an external vigour provide and than the money draw port. The largest difference between the TM-T88V and the T220 is print velocity. The T220 prints out at an traditional of 6″ per 2nd whilst the TM-T88V prints out about 12 inches per second. And this one additionally comprises a data buffer. I will print out concurrently the equal restaurant receipt so you guys can see how so much rapid is the TM-T88V. As one can find the certain equal receipt, this one was simply printed out rather a lot faster. Furthermore to the difference in printing pace the TM-T88V additionally comes with a four 12 months warranty whilst the T20 simply comes with a two year guarantee. The TM-T88V is rated at 2 million cuts whilst the T20 is rated at 1.5 million.The TM-T88V additionally has an interchangeable interfaces and its also, its already integrated with USB even as this one simplest has USB and this one has an external vigour provide the T20 most effective has an inner power deliver. In addition they each are available in white and darkish gray.

What devices are compatible with Square?

Today we’re going to review Sԛuare point of sale and basically what printer is goingto collaborate with it. You have a bunch of choices, they generally are all Star, however there are Bluetooth choices, USB choices, Ethernet choices, impact, so depending on your demands, there’s probablya Star printer that’s going to fit it. Your many fundamental variation is the TSP100, this is the initial in USB. USB just functions with the Sԛuare Stand, so if you’re going to utilize it beyond the stand, you’re going to need an Ethernet version of it. Configuring it is very comparable, once you plug it in Sԛuare, you’ll see a notificationthat the stand is attached and also that the printer is connected. So there’s your printer connected, you’ll see the printer listed right here. You choose it, and after that you primarily inform it when you desire it to print, whether youwant it with receipts or you want it with tickets, etc, and you can print a test page from it. The TSP100ECO is comparable to the 100, but it makes use of less power, and also there is no power switch. If you check out the front, there’s a feed switch, but there’s no power switch. The means that it knows to activate is via the USB port, so you need to have power tothe printer obviously, however then when the USB is plugged in, after that the printer will certainly turnon, so if I detach it, you’ll see the power heads out, the stand additionally sheds connectionand it doesn’t see the printer. When you connect it back in, then the printer will switch on and then it’ll reconnect to theprinter on it. The rate on it is somewhat faster than the 100, not incredibly quicker. So they’re 2 comparable printers, this one makes use of much less power and is a little bit cheaperthan the TSP100III. So the 100III is similar size to the 100, 100ECO, but it’s faster and it likewise has moreconnectivity alternatives. This set is an Ethernet design, so it collaborates with Sԛuare in the stand, it additionally works withSquare outside of the stand. It additionally collaborates with most of other factor of sale applications available, so it’s abetter option if you’re going to be starting with Sԛuare as well as then some day you think youmight upgrade to something like ShopKeep. The speed on it, you’ll see is much faster than the other printers, it’s almost doublein rate. So this is most likely our most suggested version out of it, just since of the flexibilityon it. If you’re mosting likely to go extremely mobile, the SM 220 is a Bluetooth battery powered printer, so this is completely wireless, as well as you can take the tablet out of the stand as well as print with it. It links just like the other ones, so as soon as you have a Bluetooth link developed, after that you can connect to the printer, as well as you can print an examination receipt. And also there it publishes a little smaller size receipt than the various other ones, the width onit is a little smaller, there’s no automatic tear bar, yet if you’re going mobile, smalleris far better. One various other point to remember is this can not connect to a money drawer, so if you’re goingto be opening a money cabinet, you do require one of the standard design printers. A Bluetooth printer such as this does not attach to a cash drawer, you can closed a cash money cabinet with it. The last printer is the SP700, and this is your traditional influence printer, as well as thisis what you’re going to desire to use for cooking area printing, so if you’re doing food service, you can put an Ethernet version in the back, this is Ethernet connection on it, and when you print, it’s loud, but it prints influence, so warmth won’t influence it, when you get nextto the cooktop, it’s not going to turn black, so that’s why it’s utilized in a kitchen area setups. You certainly want to go Ethernet to ensure that it can be away from your tablet established. So those are your printer selections for publishing with Star. Your most standard TSP100, if you’re going to go USB you wish to save some cash, the ECOis your best choice. Probably one of the most preferred printer would be the 100III with Ethernet, even if you can utilize it withstuff beyond Sԛuare. This is your kitchen printer, portable Bluetooth printer. There is a collection of printers that are somewhat faster than this that likewise are suitable, the 650 series on it, those likewise have exchangeable interfaces, so if you buya USB interface now, you can take it out and put an Ethernet or a WiFi or a Bluetooth interfacein it later. They are a lot more costly, they are a little faster, I ‘d possibly stick with 100 seriesif you’re mosting likely to be utilizing it with Sԛuare. They all configure in the software application similarly. Square discovers it and after that it prints to the printer on it.

