Corporate Support Services

Typical Cost Considerations

Bank Merchant Services*

Transaction Methods

Credit Cards(CC), Debit Cards(DC), Electronic Funds Transfer(EFT), Automatic Check Withdrawal(ACW)

TransactionMethod               Required and/or Costs

Pre-Authorized Checking

(Bank Draft Fund Transfers)

Background credit check required to qualify

All

Yes

None

Minimum Reserve Deposits required in bank and/or to be available at time of Fund Transfers

All

Yes, Requirement based on volume (Ties up working capital)

None

Equipment to purchase and/or rent and maintain

CC & DC

Terminal-----$350.00-$500.00 OR

Terminal rental-----$30.00-$45.00/Mo.

PIN Pads-----$725.00 incls. Terminal & printer plus on-going paper supplies-$$

None

Telecommunications Equipment plus dedicated phone line for modem

All, if in house

Cost of modem plus $35.00/Mo.  Phone line charge plus taxes, long distance. Etc.

None

One-time set-up fee

CC & DC

ACH

EFT

$50.00-$150.00

$400.00-$500.00

$300.00-$500.00 plus software Lic. Fees

Yes, varies

Monthly service fee**

CC & DC

$25.00

None

Annual fees**

CC & DC

$40.00

None

Transaction service fee**

CC

DC

ACH

EFT

2 to 4%(relative increases-not fixed)

$0.40-$0.70

$0.40-$0.70

$0.50-$2.75

Yes (decreases with volume)

Customer usually pay

Charge-customer approval over phone line**

CC & DC

$0.15-$1.80 per call

None

Charge Back (Reversal) charge**

All

$15.00-$25.00 ea. Time

None

Payroll and Labor Burden

All

$15.00 to $30.00 per hour set-up and transaction time

Minimal customer set up time

Flexibility of customer payment capabilities

All

Generally NO

YES (No cost)

Hidden fees: ***

Yes-Varies Conversion fees, diskette processing fees, addenda record fees, notification of change fees, purchase of software

None