If you want to accept credit cards, you need to pay processing fees. Knowing all the processing and transaction fees that a merchant can expect is the first step to shopping for a good merchant service. You do not want to sign up for an account blindly as different processors charge very different fees for all transactions. The following are some of the fees to expect.
Transaction fees are the ones that are assessed for each and every card transaction.
They may differ if you swipe a card that is present during the transaction, accept one over the Internet or dial a card number in from a telephone system. They are the biggest fee you will pay as a merchant.
Flat fees are also likely to show up on your merchant statement. Each processor may charge their own but some cannot be helped if they are charged for access to card brand services or networks. These occur once a month. Some flat fees only appear once per charge. For instance, a non-qualified card may be charged and that may result in a non-qualified fee. How you will be Finding The Best Merchant Accounts For CBD Oil .
One fee you should expect is called the discount rate.
This is not a sale price, this is a fee that combines the interchange fees with the assessment fees. Credit card networks decide the first type of fee. These are not negotiable.
Interchange fees are charged based on the network. If you bill a Visa or MasterCard, you will pay a different interchange rate than on an American Express or Discover card. The type of card you use also affects the fees. A debit card is billed differently from a credit card. Business credit cards are the most expensive to bill and rewards credit cards follow behind them.
Another type of charge to watch for is an MCC or Merchant Category Code. This is the way you categorize your business for each sale made. This has an effect on the rate of interchange you pay on each transaction. This sum is usually about a tenth of a percent.
The type of business you run impacts the types of MCCs you pay. Certain types of businesses will pay less but that does not mean you should lie to your merchant service about the type of business you run to pay less. Manipulating the transaction information is fraudulent.
In fact, any questionable charge will be investigated by the best processors. So, if your processor calls before allowing a charge to go through to your bank be sure to appreciate this. They are looking out for you and for your customers.
A significant charge may be one that raises a red flag for them. They will call or contact you to make sure the charge was intentional. You pay for breach coverage in a good merchant plan. This is a form of insurance to help make sure the processor can continue to accept legitimate charges and avoid fraudulent ones. Finally, do not forget the charge to rent equipment to swipe cards as yet another transactional charge to expect as a merchant. Click on online credit card processing solutions .