Pub. 18 2019-2020 Issue 2

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 29 new jersey auto retailer W W W . N J C A R . O R G Contact us today for your FREE, no-obligation quote! 855.466.2842 | NJCAR@spragueenergy.com Our Energy Makes the Difference ® www.spragueenergy.com/NJCAR NJ CAR Preferred Energy Partner Power Solutions for NJ CAR Members • Customized power contracts to fit your business’ needs • Budget certainty and pricing flexibility • Dedicated account manager with industry expertise D.T. MURPHY & CO. 973 809-9311 • dan@dtmurphy.com • www.dtmurphy.com Dan Murphy n Murphy DAN MURPHY MATCHING BUYERSWITH SELLERS SINCE 1989 ~~~ SELLINGYOUR STORE? I HAVETHEWILLING, READY AND ABLE BUYERSYOU’RE LOOKING FOR CONFIDENTIALITY ASSURED. ~~~ WHAT’SYOUR STOREWORTH? MY COMPREHENSIVE BUSINESSVALUATION COMPLIESWITH IRS GUIDELINES FOR ESTATETAX PURPOSES & PARTNERSHIP LITIGATION . . . 973 809-9311 • dan@dtmurphy.com • www.dtmurphy.com Dan Murphy D.T. MURPHY & CO. 973 809-9311 • dan@dtmurphy.com • www.dtmurphy.com Dan Murphy .T. RP Y . 973 809-9311 • dan dtmurphy.com • www.dtmurphy.com Dan Murphy criteria. Ultimately, the tier a transaction falls into depends on the level of risk or reward associated with the card. The higher the risk or reward, the higher the cost. This plan isn’t necessarily bad because it’s simple to understand. However, because Tiered pricing is unregulated, some providers will take advantage of this setup and bury excessive markups. Another downside to this payment processing rate plan: trans- actions that don't meet their intended tier criteria can be down- graded to a more expensive tier without notice. For example, if you key-in a debit card but fail to check the Address Verification System, the transaction can downgrade to Non-Qualified, result- ing in a higher rate. The majority of businesses are on Tiered rate plans, so odds are you’re on one too. Though a Tiered rate plan is simple on the surface, it makes it very difficult to understand your provider's fees and determine which tier you should truly be paying. Given the lack of regulation, your provider has free range to shift transaction types into any tier. That means more expen- sive transactions for you, and a larger profit for your provider. Interchange-Plus Plans This is the most transparent credit card processing plan with clearly outlined fees and terms. IC-plus is a combination of the wholesale cost to run a transaction ( Interchange ) plus your provider’s markup. This payment processing rate plan itemizes costs by listing Interchange rates and markups separately. CREDIT CARD RATE  continued on page 30