Rates for Credit Card Processing - Small Business
For most business services, there is one monthly fee and when you get
your bill, you pay it. When it comes to credit card processing, you may
get one bill every month, but that bill is based on many different
fees. Credit card processing small business rates may be confusing, but
once you understand how they work, you’ll know how to get the best deal
for your business.
Where to Get the Best Small Business Rates
businesses usually have a low overhead and want to keep that overhead
low. That means finding the best possible rates for your credit card
payment processing needs. While a bank may seem like the easiest place
to turn to for a merchant account, banks often have high fees and can be
much harder for small businesses to apply to. In addition, you have to
think about the services you are getting for your money, and large banks
are used to dealing with a lot of customers and a lot of the large
business customers. For the best customer service and the best rates,
shop around. A smaller, third party merchant account provider may be
more attentive to your needs while also offering lower rates.
Typical Credit Card Processing Rates
are so many rates involved with opening and maintaining a merchant
account that it can be hard to decipher what you will truly be charged
to process a credit card payment. Here is a rundown of the fees you will
typically be charged when you get a merchant account for your business.
Some credit card processing
companies will charge you fees just to get started. This is sometimes
presented as a one-time set up fee, but it usually includes an
application fee. It’s important to keep in mind that not all merchant
account providers will charge you these initial fees, but that should
not be your only criteria for choosing a provider.
Per Transaction Fees
are two kinds of charges that happen every time a credit card
transaction occurs with your business. One is known as the discount rate
and the discount rate is actually a small percentage of every
transaction. This rate varies so you want to compare the rates of
various providers before choosing one. It’s also important to know that
there is a difference between the discount rate for terminal (or card
present) transactions and for card not present transactions. Make sure
you are looking at the right rate before making your decision (the card
present rate is usually lower). The other per transaction fee is called
the per transaction fee. This is normally charged in cents per every
credit card transaction your business has. Depending on the number of
transactions your business has, these charges can add up, so it is
important that you pay close attention to what these rates are.
are two monthly charges that you need to be aware of for credit card
processing. The first is simply the monthly maintenance charge, which is
what the merchant account provider will charge you every month for
maintaining your account. The other monthly charge is the monthly
minimum charge. This usually applies to your per transaction fees
(including the discount rate). If you end up having only a few credit
card payments to process in a month and the charges do not reach the
minimum set by your provider, you will have to pay that minimum amount.
Other Rates to Consider
it or not, there are even more fees that may be involved with a
merchant account for processing credit cards. If you need to swipe
credit cards to process them, you are going to need one or more
terminals. You can lease these terminals, buy them, or sometimes get
them included in your merchant account. Another fee you may not have
thought about is the cancellation fee. You may need to cancel your
account for any number of reasons and you don’t want to get stuck with a
fee for doing so. Make sure you read the fine print on your agreement
or ask the merchant account provider if they have a cancellation fee.
card processing does come with many fees, but if you understand what
those fees are and how they apply to your business, you’ll be able to
find the most affordable options.