What is a Typical Credit Card Processing Fee


There is little doubt that cash will always be an acceptable form of payment by customers and businesses alike. But if you operate a cash-only business today, you’re missing out on advantages that your competitors may have over you. And if they have an advantage, they are probably drawing in more customers, which means money out of your pocket and into theirs.

Opening a merchant account for your business could level the playing field and even give you the upper hand. Today, a growing number of customers prefer to pay for purchases and services with credit or debit cards. If your business does not accept these methods of payment, those customers will go elsewhere. So open a merchant account that will provide you with the equipment, software, and expertise that will draw that lost business back through your doors.

Credit and debit card processing is probably the biggest immediate benefit you’ll experience when you open a merchant account. While there are some fees involved in accepting such payments, you can find an account that offers low rates and premium services to you and your customers.

Once you’re set up, you’ll be able to accept all major brands of credit cards, meaning you’ll be able to service a wider variety of customers. You’ll be able to provide real-time processing and immediate authorizations of customer payments, plus you’ll have access to those funds on the next business day.

Merchant accounts also provide security for your customers. After all, you’re accessing some pretty important information that you need to keep safe. When customers realize that they can shop with you with no information exposure, they’ll flock to your door.

If your business offers an online outlet, credit card acceptance is a must. Customers want to pay for merchandise and services at the same time that they order them. They don’t want to wait for the mail to deliver a check to your business, especially if they have an immediate need for your goods or services.

A merchant account can help you set up an online payment system that is efficient, accurate, and secure. An added benefit is that a merchant account can minimize your risk of becoming a victim of fraud with the help state of the art fraud detection tools.

Whether or not you have an online outlet, a merchant account can allow you to accept telephone orders easily. Because you accept credit cards through your merchant account, you can enter a customer’s credit or debit card information without having to see the card or the customer. This is a big time saver for many people, and they will turn to businesses that can provide them with the ability to order items—and pay for them— over the telephone.

Having a merchant account also allows you to capture more information on your customers’ purchasing habits in a secure way. And once you have access to such information, you can work with your merchant account provider to create a loyalty program for returning customers. Such programs can be tailored specifically to your business, giving you an edge over your competition that will keep your customers coming back to you.

A merchant account provider can also assist you in setting up a gift card program. Since gift cards are often used by new customers, this is a great way to build your clientele without expending any money. In fact, you’ll actually improve your cash flow by selling gift cards for your products or services because you’ll get the money before you have to provide any of your services. And people who receive gift cards often spend more than the face value of their cards, so you’ll receive even more money on the back end in many cases.

A merchant account can also benefit your business in ways that don’t involve customers. One of the biggest benefits to you is the ability to take advantage of cash advances. Perhaps you need to buy a new piece of equipment to keep your business running at top efficiency, but you can’t—or don’t want to—go through a bank for a conventional business loan.

A merchant account can offer you a simple alternative because the providers of these accounts often have links to sources of cash. You can often fill out an application quickly and receive your funds within 72 hours. Then, because your credit card payments go through the merchant account provider’s system, the provider can take your loan repayment straight from there.

There are generally no closing costs or application fees for this type of loan, the approval process is quick and painless, and the provider simply takes a small percentage of your credit card transactions as their payment. What could be a simpler way for you to get the cash you need for your business to continue operating smoothly?

A merchant account is a low-cost way to draw new customers, retain existing ones, improve your cash flow, and build your business. Study the benefits and you’re likely to wonder why you ever believed that a cash-only business was the only way to operate.