Credit Card Processing

[DBL Surety]

It all depends on your monthly transaction volume and your gross margin (commission). Remember that you're paying a rip to the CC processor on the total premium volume as opposed to your commission amount. In other words, if your average gross margin is 10 points and your CC processor charges 2.9 points (i.e. paypal) you have effectively reduced your gross margin by 29% on those accounts paid with a CC.

Also, don't forget about the CC processor's reputation and brand awareness in terms of selection factors.

[beyert1]

You may want to look at SQUARE - http://www.cardpaymentoptions.com/credi ... re-review/ . It is no cost and reliable.

But I will tell you do not use NorthAmerican Bancard. Their fees change from month to month and they always have an explination and when I try and find it on the fee document I can't. I just canceled my service with them and I am not sure if I am going to do anymore business with credit cards since I don't really use them for any of my clients.

[policyspot]

We offer credit card processing for independent agents without having a merchant account. I also have a friend that can help you set up your own merchant account if that is the way that you would like to go. Our service passes the cost of the transaction off to the insured, whereas if you got square, or similar, you would be absorbing the costs. Check out our services and then let me know if you still have any questions about getting a merchant account. We also allow for a branded mobile app, so you can have your clients paying directly from their phones. This works great with non-standard auto too! https://www.thepolicyspot.com/index.php ... edit-cards

[texascarinsurance]

We have found that most customers get really turned off by having to pay credit card transaction fees, and they would rather walk down the street to another insurance provider instead of being charged extra for paying with a credit card. Our solution has been to accept a debit card for the initial payment and then subscribe people to an ach bank payment for recurring months. But, I did find an interesting article that actually shows you where to find the real wholesale costs that credit card processing companies pay. After scanning through it we learned how to gauge what is a reasonable price to pay for debit and credit card processing fees.

Just curious, what is the lowest rate anyone here has been able to negotiate?

[manny79]

Sorry, this will sound as a really stupid question but I am on the doors of opening my first insurance agency and was just passing by the forum and was (honestly) curious by the tread. Why an insurance agency will need a cc processing system? Don’t we take the payment directly with the Insurance companies? And If some doesn’t use credit cards how could we link that particular policy from our client to the payment done...let’s say with SQUARE on the Insurance Company website.

[ABMCalifornia]

I hear Square is a really easy merchant to use. You can use it online, over the phone, and even on tablets. The amount they charge varies depending on how many payments you process through them.