5 Things That Set Payment Depot Apart From Its Competitors
Payment Depot has become one of the top performing merchant credit card processing firms in the business because of our ability to raise the standard of service while keeping costs low. Here are five key things that separate Payment Depot from our competitors in the card processing industry:
1. No Hidden Fees
Unlike many other credit card processing companies, there are absolutely no hidden fees when you do business with us. What you see is what you get with each of our plans, and our company does not deviate from them or surprise you with any new charges at the end of the month. When we say “no hidden fees,” we mean exactly that.
2. 24 Hour Support
If you have questions about any part of your service, you can contact us 24 hours a day, 7 days a week. Many of our competitors will not give you this service, and even those that do typically outsource it to call centers who often don’t know the ins and outs of the industry.
3. No Cancellation Fees
If for any reason you decided you do not want to do business with us anymore, there are no cancellation fees to get out of our contract. Many of our competitors make it a key part of their entire business model to intimidate their clients into staying with them through fear of high cancellation fees, but that’s not a problem for Payment Depot. With us, you can leave any time and incur no cancellation fee whatsoever.
4. Flat Fees
Many of our competitors will also try to make themselves de facto partners in your business by requiring a percentage-based markup on each one of the sales that you receive. This is not the case when you do business with Payment Depot. Our fees are completely flat, and they do not go up when your business begins to become more successful. This means that the money that you save can truly be put into other aspects of your business such as marketing, research and development, and new hardware.
5. Free Trial
One of our best features is the free three-month trial that we offer to all of our clients at the beginning of service. Even though we do not have any chains on you at any point during our service, we give you an even easier way to get out if you do not enjoy our service.
We look forward to serving you and the needs of your business. Please give us a call when you are ready to take your merchant credit card processing to the next level.
Read Also: What Are the Average Credit Card Processing Fees That Merchants Pay?
Change the Processing Industry by Choosing Payment Depot
The average merchant expects to pay high fees for their merchant solutions. Most merchant service providers charge approximately 4 or more fees for every transaction. This increases payment processing costs for businesses, and thus their overhead costs in general. Companies are starting to explore other options for cutting costs. This is how companies are working to change the processing industry by switching over to Payment Depot.
Why are there so many fees?
Credit card payment processing companies are relying on an abundance of fees to maximize their profitability. In assessing fees much higher than what is actually required to complete the typical transaction, a company can increase its earnings. Creating these fees and passing them on to businesses increases how much the business owner pays for transaction support, which in turn can increase costs for the business owner’s customers. It’s a cause-and-effect chain which increases the financial burden every step of the way.
How do companies lose with these fees plans?
When a company is paying a lot of fees on top of a typical transaction, the average markup can be as high as 5-10 percent. This eats up a considerable amount of profit for a smaller retailer that doesn’t have a heavy volume. Even something as simple as producing a monthly statement can result in a charge of several dollars. Monthly minimum fees are also assessed whether or not a business generates any revenue that month. Other compliance fees merchants are typically unaware of can easily reach hundreds of dollars in a given year.
Can companies get better rates?
Companies have many options to lower their rates. They can look for vendors with a more streamlined pricing approach. In general, a company with a more simplified, straightforward processing fee structure is usually a much better pricing method for the merchant. Luckily, there are companies that are focused on providing better value to their consumers. Here at Payment Depot, we are offering simplified pricing plans in an effort to keep costs low for our merchants and their customers.
How processors like Payment Depot are saving companies money
Fees are the single biggest factor that’s making credit card processing expensive for many companies. The number of fees affects how much the company must pay for handling transactions. Companies like Payment Depot are working to find the most cost effective approach to managing fees and costs associated with credit card payment processing. Arbitrary fees like processor, IRS, PCI and statement fees all contribute to how much a business pays to manage transactions. Payment Depot eliminated all of those fees for the consumer and offers a simple subscription-based transaction fee instead. By offering better rates, Payment Depot is helping force other processors into lowering their fees as well. You can keep up the pressure and help turn the tide in the processing industry by switching to Payment Depot – we even offer a free trial so you can see the savings for yourself.
True Cost and the Payment Depot Difference
Accepting credit cards is a fundamental part of running a business today and all business owners must be aware of the rates that go along with those cards. One of the best-kept secrets in the credit card processing industry is the meaning of True Cost. Most credit card processing companies bank on the fact that you don’t know what it actually means!
