Did you know that Costco doesn’t even provide credit card processing? What the company does it to outsource merchant services to a company called Elavon. If you want to learn more about Costco payment processing and know where you can find a reliable merchant account to grow your business, just read below.
Costco Payment Processing: Time to Turn to FAM
If you want to sign up for Costco credit card processing being sure you’re going to work with a direct processor, that’s not the case. In fact, Costco Merchant Services is a reseller of Elavon. The latter is among the biggest processors in the US.
Some people think that signing through Costco will help them avoid higher costs because it’s a discount warehouse known for its favorable pricing. However, the reality is just the contrary.
The problem associated with merchant account tiers is that how these companies package and present their tiers isn’t brought under regulation. So, you can come across different figures depending on the processor. When it comes to Costco payment transactions, the types of transactions being routed to the qualified tier aren’t represented transparently.
That’s where a reputable payment processor and alternative online lender like First American Merchant steps in. FAM has an A+ rating with the BBB and specializes in the high risk space. First American Merchant is dedicated to offering you direct quality customer service and the best possible rates.
The “best rates” aren’t just words for FAM: First American Merchant provides the lowest possible rates in the industry. Be sure to enjoy the highest level of security, as well as easy and hassle free application. So, if you’re interested in Costco payment processing, just take the time to compare it with FAM payment processing and only then make your choice.
Problems With Costco Payment Transactions
Overall, some of the main issues concerning Costco payment transactions are the following:
- Costco’s merchant accounts are based on tiered pricing. This scheme allows the processor (Elavon) to group interchange fees into several tiers known as qualified, mid-qualified, and non-qualified. As a result, it becomes possible to mask the true cost of processing while enjoying more profits.
- Apart from its tiered pricing, Costco Merchant Services requires merchants to pay a monthly minimum charge when total transaction fees and per-item charges make up less than $20 per month. The amount of the charge still remains unclear. In addition, merchants who aren’t Costco members should pay a $25 application fee and $4.95 monthly statement fee.
- If you’re a high risk business, be aware Costco and Elavon don’t provide services for your type of business.
- Chances are you could get locked into a 3-year contract with a high merchant account cancellation fee. This means you’ve two ways out: stay and overpay for processing, or leave paying the high cancellation fee.
So, before making your choice concerning payment processors, just take the time to shop around so to find a true professional in the field. This is how you can sidestep obstacles and enjoy real success.