Debit card payement changing to % from fixed fee?

[demonloop]

Hi all, I've had a hunt and can find no info on this.

We use AIB Merchant Services as our aquiring bank, we're changing our company fro sole trader to Ltd. Just got a call to say they'd have to review our rates, but that debit cards were now charged as a percentage like credit cards? Anyone else heard of this?

 

[Paul Kelly ICHYB]

Yes. Many merchant account providers did this last year.

It probably is more related to you having a new contract due to your change in status.

Take the opportunity to renegotiate your deal or find another supplier!

 

[demonloop]

Thanks, at least I know it's not just AIB! They're quoting me 0.35% FYI

 

[Paul Kelly ICHYB]

0.35% doesn't sound great, however, there are several criteria used to give you this rate.

BTW, moving your account means you can normally get a better deal.

Using a bank normally is not the most economical way to run a merchant account (although there are rare exceptions).

 

[demonloop]

Have asked Cardnet and Elavon for prices, thanks

 

[Paul Kelly ICHYB]

Great.

remember, do not be enticed by the headline rate, as there are several additionally costs they they could impose. My guess is Elevon will appear to be the best, but read the small print.

It would be remiss of me not to comment that if you were a member of Your Business Community you would get preferential rates with Lloyds Cardnet, which are some of the best out there!

 

[David.TotalProcessing]

The best way to get a better deal is to deal with a payment broker.

 

[Nochexman]

We use AIB Merchant Services as our aquiring bank, we're changing our company fro sole trader to Ltd. Just got a call to say they'd have to review our rates, but that debit cards were now charged as a percentage like credit cards? Anyone else heard of this?

Can you say what turnover you have for debit and credit cards each month and there are people here who can provider with an idea of the charges you might pay.

 

[James61190]

Hi Demonloop,

From what you are saying, i believe that the 0.35% that they are offering you will be topped up with authorization fees of a pence per transaction on top.


Thanks

James

 

[Ian Spielman]

The rates for DC payments have changed to % across the board, with the exception of some rare cases. In any event, if your ATV (Average transaction value), is less than £30 it shouldn't effect the cost of the transaction.
What we at Fidelity Payment do, (we partner with AIB) if you take large debit card transactions often, we can put a cap on the cost so it whilst the DC charge will be (slightly) more expensive than in the past, it will still be cheaper than taking the same payment on a CC.

 

[Ian Spielman]

Great.

remember, do not be enticed by the headline rate, as there are several additionally costs they they could impose. My guess is Elevon will appear to be the best, but read the small print.

I agree on both those 2 points 100%.
Many people do get enticed by Headline rates and end up getting burnt.