Credit card fees are the worst! PAYLEX wants your fees to be as low as possible. We get paid the same small rate amount, regardless of the fees you pay to Card Issuers and Network providers (about 20 times what we get paid). So what can we do to lower them?
There are three types of fees you pay to the bank:
- Qualified - This is usually about 2.1% for credit cards and 0.05% for debit. The card is "physically present", and it is dipped or swiped in a device.
- Mid-Qualified - When the card is not dipped or swiped, there's an additional 0.3% penalty (30 basis points). This includes token payments.
- Non-Qualified - An additional 0.55% fee is added if the billing address is not verified. This is combined with the previous fee, for a 0.85% penalty (85 basis points). Ouch!
So the best way to keep fees low is to dip or swipe a card whenever collecting payments. The card is recognized as "physically present", so you pay only the Qualified rate.
Now with contractors, this is not always convenient. Often they're not using their own credit card but actually the customer's card information.
For these situations, we have a cool new solution: Send our inexpensive chipcard devices to your biggest clients so they can "dip at home". Users (Payors) can just go to your hosted payment page, so it’s super easy. One big $100K-a-month client will save you $300 per month, so the devices quickly pay for themselves.
No one else has anything like this. Contact us if you're interested.