Credit Card Processors

Lately I've been flooded by Credit Card Processors claiming how some lawsuit is resulting in them requiring them to have a 6% portfolio of small businesses at tier 1 rates (has to do with how First Data got sue for subsidizing their tier 1 customers via higher fees for non tier 1 customers).

One really odd meeting happened with a Rep that claim that they represent First Data. However, the documents suggest that they're from iPayments. They wanted to charge me 10 basis points and 6 cents per transaction while renting me expensive Clover machines for $300 a month. I have no idea how she did her analysis, but she claim she could save me some ridiculous amount while charging a ton for clover machines. She claim that processors charging below 10 basis points are charging some other fees (ACH? I forgot). Her analysis somehow claim she would save me $1200 a month (I kind of rolled my eye didn't bother to double check the math).

The best offer I got so far is 3 basis points and 3 cents per transaction with a $118 monthly fee. However, the pitch was very similar how they are required to have a portfolio of small businesses due to the First Data lawsuit. The analysis claim they would save me around $600 a month, which would be true if there are no additional fees.

Anyways, one common theme is that they all require 5 year non-cancel-able terms, which makes me feel uneasy. They all also charge 30 basis points for AMEX pass-through, which seems very high ( they all claim that 30 basis points is what First Data charges).

Anyways, here is a redacted copy of the agreement from UPA that claims to offer 3 basis points and 3 cents per transactions.

https://www.docdroid.net/Xehmn5T/2017-06-07-12-29-57-redacted.pdf.html

I have 30 days to basically cut ties and move on. I definitely don't want to get stuck with 60 month term and $118 per month of fees.

Anyone have any idea whether these reps are legit or are credit processors being underhanded again.

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