Stripe and Square are both that way. it's only useful for very small businesses doing less than $1000 in sales per month. If you need a real merchant account shoot me an email. We do interchange plus pricing of 0.4% for Shopify users. My email is firstname.lastname@example.org.
Square is perfectly fine for any volume you want. 2.75% flat on every card, international, miles, points, etc. Also I don't need a statement for that. It's 2.75% * sales. Period.
I've been screwed upside down and sideways by "real merchant accounts". Sure the quoted fees are rasonably low but then there is extra for: foreign cards, cards with miles, rewards cards, cash back cards, Amex statement fee and on and on. Not to mention monthly fees, cancellation fees, minimum charge fees, batch fees, etc.
No thanks! 2.75% flat is a great deal as is 2.5% + .30 per transaction IF you don't have many small ticket orders (I don't).
The fact that they can't produce a statement (if this is true) is absurd though. Although par for the course with shopify. The last delight I got from them is their custom fulfillment method that reports "Success" when there was an obvious and detectable failure.
Most businesses have been ripped off by a processing company sometime or another. That's primarily why interchange plus pricing has taken over the majority of the industry. It's easier to see what your processors is taking from you.
For instance for eCommerce Square actually charges 3.25% and $0.15 per transaction.
Now when you look and see rewards cards, cash back cards, cards with miles. You probably have payed some type of "Non Qualified" surcharge before, most have.
These cards actually don't have too high of an interchange rate. These are the keyed in rates for eCommerce
Visa Rewards 1 Card = 1.65%
Visa Rewards 2 Card = 1.95%
Visa Signature Preferred Card = 2.1%
Regulated Debit Card = 0.05%
So even on the higher end cards Square and Stripe are making a good amount of markup. For instance you use Square 3.25% and take a Signature Preferred Card 2.1% that's a 1.15% markup
Where the companies like Square and Stripe really make their profits are when you accept a debit card 3.25% charge for a card that costs 0.05% is a whopping 3.2% markup.
As for the static fee's from a merchant processor, usually they aren't too bad. Generally $5 to have an open account and a $25 minimum (if you run zero cards they will bill a flat $25). Batch fees are generally around $0.05, so if you run a cards every day for an entire month the charge would be $1.50.
The breaking point for actual profitability is when you get a merchant service provider offering you an interchange plus pricing structure under 1%. At least compared to Square and Stripe. There really is a reason that you don't see Square or Stripe as setups for any well established larger businesses.
On another note, If you are doing large ticket orders which it sounds like you are. Drop accepting cards all together and setup check conversion service. The check system is normal but the customer just enters their account number and routing number instead of their card number. You can process your sales that way for under 1/2% total. It's the primary setup for many B2B sites.
If you want to know you need a calculator and a alot of time. According to support the only place to get this info is from the "All Payouts" report which is online only and cannot be searched or filtered by time period. It lists all the transactions since the beginning of time and there are no column totals.
Although this discussion is about reporting, check out www.Freepay.biz as fees and normal merchant account providers continue their complex pricing ways of business. With the ruling earlier this week, it's official that going forward merchants can eliminate their processing fees and have the customer absorb the expense. There is a good way and poor way to execute this. Worth sharing
My bookkeeper requires this kind of report - payment processing fees/month. How can I generate this? I've spent way too much time trying to figure it out! An external CC processor would send us a monthly summarized report, by type of CC, etc. showing fees and sums.....is there an add on reporting app to do this?