What is the True Cost?
It’s a rate paid by the merchant to whichever credit card brand (Visa, MasterCard, Amex, Discover) is involved in each transaction. These rates are the same for all merchants and they are completely mandatory. Every time you accept a credit card at your business you must pay the True Cost to the credit card brand.
Here’s the tricky part, the True Cost varies depending on what type of card your customer is swiping. For example, Customer A swipes a Visa rewards card and the True Cost for using this card is X. Now, Customer B swipes a MasterCard debit card and the True Cost for using that card is Z.
In both cases, you (the merchant) must pay the True Cost for each transaction to the respective card brands, but as you can see you are paying different True Cost rates because your customers are using different cards. The most important thing for you to understand is that the True Cost is the absolute lowest rate you can pay. It’s the bottom floor, wholesale cost. There is no way you can avoid paying the True Cost, but the good news is that this is the only rate that you actually need to pay.
With Payment Depot, you pay interchange+ 0%, instead of interchange+ processor mark-up
How is True Cost Manipulated?
True Cost can be confusing and that is why many credit card processing companies are ripping you off. Often, the processing company will quote their rate (the True Cost + their processing markup), which seems low and is easy because it is the same for most transactions, but the merchant is completely unaware that he or she is actually paying a mark-up on top of the True Cost. Don’t fall for their false peace of mind, instead, be diligent in learning where your money is going.
What is the Payment Depot difference?
This frustration with the industry was the reason Payment Depot was started. We are a membership company intent on protecting our members from overpaying for credit card processing. Payment Depot members have direct access to the wholesale True Cost rates; they never pay markups or hidden fees. On average, we save our members $400 or more.
The 5 Businesses That Benefit Most From Switching to Payment Depot
Credit card processing can be a major expense for businesses that swipe a lot of cards and/or run large amounts on customer credit cards. With fees for some merchant service providers going well over 5% per transaction, a lot of business owners see their profits evaporate when it’s time to pay their credit card fees at the end of the month.
Today, there are plenty of options for businesses to save money on their credit card processing. Not every credit card service is the best choice for every business, however. The following five types of businesses are the most likely to benefit from the plans offered by Payment Depot:
1. Retail Stores
Most retail stores run dozens of transactions every day, but it’s next to impossible to predict how much each transaction will be for. Paying a flat fee for each transaction can make it easy to predict and control costs.
2. Coffee Shops
It’s not uncommon for a coffee shop to run hundreds of transactions every day, but each one is rarely for an amount over $10. When this type of business has to pay a large amount of commission on each transaction, their profits can shrink quickly. By choosing a Payment Depot plan that offers an extremely low transaction rate on each purchase, a coffee shop can save a lot of money.
3. Tradespeople (Plumbers, Electricians, etc)
Plumbers, electricians, landscapers, and other service-based businesses will typically only run a few credit card transactions a day, but nearly all of them will be for large amounts. Merchant service providers that charge a percentage of each swipe amount will quickly eat through any profit. This is especially true in businesses that require the tradesperson to purchase supplies or parts for each job and then be reimbursed for the purchase by the customer. Every time a tradesperson does this and charges the customer his or her cost, he or she is actually losing money on selling the part since a portion of the fee has to go to pay the credit card processor. With a flat rate system, however, a service provider doesn’t have to worry about this issue.
4. Restaurants
Restaurants have the same issues as coffee shops and retail stores, but they also have the additional challenge of tips. Since many people like to add the tip to the credit card, and a restaurant has to turn the full value of these tips over to their servers, paying a percentage-based commission to a credit card company means that a restaurant loses money every time a customer adds a tip to the card. With a low cost flat rate system like Payment Depot, this loss is gone.
5. Non-Profit Organizations
One of the most important statistics for a non-profit is the percentage of income that they use for administrative costs. Credit card fees can greatly increase this cost. By choosing a low-cost provider, it’s possible to use a lot more donation money for what it was intended for: helping causes that need it most.
If you’re looking for an easy, hassle-free way to accept credit card payments, look no further than Payment Depot. Our membership-based pricing with zero markups, no contracts, and no hidden fees helps small businesses like yours save more as you process more. Contact us today to learn more about how we can help your business.