Credit Card Processing Fees

Credit Card Processing Fees

Data from the U.S. Census Bureau estimates that in 2012 there were over 1.16 billion credit cards in use in the United States. For business owners, it is more important than ever to be able to accept credit cards, or face the possibility of missing out on a valuable source of income. However, this convenience can come with a heavy price if you’re not careful. Credit card processing fees can be confusing and even overwhelming if not properly assessed and understood.

If you are a business owner looking for a merchant account provider, it is important to understand the fees that you may face. These fees add up every year because far too often the details of the charges are buried deep in the fine print. This will outline some of the fees that you should be wary of in order to protect your business from unnecessary expenses.

Set-Up and Initial Fees

Make sure to know if you have to pay to get started. Whenever an account is opened, many companies charge a onetime set-up fee. The price for this varies with each provider, with some charging a low price with deceptive promotions that require a contract.

Monthly Statement Fees

Some companies charge a fee every month for the statements mailed or sent by e-mail to you, the merchant. Although many companies classify this as a credit card processing fee, this fee actually has little to do with the handling of the credit card payments themselves. This is charged by the merchant account provider for expenses related to preparing and sending you the statement.

Required Monthly Minimums

Even if you try to avoid fees, you may still have to pay. For example, if a business only paid $10 in extra charges, and their monthly minimum is $25, they would have to pay a fee of $15 to make up the difference. This charge can occur any month the minimum threshold is not met. Small business owners should be especially aware of these minimums, as they tend to adversely affect them more because they generally have fewer monthly transactions than larger companies.

Credit Card Processing Fees and Sending Batches

A batch is essentially a collection of information about credit card transactions, such as who swiped their cards at the location over the course of a day. With some companies, every time this information is sent to the bank for payment, a batch header fee occurs.
This credit card processing fee is often charged daily, and can be more expensive if the batch is not submitted every 24 hours.

Customer Service Fee

Have a question about your new credit card reader? Be careful. Some companies charge you to call them for help. Bigger problems can mean a bigger bill at the end of the month.

Retrieval Fees

Retrieval fees are credit card processing fees that come from the retrieval of information for whenever a charge is disputed by a bank. It is important to watch out for these fees because the money from the sale is already at risk of being denied, and an extra charge only makes the situation worse.

Transaction Fees

The most common of the credit card processing fees are transaction fees, these are assessed whenever a customer swipes their card at your place of business. Usually expressed as a straight-forward percentage, these can sometimes vary in unexpected ways, such as what month the transaction took place in. Beware of pricing tiers as well, as some companies charge different transaction fees based on sale amounts and other factors that can be confusing.

Type of Industry

Be sure to consider what kinds of payments are best for your industry. For example, if you own a website, how will you be able to accept payments via virtual terminal? If you own a restaurant, will you have to pay extra fees for a device that will allow you to take orders over the phone? These can also end up being costly, as certain machines can carry extra charges for the features you need. Be sure you analyze all possibilities.

At Transparent, we offer the solutions that are perfect for small and medium businesses. Our Transaction Fees are only $0.09 to $0.19, that’s nearly 50% less than some of our competitors. Plus, one of the best things about Transparent are the fees that we don’t charge. You will never be charged for retrieval fees, batch header fees, or many of the other credit card processing fees you’ll find at other companies. Try Transparent today, and you will see it is the clear choice. Call us today at 1-855-41-TRY-US.