The Complete Guide to Credit Card Processing Fees for Small Business!

 

No matter the size of your business, accepting credit cards is increasingly becoming essential for your customers’ convenience and satisfaction. Knowing how to manage credit card processing fees is an important part of running a successful business.


Credit card processing fees vary depending on the type of transaction, the processor you use, and if there are any additional features, such as monthly billing or fraud protection. To make sure you’re getting the most from your credit card transactions and avoid any unexpected charges, it’s important to understand the fees associated with each type of transaction.


Let’s take a look at one of the most common types of credit card processing: swiped transactions. When you accept a payment by swiping a card at the point-of-sale terminal, you will be charged an Interchange Fee, which is set by the credit card companies. This fee can range from 1.5% to 3.5% of the total transaction amount and includes both an Authorization Fee and a Transaction Fee. Additionally, you may also be charged additional fees for features like fraud protection or monthly billing.


Another type of credit card processing is keyed-in transactions. This type of transaction occurs when a customer provides their card information directly to the business, either online or over the phone. Keyed-in transactions are typically more expensive than swiped transactions, as they require additional processing. The Interchange Fees for keyed-in transactions range from 1.75% to 3.5%, and there will also be a Transaction Fee associated with the transaction.


In addition to Interchange Fees, you may also be charged other fees such as Discount Rate Fees, Monthly Service Fees, Address Verification Service Fees, and more. It’s important to understand what each of these fees are and how they factor into the total cost of credit card processing so that you can make informed decisions when selecting a processor.


Finally, it’s also important to know your rights as a merchant. You have the right to negotiate your credit card processing fees for small business and make sure you’re getting the best deal possible. Always take the time to understand all of the fees associated with your processor and be sure to shop around for different options.


Knowing how to manage credit card processing fees is an important part of running a successful business. With this guide, you should have a better understanding of the fees associated with credit card transactions and how to make sure you’re getting the best deal.

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