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What It Is
The 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
Here is an update: As of August 2013, the $10,000 monthly processing requirement is being waved. It still is not as cost effective for low volume merchants as the Pay As You Go plan due to the monthly and annual fees required for this plan, but for merchants processing over $5,000 monthly who need a tablet, this might be the ticket!
ReplyDeleteAs of the 11th of March, 2014, this program is being replaced by the Pay Anywhere tablet placement program. It is actually a much better deal for merchants who are doing over $5,000 in card sales each month. I will be preparing an update on the blog shortly.
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