Small businesses today need to accept multiple payment methods, including credit cards. However, working with accepting multiple payment methods can be extra costly.
Choosing a credit card processor requires a bit more precision in this case. You may have to give up your needs to make economic choices. Therefore, choosing a company that can meet your needs both economically and optionally will be the best choice for you.
When looking at the details in money transfers made with credit and debit cards, there are many processes in the background. In return, business owners may also experience financial difficulties as there are certain wages demanded.
So how can you follow the path to get more economical and faster results about credit card processing for small businesses with no monthly fee? If you want to be careful in this matter, you need to act according to the items in your contract with your credit card processing company.
What is the monthly fee for credit card transactions?
There are certain fees charged by credit card processors on a monthly basis under the name of the subscription. Business owners are obliged to pay a fixed fee each month in addition to the fee per transaction in exchange for the service they receive.
Credit card processors close the gap with the monthly additional fee included in the subscriptions, instead of getting a share of the services you sell.
What are the credit card transaction fees?
Credit card processing fees are charged according to certain factors. Transfer networks different from these transactions also charge fees.
There are three institutions that charge the transaction:
- Credit Card Company: Capital One, Bank of America, etc.
- Credit Card Network: Companies that partner with credit card companies (Visa, Mastercard, etc.).
- Payment Processor: The company that provides management of credit card transactions.
The average credit card transaction fees for credit card networks are as follows:
- American Express: %2,5 – %3,5
- Discover: %1,56 – %2,3
- Mastercard: %1,55 – %2,6
- Visa: %1,43 – %2,4
What are the monthly potential fees for small businesses?
All of the charges below refer to the contracts that should be included in your reseller account contract. If you are absolutely satisfied with the items in your contract, you should reach an agreement. This will also prevent you from being subject to some charges that may occur against your will.
As an example of this pricing; terminal leases, auto-renewal provisions, and termination fees are examples. All of these fees are calculated based on your trading volume.
- Monthly Fee: Credit card providers charge certain fees for the basic services they offer. Depending on the credit card provider, you may be exempt from these fees if you process a certain fee volume.
- Monthly Minimum Fee: This fee is a predetermined fee in your contract with your provider.
- Transaction Commitment Fee: Similar to the monthly minimum fee, this fee is determined in advance in your contract. If you cannot reach the volume of the fee you have committed, you may be asked for a transaction commitment fee.
But one of the things to be aware of is that not all providers charge these fees. In addition, fees differ among providers.
Also, you should not forget that the fees mentioned above depend on your sales volume.
What Are Other Credit Card Processing Fees?
Credit card transactions include different costs besides monthly subscription fees. The factors below may cause you to be charged extra.
- Setup: You may be charged for opening a new account.
- Installation: Processors may also charge an installation fee for the software and/or hardware.
- Hardware: You may need to buy a card reader.
- Cancellation: In case of termination of the contract, you may be able to pay additional fees.
- Statement fee: They can request an additional fee for the monthly statements.
- Terminal lease: If you want to rent a credit card terminal or other equipment, you may incur additional charges.
- IRS reporting: known as IRS editing fee or IRS filing fee.
- PCI compliance: A processor can request a PCI compliance fee. In this case, be sure to learn additional security and advantage details.
- Customer support: Some processors may charge extra for customer support.
- Chargebacks: In case of any chargeback, additional fees may be charged.
When dealing with a credit card processing company, always get information about the items we mentioned above. Membership models are often more transparent and give you a clearer picture on pricing.
As PCBancard, we help merchants to offset some or all of their merchant service fees without increasing the overall rates. Contact us below if you need help.