What It IsThe new Phone Swipe processing plan from North American Bancard offers a free tablet for merchants to use and lower rates than "Pay-As-You-Go" plans, or even most monthly processing plans.
Who It's For
The merchant requirements for this new processing program ("Option C") are a little steeper than in the standard Phone Swipe programs. For "Option A," which has a $14.95 monthly cost but a wide range of structures customized by the agent for each merchant, the only real minimum is that the merchant processes over $2,000 each month (and really should tend toward $2,500 and up), because that is where it becomes cost-effective. For "Option B," commonly known as the "Pay-As-You-Go" plan, there are very few requirements at all.
In order to process with the "Option C" plan, however, merchants need to be processing over $10,000 every month and also must have a processing history to show this. At least the most recent month's statement will be required to submit to the underwriting department after the application is sent in (via a secure web form filled out by the merchant after receiving an email from the agent who is setting it up).
What's the Catch?
There are a few fees involved. Like the highly customizable "Option A" plan, it has a monthly fee. In this case, it's $12.95 and there is also an annual software licensing fee of $79. Additional accessories are available to rent for a monthly fee, including a printer for $14.95 or a combination printer and cash drawer for $19.95/month. Presumably, these items could also be purchased separately. So far, the information (just released on May 16th, otherwise known as today) does not say anything about additional tablets / terminals, but NAB usually has a fee structure in place for that.
Plus, you need a wireless network to process over.
And the Good Stuff?
Well, the good stuff is plenty good. Amex cards process at 1.69%. Visa, MasterCard and Discover process at 1.69% for basic cards, while Rewards, Business and Corporate cards process at 2.69% and key-entered transactions are all at 3.69% plus $0.19. For some merchants, it will be a bonus that all transactions completed during normal business days prior to 5 PM Eastern will be deposited the next business morning, and any transactions after that will still be deposited within the industry standard 2 business day period. And, of course, there is the free placement of a tablet...
Interested? Email me at jep AT workmail.com