Why is Intuit credit card processing traditionally so expensive?
Intuit benefits from using a three-tiered pricing structure for most of its customers. Essentially, this lumps all 350+ types of credit cards into just three categories, each of which are assigned a single price. The price isn’t exactly an average, as it’s always padded with a markup, so a processor employing that fee structure stands to profit nicely from your business. But, it’s simple, so it seems better than the alternative, a bunch of numbers and cryptic card descriptors. (You thought NQUAL was bad to look at? Try looking at a detailed statement.) The Intuit credit card processing tiers look like this:
QUAL – Qualified transactions
This category is for debit cards. Regulated debit cards are always very cheap for a processor to accept, just 0.05%. That means if you accept a $10,000 transaction, it costs a processor just $5. However, with Intuit credit card processing, you’re charged around 1.5%–sometimes as high as 1.69%–for those transactions. For the same $10,000 transaction on a debit card, Intuit would charge $169. At worst, that’s a 3280% percent price increase.
MQUAL – Mid-Qualified transactions
You’ll find consumer-type rewards cards here. These are more expensive than debit cards, in the neighborhood of 1%-1.5%. For a $10,000 transaction at 1.5%, your processor would charge you $150 plus a nominal markup. However, with Intuit credit card processing, those cards cost about 2.5%, sometimes as high as 2.69%. That means for the same $10,000 transaction, Intuit would charge $269. At worst, that’s a 79% increase.
NQUAL – Non-Qualified transactions
This slot is reserved for the most expensive credit cards: business-type, corporate-type, and government-type purchasing cards. They usually cost around 1.9%-2.6% to accept, so, for a $10,000 transaction, you might pay $260. With Intuit credit card processing, you’re charged a premium for these cards, anywhere from 3.4-3.96%. Worst case scenario: you pay $396; that’s a 52% price increase.
With pricing like that, it’s easy to see why so many search for an alternative to Intuit credit card processing. For reference, the names of the tiers don’t mean much–they’re just made-up categories. (It seems appropriate to mention at this point that Intuit did not create the three-tiered pricing structure; they’re just following a very successful format proven over the years.)
Look for alternatives to Intuit credit card processing:
Whether a current Intuit Payment Solutions customer or a business owner planning to utilize QuickBooks credit card processing, you need look no further for an Intuit merchant services alternative. Lesser known companies such as eBizCharge can qualify your credit card transactions at optimized interchange levels, which means you get the best base prices for all types of credit cards–especially business-type cards and government spending cards–all the time, automatically. With this in mind, you can rest assured you get the lowest prices and the most convenient solution available.