vs.
Just got a rate increase from Wells Fargo Bank where they want to raise my rates to 3% for US transactions and 6% for outside the US… and there are other fees that could add another 1% on nickle and dime stuff.
So I went to Bank of America and they are quoting me 2.13% on US and 2.47% on foreign and no other percentage charges. So I’m wondering – what’s up with that? Wells is almost twice the BofA rate.
I’ve been with Wells for a decade. My account is golden. No charge backs. Extremely low risk. Yet Wells is screwing me. However, not sure I can trust Bank of America. Am I missing something?
How about flashing them with that paper from BoA and see their reaction?
I think its precisely *because* you can’t trust BofA that their rates are so low 😛
BTW, what happened to Ganesha?
I have used both banks — as banks, not just the credit cards.
I felt screwed by Wells Fargo. They dinged me for EVERY THING at every possible opportunity.
I’m neutral on Bank of America.
The only “bank” I’d ever recommend is my credit union.
I don’t exactly love it but I don’t feel victimized by it, either, and that’s probably the best you hope for these days.
I’d love a “government option” in banking as well as healthcare. Why not a “Bank of Oregon”? I’d love my money to go to local business and government project.
Hummm… I just shopped around for a new home mortgage and Wells Fargo was lowest. In fact, even after I “locked-in” the lowered the rate an additional 1/8 point.
Different type of transaction, but I’m just sayin….
Just pay off your CC balance every month and no worries!
The different rates are based on what each organization thinks you are willing to pay. The cost of somebody this size of moving money from place to place is virtually nil. That they are getting anything above 1% is stupid.
Conference they reps in on a call and let them haggle. Remember that your enterprise is the functional bit, and they are just they blood-sucking bit. Make them work for it!
Have you solicited Costco Merchant Services, they continually have the best rates. Should be able to beat BofA and Wells.
This is one area where I am still waiting for Walmart to level the playing field, rumor has been for a while they are trying to implement there own interchange bank to bypass visa and mastercard networks and actually make these rates competive.
This is an area of the financial world where rates have gone up while the cost to process the transactions has decreased.
#7 Praise of Walmart is not welcome on this site, unless you are talking about the one that sells wallpaper.
3% doesn’t sound like a bad rate. Even though BofA is lower, you can’t say they are screwing you.
6% may just be that they are running through a subcontractor for foreign transactions.
Or maybe they have a culture of nickel and diming customers.
As a Bank of America customer for 24 years, I can tell you that they are no worse than any other bank and in a lot of cases, they are better!
I’ve had accounts with Citi, Chase, Wachovia, Bank One, U.S. Bank, Wells Fargo, and a number of smaller community banks. I keep coming back to BofA as my primary bank…
I wouldn’t trust BoA farther than I could throw them, they’ve been crap for years and now, one of my friends is finally abandoning them for Wells Fargo because BoA refused to honor his power of attorney over his senile mother’s account.
So they lose all of his business and Wells Fargo gets a new customer.
#1 I’m giving Wells a chance to match BofA. I’m looking into Costco now. Costco isn’t a bank so how does the money get to me?
Hey — Some of You !! RTFA !!!
The article refers to the merchant fee charged when a customer uses a credit card at the business. NOT to a consumer credit card. And a 2% clearance fee is still a screw job since the cost to the clearing house is miniscul…..
DO NOT USE BofA for ANYTHING.
They are huge, and they just don’t give a f%@k about you. They are INFAMOUS for teaser rates… just go to on of their banks, and there are signs for free EVERYTHING… checking, online banking, blah blah blah… yet EVERYTHING is subject to extremely fine fine print. Lie charging me a $20 monthly fee because my checking account went under $7500.,,, when I had the account there for 16 years, and they changed the terms in some fine print notice (paragraph 57 of 84) so the charge started applying within 45 days without any ‘real’ warning.
And their CEO walked away with 87 Million dollars last year.
Screw BofA, screw Wells Fargo… even if it is on principle.
every time I hear anyone with a story about Wells Fargo it’s always a bad one. Parents, friends, online stories. Surprised they are still in business.
@Awake. What a dumb rant! Sounds like you know nothing about banking at all…
praise walmart … never intend to .. just reality butting into our bias’
3% to 6% WOW. All my stores are brick and mortar. Anything over 3% is an unfair burden on the retailers, but I have rent and payroll to cover. My nominal rate is around 3% for face to face, card present, swiped transactions….ridiculous and unfair
Maybe they are in a bit of trouble, with lots of West Coast mortgages and customers going under.
Costco acts as the middle man. Just like wells and bofa act as a sales rep (middle man)and the sales rep with wells or bofa marks up a service to you. Costco is in business to helps small business and thrives when small business thrives…they therefor have one of the lowest markups for merchant services. I think costco uses Nova systems as the merchant bank and nova will direct deposit to your account. The drawback with this is you lose a day of float.
However, if you put yourself in a position with no long term contracts you then can constantly play one merchant offer against the other. It is amazing how fluid these rates are. Get the lowest rate, then show it to another company and have them beat it.
The lowest rate available to a ‘regular’ merchant is “interchange plus.” This interchange rate (the rate visa and m/c charge) can be as low as 1.29% for debit and 1.49% for CC. The “plus” is the profit marked up from the company selling to you. The plus is represented by per trxn fees or a higher rate where your bank can profit.
