Different Wholesale Clubs Services: A Comparison

Payment processing, mainly credit card processing, is one of the most confusing and complex services that businesses buy today. A new research paper by Optimized Payments Consulting, an Atlanta, based consulting firm recognized for assisting businesses reduce credit card processing costs through its payments expertise and proprietary software, compares the value offered by each of these clubs and highlights the strengths and weaknesses of purchasing merchant services from wholesale clubs.

The research paper helps merchants understand the value of buying credit card processing services from Wholesale Clubs such as BJs, Costco, and Sam's Club. Although the big seven merchant acquirers processed over 90% of the U.S. Visa and MasterCard credit and debit sales numbers in 2007, there are thousands of resellers and referral companies. Wholesale clubs like BJ's, Costco and Sam's provide good deal when you want to buy in bulk, but how competitive are they when you are looking to buy credit card processing services for your business?

With the fierce competition in payment processing, it is possible for merchants to get competitive rates for their credit card processing business. It is also very easy to get lost and taken in by all the marketing, teaser rates and complex rate structures. As The Wall Street Journal noted in an August 2007 article titled, "Charge It!” "Navigating the payment-card processing system can be an overwhelming and costly burden."

Furthermore, Owners of small enterprises can take advantage of this facility as it helps them save up cash as they buy their office equipment and furniture.

The most incredible thing what wholesale club has done is that they have simplified the process for all of their members. Moreover, Wholesale Clubs are aligned with some of the largest processors in the U.S., so surely merchants will get competitive & inexpensive services...

So how do these clubs stack up when it comes to price and overall value? That's a complex question that Optimized Payments has tried to answer through its research and analysis.

"Each of the Wholesale Clubs has certain advantages but, collectively, they also have significant shortcomings because of their one-size-fits-all programs. However, some few merchants with specific profiles as noted in the research paper could benefit from the programs packaged by these organizations," explains Optimized Payments Consulting founder, Anand Goel.

It is really difficult to compare which wholesaler is good & competitive & is not as clear-cut as one might expect. BJ's and Costco is offering most competitive rates than Sam’s which is also at par. All Wholesale Card Clubs offer reasonable levels of service backed by the largest processors in the industry. But, these offerings are not a good deal for medium to large-sized merchants.

"Good due diligence can save merchants tens to hundreds of thousands of dollars per year on credit card processing services. And that's crucial in this economic environment," notes Goel. People need to remain on their guard against criminals. The retail sector as a whole has a role to play in educating the public along those lines. Other common types of equipment include hand held card scanners and pin pads for debit transactions.

        Setup a credit card processing merchant accounts to accept credit cards today!