The Pricing Game

In reviewing an agreement from a First Data direct sales rep to one of our merchants we found some interesting information. the merchant was at pass-through + $0.06 with us. First Data direct was offering pass-through + $0.039 and telling them how they would save them thousands of dollars. When looking on the 3rd page of the agreement they list a network access fee of $0.0269 which would get charged on all transactions. So if you add their trans fee ($0.039 + $0.0269 = $0.0659), thus higher than what the merchant currently pays with us. I just wanted to share this example because it is a good example of what can and does happen. The proposal sheet given to the merchant showed pass-through + $0.039 trans fee. Not a lie, but it also didn't disclose all costs. The agreement allowed us to do a true apples to apples comparison. The merchant didn't catch and/or know what that fee meant. This is why it is VERY important to get a copy of the merchant agreement and not just base a decision off of a proposal. Too many lies and/or half truths out there.....