Ideal Cost Reacts: The Motley Fool’s “Average Credit Card Processing Fees and Costs in 2019″
In this article, the editor discloses that the website has affiliate compensation from third-party advertisers, but those relationships don’t affect the content. We should note, however, that the link to the advertiser disclosure is at the very top right of the page, far away from the article. This disclosure is much harder to find than in a typical article. So, do we get the numbers, right? Let’s find out together.
Credit card usage:
“For the typical merchant, accepting credit card payments is a must. American consumers used credit cards in 23% of transactions in Oct. 2018, according to the Federal Reserve Bank of San Francisco. Merchants that don’t accept cards are at a big disadvantage.”
I think we can all agree that card acceptance is a necessity for most companies. The author cites statistics from a Federal Reserve report, without actually disclosing it. For reference, here is the referenced report:
It is correct that this Federal Reserve report studied nearly 3000 individuals over three consecutive days. We can argue whether or not three days of study is statistically significant, but we aren’t economists. Perhaps using the trend of a few months would help us learn more, but that isn’t the fault of the article. It is strange, however, that the article’s author cites this 23% statistic authoritatively. It is also fascinating that the author leaves that the same study cites debit card usage as 28% making combined card usage 51%. Typically, when one discussed the card processing industry, credit and debit cards are both included. We searched for a separate article on debit card rates from this author, but it doesn’t exist.
The article cites the interchange table:
Average Interchange Fees
1.15% + $0.05 to 2.40% + $0.10
1.15% + $0.05 to 2.50% + $0.10
1.40% + $0.05 to 2.40% + $0.10
1.43% + $0.10 to 3.15% + $0.10
The author stipulates that these aren’t the highest or lowest interchange fees for each network, with some of the outliers removed. First of all, we would define this table as a range of fees rather than an average of fees. How can one claim to have an average representation of fees when the fees encompass nearly the entire spectrum of charges? The charts also don’t have many of the debit card interchanges represented, which are typically lower than credit card interchanges. At the high end, this table doesn’t represent many of the corporate, government, or international cards.
While some of the remaining articles accurately describe card assessment fees, much of the writing promotes the website’s affiliate partners, many of whom are lesser-known processors. Much of this content reads like an advertorial for The Motley Fool’s affiliate partners rather than legitimate educational content.
We give this article a grade of D for general uselessness and misleading the reader about their true intentions.
Don’t Take on the Credit Card Processors by Yourself
Since 2009, IdealCost.com has helped hundreds of companies nationwide reduce their merchant account fees through identifying and fixing hidden profit, overcharges, fake fees, and billing errors. Clients have saved $300-$20,000 per month on their credit card processing fees without going through the hassle of changing their processing vendor, bank, or equipment. Switching credit card processors should be a last resort, only reserved for funding delays, poor customer service, or technical difficulties. Before you consider switching credit card processors, see if you qualify for IdealCost.com’s monthly savings program. Upload your most recent merchant statement for a free analysis. You’ll receive an estimate within 24 business hours.
If you are opening a new credit card processing account or switching credit card processors feel free to contact us for a free consultation. IdealCost.com can help secure the best terms and fees based on your specific needs.