Credit card processing appears like it ought to be so basic. You ring up a sale, your customer swipes or dips a credit card into the card reader and cash is magically transferred from the card to your business bank account. However, the magical part of the process where the cash is transferred from your customer to you is a to a great degree complex process comprising data routing, verifications and authorizations, involving multiple players, including card networks, banks and credit card processing companies. Along the way, there are a handful of various credit card processing fees that you could experience.
Each player serves an important off camera part in transferring the cash for each sale, and consequently charges a small percentage of each transaction that it facilitates. Because of the complexity of the process and the quantity of players that touch each transaction, credit card processing can be expensive.
In order to get the most ideal pricing for your credit card processing administration, you have to learn about the diverse pricing models processors utilize and how they work, so you can figure out which one can save your business the most cash. You also should know about the various fees that credit card processing companies every now and again charge and which fees you ought to never have to pay. Understanding this information causes you evaluate this essential administration as a savvy consumer, and gives you the learning you have to negotiate lower rates and less fees.
In this guide, we examine the most widely recognized rates and fees for credit card processing, including:
Processing Rates: Find out what sort of pricing works best for small businesses like yours. We break down the diverse kinds of rates offered by most credit card processing companies and give our recommendations.
Standard Fees: Learn about the basic fees that most major processors charge.
Fees to Avoid: Discover which fees you shouldn’t pay. We list sneaky fees that the best processors don’t charge.
Lease or Buy: Find out how fees make leasing more expensive than purchasing your equipment.
Negotiation Tips: Get pointers on which fees may be negotiable.
When you contract with a credit card processing company, you typically pay two distinct sets of costs: rates and fees. Rates are the costs that you pay for each transaction. Fees are the costs that you pay the processor to maintain your account.