Originally Posted by
robertw477
As a merchant who does significant volume I can tell you that you are dead wrong. Even on a swiped card not sure you could get down to 1.9%. Even if you could you probably dont know how these merchant accounts work. They will find out. They will shut you down because you are in effect getting cash advances with no fees and huge risks on both sides of the transaction. Once they shut you down good luck getting another merchant account. I see zero benefits by the way in racking up huge 1 cent a mile points with credit cards for my airline program these days. Unless you are trying to get to 2 million mile status with American or something like that.
Rob
As a banking rep who sold merchant services, you might want to check your rates (depending on your industry). I regularly saw Visa/MC rates below 1.9% + swipe fee (usually no more than .25). Amex/Discover of course were always higher.
In fact check with your bank... usually they'll have a 'beat your current rate or give you cash' ($200-$500) promo. If you're with your bank already, check your other bank. Two ones I know that used to be good on rates back when I was in it were Chase Paymentech, and BBVA Compass' merchant services.
Edit: Oh, and unless your rates are insanely low, you can negotiate the proposal as well.