As a business owner I am constantly bombarded to switch merchant processors or ‘let me beat your current rate’ … my simple answer to all these people (who usually require your previous statement to help you save money) is provide me a merchant quote without any documentation or information from me. This runs off all the shysters who only want to quote you .01% less and do not really provide you a rate your business deserves.
The thing about big banks is, they are unimpressed by requests to match a competitor’s price. They calculate that you will find moving to the new bank more trouble than is worth the money you will save. They prefer to take the chance that you will leave. Sadly, most people are the kind of mindless sheep that will stay put even after the bank calls their “bluff.”
I have the lowest rates in the country precisely because I do switch banks when cheaper alternatives arise.
#18 – Thanks – I heard the term Interchange plus mentioned. S what is a good deal? Interchange plus how much should I look for.
I do internet sales selling web hosting (I host dvorak.org free) and spam filtering. Have no charge backs and I’ve been doing credit transactions since 1984. I would think that they would want me as a customer.
Let’s put it this way. Is there a bank anywhere that is NOT out to screw us? Between the looming tax increases, unemployment, ever shrinking purchasing power to those of us left with jobs, increasing interest rates for loans, increasing fees and number of fees, etc, coming forced healt insurance premiums, and more, where in the heck does ANYONE think all this money is coming from? We cannot generate this kind of nosh. Cut up your cards and stay away from credit. Please!
I am assuming you were signed up by your wells fargo rep since you bank there. The wells fargo rep signed you up with a back end processor(aka acquiring bank) which provides the gateway to visa/mastercard/discover.
The bank/company you choose as a back end processor is negotiable. You have wells, want B of A, but may get a better deal from Costco, Mercury Payment Systems (a bank end processor), or even a credit union (which will sub contract just like wells did)
The visa/mc/disc network handles everything and charges “interchange” for its services. The back end processor adds there markup and then your sales rep (here Wells) adds there markup.
To get the best rate and if you have the know how to do most of your setup and tech support yourself you can bypass one level and open an account with a back end processor so no extra person is making residuals off you. Seeing as you are internet only and I am a brick and mortar store our rates are significantly different so I cant comment to what a fair range of rates is. If they are quoting 3% and 6% BEFORE interchange then your nominal rate is gonna be 4+% to 8+% out of pocket after you finish paying for everyone’s airline miles and etc. My assumption is you can do lot better. You may even want to insist on a per trxn fee with a low % … but that is a decision based on average ticket.
I think a good next step is contacting a back end processor like First Data or Mercury Payment Systems and get a quote directly from them. Just realizing you dont need wells or B of A is the next step really. You have all the power in this relationship because there are a ton of back end processors who would love to collect residuals off your processing.
I’m using authorize.net as the back end and BofA says they are compatible with that.
ya… what #4 said… i believe, but don’t quote me on this, the biggest most stable bank in the world is… the post office of japan
Very informative thread!
>> Mr Ed said, on March 1st, 2010 at 3:45 pm
>> Hummm… I just shopped around for a new home mortgage and Wells Fargo was lowest.
When I signed up for Wells Fargo, it seemed like a pretty fair deal.
However, it was the HIDDEN charges that made me leave.
It’s been a few years but I think it was a fee to go _inside_ the bank that finally make me give up.
I could use the Wells Fargo ATM for free but if I did the same transaction using a human teller, they dinged me.
To be fair, it was more than ten years ago and maybe Wells Fargo’s corporate culture changed so that they now no longer see their customers as cash cows to milk. (not likely, but still…)
>> faustus said, on March 1st, 2010 at 7:12 pm
>> ya… what #4 said… i believe, but don’t quote me on this, the biggest most stable bank in the world is… the post office of japan
I think I heard that when I lived in Japan. I even had a savings account at the Post Office there, myself.
It was a simple account with no bells or whistles. I can’t remember if it had ATMs — I just did my business during regular hours.
That’s all I need here in the US too (but with ATMs. I’m spoiled about that.)
I think John D. is right. Look around for a small credit union or small bank and see what they offer. Check them out with the better business bureau. If you can find a good one these people are less likely to bleep you over because your business actually means something to them.
It’s not what your missing, it’s what Wells Fargo believes they are missing. They are in a bind and who do you think they are going to squeeze? Why their loyal well behaved meek and mild customers. Not only are interest savings at an all time low, but concurrently Wells Fargo buys money cheaper than ever, like bofa and the rest of the biggies. They will lend it out once the rates go up later this year, if at all. They are not paying you any bigger interest, but they are investing in anything else inside or outside the country that turns them buck.
so many people have no clue about merchant rates or they just like to rant about banks when….or both
I think most processors use authorize dot net as per my experience. All you will have to do is change the merchant account info in whatever interface your program has, my experience is with pc charge/verifone, xcharge, and you will be processing with a new processor. If you own your own software you can switch providers, then get someone to underbid, then switch, and so on. Starting w Costco, because their buying power and passing on of savings, will usually get you the best rate, imho. fyi if u do >$5000 in Amex per year there is an awesomely competitive plan for that..only like $7/month w 0%.