Our 100% Rate Guarantee
Credit card processing companies will come and go often making big promises for lower fees. As you well know, it is one thing to say it and a completely different thing to prove it and have presented in writing. This is what makes iSmart Payments Rate Guarantee so different. We work by earning your business with full transparency.
It Is All About Your Effective Rate!
In a nutshell, it is all about your effective rate. The effective rate consists of the total fees plus the rate charged on transactions during a single month. With some simple math we can determine your effective rate. Below is an example on how to do this:
- Take the fees charged the month
- Divide by the total volume of card processing sales for the month.
- The effective rate will be reveled.
i.e. If the fees you were charged were $1,750, you would divide this number by the total sales volume, of say $50,000 will give you 0.035, multiply this by 100 = effective rate of, 3.5%.
($1,750/$50,000 = .035 x 100 = 3.5%)
What is Our 100% Rate Guarantee?
We are confident and will put in writing for you that the rate on your contract for processing cards, will not change. This we guarantee 100% and in writing. For instance, if we set your business up on a tiered rate at, 1.29% for qualified credit cards, this will not and cannot be increased. The same goes for our Interchange Plus and our Edge 0% programs, the rate is set and will not/cannot be increased. They are locked into brackets.
When you sign a contract with our processor, North American Bancard, or anyone else, you and the processor are both legally bound to all of the numbers (rates and fees) that have been agreed upon. Merchant Services is tied in directly to the banking industry which is highly regulated. The numbers are the numbers and cannot be changed.
Will My Total Effective Rate Ever Change?
The short answer is no, this will not ever change. However there are a few instances we need to consider that can override and change what is outside and beyond the credit card processors control. A parallel to this wold be a mortgage rate that was locked in for 30 years at 2.99%. It will never change. However there are outside forces that might change your total effective mortgage rate (mortgage + taxes & insurance = effective rate) like taxes and insurance that might go up over the years. In order to be transparent and full disclosure with our merchant services rates that we offer, there are a few points listed below although they rarely happen (with the exception of the first bullet point) that might influence your total effective rate:
- The card mix being used to make purchases at your business from customers can change from month to month. This is completely normal, especially around the holidays as credit and rewards cards are being used at a higher rate. This will affect and push your effective rate up temporarily as these types of cards usually fall under a non-qualified rate bracket.
- Imposed new fees by the card issuing network brands, Visa, Master, Discover & American Express. You will receive notice of this, if/when it were to happen.
- Imposed new fees by either the State and or on the Federal level. You also will receive notice of this if it were to happen.
- The merchant service provider, the processor increases rates or fees. If so, they send notices of a possible increase to their merchants due to other reasons not listed above.
We Put Our rate Guarantee In Writing & Sent It To Business Owners!
Thanks for visiting as we hope you have found this Rate Guarantee page information helpful and informative. We want you, the business owner, to be in the know and fully informed. More to come as we will be sharing updates on this site often. Thank you for reading, iSmart Payments.