When it comes to e-commerce, MIC BankCard will continue to support Authorize.Net, the payment gateway it provides to Tsys customers. But new enrollees and dealers who switch to First Data can choose to use the virtual terminals instead.
Authorize.Net charges $5 per month and an extra nickel per transaction (for a total of 25 cents). First Data charges $25 per month but no transaction fee. So a dealer breaks even after just 80 transactions.
The First Data gateway can be integrated into any dealership website, regardless of the website provider (PowerSports Network, 50 Below, ARI, etc.). “Just call us,” Tanzy says. “Via e-mail we set up an FTP site with an integration kit. Your Web developer then grabs that and puts it in.”
The gateway consists of a generic shopping cart and “pay page” that are secured. For a fee, dealers can customize the page with their logo and contact information. (Continued on page 2.)
Further Details, How to Switch
Here are the nuts and bolts of the BankCard program:
- Transactions are deposited into a dealer’s bank within two business days.
- There is no contract and no daily settlement fee, batch fee, annual fee or terminal programming fee.
- Dealers are not required to keep an offsetting depository account, and they can switch back to their old processor at any time, with no termination fee.
- The introductory rate will not be increased at a later date (except during Visa/Mastercard’s normal increase in April).
- Discount rates come in 87 “buckets” for which dealers qualify, averaging about 1.23 percent.
- The per-transaction fee is 20 cents
- Debits with First Data have no discount rates, only a flat per-transaction fee of 45 cents.
- Check cards, gift cards, private-label cards, and “foreign cards” like AmEx and Discover have a flat fee of 25 cents.
- Although MIC BankCard has processed OEM revolving cards in the past, it’s not currently handling any (see the bonus coverage below this article for more details).
- A monthly statement fee is negotiable and will never exceed $10.
Generic gift cards cost 78 cents apiece. Customized ones cost a dollar. First Data also offers its own loyalty rewards cards. Customers earn points redeemable for store credit. They can log on to their own home page to see how many rewards points they’ve earned, just as they can check the balance on their gift cards.
There’s no cost to sign up with MIC BankCard or to switch processing. “The greatest thing about that is that there’s one set of paperwork,” Tanzy says. “It’s like four pages, and that can switch their check processing, their gift cards (if they choose to do so) and their merchant account. The paperwork is more streamlined because it’s just one company.”
Whereas switching to Tsys used to take three to four weeks, switching now takes two to three. “And that’s the entire process, from the day you call us, until the day you’re actually switched in processing,” Tanzy says. During the transition, dealers are never without processing. There’s no downtime. (Continued)