Credit Card Processing Rates: Factors to Consider

In the merchant industry, sometimes it’s not as simple as comparing apples when you’re comparing credit card processing rates. There is a plethora of different card processing rates, fees, and billing structures, making it hard to understand how one service compares with another.

As a merchant, you can really benefit by researching the terms and conditions of the fee structure associated with your prospective merchant services. Make sure to ask the companies to forward you their terms and conditions, and understand them fully before taking the plunge:

  1. Cancellation Fees: If you don’t want to be locked into a contract, look for a company that allows you to cancel at anytime.
  2. Monthly Recurring Fees: Read the terms and conditions and look for specific sections addressing fees, incidental fees, and discounted credit card processing rates.
  3. Free Equipment Offers: Learn who owns equipment if you quit processing with your provider, and about a replacement cost if the equipment is damaged.

In addition to those factors, shop around if you want to get the best possible credit processing rates. There are many options, pricing plans, and incentives available for setting up a merchant account; find out which one suits you the best. Some don’t charge installation fees, while others will charge a one-time overall fee but give you other perks free.

To get the best card processing rates, you will need to do your homework well. Research thoroughly for the most affordable terms and conditions, but make sure that the company is reputable, as you don’t want to be stuck with poor customer service, especially when their service is costing you money!

Things to factor into the equation when estimating your card processing rates include your average number of transactions per month, your profit margin, your average order size, and how often you’ll be accepting credit cards from your customers. Obviously, high-volume retailers will want to focus on reducing their discount rates and per-transaction fees more so than their monthly fees and so on, where small businesses with a larger order size – but less transaction volume – can be more flexible with reducing credit processing rates.

Talk to other shoppers and compare the credit card processing rates they found with your own research. Accepting credit cards should be a profitable investment – and free of exorbitant credit card processing rates – if you choose the right service.