The Hidden Fees And Faults Of Credit Card Processing

by
in Blog
on Wednesday, 04 November 2015 22:44

Are you confused about exactly how much you’re paying your credit card processing company? Or do you simply avoid reading the statements you get because you don’t fully understand them?

Perhaps you’re just starting out in business and having a hard time deciding which company has the best merchant service account for you.

What you pay your credit card processing company involves more than just a base rate. There are hidden and confusing fees and concepts that you need to understand if you want to make sure you’re getting the best possible deal on the services you need.

Beyond The Base Rate

Merchants usually start their search for credit card processors by looking at rates. But beyond the quoted base rate are fees that can significantly impact your business and its bottom line. Plus, MasterCard and Visa have rate structures that vary from one kind of card to another and depending on how the processing of a transaction is handled. In most cases, there’s a higher fee when card numbers are manually entered.

For example, a business that usually swipes payment cards may assume that a quoted fee of perhaps 1.79 percent is accurate. But actually, many transactions may be processed at a 3.5 percent rate because of the card type and how the card is process.

Plus, there are transaction fees. It makes sense to look beyond introductory pricing and not get hung up on whether you’re charged a per-transaction fee. Sometimes, credit card processing with a per-transaction fee is the best deal. Watch closely for rate bundling that makes it look like you’re getting a better overall deal than you actually are.

Time Is Money Too

Few businesses take into consideration the timing of funding and fee collection, but time that you’re without your money is time that the credit card processor is earning interest on it and otherwise benefiting from it instead of you. Settlement of transactions and the depositing of funds to your bank could take a day or two -- or even longer. But there are companies that can offer you guaranteed 24-hour funding.

Of course, today’s companies must accept credit cards and other forms of non-cash payments from your customers. But you don’t have to accept the first deal a credit card processor offers. You can ask for a better deal -- or you can choose a different company.

It’s important to remember that it’s your business, and you deserve to have things your way as often as possible. That means you should look for a company with low rates and fees that match the way you do business and how you take payments.

For help in making a good match, contact us at PayVisors. As a sales consulting company, we’ll help you find the best credit card processor for your business. We have a team of business experts who want to help, and we’re just a quick message or phone call away.

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