vs.
Just got a rate increase from Wells Fargo Bank where they want to raise my rates to 3% for US transactions and 6% for outside the US… and there are other fees that could add another 1% on nickle and dime stuff.
So I went to Bank of America and they are quoting me 2.13% on US and 2.47% on foreign and no other percentage charges. So I’m wondering – what’s up with that? Wells is almost twice the BofA rate.
I’ve been with Wells for a decade. My account is golden. No charge backs. Extremely low risk. Yet Wells is screwing me. However, not sure I can trust Bank of America. Am I missing something?
Let’s put it this way. Is there a bank anywhere that is NOT out to screw us? Between the looming tax increases, unemployment, ever shrinking purchasing power to those of us left with jobs, increasing interest rates for loans, increasing fees and number of fees, etc, coming forced healt insurance premiums, and more, where in the heck does ANYONE think all this money is coming from? We cannot generate this kind of nosh. Cut up your cards and stay away from credit. Please!
I am assuming you were signed up by your wells fargo rep since you bank there. The wells fargo rep signed you up with a back end processor(aka acquiring bank) which provides the gateway to visa/mastercard/discover.
The bank/company you choose as a back end processor is negotiable. You have wells, want B of A, but may get a better deal from Costco, Mercury Payment Systems (a bank end processor), or even a credit union (which will sub contract just like wells did)
The visa/mc/disc network handles everything and charges “interchange” for its services. The back end processor adds there markup and then your sales rep (here Wells) adds there markup.
To get the best rate and if you have the know how to do most of your setup and tech support yourself you can bypass one level and open an account with a back end processor so no extra person is making residuals off you. Seeing as you are internet only and I am a brick and mortar store our rates are significantly different so I cant comment to what a fair range of rates is. If they are quoting 3% and 6% BEFORE interchange then your nominal rate is gonna be 4+% to 8+% out of pocket after you finish paying for everyone’s airline miles and etc. My assumption is you can do lot better. You may even want to insist on a per trxn fee with a low % … but that is a decision based on average ticket.
I think a good next step is contacting a back end processor like First Data or Mercury Payment Systems and get a quote directly from them. Just realizing you dont need wells or B of A is the next step really. You have all the power in this relationship because there are a ton of back end processors who would love to collect residuals off your processing.
I’m using authorize.net as the back end and BofA says they are compatible with that.
ya… what #4 said… i believe, but don’t quote me on this, the biggest most stable bank in the world is… the post office of japan
Very informative thread!
>> Mr Ed said, on March 1st, 2010 at 3:45 pm
>> Hummm… I just shopped around for a new home mortgage and Wells Fargo was lowest.
When I signed up for Wells Fargo, it seemed like a pretty fair deal.
However, it was the HIDDEN charges that made me leave.
It’s been a few years but I think it was a fee to go _inside_ the bank that finally make me give up.
I could use the Wells Fargo ATM for free but if I did the same transaction using a human teller, they dinged me.
To be fair, it was more than ten years ago and maybe Wells Fargo’s corporate culture changed so that they now no longer see their customers as cash cows to milk. (not likely, but still…)
>> faustus said, on March 1st, 2010 at 7:12 pm
>> ya… what #4 said… i believe, but don’t quote me on this, the biggest most stable bank in the world is… the post office of japan
I think I heard that when I lived in Japan. I even had a savings account at the Post Office there, myself.
It was a simple account with no bells or whistles. I can’t remember if it had ATMs — I just did my business during regular hours.
That’s all I need here in the US too (but with ATMs. I’m spoiled about that.)
I think John D. is right. Look around for a small credit union or small bank and see what they offer. Check them out with the better business bureau. If you can find a good one these people are less likely to bleep you over because your business actually means something to them.
It’s not what your missing, it’s what Wells Fargo believes they are missing. They are in a bind and who do you think they are going to squeeze? Why their loyal well behaved meek and mild customers. Not only are interest savings at an all time low, but concurrently Wells Fargo buys money cheaper than ever, like bofa and the rest of the biggies. They will lend it out once the rates go up later this year, if at all. They are not paying you any bigger interest, but they are investing in anything else inside or outside the country that turns them buck.
so many people have no clue about merchant rates or they just like to rant about banks when….or both
I think most processors use authorize dot net as per my experience. All you will have to do is change the merchant account info in whatever interface your program has, my experience is with pc charge/verifone, xcharge, and you will be processing with a new processor. If you own your own software you can switch providers, then get someone to underbid, then switch, and so on. Starting w Costco, because their buying power and passing on of savings, will usually get you the best rate, imho. fyi if u do >$5000 in Amex per year there is an awesomely competitive plan for that..only like $7/month w 0%.
I used BOA credit card for years. Never much left a balance. But when I did they immediately raised my rates. We would complain and they would lower them again. Last year they raised our rates when the interest rates were the lowest on record and we had no balance. So we dumped them and went with a credit union card. Not sure about Wells Fargo but certain it would be the same. If these unscrupulous credit card companies don’t want to do business with honest good customers, DON’T GIVE IT TO THEM!
For business banking, try BBVA Compass Bank if they have branches in your area.
Do not deal with Bank of America in any way.
For your home account, join a credit union.
‘Nuff said.
1% won’t last long and then it goes up a lot.
I’m with BoFA and I wouldn’t suggest you trusting them. Currently looking to transfer to credit union. BoFA is shady, almsot every branch…sigh.
You might try Sam’s Club too. They work through First Data and have a relationship with Wells for next day deposits.
Of course your rate depends on your situation, There are ~38 pages of rates Visa & Mastercard uses.
My advice, shop around. The telephone is your friend. Start with Credit Unions and Community Banks. They are most likely to care about their customers. State banks would be next.
Federal banks are the least desirable as they care far more about financing a multi-billion dollar takeover than a business doing less than $100K.
If you use banks (rather than your local, friendly, and trustworthy credit union) and you actually end up paying them interest on your card balances – rather than paying them off each month – well …WTF do you expect?
From what I’m reading here there are people who are happy with both BofA and Wells and people who have been screwed by BofA and Wells.
My conclusion is that most people are happy with their bank till they get screwed. Most people have yet to get screwed by their bank but all these banks are shady. I have no illusions that BofA would screw me as well.
As to credit unions – I’m going to look into that. I’m in Gilroy – San Mateo County – 25 miles south of San Jose. Does anyone have a credit union they can recommend?
Also – Wells likes to charge me $5 to deposit a Canadian check. Does BofA do that?
Costco rates:
Here are the 4 internet rates
Internet):
1.99%+.27 per transaction? QUALIFIED: Regular, Check Cards, and Rewards cards with (Visa MasterCard logo)Visa MasterCard & DISCOVER.
2.96%+.32 per transaction? COMMERCIAL QUALIFIED: Corporate Visa, MasterCard, & DISCOVER
3.80%+.32 per transaction? NON QUALIFIED: International Visa, MasterCard, & DISCOVER
American Express 3.50 % Qualified