Does the square stand need to be plugged in?

Below’s everything you require to knowto get your Square Reader established as well as running. Inside your box there’s a Square contactless as well as chip reader, charging cord, and a Square magstripe visitor. The Square contactless and also chip readerhas an EMV chip card slot, power switch, port for the billing cord, as well as NFC antenna developed inside. The battery needs to last all dayon a single charge with regular use. To examine the battery level, press the power button. Four thumbs-ups indicates your viewers is completely chargedand it’s prepared for settlements. Three or two green lights shows a partial chargeand it can take much more settlements. And one red light means your viewers requires a charge immediately. To charge it up, connect the cord right into your visitor and also a computer, USB wall surface battery charger, automobile battery charger, or USB battery pack. It ought to take 2 to 3 hours to obtain a complete fee. Four green lights suggests your viewers is all set for business. Now let’s link your visitor to your gadget. You can connect Square Reader to your smartphoneor tablet through Bluetooth LE. Make certain your gadget hasthe most current variation of the Square app. You’ll need to do this before you can link Square Reader. Next off, most likely to your tool’s settingsand turn on Bluetooth. Now you’re prepared to match your gadget with your viewers. Open up the Square app. Most likely to the food selection, Settings, Card Readers, Connect a Reader, and afterwards Contactless and also Chip Reader. Press and hold the power button on your readerfor about three secs. When the 4 orange lights start blinking, release the switch. The Square application will immediately pair with the viewers. Your viewers might go to rest to save power. If it does, press the power switch onceand the Square application will certainly attach instantly. Square Reader includes a USB cableso you can connect it to Square Stand. Connect the cable television into your readerand your Stand’s USB center to approve repayments, and also keep your visitor charged all day. Square Reader connects automaticallyand you’ll understand when your reader prepares. You can also get in touch with a dock for Square Reader. Place your reader into the dockwith the USB port dealing with downwards. Then, set the clip in place to safeguard your reader. Take the dock’s USB cableand plug it right into your Stand’s USB center. The dock costs your reader, gives it a house on your counter, and also placements your readerto accept contactless settlements and chip cards. Currently let’s start taking payments. You can accept chip cards as well as contactless paymentswith the Square contactless and chip readerand swipe cards with the consisted of magstripe viewers. See to it you place your readerso it’s available of both you and your customer. This allows you accept repayments swiftly and quickly. Select a product from your libraryor enter a buck quantity for a brand-new product. Then, faucet Charge. Wait on one eco-friendly light to show up on your viewers. This indicates it’s ready to approve repayment. To take a chip card repayment, place the chip card into Square Reader chip-side dealing with up, and leave it there until you see the check markor four eco-friendly lights show up on the viewers. To take a contactless settlement, faucet Charge, wait for one eco-friendly light to show up, then have your client hold their contactless gadget near the visitor. four environment-friendly lights will certainly appearand when you see the checkmark, you’re all established. To swipe cards the old-fashioned means, simply use your Square Stand’s built-in magstripe readeror use the included magstripe visitor with your gadget. To read more concerning establishing or taking repayments with your visitor, go to square. com/setup

Using a Receipt Printer with Square for Android

Today we’re going to be talking about receipt printers you can use with Square for Android. So the receipt printers you can use are Star Micronics USB interface receipt printers, and Star Micronics Ethernet interface receipt printers. The one we have here is the TSP100, it’s been replaced by the TSP100III, and we have the USB interface version. To use it with your tablet or phone with Square, all you need to do is use a micro USB to USB adapter, you plug that in to the micro USB port on your tablet, and then you take the USB cable from your printer and you’ll plug it in to the adapter, and then Square will recognize it and it will say “Star printer has been connected” and then when you’re in Square and you have an order and you want to check out and charge the customer, you can go ahead and charge them, and if you want to print a receipt, it’ll go ahead and print a receipt for you. You can learn more here.

