How to Get a Good Card Processing Company
A Even though there is some money to be paid upfront and ongoing card processing fees for doing so moving from a cash only business to one that accepts debit and credit cards could bolster the business sales multiple times. A study noted that firms that do not accept credit cards miss out on about seven thousand dollars in sales annually whereas another study done some years back noted that the number of credit card payments increased in popularity among young shoppers which is an indication that most businesses is adopting the use of credit and debit cards. Opting for a good credit card processing company is not as easy as it sounds and because it is a huge financial decision thus it is wise to compare the many merits and demerits of various companies before signing a contract.
The primary thing to note is how much the fees and other costs are but in most common cases credit card processing fees can reach 5% on everything the business earns from both the debit and credit card sales, but some companies might charge less than others for the same product and service level. There are various credit card processing fees such as interchange fees, monthly statement fees, application and setup fees, monthly minimum fees, monthly gateway access fee and early termination fee.
It is vital to state that interchange fees are fees that are charged for every transaction that the person processes and it is paid by the payment processing company to the bank that issued the card and the rate that person will pay for the transaction depends on several factors such as the type of card accepted (debit, credit or rewards card), the transaction type (whether it is done online, in store or by phone) and the size of each transaction. Bigger and fewer transactions have lower fees whereas in-store transactions will cost less interchange fees since the card is physically present thus there is a lower risk of fraud. It is good to state that monthly statement fees are fees that are charged by the credit card processing company on a monthly basis to cover the expense of mailing the business a statement. It is good to state that application and statement fees are charges that are charged for applying for the processing service, setting up the needed equipment to accept credit cards and these fees vary widely depending on the credit card processing company. The truth is that monthly minimum fees are the lowest amount of fees the processing company will charge to meet the minimum cost.