VirtualBarter partnered with WorldPay to bring exchanges a variety of merchant account services for small businesses, making it easier to accept credit and debit card payments, face-to-face or on the go. Apparently some new barter exchanges have faced almost insurmountable hurdles in getting their merchant services set up so they can collect cash fees.
Bruce Kamm, founder and CEO says: “most banks will not provide a merchant account to barter exchanges, as bank underwriters do not understand the barter exchange business model. VirtualBarter collaborated with Worldpay underwriters to help them understand the barter exchange business model, so that barter exchanges are an approved business type at Worldpay.”
WorldPay, the third largest processor in the US, will review an exchange’s merchant account statement to determine the percentage they are actually paying for merchant services. Most exchanges will find that the 2.2% discount rate quoted by their bank is actually 6% after adding in all of the extra charges and unqualified fees.
Bruce continues: “After switching to WorldPay, we saved hundreds of dollars a month in just the first two months. An exchange can save 30% or more on merchant processing fees with a WorldPay account. For example, if your exchange processes just $10,000 a month, you can save $200 to $300 per month.”