Star Micronics TSP100/143 Receipt Printer Review

We’re doing a presentation on the Star TSP100 series thermal receipt printer. This is actually the Star TSP143, and this is a USB one that we have right here. It’s also available in Ethernet and other interfaces, wireless as well. The nice thing about this receipt printer is it’s actually one of the fastest thermal receipt printers on the market today. It’s 250 millimeters/second print speed, which is very fast indeed. Learn more here.

In addition to that, it comes with a four year warranty and it also comes with a very innovative utility that comes standard with it at no additional charge that allows you to compress the font size on the receipts. This will actually over time save on paper and of course your costs for receipts over a period of a year or more. It also allows you to add logos and other designs to the receipt. This is nice to have in case your point of sale software program is inadequate in these areas to be able to allow you to do a customized receipt. As you can see here with the receipt printer, we have a standard feed button and you have your error light and of course your power on and off indicator as well. So one other thing too about the receipt printer is that the interface type is hot swappable, so that means that this particular printer is USB…

But let’s just say later on down the road you may need to have an Ethernet interface for this printer and have it be a network printer; you can easily purchase an Ethernet card, take out the USB one that’s in there now and upgrade your printer to an Ethernet interface at nominal cost. So we’re just going to do a quick transaction here so you can see the speed of this Star TSP100 series printer. Let’s put this in here… so as you can see here… it also has an auto cutter feature in there as well. By the way ,so I think you probably saw that where the paper was cut, it cuts it up to about here in the corner, and you can just easily remove it.

This is your receipt right here. As you can see here you can also print barcodes, and as I mentioned earlier with the standard utility that comes with this if you wanted to save on paper you can compress the size of the font smaller so your receipt will be less, thus, saving paper over a period of time. This receipt printer is economically priced in regards to other printers that are on the market that are direct competitors, so we highly recommend this printer for the overall value functionality and also the 4-year warranty, which is also pretty much unheard of. Most thermal receipt printers are only about one or two years, so four years is outstanding.

Receipt Printer Basics – A Quick Lesson On Receipt Printer Basics

There are two main types of receipt printers. There is the older impact receipt printer which uses ribbon and the newer high speed thermal receipt printers that uses thermal transfer instead of using ribbon. Both of these can do duel colors though thermal is primarily just a single color black. You need a very special paper to do duel colors and you also need a printer capable of doing duel colors. This is the impact receipt printer. This was your older type of receipt printer. These two are older receipt printers themselves. Instead of using the more common drop in loading it uses a take-up section so you actually have to mount the paper into this holder and then feed it into the printer. This is set up in the same way. Newer receipt printers use drop in loading, you pop in the top, drop in the receipt paper, close it and you are ready to go. Ribbons come in a few different colors. See more information about receipt printers here.

This is the red black option. There are also straight black and straight purple depending on your color needs. The disadvantage to impact printers is the sound on it. They are quite loud. If I run a print test on this guy. Um so they make a lot of noise but these are still the most common printers in the kitchen as that the paper isn’t affected by heat.

If you put a thermal paper under a heat lamp sometimes it can turn black making it a little hard to read. This won’t be affected in the same way. Here are thermal receipt printers. This is the budget Epson TM-T20 ReadyPrint. It prints at 6 inches per second and has an auto cut. This is the faster Epson TM-T88V. It prints at about 12 inches per second and again has an auto cut. A couple other models. This is the POS-X HiSpeed and this is the Seiko Qaliber. The Seiko Qaliber is a bit smaller than the other models.

