Let’s try to visually grasp the concept of a basis point. To Read the Full Article, Please Login below or Register Free I’ll explain it several ways. Imagine 1 penny is 1 basis point. 100 pennies = 100 basis points. 100 pennies = 1 full point, or 1%. 1% = 100 basis points. So […]
Figuring basis points
Let’s try to visually grasp the concept of a basis point.
To Read the Full Article, Please Login below or Register Free
I’ll explain it several ways.
Imagine 1 penny is 1 basis point.
100 pennies = 100 basis points.
100 pennies = 1 full point, or 1%.
1% = 100 basis points.
So a basis point is 1/100th of 1%.
A basis point is 1 penny in a $1 roll of pennies.
Let’s process a $100 debit sale at 40 basis points over Interchange.
[This calculation does not consider the item fee, which is separate.]
Here is how the stack of pennies [basis points] are divided:
Interchange:
• The Visa MasterCard Association share 5 basis points (bips) with their
Member Banks.
• 11 bips (pennies) for V MC Assessments.
Then the Processor gets 40¢, of which 16¢ goes to the Agent (40% split).
The Merchant pays 56 basis points (so far) to process $100.
Team Leader
Justin Holm
Read previous post: Sending Christmas Cards to Merchants
Read next post: Stop Trying to Sell People – Merchant Services Sales Tip
.jpg "GetIsoAmp.com")
I recently read a great book called ” The Power in a Link” by David Gowel and I wanted to share some key points with you today on how you can use...
I’m sorry to say failure of expectations for tablet point of sales systems is one of my predictions which came true. A while back most people in the...
One question I get from a lot of agents in the credit card processing industry is, “How can I sell merchant services on a part time basis?” When I...
