debit card processing fees - suggested companies to use and what are you paying?

[bringles]

Hi,
I have been doing wholesale only the past 3 years and just adding retail back in. I am shocked by the fees that are charged for debit cards. I complained and my vendor (everyware) offered to lower it to 2%. That is still way too much. Most of my inventory is under $15k and we get a lot of cash buyers. 2% of 15k is $300. I cant afford to eat that and asking a customer to pay that is also unexpected and unreasonable. We do take personal checks (after verifying funds) and cashiers checks (time consuming), but most people don't carry around checkbooks anymore.

I am not as concerned about the credit card fees. We charge the customer 3% and most people are fine with that and expect it. Who are you guys using and what are you paying for debit fees?

 

[Tallcool1]

I process through Intuit and anytime someone is using a Debit Card I process it as an E-Check for a flat $3 per transaction.

 

[bringles]

thanks! Do you mean in Quickbooks?

 

[Tallcool1]

thanks! Do you mean in Quickbooks?

Yes, Quickbooks Payments.

 

[bringles]

Hi,
Thank you for the tip. I spoke with quickbooks. I asked if there is a way to run a debit card as an eCheck and they said no. The only way is to get their checking account and routing # and run it as an echeck for 1% fee. Just curious how your doing it that way for a flat $3 charge?

 

[Tallcool1]

Hi,
Thank you for the tip. I spoke with quickbooks. I asked if there is a way to run a debit card as an eCheck and they said no. The only way is to get their checking account and routing # and run it as an echeck for 1% fee. Just curious how your doing it that way for a flat $3 charge?

Ya, I spoke too soon. It used to be a flat $1 and then went to a flat $3 several years ago.

Now, it is 1% with a maximum of $15.00.

$1,000 the fee was $10
$2,000 the fee was $15
$26,500 the fee was $15

I am on a really old plan with them. I believe I signed my agreement about 12 years ago.

 

[kylewilliam]

Hi, many businesses use processors like Square, Stripe, or PayPal, and some chime in with Chime, which often offers lower debit card fees around 0.5%–1% per transaction. You could also consider ACH transfers or eChecks for larger wholesale orders, as they usually have very low fees.