It’s five inch square. This is your more traditional sized printer. The speed on the Qaliber is comparable to the 88V or the POS-X HiSpeed, it’s just a smaller shell. Looking at the interface for printers the budget receipt printers tend to be wired in. So, like this is a serial printer and all it can be is a serial printer, there is the serial port and that’s how it is. If you look at the 88V or the POS-X HiSpeed the interface card is mounted by a couple of screws. This card can pop out and then you can switch from being in this case a USB interface to being a serial or a parallel. The POS-X is the same way. This card can be replaced so you can switch it to a different interface.

Additionally there is a USB port built into both the POS-X HiSpeed and the 88V so even if you bought a parallel today and you want to go to USB you don’t have to change out the card you can just plug in a USB cable. So these are the two most common types of receipt printers. Your impact receipt printer which uses ribbon and your thermal receipt printer which uses thermal paper. They’re available in USB, Serial and Parallel. Impact receipt printers are normally available with an Ethernet interface as well if you’re going to be using it in your kitchen that will give you a longer range and you can put it away from your point of sale system. USB is typically the most common in thermal since it is right next to your point of sale system.

Square Virtual Terminal

With Virtual Terminal, you can key in card payments right from your computer. Just head to your Square Dashboard and charge your customers in seconds. No extra hardware, reader, or app required. You pay three point five percent plus fifteen cents per transaction, the same rate as other manually keyed-in transactions. And just like other standard Square payments, you get your funds in one to two business days. To take a payment with Virtual Terminal, log in to your Square Dashboard. (As a side note, learn more about the new Square Register here.)

In the left-side panel, click Virtual Terminal, then Take a Payment. Enter the payment amount followed by your customer’s card number, expiration date, CVV, and billing ZIP code. Add a note for your customer, or describe the purchase. Then, click Charge. You can send an email receipt to your customer, or print one out for your records. Once you see Payment Successful on screen, you’re all set. Payments you take with Virtual Terminal appear as card transactions in your Sales reports. In your Transaction Status Report, the source appears as Virtual Terminal. You can edit your Employee Management settings to grant employees access to Virtual Terminal. Start by clicking Employees, located in the left-side panel of your Square Dashboard. You need at least one employee in your employee list. To give an employee access to Virtual Terminal, click the name of the employee whose permissions you’d like to update.

Then, click Edit Role. If it has not been checked off already, toggle on Access Employee Dashboard. Check Take Payments with Virtual Terminal. Then, click Save. After you grant an employee access to Virtual Terminal, they receive an email with instructions on how to use it. Employees can only see account information that you have granted them access to. Whether it’s you or your employees taking payments, Virtual Terminal helps your business get paid fast—no matter where your customers are..


How Square Works

You probably know Square as the little white reader that lets you accept payments anywhere. But there’s so much more Square can do to help you work smarter and save time. It all starts with our Point of Sale app. The Point of Sale app is simple, powerful and highly customizable. It works in all kinds of setups, including Square’s beautiful hardware, but right now, we’re going to focus on the apps. First off, you can name and organize your products and you can take pictures of them for faster checkout and less employee training. Which means you or your employees can easily take a payment for, say, a pizza. Just tap the item, add some toppings, then bingo – you’re ready for them to swipe, dip or tap. Learn more about these kind of mobile payments here.

A tip window pops up, customers can then sign and you’re all set. It works perfectly, whether you’re selling clothes, coffee or cradles. But the point of sale app does more than just take orders. It lets you add employees so they can clock in and out, and give them secure permissions to keep control of what they can see and do. You can also create and manage your customer directory, right in the app. You can keep a card on file for regulars, which is great for recurring charges. And through digital receipts, your customers can send you feedback directly, which shows up right in your Dashboard. What’s your Dashboard you ask? Dashboard is a free resource from Square that’s built to help you make better business decisions. When you open it up, you’ll see this main page with high level metrics, and then you can click to see your sales summary, best selling items, and over here, a comparison to previous performance. With real time information, you can keep track of your business constantly…

..from anywhere. You can access your Dashboard with the mobile app, whether you’re at another location, or a beach vacation. You can manage multiple locations all from the same app. You can click here to see sales from different locations and see which employees have sold what. You can also integrate 3rd party software seamlessly through Square Dashboard. You can sync with apps for bookkeeping, tax prep, e-commerce and more. All to help you save time, work smarter and make more. With the Point of Sale and Dashboard apps, it’s easy to get started, train employees, and manage items, inventory and locations – all through your Square account.

