Q: What is a 1% rate?

A: A trick. There is no such thing as 1% on all your cards.

Q: What is markup?

A: It’s the portion over hard cost.  Just like in any retail setting you have your wholesale cost, what you bought the product for and your markup, the portion of the sale where you make a profit.

Q: Why is leasing of equipment so prevalent?

A: It pays the seller of the lease VERY well.  As soon as the non-cancellable lease is signed by the merchant,  65% to 75% of the total lease amount is paid to the [ISO] independent sales organization.  This amount is split sometimes as much as 50% with the sales agent.  There is clear evidence showing that often a deduction is made from the sale’s agent commission for the cost of the equipment:  $500 to 800.  Actually there is $0 cost to the ISO for the same equipment.