Small business credit card processing contract
 

Do any of you small business owners have a processing contract that you like? Good rates, good service? Does it include the reader and software?

I've had several over the years and now use Costco's service. Their rates were the best I could find and They are at least human unlike the other complete sleazeballs that inhabit that business. In my case they provided the readers

Thanks! I know that it all depends on volume, some work better for high volume and some are better for low volume, but I thought more than one person would chime in...

be very very careful.

that business (selling credit card processing services/hardware/software) to small businesses is one of the SLEAZIEST businesses around.

they use every contractual trick in the book to rip you off. I've seen contracts where people end up paying $3000 to "lease" a reader for a few years, when they can outright buy it for a few hundred dollars.

I don't have the knee jerk "call a lawyer" reaction like some here do, but in this case, spending an hour or two of lawyer time can save you a ton if you aren't super detail oriented and have some experience dealing with "trick" contracts.

Once you sign one of those contracts, it is too late, because they are "technically" enforceable (or at a minimum would cost a ton to mount a legal challenge to), and these companies tend to be very aggressive in getting their money from you.

I'll expand...

We have had a contract now for 2 years, and are simply looking to cut a percent off of our costs since it's ending. We can easily extend the current contract.

Currently, it turns out to be 5-6% per month total cost, which seems high to me. That's running about $1000 a month through a swiper. That number (hopefully...) will double in the next year, but I don't have a complete breakdown of how much of each rate we currently run. Current contract is:
-----------------------------------------------
Qualified rates : Visa/MC 1.64% plus
Partially qualified: 1.32% + 10 cents
Non Qualified: 1.97% + 10 cents
$5.00/Month statement fee
Batch Deposit 25 cents
15 to 25 cents per transaction fee
Reward card fees
--------------------------------------------
The reader is free with this contract (not purchased, not leased).

If we could find a contract that was closer to 4-5% of total, we'd be happy (not that it's much, $10 a month, no big deal). Mostly it was if someone had a contract that they really liked, got good service from, or generally gave them a happy feeling when they signed.