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VISA DEBIT VERSUS VISA CREDIT VERSUS MASTERCARD


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I don't ask any questions at all.  My CC terminal is my best friend.  I'm using the FD130 terminal with a remote keypad.   If the card does both Debit and Credit, then it will automatically prompt the customer for a PIN number.  They have to ask me how to run it as credit (so that I can tell them to push the X button to skip Debit and run as credit).   If they don't respond to the machine automatically, I simply say:  It's waiting for your pin (secretly hoping that they will punch it in).

Both January and February were 41% debit transactions by counts and about 40% by amount.  Frankly, I'm surprised by the number of folks that use debit.

It is very likely that the terminal can be programmed with different behaviors or if not, it might be time for an upgrade.  The folks that I got my terminal from were super-helpful with the terminal and programming (they aren't the CC provider).  Maybe you can ask if yours can be programmed with different behavior.  

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We had the same thing happen earlier this year.  It turned out that the terminal we were using had not been properly certified by the credit processor and could not take pin debits as of the date some new regulations went into effect.  Upgrading to a newer terminal solved that problem.  I didn't appreciate the upgrade costs but the new machine defaults to debit without us asking if it is a debit card so the savings have more than offset the upgraded costs.

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  • 10 months later...
On 4/8/2018 at 9:35 PM, Junior said:

Why bother with any of that. I use intuit gopayment, 1.6% no matter what the transaction or card type.

 If intuit charges 1.6% across the board that is not a bad deal. I think the point of it was that running debit cards will only cost 25 cents to run with the pin vs paying the percent to run credit. However some merchant services charge ONLY .25 cents. If you are doing lets say 20k in card transactions per month that would be $320.00 in fees based off of 1.6% using intuit. Lets say you have a merchant service that lets you do debits a 25 cents, and when customers come to pay, don't ask them for credit or debit, the machine can be setup to assume debit and automatically ask for the pin. If this causes people to just assume it wants a pin and they enter it without asking how to run credit, now you could save hundreds each month by people not using credit and also possibly paying more if they use an amex, discover or rewards card. Again this all depends on the merchant service. Lets say 100 cars per month pay average ticket of 200 were running credit at 1.6% this is $320 per month in fees. If they ran debit at .25 cents, that's $25 per month in fees. $320-$25= $295 per month in savings x12 is $3540 per year in savings. I'd gladly put that in my pocket, haha.

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  • 7 months later...
On 3/26/2018 at 4:14 PM, DUFRESNES said:

Up to a couple of months ago, we would ask each customer debit or credit.  If they ran a debit, they put i their pin and there wasn't a signature line.  If it  ran it as a credit, they didn't have to put their pin in and they would sign.  Why you ask if this such a big deal.  It means about 400.00 more a month.  A debit card no matter the amount of the sale, it was .25 if it was run as a credit it is a percentage such as 1.78% - 2.5%  I have been on the phone to Key Bank and to 1st Data, emails and etc.  Nobody knows anything about what could have happened except to say that is the way Visa wants it.   I have said do you suppose there will be a class action.  Just one more way to make money for our credit card charges.  According to the people in charge nobody else has this problem but me.  Funny thing Saturday I was at the plant store and I have a Visa Credit Card and it asked me debit or credit. 

Hi,

My company just became a sponsor on AutoShopOwner.  I just read your prior post and thought I'd reach out.

My company, Loma Solutions, represents a 0% credit card fee solution.   We have 1000's of customers in the US and our solution makes auto shop owners thousands of extra dollars every year.

How does 0% processing work?
When your customer decides to pay with a card, they have 2 options.  If they use a credit card, a small percentage of the transaction will be charged to their card.  If they use a debit card, there will be no fee to the customer.  Our software does all the work and explains to the customer of their choice prior to the card being authorized.

What exactly are the costs to the merchant and to the customer?
For credit cards: Merchant pays zero credit card fees, the customer pays 3.5%  
For debit cards:  Merchant pays 1% + $0.25/authorization, the customer pays 0 fees

Facts:
- A card swiper is not needed: credit card information can be typed in a phone or computer or over the phone.  There is a 'brick' card swiper if needed*
- No set-up costs or any other fees
- Our agreement is month-to-month
- If you auto batch by 8:00 PM EST, you get your money the next day
- The solution complies with all card rules and regulations
- We'll have you up-and-running within a week

Benefits to the Merchant:
*** You are being fair to your customer by offering them a choice to pay a fee or not, while you are eliminating your credit card fees, which can be up to 2.5% of your total card sales.
- Simple to use and all charges are viewable through our real-time online portal.  
- Support: our team is there when you need us.  We will show you and anyone on your team how to use the solution, but it’s very straight forward.
 
Making you more money!
If your current credit card fees are 2.5% of your total card sales, for every $50,000 in credit card transactions, you'll put an extra $1,250 in your pocket.
 
* we will provide you with a ‘brick’ terminal: $35/month if needed.  This includes free paper re-supplies.

Is there a good time that you like to speak on a call?  Please let me know when works best. 
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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
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