Front Office

Is Your Sports League Getting The Best Credit Card Transaction Rates?

By LeagueApps
September 10, 2012
4 min

LeagueApps offers and integrates with multiple payment solution options to fit the needs of all types of sports organizations. This LeagueApps blog post breaks down those options in more detail including the recent addition of the Stripe platform.

Another option is to use the payment gateway with their own merchant account. This solution may be ideal for an organization that processes large transaction volume and is looking to get the most competitive rates.

LeagueApps has teamed up with an expert to help navigate the complex world of online payment solutions. Meet our friend and partner John Stevenson. We originally connected with John through a LeagueApps partner that worked with him. Since then, John has helped numerous LeagueApps partners secure the right payment solution for their organization and then he ensured they properly integrate within the LeagueApps platform.

John is an expert in the credit card processing world. He switched over from the mortgage insurance business because he wanted to create ongoing relationships with his clients where he could support their business finance needs for years, instead of a one-time mortgage transaction. John has lived all over the country and currently resides in Madison, Indiana. John enjoys what he is able to offer business people who are starting or growing their companies and takes pride in the service he provides to small businesses.

John provided a few answers to some of the most popular questions we hear about payment solutions.

What is the difference between a merchant account and a payment gateway? Does an organization need both?
An organization needs both accounts to complete online transactions. The payment gateway is essentially an electronic routing center that transfers the cardholder information to the credit card processor (where you have your merchant account). The processor then moves the money from your customer’s bank and deposits it to your checking account. We typically work with PowerPay for merchant accounts and for payment gateways for most LeagueApps customers.

What is the typical process to secure a merchant account and payment gateway? How long does it take?
An online application that can be completed in minutes is all that’s needed to apply for a merchant account. Once an application is submitted, we normally get approval back from underwriting within 48 business hours. The payment gateway is automatically linked to the PowerPay merchant account, so all that a user needs to do is set up a gateway username and password.

How can an organization obtain the “best rates”?
The best rates are found in a cost-plus pricing model. I always recommend it whenever possible since it saves an organization the most money. The most important factor is to find a time-tested, trusted partner to be your advocate who has a track record of exceptional support and great prices. In working with LeagueApps partners, we have found numerous ways to lower the processing costs for most partners.

What are the best rates?
All credit card processors have the same cost that is set by Visa and MasterCard. With cost plus pricing, (as opposed to flat-rate pricing) you pay what the processor pays, plus a small fixed markup. It is the most transparent and cost effective way to process — there are no hidden fees or extra charges to surprise you. Some LeagueApps partners experience processing rates of fewer than 2%. The alternative option is flat-rate pricing but that typically doesn’t offer as good of rates.

Payment gateways, merchant accounts and everything else — why is it so confusing?
Just like insurance or the mechanics of how your car engine works, credit card processing can be confusing: there are many moving parts (shopping carts, secure check-out pages, payment gateways and merchant accounts) that are designed to work together to move money from your customer’s card to your bank account. Add banking regulations and government oversight and the entire modern electronic payment system is a complex enterprise. In many ways that’s good: If it were too simple it would be more vulnerable and fewer people would willing to spend money online and that’s not good for your business!

It’s my job to help simplify this complex, confusing world and walk you through each step of the process so you don’t have to worry about it. You can concentrate on bringing folks together to play sports and socialize, and League Apps and I will make sure that registrations and payments happen seamlessly.

I’m Interested. How can I get started?
If you have an existing merchant account and payment gateway, I’ll be happy to do a free analysis and evaluate your current terms to see if you have a good deal, or if we can save you money. Please complete this form on LeagueApps if you are interested.

If you’re just starting your business, or switching from PayPal, you can rest assured that our $0.00 set up fee, $0.00 early termination fee, $0.00 monthly minimum program along with our cost-plus pricing will give you some of the best pricing available anywhere.

Any tips or guidance for first time online merchants?
Yes — rely on the partner support system that is in place specifically for you. Don’t be afraid to ask questions and get support. Our partners (PowerPay and are available with great support staff who are friendly, knowledgeable and well prepared to help you start accepting cards in your new venture. In addition, I will always remain a point of contact for you and am available to answer questions and help you navigate this new and interesting world! Fill out this form to get in contact with me.

Complete this form and LeagueApps will put you in touch with John.