Internet Credit Card Processing for Your Business
As a business, accepting credit cards from your customers can make the difference between entrepreneurial success and failure. Credit cards both increase impulse buys and the average transaction amount. However, as with anything, there are drawbacks. With credit card processing – and even processing credit cards through the Internet, specifically – there are certain fees and rules that apply, so it’s best to familiarize yourself with industry terminology.
The Internet credit card processing rate is the main fee you’ll be paying your processor for the processing and depositing of credit card sales. Banks will frequently couple fees with processors’ fees in a combined rate based upon a percentage of the sale plus an additional flat fee per transaction. While the interchange fee will remain the same, you can often negotiate lower processing fees based on your sales volume, your industry, and your credit history.
Let’s discuss some of the rates involved in Internet credit card processing:
A qualified rate is a percentage charged when you process a transaction using an approved processing solution when the customer has presented their card – typically the lowest rate you get, and often the one quoted to a merchant inquiring about rates.
A mid-qualified rate is the percentage that’s charged whenever a merchant accepts and processes a card that does not qualify for the lowest rate. Sometimes you can be charged a mid-qualified rate when you’ve manually keyed card information into a terminal instead of swiping it. This can vary depending on your Internet credit card processing contract.
A non-qualified rate is the percentage that’s charged whenever a merchant accepts and processes a card that does not qualify for any of the lower rates. This may happen when a card is manually keyed into a terminal versus being swiped, address verification isn’t performed, information is missing, or the authorization is not settled within the allotted time frame.
It’s important to remember that, regarding Internet credit card processing, these rates can change from contract to contract, and that when you sign on for any other package, be sure to examine the terms and conditions carefully.
The cardholder has two months from the statement to dispute a charge. When the cardholder files a complaint with the issuing bank, you will be charged a chargeback fee, whether you win or lose the ruling. It’s vital to offer good customer service with your Internet credit card processing, and have your return policy clearly displayed.
Call Vision Payment Solutions today to speak with a representative and get set up with the best possible credit processing package around!