Credit Card Payment Processing Fees: An Orientation

Understanding your merchant account provider’s credit card payment processing fees can be a bit intimidating – looking at your bill and wondering just how they could have stacked up such a list of fees you didn’t even think you would be charged. Understandably, it’s crucial to be able to take credit cards – and debit cards, as well – if you want to stay in business in today’s market, and to do so requires credit card payment processing. But there are many less than reputable companies out there who provide credit card payment processing but do not provide adequate customer service. Luckily, Vision Payment Solutions is working to change that.

All banks and merchant providers require transaction fees from you for credit card payment processing. Fundamentally, these fees are chunked into three basic categories: a discount rate, a transaction fee, and monthly credit card payment processing fees.

For the bank’s purposes, a transaction is usually considered as any communication between you and the processing network. A credit transaction is treated the same as a regular transaction. Settling a batch is typically labeled a transaction too; it involves communication with the network, so all kinds of actions in credit card payment processing can have fees attached.

A discount rate is the percentage of the total transaction amount that your bank typically will deduct before transferring funds into your account. They can be up to around 5%, depending on the business, industry, and other factors. A higher rate may be charged on individual transactions if the transaction doesn’t conform to certain qualifications, as described by your bank or merchant provider, so keep your eyes sharp when searching for credit card payment processing companies.

Transaction fees are typically a flat amount that you pay for each transaction, and can range from 30 cents to 50 cents per transaction – a major factor to consider, no matter the type of credit card payment processing you’re looking for.

Monthly fees for credit card payment processing are also charged for other account-related services, including customer service, your monthly statement, network access fees, and minimum monthly fees.

All the fees and charges related to credit card payment processing are mandated for full disclosure to you prior to a merchant agreement between you and your bank or merchant provider, so take your time with shopping for credit card payment processing.