Learn more about what else Square can do for your business at today..

How to accept credit card payments anywhere using your mobile phone

Square reader and Square was the very first reader to enter the space and you can see if you look at the picture here, itís a little dongle basically that plugs into your iPhone earbud port and you can swipe a credit card right through there and it will come up with an app on your phone. You can type in the amount of the transaction and process a transaction right then and there. So Square kind of launched this space about a year, year and a half ago. Since that time, a couple of competitors have come out. Intuit has come out with a service called GoPayment. You can see their dongle also fits right into the headphone jack of a mobile phone and you can see the app, how that works and they can even sign it right on the phone. Then a third one has come out called Pay Anywhere. The exact same philosophy that you can run a credit card transaction right from your mobile phone. So the three service providers are Squre, Go Payment and Pay Anywhere. Here is more about mobile payments from other providers.

Now another cool feature about these is that you donít have to have the credit card with you or that your customer doesnít have to have a credit card with them. If they know the number or if you happen to be ñ letís say youíre writing in your vehicle. Not driving. Very important. Youíre writing in your vehicle and you get a phone call from somebody and they want to buy a product or service from you right then and there. Great! Get their credit card number and you can key in their credit card information right there on your mobile phone and boom, their card is charged.

Transaction is processed and you can provide the product or service that they are looking to buy. So these are very, very cool solutions. If you go to a retail store, youíre used to running your card through a slot. Usually itís kind of a big machine and it has a printer attached to it. This is just basically the same thing, only itís very small. You can see with the Square, itís kind of a sexy-looking little square. The GoPayment is kind of a curved model. Itís very small, very lightweight. You can keep it in your briefcase, keep it in your glove box, whatever, and process credit cards that way. Now, of the three options, which one is best for you? Well, thatís a really, really good question. So what I did is I broke down the three options so that you can take a look at the differences on the two from a pricing standpoint mostly but also just a little bit from a services standpoint.

So letís just take a look at the screen real quick. You can see that Square has a no monthly fee and itís a percent charge if you swipe the card. If you key in the card, itís a percent transaction fee plus 15 cents. Now one thing about the Square is that it only works on iPhones, iPads and Androids. No monthly fee. GoPayment has two different options for your use. If youíre low volume and youíre doing less than $1000 a month, then they have a percent transaction fee for swiped payments and a percent transaction fee for keyed payments but they donít have that little 15 cents onto it and no monthly fee or if you know youíre going to be doing more than $1,000 a month on a regular basis, then it might make sense for you to go with their high volume account and that is a $a month fee but it lowers your transaction fees substantially by a whole point. percent for swiped and percent for non-swiped. So that might be pretty helpful for you if youíre doing some decent volumes. The other thing about the GoPayment is that it does work on BlackBerry so itís the only one of the three that does work on BlackBerry at this time.

So if you use a BlackBerry and youíre planning on using a BlackBerry for some time, GoPayment is probably your only option. If youíre on an iPhone, you can use any of them. The last one is Pay Anywhere and Pay Anywhere is also a no-monthly fee. Theyíre at percent of the transaction plus 19-cent transaction fee and percent if itís keyed in plus 19-cent transaction fee. So, mathematically, theyíre kind of close on the swiped with Square, actually with both of them. Theyíre very, very close. So what you want to look at, something else thatís very interesting on GoPayment is that if you use QuickBooks, GoPayment is actually built by Intuit and they have very good QuickBooks integration. So when you do your transaction, you can hit a button and it automatically integrates that transaction right into your QuickBooks which can be very, very helpful if you use that particular accounting platform to keep track of all your transactions. So there you have it. Those are the three main mobile payment providers, Square, GoPayment and Pay Anywhere. Iíve got my GoPayment unit on its way.

It should be here in the next couple of days and I will never again miss out on collecting a transaction immediately when Iíve got a customer standing there wanting to give me money. Now if you have used any of these payment providers and you have a story you would like to tell us, I would love for you to raise your hand and come on the line and tell us or if you have any questions about these payment providers, please let me know.


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