PREMIUMCIGARS.ORG AUTUMN 2020 | PCA The Magazine 49 The Two Buckets of Processing Fees While there are many ways a processor may charge fees, such as a flat rate (think of Square), tiered or pass-through, the first thing you need to know about credit card processing fees are that they always fall into two buckets. Bucket A includes the fees charged by Visa, MasterCard, Discover and American Express. So you know, these fees are the same for everyone, including huge companies like Walmart and Amazon. They are nonnegotiable or, simply put, they are the cost of doing business and typically result in the largest percentage of the overall processing fees you pay monthly. Bucket B includes the fees charged by your credit card processor. Credit card processors are not paid by Visa, MasterCard, Discover or American Express to provide service. They charge their fees on top of the card brand associated fees. Depending on your processor, the type of fees charged can vary—especially the monthly fees, above. This is where things can get tricky and confusing. A question you must ask yourself is “what is good service worth to my business and how much am I willing to spend for that service?” If your answer is “as little as possible,” then you are probably not going to get great service. — “If the new offer seems too good to be true, then you are probably being sold a teaser rate which will increase quickly over time. Remember, “smoke and mirrors” or “bait and switch”? — Mitch Langer, VP Sales & Operations, Nuvo Merchant Services — Along with the aforementioned teaser rates that are too good to be true, most processors require a standard agreement for three years, and once you have signed the dotted line, you could face a large cancellation or early termination fee to get out of it. Not All Card Processors Are Built the Same Not all processors are built the same. The credit card processing industry is not a cookie-cutter service, even though, at the end of the day, they all do the same thing: process and fund your payments. Some processors rely on cutting-edge technology and equipment to sell their services, some do it through software integrations. Others emphasize great customer service and support and provide additional tools such as online reporting or an online portal to help ease your business processes. It can all be very overwhelming, especially when you have a salesperson selling you on things that sound great but may not be needed for your business. Making the right choice for payment processing based on your business needs is an important first step. PTP’s mission is to make your next relationship as stress-free as possible while helping to ensure you only pay fees for the tools you need to run your payments. — “With PTP, you save more than a few dollars on processing fees. I switched more than a year ago, and PTP even kept me from losing money due to a very difficult situation with my previous processor. On top of that, they continue to support the PCA.” — Shorty Koebel, Owner, Havana Connections — Nuvo Merchant Services established Premium Tobacco Payment Processing specifically to address the ever-changing and diverse needs of the premium cigar industry. We have partnered with PCA and have a stated goal of simplifying credit card processing for your business, whether you are a tobacco retailer or manufacturer. No Contract, Superior Service How is PTP different? We do not require contracts. We simply focus on superior service every day. Fair and transparent pricing has always been the foundation of PTP. Not only do we want our clients to understand the fees—what you are paying and why—but we also want you to understand what you are paying PTP to provide service. Most importantly, we want you to understand how we can provide you with excellent cost savings without sacrificing service. Additionally, at PTP, we are always a phone call away to support our clients. PTP is uniquely positioned in the market to work directly with various backend payment processors. This ensures we have the flexibility to match your business with the right tools and technology to fit your needs while making the transition seamless and stress- free. Backed by Nuvo Merchant Services, whose client base processed over $2.5 billion worth 100 million+ transactions in 2019, PTP can help drive down rates without sacrificing service. — “Not only does this program help all of our members save money on their credit card processing fees, but this is the very definition of win/win. As our affinity partner, a portion of the proceeds from all PCA members comes right back to PCA, which then goes directly into our advocacy efforts to defend the industry. It saves our members money and provides funding for cigar advocacy. You can’t beat that!” — Scott Pearce, Executive Director, Premium Cigar Association The Processor for the Premium Tobacco Industry Despite the challenges facing the tobacco industry in an ever- changing world, PTP is proud to call itself the tobacco-friendly processor, and our partnership with PCA is designed to help ensure the future health and success of the industry. PTP can take the frustration out of your credit card processing, along with saving your business money, while providing you unparalleled customer service. But perhaps the most important benefit PTP offers is that a portion of the processing fees you pay PTP goes back to PCA so they can continue to fight for the rights and prosperity of the tobacco industry. We would love to hear from you! Please reach out to us today and see how Premium Tobacco Payment Processing can help your bottom line, while also helping PCA fight to protect your industry! — Contact Premium Tobacco Payment Processing at 321.972.9838 x103 or
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