Finding Low Costs for Credit Card Processing

Credit card sales are becoming the primary exchange of money for businesses of all shapes and sizes. Between online purchases, frequent flier miles on credit cards, and the burden of carrying cash, consumers are turning to cashless transactions as their primary means of buying goods and services. Yet, almost all these consumers are blissfully unaware of the costs of credit card processing on the business. That's why it's your job to ensure that you are not paying too much for your merchant account transactions.

Credit Card Processing Costs

When your business first makes the move to start accepting credit card transactions, there are quite a bit of upfront costs. You have to purchase and install the correct software, buy the appropriate equipment or online sales platform, and make sure that you have the right training to process the transactions on the new equipment. On top of that, you are expected to pay a fee for every transaction that goes through - usually to two different entities (the merchant account company and the credit card companies). The end result is hundreds of dollars every month going out so you can simply get paid for services rendered or goods delivered.

How Costs Can Vary

Although it may seem cut-and-dry, there is actually quite a bit of variance in what you pay for credit card processing. While the amount of money paid out to the credit card companies remains static, the merchant account provider you choose controls how much you ultimately pay per transaction. In addition to varying costs for the upfront equipment, many merchant account providers supply different discounted rates that may or may not disclose exactly what is going to the credit card companies and what is going to their own pockets.

The size of your company plays a role in determining cost, as well. Most of the time, companies with a large volume of transactions can negotiate a lower fee schedule as long as they meet a minimum required amount of credit card sales.

How to Find Low Costs

When you are shopping for a credit card processing company, make sure you compare percentages and fee schedules. You should always have the option of either leasing or purchasing your up-front equipment, and negotiation if your company does a large volume of business should also be something you are comfortable bringing up. At the end of the day, if your merchant account provider isn't willing to talk to you about their charges and why, you should look elsewhere. After all, you're not just their customer - you're trusting them with your own.