Congratulations, you are starting a new business, FANTASTIC! And at some point, you want your new customers to pay you for your goods and services, that's one of your business objectives, right? But, how will you take payment?

This is the point where most new merchants get overwhelmed with choices. Online, retail, mobile, POS, EMV, Effective Rates, Interchange Processing, banks, wholesalers, ISO's, Merchant Surcharge, MOTO, Cash Discount, the Durbin Amendment, service fees, chargebacks ..... on and on.

No doubt, the world of credit cards is a treacherous one for merchants. One that is expensive, ever-changing and historically unreliable. With new legislation in all 50 states, merchants have several ways they can process credit and debit cards, creating even more confusion. And if you make a mistake on choosing a merchant provider and get locked into a contract, then you have buyouts and early cancellation fees to boot.

I've been in this field for over ten years and continue to be amazed at how uneducated merchants are when it comes to processing, through no fault of their own. Merchant Statements are very confusing, with pages of listed fees and descriptions that are inexplicable. Online statements are hard to find amidst multitudes of drop down menus. Banks don't do any merchant processing and yet, they set up new businesses with processing capabilities and equipment. But merchants don't realize that the bank is an expensive middleman in their consumer transactions. Then there's what appears to be "Simple" merchant processing, like the gizmos that plug into your Smartphone for example. But "Simple" merchant processing comes at a hefty price, starting at 2.75 cents on every dollar that your customers spend with you.

And then there is the bombshell. Rewards cards. You know "What's in Your Wallet?". You've seen all the commercials, cash back, credit repair, gas cards, frequent flyer miles et al - Who do you suppose pays for all of those those rewards? Well, unfortunately, YOU the merchant pays for the rewards that are bestowed upon your customers.

I started this thread to help educate my favorite people, the new business owner. It's so important to understand how to get started right, with a reasonable merchant processing business model that doesn't undermine your profitability and at the same time, affords customer transparency and builds loyalty. Today's consumers are savvy and sharp, let's get our merchants up to speed with what they need to know!

Ask your questions here and share your experiences, we're all here to learn and become better merchant processing consumers.